Newport Beach Builder Signs on to $20B Miami Project

Orange County Business Journal, Feb 2-Feb 8, 2009 by Mueller, Mark

Sperry Van Ness Closing Only OC Office; Targus Negotiates HQ Lease Deal in Anaheim

REAL ESTATE

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A glut of unsold condominium towers and delayed developments across Miami haven't scared away Newport Beach's

Centurion Partners LLC from making its first foray into the South Florida market. Centurion, a developer of high-end condos, resorts and hotels, recently signed on as an investment and development partner for Miami Worldcenter, a massive project planned in an older, rundown business district just north of downtown Miami.

The redevelopment project consists of a nine-block, 25-acre part of the city known as Park West.

The project envisions about 20 million square feet of office and hotel towers, condos, shops and entertainment, developed in phases dur- ing two decades. The city's zoning commis- sion signed off on initial plans in November, and Centurion joined the development team the following month.

The other developer in the project is the Miami Worldcenter Group, a partnership of Falcone Group and the Marc Roberts Cos., two South Florida developers.

Centurion became involved through its contacts with the heads of Miami Worldcenter Group, Art Falcone and Marc Roberts, said Centurion co-managing partner Scot Matteson.

Matteson likens the Miami project to Anschutz Entertainment Group Inc.'s L. A. Live development in downtown Los Angeles.

Miami Worldcenter has an expected price tag of $20 billion upon completion. Matteson said he's confident Centurion and its partners will be able to raise the capital needed for the project.

The first phase of construction, which should total about $1 billion, includes about 2.5 million square feet of retail, restaurant and entertainment space.

The long timeline for the development will allow the company to ride out the tough economy and housing market, he said.

Pre-development work still needs to be completed; Matteson said he doesn't expect to start moving dirt until the second half of 2010 at the earliest.

More Sperry Changes

Real estate investor and brokerage Sperry Van Ness still calls Irvine home, but don't expect to see any brokers at its headquarters on Von Karman Avenue.

Six Sperry Van Ness commercial real estate offices, including the Irvine office, are being folded into its West Los Angeles operations, the company announced last month.

Local brokers will act as "satellite brokers" and telecommute, the company said.

Portland, Ore.-based Guard-ian Management LLC bought the six offices last year, as part of a portfolio of franchises in California and Arizona. Following the acquisition in 2008, two small offices near Los Angeles and one Scottsdale office were closed.

After the latest moves, Guardian's Sperry Van Ness franchises will include just one office in California and one in Arizona.

Sperry counted 39 brokers in Orange County last year, according to the Business Journal's 2008 list of commercial brokers.

Attempts to reach a representative of the Irvine office for comment were not successful.

Targus Renews

Targus Group International Inc., a maker of carrying cases for laptop computers, has renewed the lease for its Anaheim headquarters.

The company, which counts more than 200 workers and has been in business for 25 years, said it signed a long-term lease renewal with its San Diego-based landlord, Kilroy Realty Corp., for 200,646 square feet of space at 1211 N. Miller St.

Terms of the deal were not disclosed.

The company looked at other locations in Inland Empire as well as in Central before choosing to remain at its location, according to Vic Streufert, chief financial officer.

"We were able to take advantage of curmarket conditions and city inducements," Streufert said in a statement.

The Miller Street building is part of KiIroy's Anaheim Technology Center, a fivebuilding industrial property that totals about 600,000 square feet.

Targus relocated from Buena Park to the Anaheim location 10 years ago.

A 100,000-square-foot, 10-year lease that Wellington, Fla.-based B/E Aerospace Inc. signed two months ago at another Anaheim Technology Center property included monthly rents of about 79 cents per square foot.

Thomas Murphy and Jeffrey Ingham, from the Newport Beach office of Jones Lang LaSaIIe Inc., represented Targus in the lease. Rob Socci and Brian Corrigan of Voit Commercial Brokerage LP's Orange office represented Kilroy.

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