WestinghouseElectric Co.'s

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Mine Safety Appliance Co. owns the business park. On conditionof anonymity, an area broker tells GlobeSt.com the price of theland was $14 million. Wells has an option on an adjacent 23-acreparcel that would allow expansion of up to 1.2 million sf.

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Dallas-based Trammell Crow Real Estate Development &Investment Inc., now an independently operated subsidiary of CBRichard Ellis, is developing the three-building, 770,000-sfcomplex, which will be owned by Wells REIT II. Westinghouse hassigned a 15-year lease for the facility under an agreement thatbegins with completion of the second phase of the project.

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Phase one calls for a five-story, 440,000-sf central building tobe completed in mid-2009, followed by a second phase containing twofour-story buildings of approximately 160,000 sf each that willflank phase one. They are scheduled for occupancy in mid-2010. Theconstruction cost for both phases is $180 million.

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This culminates a seven-state, two-year site search, conductedfor Westinghouse by a team in the New York City office of theAddison, TX-based Staubach Co. Drew Saunders, senior managingdirector of Staubach corporate services, tells GlobeSt.com, "Theaggregate net value of the lease is $220 million, and, withoperating expenses and taxes, it's closer to $360 million." Hesays, equipped with the identification of the land, the buildingplan and projected costs, Staubach put the package out for bid, andWells was the successful bidder.

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Other key members of the Staubach team are James Koster,managing principal of capital markets, and Ann Marie Woessner, SVPof business and economic incentives. They were involved innegotiating incentives for the project among municipalities in allseven states and in the ultimate lease negotiation here. JeremyKronman, EVP at CB Richard Ellis/Pittsburgh LP, represented WellsREIT II in the lease negotiations.

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According to published reports, the state's incentive package towin Westinghouse was about $100 million. As GlobeSt.com previouslyreported, Gov. Ed Rendell signed legislation allowing for StrategicDevelopment Area designations, primarily aimed at keepingWestinghouse in Pennsylvania. Like Keystone Opportunity Zones, SDAsprovide for generous tax abatements, but unlike KOZs, do not haveto be in blighted areas.

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"This is the best example of Pittsburgh's resurgence in theengineering, technology and manufacturing sector," Kronman tellsGlobeSt.com. "The resurgence in medical and financial fields iswell known, but hidden behind that is its regained strength inengineering and technical sectors." He also says, and Jeff Goggins,managing director of TCC's Conshohocken-based Northeast territory,confirms that this facility is being designed for LEEDcertification.

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Goggins tells GlobeSt.com his company has been involved with MSAin four other buildings in the Cranberry Woods complex.Groundbreaking for the first phase of the Westinghouse complex willtake place next month, he says.

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This will be Wells REIT II's second property in MetroPittsburgh. It also owns 2000 Park Ln. in North Fayette Two. "Thisis going to be a true class A corporate campus that should serveWestinghouse and our investors well for many years to come," saysJeff Gilder, chief investment officer of Well Real Estate Funds, ina statement. A Wells principal could not be reached bydeadline.

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"Our new facility will be highly efficient and cost competitive,enabling us to better serve the need of our customers and thenuclear power industry well into the future," says Tony Greco, SVPof human resources and corporate relations for Westinghouse, in astatement.

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