CHICAGO (Feb. 14, 2023) — Glenstar Properties, known for two decades as a national office and multifamily developer, is expanding its recent focus in industrial development with the announcement of its newest project – Cherokee Commerce Center 85 (CCC 85), a 290-acre commercial warehouse park in Gaffney, S.C. Located between Greenville-Spartanburg, S.C. and Charlotte, N.C., CCC 85 will break ground this spring on its first of five buildings, a 550,000-square-foot spec-to-suit warehouse that will be expandable to 1.3 million square feet.
The news of CCC 85 follows Glenstar’s 2022 debut in the U.S. Southeast industrial sector with the groundbreaking of Tri-County 75, the firm’s new 72-acre, four-building industrial park in Fort Myers, Fla., totaling 818,000 square feet. That same year, Glenstar made the strategic hire of 30-year industrial veteran Brian Netzky as principal.
Netzky joins Glenstar’s Co-founder Michael Klein in leading the firm’s new industrial initiatives, which are primarily focused on the Sunbelt region, and specifically the Southeast’s booming I-85 corridor.
“Despite headwinds and talk of cooling in some markets, we see only room to run for industrial, particularly in the Southeast, which has record-low occupancy combined with tremendous population growth that’s creating even more demand,” said Klein. “We anticipate significant pre-leasing on our ground-up, big box, institutional-quality industrial facilities, which enables us to modify the spec space to suit tenant needs in real time. We also have the advantage of having Brian’s industrial expertise as a tenant broker to identify sites and build facilities from the tenant point of view.”
Netzky founded Interstate Tenant Advisors, which he led for nearly 15 years before merging with Colliers International in 2018. He remained an executive vice president with Colliers for two years before joining Glenstar. Throughout his career, Netzky has executed occupier strategy and site selection on many of the largest industrial leases in North America, spanning over 30 million square feet across more than 70 major markets for e-commerce, retail distribution, consumer product distribution, paper and plastic packaging and food processing, and other firms.
“We worked with Brian while he was still at Colliers, and he has been instrumental to our success on Tri-County 75, our new industrial park in Fort Myers,” Klein said. “We knew he was exactly who we needed at Glenstar to help grow our industrial portfolio. His unique “end-user first” approach to site selection and development coupled with this deep, nationwide broker network and capital partners is an unbeatable combination.”
Cherokee Commerce Center 85, Gaffney, S.C.
In late Spring, Glenstar and capital partner Creek Lane Capital will break ground on the first building at CCC 85, their new warehouse park that will total five buildings and encompass 3.6 million square feet at the intersection of Hyatt Street/SC Highway 105 and the I-85 corridor, an area of rapid growth. Called Building 2, the first warehouse will offer 555,520 square feet (expandable to 1.3 million square feet), with completion expected in Spring 2024.
Warehouses at CCC 85 are being built on a speculative basis and pre-leasing is underway. Building 2 will also have a cross-dock orientation, 40-foot clear heights, up to 232 dock doors, four drive-in doors, and parking for 452 trailers and 540 cars. Next to break ground will be Building 4, a rear-load orientation, 36-foot clear heights, 56 dock doors, two drive-in doors, and parking for 132 trailers and 324 cars.
“Due to CCC 85’s massive scope and ideal location, tenants can choose from a range of mid- to bulk-size, best-in-class industrial space adjacent to the I-85 corridor, which is one of the most critical supply chain links in the Southeast,” said Netzky. “The ample space also allows for flexibility to accommodate up to 1.7 million square feet under one roof.”
CCC 85 is conveniently located 33 miles from the BMW Group Plant Spartanburg, 38 miles from Inland Port Greer in upstate South Carolina, and 50 miles west of Charlotte, N.C. From CCC 85, tenants can reach 100 million consumers within a one-day drive. Tenants and owner/occupiers will also have access to Tier-3 incentives to further maximize ROI.
Ware Malcomb has been selected as the architect for Cherokee Commerce Center 85, while The Conlan Company will serve as general contractor and SeamonWhiteside will provide civil engineering services. The industrial space will be leased by Colliers.
