Commercial Real Estate Direct Staff Report
Legacy Partners sold a stake in six West Coast properties with 915,000 square feet to Brookfield Asset Management.
Their venture also bought the debt against the portfolio of five office buildings and one industrial facility and obtained a new $90 million loan from an investment fund managed by Mesa West Capital of Los Angeles. The fresh debt is a short-term loan that the venture could draw on to help stabilize the portfolio, which is about 70 percent occupied.
Legacy, a Foster City, Calif., investment manager, in 2007 acquired the properties on behalf of its Legacy Partners Realty Fund II for more than $200 million in separate deals.
The office properties include the 138,025-sf San Mateo Plaza office complex that Legacy acquired for $48.5 million, and the Seattle Post-Intelligencer Building, with 100,000 sf in Seattle that was purchased for $40 million.
The other office properties are the 367,416-sf Stanford Place III building, at 4582 South Ulster St. in Denver, and 11121 and 11241 Willows Road N.E., with a combined 130,972 sf in the Quadrant Willows business park in Redmond, Wash.
The Mesa fund that provided the portfolio's fresh debt is Mesa West Real Estate Income Fund II, which raised more than $614.5 million of equity commitments last year and is still in its investment phase.
Comments? E-mail John Covaleski or call him at (267) 247-0112, Ext. 208.
“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:
- Breaking mortgage, CMBS, and REIT news
- Quarterly league tables with rankings of B-piece buyers, book runners, and lenders
- Industry moves and changes in “The Insider“