Original Letters of Intent were due in April and after 300 offers a partnership with Hines and Antartica Capital has prevailed. The price of 2.33B exceed the states estimated value of 2.0B.
"California’s Department of General Services has chosen a partnership led by Houston-based Hines and Antarctica Capital Real Estate LLC as the buyer for an 11-property, 7.3-million-square foot portfolio of state office buildings that it has been marketing as a sale-leaseback since early this year. The winning offer of $2.33 billion was one of more than 300 bids and will generate more than $1.2 billion for the state general fund as well as $1.09 billion to pay off bonds on the buildings.
The all-cash offer will be financed with “a typical debt and equity ratio with the general partners and investors providing approximately 40% of the purchase price, and a major financial institution supplying the balance as a loan to the new owners,” according to a prepared statement by the state. The state will lease back the buildings from the Hines-Antarctica partnership, which is called California First, over the next 20 years. All of the leases allow the state to buy back any or all of the buildings at any time during the 20-year term."
Thursday, October 14, 2010
Tuesday, October 12, 2010
Emerald Plaza: San Diego Icon Building Hits the Market
Genesis Plaza in Kearny Mesa Sold for $10M
The Muller Company of Laguna Hills, CA, sold the four-story, 57,685-square-foot Genesis Plaza office to Escondido-based NetREIT. The Kearny Mesa office is located at 4995 Murphy Canyon Road, and sold for $10 million, or approximately $173 per square foot. The cap rate for the sale was 9.25%.
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