Tri-County 75, Fort Myers, Fla.
Speculative construction is underway at Tri-County 75, a new, 72-acre industrial park in Fort Myers, Fla., Glenstar is developing in partnership with Columnar Holdings. When complete, the four-building campus will offer 818,434 square feet of industrial space at the intersection of I-75 and Luckett Road.
“We are proud to be a pioneer of big box, Class A warehouse space in Southwest Florida,” said Netzky.. “The Fort Myers industrial market vacancy rate dipped to a historic low of 0.8% in Q4 2022, demonstrating the robust demand for modern distribution space. Our new, state-of-the-art facilities – along with abundant yard space – will help companies move products quickly and cost efficiently to one of the fastest-growing areas in the nation.”
In the center of Tri-Country 75, Building 3 presents an industrial product that is the first of its kind in Southwest Florida – a speculative 404,000-square-foot cross-dock warehouse with 36-foot clear heights. In November 2022, Glenstar signed a 252,860-square-feet lease with Ferguson Enterprises for two-thirds of the building, which was the third largest lease ever signed in Lee County. A national distributor of plumbing and HVAC supplies, Ferguson is relocating from its current regional distribution center and will take occupancy in Building 3 once construction is complete in September 2023.
“Ferguson prides itself on getting products to its customers fast, and they do that by occupying best-in-class distribution centers in strategic locations nationwide,” said Klein. “Tri-County 75’s large truck courts, abundant trailer stalls, secure outdoor storage, and easy highway access allow hundreds of trucks to leave the park every day to deliver products to customers throughout Florida within a day. With 36-foot clear heights, Ferguson will be able to stack its valuable inventory from floor to ceiling and utilize the best warehousing technology.”
The remaining 151,340 square feet available for lease at Building 3 offers 36-foot clear heights, 28 truck docks, two drive-in doors, and parking for 33 trailers and 103 cars.
Building 2, a speculative, 216,412-square-foot warehouse at 6135 TriCounty Commerce Way, is fully enclosed and construction is scheduled to deliver in April 2023. The building features 32-foot clear heights, 57 truck docks, four drive-in doors, and parking for 75 trailers and 233 cars.
Located in the economic center of Southwest Florida, Fort Myers is part of the Tri-County area which includes Lee, Collier and Charlotte counties. The new Tri-County 75 industrial park is a 12-minute drive from the Southwest Florida International Airport, and is located 33 miles north of Naples, and 73 miles south of Sarasota. The Tri-County area has 1.2 million residents and a workforce of more than 500,000.
Ware Malcomb is serving as project architect for Tri-County 75, while The Conlan Company is the design-build contractor and DeLisi Fitzgerald is the civil engineer. Square Mile Capital Management LLC is providing the loan to finance the development, and the Naples – Fort Myers office of Lee & Associates is overseeing leasing.
Glenstar Properties, a Chicago-based national commercial real estate firm specializing in industrial development, reimagined office and multifamily properties. Founded in 2004 by Michael Klein, along with Rand Diamond, Glenstar has successfully developed or redeveloped more than $2 billion in commercial space comprising 10 million square feet across the U.S. Its nimble, tenant-focused approach and vertically integrated structure allow Glenstar to not only pursue and execute opportunistic projects, but also oversee and manage them seamlessly.
For more information or to schedule an interview, contact Paula Widholm, email@example.com, (312) 267-4525.
CHICAGO (July 6, 2021) —Cyclone Energy Group announces an airPLAN partnership with Glenstar Properties. Glenstar has launched Cyclone’s airPLAN in all six Chicagoland properties at the start of 2021, totaling over six million square feet of commercial office space.
Cyclone announced airPLAN, an Indoor Air Quality monitoring service, earlier this year when the collective conversation began to shift to buildings reopening safely. Realizing that indoor air quality would fast become an essential point of value that will be part of the new baseline standard of expectations from the tenant/building occupant, airPLAN was established for building managers to show that they are proactively taking steps to increase and maintain the air quality of their facility. Indoor air quality is an essential measure for property managers to track as a means of providing an environment that is free of common air pollutants. airPLAN provides a valuable tool in making operational adjustments to the building as tenants reoccupy the buildings.
