Allen Palmer says the partner has asked to remain anonymous until the end of February, when the final "i's" will be dotted and the "t's" will be crossed. Tom Lee, who is leasing the 10-story, 285,000-sf building with fellow Frederick Ross Co. broker Scot Garel, says the partner will supply about $60 million, which is basically the construction cost for the class-A building. He estimates the completed building, when it is fully leased, would be worth between $75 million and $80 million.
The spec building is scheduled to open in June 2002. It will be the first of several new buildings on the drawing board to open, Lee notes. He expects triple net leases of $24 per sf, with expenses of $8 per sf. Although that is near the top of the market, some top high-rises today are commanding even higher rates for some of their space, he stresses.
Legacy Partners, based in Foster City, CA, is developing the building next to ultra-luxury new lofts and condominiums being built by Colorado-based East West Partners. "This is the area everyone wants to be," Lee says. "A building like this, in this location, will help companies attract and retain employees." He says it will be perfect for law firms, financial service companies and other professional service firms.
The building will have floor plates ranging in size from 26,000 sf to 35,000 sf, while the typical CBD office building has floor plates of 20,000 sf. And it will have two to 2.2 parking spaces per sf in comparison to the one per sf usually found at a class-A building, he says. "We're going to have suburban floor plates and parking ratios in an urban setting," Lee says.
There really are only two categories of tenants that won't be attracted to the building. "There are some companies that only want to be in the suburbs and there are others that don't want to pay our rates, or can't afford them," Lee says.
Legacy Plaza will feature a curved curtain wall on one side. That will make a stunning architectural statement, as well as maximizing views, Palmer believes. Legacy Plaza is being designed by Denver-based Klipp Colussy Jenks DuBois Architects and Hyulton Design of Evergreen, a mountain community west of Denver. Legacy Partners controls a commercial real estate portfolio worth more than $4 billion and manages about 35 million sf.
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