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Tuesday, 27 March 2007

Thomas Properties Team Buying Equity Office's Austin, Texas Properties

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An investor group led by Thomas Properties Group is buying a portfolio of 10 office properties with 3.5 million square feet in the Austin, Texas, area. The deal is being valued at $1.15 billion.

The Los Angeles company, which is teaming up with undisclosed institutional investors, is buying the portfolio from Blackstone Real Estate Advisors, which assumed the properties through its recent $38.7 billion acquisition of Equity Office Properties Trust.

Thomas is putting up $14.4 million of equity, which amounts to 6.25 percent of the $230 million of equity in the transaction. The Thomas team will line up roughly $920 million of mortgage debt with 10-year maturities.

The portfolio includes five buildings with 2.5 million sf in Austin's central business district and five buildings with nearly 1 million sf in the city's northwest submarket. The portfolio is 82 percent leased. According to a regulatory filing, the rents charged last year at Equity Office's Austin CBD properties were roughly $24/sf.

In Austin, the venture is buying Frost Bank Tower, with 561,000 sf - Equity Office purchased the building just last year for $188 million. It is also buying One Congress Plaza, with 549,000 sf; One American Center, with 523,000 sf; 300 West 6th Street, with 459,000 sf, and San Jacinto Center, with 404,000 sf.

The buildings comprise more than half of Austin's class-A office space.

In the city's northwest submarket, the team will be taking over:

- Stonebridge Plaza II, with 193,000 sf;

- Park 22, with 203,000 sf;

- Research Park Plaza I & II, with 273,000 sf;

- Westech 360, with 179,000 sf, and

- Great Hills Plaza, with 141,000 sf.

In touting its acquisition, which will increase Thomas' portfolio to 15.5 million sf, the company noted that Austin saw 2 million sf of net absorption last year - a record level - and saw rents rise by 18 percent. The city's overall vacancy rate is 12.7 percent.

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



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Additional Info

  • Syndicate to Realpoint: No
  • Cities: Austin
  • States: Texas
  • Sector: Office
  • Subject: Property Acquisitions (ACQ)
  • Company: BNP Residential Properties Inc., Equity Residential Property
  • 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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