FEATURE ARTICLE, OCTOBER 2005

OFFICE & INDUSTRIAL PARKS
Dan Marcec

OPUS SOUTH CONSTRUCTS NEW HOME FOR SOCIAL SECURITY ADMINISTRATION'S SOUTHEAST PAYMENT PROCESSING CENTER

Several views of the Social Security Administration's Southeast Payment Processing Center, which is under development in Birmingham, Alabama.

“This project is quite unique, and it will serve as an aid to the redevelopment of this historic area of Birmingham,” says Duane Wood, vice president of Opus South Corporation. “In addition, we're seeking a silver LEED (Leadership in Energy and Environmental Design) certification through introducing green roofs and daylight harvesting, and we've incorporated excellent views of the city.”

The complex will break ground this October with delivery planned for late 2007, and it will include amenities such as a high-tech mail center, a full-service cafeteria, a credit union, a fitness center and an auditorium. Perhaps the most interesting feature of the development is its Main Street concept. Essentially, Main Street is a corridor that runs directly through the middle of the building, and the roof structure is built on a series of varying heights so as to imitate the hills to the south of Birmingham. The view from this area overlooks downtown, and all the amenities will be in this central location.

“One of the biggest challenges in developing this project was not being able to have direct contact with the client, as the GSA and the SSA came up with a program of requirement that outlined exactly what they needed in a facility,” explains Wood. “But we've worked very hard to incorporate the unique elements they've specified, and they did a great job laying out what they wanted for the project; we hope and believe that this will be a spectacular new project for downtown Birmingham.

HALL ASSOCIATES REDEVELOPS ROANOKE INDUSTRIAL SITE INTO NEW MEDICAL OFFICE PARK

Hall Associates, Inc. is starting construction on Riverside Center, a 27-acre business park situated on a former industrial site in the inner city of Roanoke, Virginia. Upon full build-out, the project will house approximately 1.1 million square feet of biomedical office space. Riverside Center is being developed as a joint effort of the Roanoke Redevelopment and Housing Authority, the city of Roanoke and Carilion Health System, the latter of which has roughly 10,000 employees in the local vicinity.

“In general, this project is a means by which the city of Roanoke can reinvent its economy,” says Ed Hall, president and CEO of Hall Associates. “The management at Carilion Health System formed a partnership with the University of Virginia and Virginia Tech several years ago to create a biomedical center and research and technology park here, and Riverside Center is the outgrowth of that idea.”

Construction of Riverside Center's first phase is scheduled to commence by the first of October. Phase I is a 55,000-square-foot building that will be complete in fall 2006. Tenants for that building include Carilion Biomedical Institute, Luna Innovations, American Biosystems and Medical Enzymatics. This building is expandable to 100,000 square feet, and the remaining 45,000 square feet will be added as soon as the market allows and the tenants can sign. In addition, Hall Associates is beginning construction on the Carilion Consolidated Laboratory, which is a 50,000-square-foot building. The balance of the 1.1 million square feet includes eight buildings and three parking structures. According to Hall, the timing of the build-out will depend on the market, and the entire development will cost approximately $135 million.

“The main thrust of tenants in the park will be in the biomedical field, because our emphasis is on attracting new firms as well as growing firms,” Hall says. “We might lease to supporting tenants, such as a law firm that specializes in the biomedical field, or an insurance company, maybe some other office users; but most likely all the tenants will be related to the biomedical business.”

While Riverside Center is located in the inner city of Roanoke, it is not quite in the downtown district; therefore, it creates another office district to the local market. It is surrounded by commercial development to the north and a river to the south, on the other side of which lies residential. Therefore, if they so desire, employees of the new office park will be able to live, work and shop within a half-mile radius.

“Riverside Center is not just a real estate project,” explains Hall. “Carilion Health System traditionally is not in the business of being a real estate developer; rather—aside from functioning as a healthcare system—it generates economic development for the region. Carilion already has more than 10,000 employees in the area, and if this project is successful, it will create a positive economic engine for the city of Roanoke.”

DUKE REALTY CORPORATION EMBARKS UPON NEW OFFICE, INDUSTRIAL PARKS IN NORTHEAST GEORGIA

Indianapolis-based Duke Realty Corporation recently purchased two large parcels of land in northeast Atlanta: a 100-acre parcel located in Duluth, Georgia, that will be developed into an office park, as well as a 318-acre site situated just off Interstate 85 in Braselton, Georgia, on which the company plans to develop a new industrial park.

At the Duluth office park, Duke is planning a total of 960,000 square feet of office space in six or seven buildings. The land is not developed at all, so the company will design the road system and the infrastructure for the park.

“This acreage was one of the last tracts we could buy in the northeast Atlanta submarket, a strong area where we've had success,” explains Bob Fessler, executive vice president of Duke's Atlanta region.

Fessler adds that very likely there will be ancillary retail to supplement the office component of the project. Overall, since Duke must design the road system and obtain other permits, the plan calls to begin moving dirt sometime in 2006.

“We have some preliminary timings where we will build out the park over a multi-year scenario,” Fessler says. “We'll build some spec projects when the market is right, and I can see us doing some build-to-suits, but basically, this development is going to give prospects options of brand new, Class A office buildings in a great location in a great submarket.”

Just off Interstate 85 in Braselton, Duke also acquired a 318-acre industrial site, which differs from the office land because it is already developed. There is a four-lane road running through the park, which will be called Park 85 at Braselton, the infrastructure is in, and there are pads ready to be constructed upon. In addition, Duke purchased a 500,000-square-foot warehouse that was built on the site by another developer in order to have immediate product.

“This site will build out faster than the office park, because whereas office goes in chunks of 50,000 square feet to 100,000 square feet, industrial sites can go 50 acres at a time and in chunks of 500,000 square feet,” Fessler notes. “The industrial market in Atlanta is very good right now, and this is one of the strongest submarkets.”

The master plan again calls for both build-to-suits and spec buildings, with total build-out at approximately 4 million square feet. The goal is to lease out the existing building, and then start a spec warehouse next spring, ideally. Again, though, that will depend on the market.

“I could see us doing a spec building and a build-to-suit a year,” Fessler says. “The good thing about this land is that it's all ready to go, so we can start building much quicker than our competition.”

©2005 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.