Glenstar was the first portfolio to adopt the program, installing the first monitors in January. According to Michael Giese, Executive Director of Property Services for Glenstar, “we chose airPLAN because it’s important to show our tenants we are proactively monitoring our buildings’ indoor environments. What we like about the program is that in addition to the monitors and the ability to access the data 24/7, we also get the Cyclone team of engineers to help us manage the data and make adjustments when needed to make sure we stay on track.”
Each sensor module Cyclone deploys streams over 1.4 million air quality data points to the cloud every day. The air quality dashboard simplifies the data allowing for a real-time look in on spaces throughout the building. Cyclone engineers monitor the buildings and help identify strategies to fin-tune operations to balance a healthy indoor environment with an energy efficient building. Reports to the building show more useful data than traditional indoor air quality testing that only takes a snapshot in time
“Creating a healthy indoor environment for occupants to use, enjoy, and feel safe is our top priority. airPLAN is a service that not only helps build confidence with reopening, it provides a platform to maintain a healthy and efficient building.” says Benjamin Skelton, President of Cyclone Energy Group. “In working with Glenstar, we’ve been able to monitor the impact of tenants returning to the office and advise on operational adjustments that not only maintain the air quality, but don’t penalize the properties’ energy costs.”
To find out more, join Benjamin and Michael on Wednesday July 14 at 11am CT, when they will co-host a BOMA Chicago webinar, “Measuring and Maintaining Healthy Indoor Air Quality”.
airPLAN: Trusted Advisors + Technology = Enhanced Built Environments
To learn more email airPLAN@cyclone.energy .
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About Cyclone Energy Group
Established in 2012, Cyclone Energy Group provides reliable analysis, cutting-edge insights, and practical solutions through all stages of a building’s life cycle, from design to construction, through warranty, and into operations. Based in Chicago, our Team works throughout the United States on behalf of designers, contractors, developers, owners, and property managers. Our regionally-diverse portfolio of completed projects ensures that we can bring broad experience to each unique property engagement.
For more information, please visit www.cyclone.energy
Cyclone Energy Group Media Contact:
Mary O’Donoghue Andujar
Glenstar is a commercial real estate company specializing in reimagined properties combining innovative design, state-of-the-art technology and thoughtful amenities in order to create spaces where tenants want to be. Glenstar approaches all of its projects in the same way – with the tenant experience at the core. Over the past two decades, Glenstar has acquired and developed over $2 billion in office, retail, residential and medical building assets adding up to more than nine million square feet of trendsetting space.
The Meadows Building, the cornerstone of the Energy Square Dallas campus received the 2021 Preservation Achievement Award from Preservation Dallas.
The Meadows Building is one of the best examples of mid-century architecture and the first high-rise constructed outside of downtown Dallas. When Glenstar acquired the property in 2015, the building had suffered from years of improper maintenance and detrimental modifications. Preservation work included removing, restoring and reinstalling the Georgia pink marble flanking the building facade. The second floor balcony, removed in 1984, was reconstructed to match the original 1955 design. The original decorative roof on the Annex Building was reinterpreted to duplicate the original colorful design. The building’s insular plaza, added in 1984, that separated the Meadows Building from the rest of the campus was regraded to create a unifying central space for the campus, while complimenting the building’s mid-century style.
Glenstar has been named to Crain’s Chicago Business Best Places To Work for a third straight year, increasing our position to 23 overall and the highest-rated real estate company on the list.
Source: Crain’s Chicago Business
Continental Towers has been named a finalist for Redevelopment of the year at the Greater Chicago Food Depository’s 33rd Annual Commercial Real Estate Awards!
The Chicago Commercial Real Estate Awards brings together more than 1,850 of Chicago’s top architects, brokers, developers, property managers, interior contractors and design professionals to both celebrate the outstanding achievements in all facets of the industry and to support the Greater Chicago Food Depository. This partnership truly helps to build a better Chicago by raising money to help provide meals for our neighbors facing hunger.
