DALLAS-Two renewals and one new deal have locked down 142,409 sf of class A office space in Plaza of the Americas in the CBD. And the largest one, inked by JPMorgan Chase, included a 15,566-sf expansion to bump its total to 111,566 sf with a 15-year agreement.
JPMorgan Chase’s renewal and expansion closes off five full floors in the asset’s north tower at 600 N. Pearl St. “This is significant. They are making a long-term commitment to the Downtown with their space here and at Chase Tower next door,” Joel Pustmueller, partner in Peloton Real Estate Partners of Dallas, tells GlobeSt.com. The financial giant’s new deal spans floors seven and eight and 13, 14 and 15, with keys poised to turn to the new space in October.
JPMorgan Chase, in some form of a banking flag, has occupied space in the 1.18-million-sf asset since the day it opened in 1980. Pustmueller says the new deal was at the bargaining table nearly six months, ending with terms that include a full five-floor renovation. Matt Craft and Jon McNeil with Jones Lang LaSalle’s Dallas team represented the tenant, which as local brokers know is shuffling space at several CBD locations, including Bank One Center at 1717 Main St., where prepping is underway to make way for the arrival of Comerica’s HQ from Detroit although it’s not been officially announced by corporate chiefs as yet. In addition, JPMorgan Chase’s lease at KPMG Centre at 1717 N. Harwood St. is nearing its end, according to Pustmueller.
“Chase had several options to consolidate Downtown,” says Pustmueller, who partnered with Peloton marketing associate Carla Machulis to negotiate the win. “It was a very competitive deal for sure.”
In another renewal, Capmark Financial held tight to 13,541 sf on floor 12 of the 25-story north tower. Pustmueller says the five-year leaseholder, renewing about 18 months early, signed a seven-year pact this time. Capmark’s tenant reps were Rebecca Griffin, managing principal for Newmark Knight & Frank in Dallas, and associate director Wilson Stafford.
Arriving in November will be Memphis-based Sedgwick Claims Management Services, which took 17,302 sf in the 25-story south tower at 700 N. Pearl S. Pustmueller says the firm, moving from Lincoln Plaza at 500 N. Akard St., has leased nearly all of the twelfth floor, getting expansion rights to the balance, in a long-term pact. J. Patrick Gamble, a vice president in CB Richard Ellis’ Memphis office, represented the tenant in a three-month round of bargaining before the deal was bed down.
The triple play has pushed Plaza of the Americas’ office space to 75% occupancy. “We have three to four other deals working right now,” Pustmueller says. The quoted office rate is $18 per sf plus electric.
The New York City-based Blackstone Group inherited 50% interest in the mixed-use Plaza of the Americas in last year’s buyout of Trizec Properties Inc. And, it’s the only one that it hasn’t sold to date.