Investcorp Buys DC Office Building for Over $1000/sf

Investcorp, the Bahrain-based asset manager, announced that its US-based real estate arm purchased 733 10th Street in Washington, DC for approximately $180 million, or $1,053 per square foot. The sale price of the fully leased, 170,813-square-foot office building came in just $48 per square foot short of the city's record, set by Jamestown last year for America's Square. Jamestown originally purchased 733 10th Street in 2012 for $140 million from Skanska, which built and developed the property in 2009. Investcorp purchased the property with a joint venture partner, real estate investment banking firm ScanlanKemperBard. Terms of the deal were not disclosed.

"The 733 10th Street property is a stable, prime asset offering what we believe to be resilient, long-term value in combination with attractive current yields," said Brian Kelley, Principal, Real Estate Investment at Investcorp. "We are actively seeking additional core-quality, stable properties like 733 10th Street in a handful of major gateway markets to supplement our ongoing investment activity in core-plus, high cash yield-oriented properties throughout the U.S."

The luxury office building at 733 10th Street is located in the heart of DC's East End office submarket, in close proximity to high-end retail stores, premium hotels and restaurants, two major Metro Stations and 3 blocks from the Verizon Center. Investcorp said that, despite falls in the global oil price, over the past 12 months its total real estate acquisitions have exceeded $1.5 billion in gross asset value as Arabian Gulf investors continue to look to diversify their wealth out of the Middle East region.

For more news and information visit Blumberg Partners.

KOIN Center Sold, HFF Arranges Loan

Earlier this year it was announced that ScanlanKemperBard Companies (SKB) had purchased the KOIN Center in Portland, Oregon for $88 million, about $250 per square foot; this week Holliday Fenoglio Fowler, L.P. (HFF) announced that it had secured a $60 million finance loan on behalf of SKB for the property. According a press release, HFF placed the five-year, floating-rate loan with CIBC World Markets. The loan, which finances the recent all cash acquisition of the property, is structured with an initial funding of $50 million and future advances of $10 million. The future advances are intended to fund major renovations of the lobby and common areas as part of the repositioning of KOIN Center. 

SKB said earlier this year that plans to invest $4.3 million in capital improvements, including renovations to the lobby, bike lockers, elevator lobbies and restrooms. It also plans to create white-shell spec suites with open floor plans. "We're excited to have this rare opportunity to purchase what was once arguably downtown Portland's most desirable office property," said SKB president and principal Todd Gooding. "We plan to invest heavily in renovations that will return the landmark to prominence and provide vastly improved office space options in an increasingly tight Class A market."

KOIN Center is situated in the southern corner of Portland’s central business district, which will soon see a new Orange line as well as numerous planned developments including the Hilton Curio Collection hotel project and the Phil Knight Cancer Research Institute. The 34-story skyscraper at 222 S.W. Columbia Street was 84% leased at the time of sale with major tenants including Schnitzer Steel Industries, Skanska, Wells Fargo Advisors, Potbelly Sandwich Works and Mika Sushi.

For more news and information visit Blumberg Partners.