See the complete lists of finalists HERE. We are thrilled to be recognized and to support this important cause!
Looking over this year’s Best Places to Work winners, it’s hard not to get nostalgic for the office, pre-COVID. Talk of tricked-out breakrooms, birthday celebrations, impromptu happy hours and rooftop decks has us pining for the days of interacting in real life with co-workers.
Today, most of us are still working from home, unsure when office life (or any part of life) will be back to normal. It will happen, of course, and when it does, these companies are showing the way: providing employees with the perks, amenities, pay and benefits that keep them happy and productive.
A record 14,522 employees participated in our survey about their workplaces this year, well before the virus took hold.
Glenstar and Rubenstein Partners have wrapped up a $20 million renovation at Continental Towers. Launched last summer, it marks the completion of a two-phase redevelopment project started in 2015 at the 910,000-square-foot office complex located at 1701 Golf Road in Rolling Meadows, Illinois.
The centerpiece of the modernization project is a massive one-acre outdoor multi-level landscaped terrace, the largest of its kind in the Chicago suburban office market. The space features flexible seating and spacious gathering areas, which is a perfect amenity for tenants in today’s environment. Fire pits and grills add to the casual vibe, and a synthetic lawn area is perfect for outdoor health and wellness programming. Additional improvements include fully renovated lobbies, elevator cabs, common areas, the addition of a game room and a renovated café/tenant lounge with a fireplace and views of the outdoor area.
“The excellent location and wealth of newly upgraded amenities at Continental Tower offers an exceptional choice for tenants seeking best-in-class space in the Chicago suburban office market,” said Peter Gottlieb with Rubenstein Partners.
In 2015, Glenstar invested an initial $30 million highlighted by the construction of a 734-stall parking garage, reconfigured site plan with newly created entrances, canopies and drop-off areas and a renovation of a 23,000-square-foot fitness center run by Midtown Fitness.
“When we began this project, corporate tenants were looking for highly-amenitized buildings with modern interiors and vibrant communities,” said Glenstar’s Michael Klein. “Now everyone’s concern is around safety and social distancing—and we have a robust program in place to address this. Our new amenities, especially our sprawling outdoor areas, provide tenants the opportunity to work outdoors and meet with their colleagues at a safe distance. We are pleased that the improvements we recently completed translate well into our current environment.”
Continental Towers is a three tower office complex located in Northwest suburban Chicago. The buildings sit on 34 acres with unobstructed views in all directions, easy access to the Woodfield Mall and high visibility along I-90. Notable tenants include Verizon and Panasonic.
Glenstar originally acquired Continental Towers in 2013 and recapitalized the project in 2018 with Philadelphia-based Rubenstein Partners, L.P.
Source: RE Journals
MiSUMi USA is relocating its corporate headquarters operations into nearly 48,000 square feet of space at 1475 E. Woodfield Road in Glenstar’s Schaumburg Corporate Center here.
The firm signed a 47,716-square-foot lease deal at the 1-million-square-foot, three-building, Class A office complex.
Newmark Knight Frank’s senior managing director Paul Buckingham and managing directors Brian Reaney and Matt Frazee represented MiSUMi USA in the transaction. Glenstar’s Dave Trumpy and Bill Saviski represented the building ownership in the transaction.
MiSUMi USA plans to take occupancy of its new space in June of this year. The firm is relocating from 1717 Penny Lane in Schaumburg, where it currently leases 32,000 square feet.
“We are thrilled to be moving our North American headquarters to the beautifully redeveloped Schaumburg Corporate Center,” says VP of human resources for MiSUMi USA Randy Yu. “Glenstar’s investment in the building has created what will be a second-to-none experience for our employees.”
Chicago-based Glenstar, who acquired the asset located adjacent to the Woodfield Mall in 2017 for more than $70 million, has since completed a $30-million redevelopment of the property to include a new 500-car parking garage, a 10,000-square-foot state-of-the-art conference center as well as upgrades to the building’s common corridors, washrooms and elevators. In addition, Glenstar renovated the four-story atrium, fitness center, building lobbies, entrances and canopies at the complex.
