Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Thursday, 12 October 2017

Columbia Property, Allianz Venture Pays $421Mln for Washington, D.C., Office Building

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A venture of Columbia Property Trust Inc. and Allianz Real Estate of America has paid $421 million, or nearly $725/sf, for 1800 M St. in Washington, D.C.

PGIM Real Estate, the investment management unit of Prudential Financial Inc., sold the 580,930-square-foot office property in a deal brokered by HFF.

Columbia Property, an Atlanta REIT, holds a 55 percent stake in the venture and will handle property management and leasing. Allianz is a unit of Allianz Real Estate of Munich, Germany.

The deal is the first acquisition for the venture since its formation in July to pursue up to $2 billion of investments in class-A office properties. But it started life with three properties.

Columbia Property had seeded it with two: University Circle, a 451,000-sf property in Palo Alto, Calif., and 333 Market St., a 657,000-sf building in San Francisco. Both properties are fully leased. Columbia Property, the former Wells REIT II Inc., purchased University Circle for $293 million in 2005, and 333 Market St. for $395.3 million in 2013. It values them at $540 million and $500 million, respectively.

Meanwhile, Allianz contributed 114 Fifth Ave., a 352,000-sf property in Manhattan's Flatiron District that is fully leased. Allianz purchased a 95 percent stake in the building two years ago for $198.55 million. The venture of Columbia Property and Allianz now own 99 percent of the building, while L&L Holding Co. owns the remainder.

The building at 1800 M St. is 94 percent leased to tenants that include Berkeley Research Group and Zuckerman Spaeder, a law firm. The property underwent renovations in 2014, including the construction of a new lobby, rooftop deck and 9,000-sf fitness center, along with upgrades to its elevators, restrooms and corridors.

Columbia Property owns two other office properties in Washington: the 285,000-sf building at 80 M St., which is 94 percent leased, and Market Square, with 698,000 sf at 701 and 801 Pennsylvania Ave. It owns a 51 percent stake in Market Square, which is 77 percent occupied, while Blackstone Property Partners owns the remainder.

Comments? E-mail Tim Casey or call him at (267) 247-0112, Ext. 213.



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Additional Info

  • Syndicate to Realpoint: No
  • Cities: Washington
  • States: District of Columbia
  • Sector: Office
  • Subject: Property Acquisitions (ACQ)
  • Valuation: More than $150 million
  • Private: No
Read 417 times Last modified on Thursday, 12 October 2017

Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2016
Investment Bank #Deals Vol$mln MktShr%
JPMorgan Securities 14.94 10,350.16 15.14
Deutsche Bank 14.21 9,926.60 14.52
Wells Fargo Securities 13.36 9,513.96 13.92
Citigroup 10.87 8,061.79 11.80
Goldman Sachs 10.05 7,563.72 11.07

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2016
Lender #Loans Vol$mln MktShr%
JPMorgan Chase Bank 133.67 8,670.33 13.34
Goldman Sachs 156.20 7,418.37 11.41
Deutsche Bank 178.17 6,510.75 10.02
Citigroup 184.41 5,512.20 8.48
Morgan Stanley 113.18 4,130.53 6.35

 

 

 

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