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Sunset, MetLife Buy AT&T Campus
in San Ramon
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 | | AT&T will continue to occupy some of the campus through a significant leaseback. |
SAN RAMON, CALIF. -- A joint venture between Sunset Development Co. and MetLife Inc. has purchased the 2 million-square-foot AT&T campus in San Ramon for a reported $250 million. The campus is located at 2600 Camino Ramon in the Bishop Ranch business park. The JV plans to redevelop the property into a modern office space.
The transaction included a significant leaseback by AT&T, though about 1 million square feet of space will be available for new tenants once the redevelopment is complete later this year. The property includes four wings that each contain nearly 500,000 square feet of space.
Pacific Bell acquired the undeveloped property from Sunset Development Co. in 1983. Eastdil Secured advised Sunset Development on the acquisition and helped arrange debt and equity capitalization. Wells Fargo financed the transaction. This is Sunset's first time purchasing an existing asset, as well as its first equity partnership through MetLife's 49 percent stake in the property.
"Part of the attraction of Bishop Ranch is our ability to deliver to tenants the same amenities that large owner-occupier campuses bring to their employees," says Ed Hagopian, Sunset's executive vice president. "This acquisition turbocharges that offering by increasing our square footage under management by more than 40 percent and adding a 200,000-square-foot amenity hub that will serve all of Bishop Ranch. This project's features will allow new tenants to enjoy world-class facilities without the cost of constructing underutilized private amenities."
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Hudson Pacific Buys Merrill Place
in Seattle for $57.7M
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Merrill Place is a 179,000-square-foot office and ground-floor retail center in Seattle.
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SEATTLE -- Hudson Pacific Properties has acquired Merrill Place, a 179,000-square-foot office and ground-floor retail center in Seattle, for $57.7 million. The center is located at 411 1st Ave. in Downtown's Pioneer Square.
Merrill Place contains four interconnected brick-and-beam buildings that span an entire city block. The property is currently 93 percent leased. About 52 percent of the leases are scheduled to expire over the next four years. Hudson estimates in-place rents to be about 22 percent below current market rents.
The company plans to reposition the property, which may soon be home to a second development. Current zoning would also allow for the potential development of a new office building that would front the Alaskan Way waterfront, which will soon undergo improvements itself. Hudson intends to begin the entitlement process immediately in the hopes of delivering the new office building by 2017.
The Eastdil Secured group of Wells Fargo Securities, LLC advised both Hudson and the seller, a joint venture between Angelo Gordon, Nitze-Stagen and Mile Rock Capital, in this transaction.
"We are very pleased to announce this opportunity to increase our footprint in the Pacific Northwest," says Victor Coleman, chairman and Chief Executive Officer of Hudson Pacific Properties, Inc. "The acquisition of Merrill Place represents an excellent opportunity for Hudson to expand in one of the fastest-growing submarkets for technology tenants in downtown Seattle."
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Cedar Hills Crossing in Beaverton Receives $43.5M in Financing
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 | | Notable tenants at Cedar Hills Crossing include Ross Dress for Less, Best Buy, Powell's Books, New Seasons and WinCo. |
BEAVERTON, ORE. -- Cedar Hills Crossing, a 464,234-square-foot retail center in Beaverton, has received $43.5 million in permanent financing. It is located at 3205 SW Cedar Hills Blvd., near the Nike campus.
Center Developments OR LLC built Cedar Hills in the 1960s. It was remodeled in 2005. Notable tenants at the center include Ross Dress for Less, Best Buy, Powell's Books, New Seasons and WinCo.
Todd Harding and Mick Stapleton of NBS Financial Services arranged the financing. Nationwide Insurance provided the 10-year loan. Harding and Stapleton represented both Nationwide and Center Developments in this transaction.
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Sares-Regis Acquires The Hills
of Diamond Bar Apartment Complex
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DIAMOND BAR, CALIF. -- Sares-Regis Multifamily Fund has purchased The Hills of Diamond Bar, a 204-unit apartment community, for an undisclosed sum. The community is located at 1020 South Grand Ave. in Diamond Bar, just east of downtown Los Angeles. It was built in 1979.
Sares-Regis intends to reposition the property. The company plans to add a second bathroom to many of the two-bedroom units. It will also install a large second spa with adjacent outdoor kitchen and fire pit, a golf-themed club room with adjacent new putting green and a meditation garden area.
This is the fourth apartment community the fund has acquired this year. It is the second property acquired in Los Angeles County.
"We intend to acquire a diversified portfolio of well-located properties primarily in coastal California, Seattle and Denver, as well as Portland and Phoenix," says Bill Montgomery, the fund's co-chief investment officer. "The fund is operating under a focused, well-defined, value-add strategy to purchase, manage, reposition, aggressively operate and sell high-quality multifamily assets in our target markets. The Hills of Diamond Bar is exactly the type of property we seek for our value-add program."
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AVNET Building in Tempe
Sells for $21.5M
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The 132,070-square-foot office building is fully occupied by the AVNET Technology Solutions group.
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TEMPE, ARIZ. -- AVASU (AZ) LLC has purchased the AVNET Building, a 132,070-square-foot office building in Tempe, for $21.5 million. The Class A building is located at 8700 S. Price Road in the 320-acre Arizona State University Research Park. It was built in 2000.
AVNET, Inc. occupies the entire building. It serves as the corporate headquarters for the AVNET Technology Solutions group. Chris Toci, Chad Littell and Michael White of Cushman & Wakefield represented the seller, Piedmont Office Realty Trust.
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Kennedy Wilson Buys Victory Plaza, Adjacent Multifamily Site in LA
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LOS ANGELES -- Kennedy Wilson has purchased Victory Plaza, a 132,995-square-foot retail center in Los Angeles. The acquisition also included an adjacent 2.4-acre site that is zoned for multifamily. The plaza is located on Victory Boulevard near Coldwater Canyon Avenue.
Kennedy Wilson purchased the debt on the properties this past December from an Irish financial institution for $30 million. It invested $12 million of equity into the transaction, while Pacific Western Bank provided $18 million of financing. The company obtained the title to the properties via foreclosure subsequent to its debt purchase.
"There is a significant value-add opportunity for the retail center, which has been in receivership for several years and has several major leases significantly below market," says Matt Windisch, KW's executive vice president. "In addition, the adjacent multifamily site fits in well with our strategy of capturing value from excess land that sits next to our existing income-generating assets."
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Contact Us
| Nellie Day, Editor
Western Real Estate Business
France Media Inc.
Main Office: 404-832-8262
nday@francemediainc.com
www.rebusinessonline.com
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