Steve Wright, left, and Roger Heerema of Wright Heerema Architects
If you ask Steve Wright how to revive an outdated suburban office building to cater to millennials, the answer starts with plants.
At the former OfficeMax headquarters in Naperville, his architecture firm and developer Franklin Partners cut away portions of large trees, put in new smaller ones and strategically replanted some flower beds as part of a multimillion-dollar redevelopment to make the 350,000-square-foot property more appealing to a variety of companies.
“It gives a little better scale to the entrance not to have it be shrouded in landscaping,” says the principal of Chicago-based Wright Heerema Architects. “And we updated the plant material for today’s tastes. There’s no petunias anymore.”
Horticulture isn’t necessarily Wright’s specialty, but knowing what will help convince a company in 2020 to lease an office in the suburbs is. The firm has worked with landlords to redesign more than two dozen suburban office properties over the past three years, projects totaling an estimated $80 million in capital improvements ranging from six-figure face-lifts to a $30 million overhaul.
It’s one of several design and consulting firms helping landlords redraw properties in the suburban office market as it recovers from a decade of high-profile companies uprooting for downtown in pursuit of young talent.
After the suburbs lost 2.5 million square feet of office tenants in 2017 and 2018 combined, companies reversed that trend last year by adding back more than 1 million square feet of net new leasing, the most for any year since 2015, according to data from brokerage Jones Lang LaSalle.ADVERTISINGinRead invented by Teads
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Many pockets of the suburbs are still grappling with high vacancy and landlords having a hard time justifying big renovations out of fear they won’t recoup their investments through higher rents. But the recent demand momentum is spurring more landlords to plow capital into well-located suburban office buildings, some proving there’s money to be made if updates are done right. And they’re relying on firms like Wright Heerema to show them how the next generation of suburban workspace should look.
“We’re creating a sense of community, so that people don’t feel left out being in the suburbs,” says Wright, who has spent four decades designing offices in the Chicago suburbs. Today it is taking on revamps of buildings it helped design when they were new a generation ago, when many corporate giants were operating out of large, single-tenant buildings meant to be more “stately” than welcoming, he says.
That means taking cues from urban trends: natural wood and neutral color tones are in and marble isn’t, for example. But making a sprawling suburban office campus appealing to a company chasing a generation of employees that highly value the experience of their workday requires far more than making a 30-year-old tenant lounge look like something out of the West Loop.
For one, grand front desks typically found just inside the entrance of office properties built in the 1980s and 1990s no longer work. Those are being hidden and replaced by amenities that generate the most activity, like coffee bars, fitness centers and conferencing space. “It’s not unlike walking into a hotel,” says principal Roger Heerema. “There’s a feeling of life that is immediately apparent.”
Strategic use of light fixtures and canopies over entrances make a difference, he says, as does making sure tenants are actually noticing them. At the Westwood, a half-empty, two-building office complex being renovated in west suburban Lisle, the tenant lounge is located near a main visitor entrance. So Wright Heerema designed new lounges for both buildings near second entrances where most employees come and go.
The lobby of Presidents Plaza before, inset, and after its renovation.
At Presidents Plaza near O’Hare International Airport, a reclaimed-wood-clad coffee bar that becomes a regular bar by 4 p.m. each day is now a lobby focal point, and a jumble of planters and trees in its main atrium have been replaced by a minimalist collection of lounge seating, part of a $20 million renovation by Chicago-based developer GlenStar.
The payoff: Tenants have recently leased space at Presidents Plaza for $24 per square foot before taxes and operating expenses, or about 25 percent more than those that signed two years ago, according to the property’s owners.
In the suburbs’ corporate heyday, office buildings “were machines for working—you packed people into them,” says OKW Architects Chairman and CEO Jon Talty. “That attitude has changed profoundly. The lifeless machines need to have meaning to them to be relevant.”
