(For more retail coverage, click GlobeSt.com/RETAIL.)
OMAHA-Midtown Crossing at Turner Park, a $250-million mixed-use development by Mutual of Omaha, has landed its first office tenant. UNMC Physicians recently signed a lease for approximately 40,000 sf in Mutual of Omaha's South Building, a 400,000-sf class A property at 3333 Farnam St. The faculty medical practice associated with the University of Nebraska Medical Center plans to move its billing and other business functions into the building in the first quarter of 2007.
The office component was recently added to Midtown Crossing at Turner Park, the first major initiative tied to the Destination Midtown project. Plans for Midtown Crossing also include approximately 200,000 sf of space for retail, restaurants and entertainment venues, 300 condos, 300 apartments and corporate extended stay residences, and approximately 2,200 parking spaces. The development will be anchored by an expanded and revitalized Turner Park.
Jason Fisher, a vice president of sales and leasing with the Lund Co., tells GlobeSt.com that initial plans call for the office space to be released in increments in the next three years. The Lund Co. has been tapped to market the office building, which is becoming available as Mutual of Omaha consolidates operations in its primary headquarters building at 3300 Dodge St.
Fisher says that if all of the space in the building had been released to the multi-tenant market at once, it would have raised the vacancy rate in the downtown/midtown submarket to 19% from 16%. He says the submarket typically absorbs about 40,000 sf to 45,000 sf per year.
The Lund Co. is focusing on mid-size to large company in its search for tenants. Fisher says the building offers 40,000-sf floorplates, an in-house fitness facility, ample parking and a highly desirable location in an area with "one of the most significant" daytime populations in Omaha. "It offers incredible access to Interstate 480 and Dodge Street, and is close to Downtown without some of the hassles of Downtown," Fisher says.
The area is expected to become even more attractive to potential tenants as the residential, retail, restaurants and entertainment venues tied to the Midtown Crossing project develop over the next three years. According to local group Destination Midtown, about 43,000 people already work in Midtown. Major employers include Mutual of Omaha, the University of Nebraska Medical Center, Kiewit Construction Co. and National Indemnity Co.
Other members of the Midtown Crossing at Turner Park development team are Chicago-based ECI Investment Advisors Inc., developer; Cope Linder Architects of Philadelphia; and Holland Basham Architects of Omaha. Investors Realty of Omaha also was involved in the UNMC Physicians lease.
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