inJuly

|

The five properties are One Kaiser Plaza (530,000 sf; 28stories; known as Ordway), 1901 Harrison Street (272,000 sf; 16stories), 1333 Broadway (238,000 sf; 10 stories; above BARTstation), 2101 Webster Street (475,000 sf; 20 stories) and 2100Franklin Street (215,000 sf; nine stories; LEED-Gold). The firstfour properties have a combined occupancy of 89.3% while the fifthproperty is a $78.5-million ground-up development that wascompleted this time last year but remains vacant. An affiliate ofBrandywine will manage and lease the five properties for an initialone-year period following the closing.

|

The purchase price included CIM's assumption of existingmortgage loans on three of the leased properties totaling $95.3million, and a $40-million, interest-free loan secured by the firstmortgage on 2100 Franklin and 2101 Webster that comes due Aug. 2,2010. In addition, CIM Group was granted a 15-year option topurchase a land parcel adjacent to One Kaiser Plaza slated for the650,000-sf Two Kaiser Plaza office building, and has committed tolease to CIM 150 parking spaces on that same parcel for tenants ofthe building.

|

Brandywine says it will use the $269.4 million of cash proceedsfrom the sale to pay down revolving credit indebtedness and toprovide cash balances for general corporate purposes. As a result,the company says that as of the end of this week it will have nofunds drawn on its $620-million of existing, revolving creditfacilities and approximately $145 million of cash on hand forfuture needs.

|

Brandywine continues to own three office properties in NorthernCalifornia totaling 554,000 sf as well as two land parcels. It alsohas third party property management contracts in the market. LazardFrères & Co. acted as financial advisor to Brandywine for thesale, and CB Richard Ellis assisted in the marketing efforts.

|

For CIM, the buildings further its Oakland investment program,which was launched in June 2007 with the $66-million acquisition ofthe 484-room Oakland City Center Marriott and the 162-roomCourtyard Oakland Downtown. The two assets are located adjacent toeach other three blocks from the heart of Downtown Oakland.

|

CIM Group principal John Given says the attributes thatattracted CIM Group to downtown Oakland include the existing,diversified tenant base such as professional firms, healthcare,engineering and geotechnical services along with government andtransportation. With regard to the relocation from 2 Embarcadero inSan Francisco next year, the company isn't providing any details.Presumably, it will be occupying space in one of its newly acquiredoffice buildings.

|

The loans CIM will be assuming are secured by 1333 Broadway, OneKaiser Plaza and 1901 Harrison, according to SEC filings. The loanon 1333 Broadway totals $23.88 million and matures in May 2010; theeffective interest rate is 5.54%. The One Kaiser Plaza loan totals$45.32 million and matures in August 2010; the effective interestrate is 5.29%. The loan on 1901 Harrison totals approximately$27.15 million and matures in November 2010; the effective interestrate is 5.29%.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.