Talty says the trick is to try to use materials and designs that are equal parts “timeless” in style, appealing to today’s tenants and also cost-effective enough that they could be totally redone again in 10 years.
The new Denver-based owner of the former Sara Lee headquarters in Downers Grove recently hired OKW to design another round of upgrades even though the previous landlord spent $7.4 million over the past several years on updates that helped refill the 13-story building with new tenants.
“It’s fashion, to a certain degree,” says Talty, whose firm helped redesign the former Nokia Siemens campus in Arlington Heights for financial services firm HSBC. “The three-button suit is out and we’ve got to move to the next thing.”
Some revamped suburban office buildings are still hunting for tenants. The former OfficeMax home—rebranded as the Shuman—has leased or is finalizing deals with half a dozen companies for about 25 percent of the building. They’re betting demand will grow as more millennials move to the suburbs and downtown rents keep rising.
But many outmoded office properties will be better off repurposed rather than revived with new amenities, Talty says. Especially as companies lay out offices more efficiently to squeeze more people into smaller spaces than they did 10 or 20 years ago.
“They’re not all going to be repositioned,” he says. “The better ones will be, and the weaker ones are going to have to become something else.”
Top tier is the descriptor most used for an office asset located at 59010 North Central Expressway. Glenstar recently acquired Premier Place, a 457,000-square-foot class-A office building, with a 62,000-square-foot Life Time Fitness club. The sale price was not disclosed.
After spending more than $50 million and 14 months in construction, owners of one of North Dallas’ biggest office campuses are pulling the wraps off the redo.
The 14-acre Energy Square at North Central Expressway and University Drive has as much office space as a downtown skyscraper but spread among five buildings. The office towers were built over 50 years ago and were divided by parking lots, loading docks and driveways.
Energy Square owners GlenStar Properties and USAA Real Estate reworked the entire block, connecting the high-rises with a new entry drive, landscaped plaza areas and shared amenities.
“We are 98.5% done,” said GlenStar principal Matthew Omundson. “We are finishing all the details like artwork and furniture. We put our tenants through a lot with the construction. The response we’ve gotten now that it has been delivered is very positive.”
The office towers are more than 80% percent leased with new deals in the works since redevelopment is wrapping up. Additions to the campus include a large tenant conference center, a fitness center with rooftop patios and multiple outdoor gathering spaces for workers. Fitness facilities alone total 10,000 square feet.
“We have close to 4,000 people working in this campus,” Omundson said. “We needed to do something large enough to accommodate them.”
All of the buildings have gotten new eatery additions, ranging from snack bars to full-scale restaurants.
“We have four on-site food options and we have two more to be signed up soon,” he said.
Public areas in the office buildings have large seating areas with fireplaces, big screen TVs and indoor and outdoor lounge areas. “Every building has a brand-new lobby,” Omundson said.
The campus is visually connected by Brad Oldham’s outdoor art sculptures, and extensive landscaping designed by Studio Outside.
“We have more than a mile of steel planter boxes,” Omundson said.
Architect Gensler, which relocated its regional office to the project, redesigned the buildings. Whiting-Turner was the general contractor.
The redevelopment also included a fix-up of the landmark Meadows Building, one of Dallas’ first “suburban” office towers. The other three office towers were constructed in 1974, 1981 and 1986.
JLL’s Jeff Eckert, Blake Shipley and Haley Hullett are leading the leasing efforts for the property.
GlenStar and USAA Real Estate paid about $150 million in 2015 for the three towers. The historic Meadows Buildings was purchased later from a West Coast owner. The property is USAA Real Estate’s largest holding in North Texas.
“When we acquired this project, I said USAA Real Estate could not be more pleased to be part of this exciting renaissance of Energy Square and the Meadows Building,” Len O’Donnell, president and CEO, said in a statement. “And today, I am extremely pleased that our partnership has delivered on that renaissance. There isn’t anything like it along Central Expressway.”
GlenStar plans to celebrate the project completion with a series of entertainment gatherings.
“Those are the type of events that now that we have the space we will be providing,” Omundson said. “It’s what the employers and workforces are looking for today.”