By Adam Broderick
Senior Vice President
Jones Lang LaSalle
As the Class-A suburban market office continues to tighten rather dramatically, two office parks that had been sitting on the sidelines working through the receivership process have been purchased by investors and are now being repositioned in the market.
Built in the late ‘80s by Lauth Property Group, Meridian Plaza is a 310,000-SF three-building complex located between 103rd and 106th street on Meridian Street. The ongoing renovation of Meridian street to a limited access highway will uniquely position the properties because they will be located at the first exit (106th street) off Meridian heading north from I-465. Zeller has plans to renovate buildings Two (123,000 SF) and Three (116,000 SF) while making building One (70,000 SF) available to a single user for lease or purchase. The lobbies, common areas and restrooms will be updated. There is an existing conference room with plans to add a fitness center. Additionally, Zeller has plans for a “fun room” with pinball, ping pong, etc..
Currently, Class-A space in the North Meridian corridor has a vacancy rate of less than 10% and little to no available large tracts of office space. Zeller’s planned upgrades will bring the property back to a Class-A quality and offer the large tracts of space the submarket is lacking.
Two and Three Woodfield Crossing
Two and Three Woodfield Crossing were built the late ‘80s by Duke Realty and spent 15+ years as top-of-market, Class-A properties. Duke sold them at the height of the market in 2006 to Premier Properties. Soon after, Premier filed for bankruptcy and lost their entire portfolio. For almost 5 years, the properties sat in limbo as the receivership process played out. In December 2013, Neyer Properties purchased the buildings and immediately set plans in motion to return them to the best in class suburban office buildings they once were. Three Woodfield (265,000 SF) features a dramatic 5-story atrium lobby and houses the conference center and fitness center available to tenants in both buildings. Two Woodfield (125,000 SF) is configured well for small to mid-size companies seeking great space with visibility and identity from the elevator lobbies. In both buildings, the lobbies, common areas and restrooms are being renovated. The lobbies are designed to be more interactive and provide space and seating areas for tenants to utilize and enjoy. They will have WI-FI throughout so employees may work outside the confines of their office space. The fitness center and conference center are now free of charge to all tenants.
Similar to the North Meridian Corridor, the Keystone Crossing Class-A space is less than 10% vacant and lacks large tracts of space. Three Woodfield crossing offers large tracts up to 125,000sf, a rarity in the market today. The improvements in Woodfield should be complete in the summer. There is already very strong tenant interest in the properties and we look for that to continue.