RREEF America REIT II Corp. and its affiliate, Northern California Industrial Portfolio, Inc., completed the sale of a 5.3 million square foot industrial and flex portfolio for $520 million this month according to a San Jose Mercury News article. PS Business Parks (PSBP) acquired the portfolio and, in connection with the transaction, assumed a $250 million secured loan that matures in December 2016. In addition to the secured loan, PSBP also entered into a three-year unsecured term loan for $250 million with Wells Fargo Bank.
"This is the largest transaction we're aware of in the Bay Area this year," said John Yandle, a senior vice president in the Santa Clara office of Cornish & Carey Commercial Newmark Knight Frank, a commercial realty firm. "There is nothing that would beat a half a billion dollars."
The portfolio consists of 18 multi-tenant business parks comprised of 2.9 million square feet of light industrial space and 2.4 million square feet of flex space in nine Bay Area cities and is currently 82.2% leased to 216 tenants.
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