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Sunday, 25 March 2007

Australian Trust to Pay $333Mln for 3 Beverly Hills Offices

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Commercial Real Estate Direct Staff Report

A fund managed by Tishman Speyer has agreed to sell three office buildings with a combined 584,000 square feet in Beverly Hills, Calif., to its Australian affiliate for $333 million.

The investment manager had acquired the properties nearly two years ago in a series of transactions for a total of $209.9 million. It had placed them up for sale last year through Eastdil Secured and Madison Partners as part of an effort to dispose of mature assets.

Tishman is selling the properties to Tishman Speyer Office Fund, an Australian property company that went public in 2004 and immediately purchased a 45.9 percent stake in a dozen office buildings that Tishman had agreed to buy from GIC Real Estate, a division of the Government of Singapore Investment Corp. The Australian company's aim is to provide Australian investors with a vehicle through which they can invest solely in stable office properties in the United States. Its goal is to invest in trophy office properties in New York, Boston, Washington, D.C., Chicago, Los Angeles and San Francisco.

The three buildings being sold are:

- Beverly Mercedes Place, a three story building with 132,221 sf. The building's first floor houses the Mercedes Benz of Beverly Hills showroom. Other tenants include Marvel Entertainment. Rents average $35.26/sf.

- Maple Plaza, with 287,604 sf that is 97.3 percent leased to five tenants, including Morgan Stanley and Netflix, who pay an average of $36.24/sf in rent.

- 407 North Maple Drive, with 163,811 sf that is fully leased to Fox Interactive Media under an agreement that runs through 2016 and pays $38.72/sf in rent.

The buildings, which comprise 9 percent of the Beverly Hills office market, are 98.7 percent leased. Their average rent of $36.71/sf is 24 percent lower than prevailing rental rates in the area.

Tishman Speyer Office is funding the purchase with $220 million of permanent debt. It's now known whether it has identified a lender, but Deutsche Bank has provided it with financing on earlier deals. The mortgage it hopes to line up will have a 10-year term and pay rate of 5.5 percent. It will tap an existing credit facility for the remainder of the purchase price.

The acquisition would increase Tishman Speyer Office's portfolio to 17 buildings with 8.6 million sf and a value of $1.8 billion.

Comments? E-mail Orest Mandzy or call him at (267) 247-0112, Ext. 211.



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Additional Info

  • Syndicate to Realpoint: No
  • Sector: Office
  • Subject: Property Acquisitions (ACQ)
  • Company: Transcontinental Realty Investors Inc.
  • Valuation: More than $150 million
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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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