LOS ANGELES—Colony Capital has purchased an 11-property value-add portfolio from Bank of America for more than $200 million, GlobeSt.com has learned from an industry source familiar with but unrelated to the deal. The portfolio includes office, industrial and retail properties located in markets throughout Southern California. The portfolio totals 1.5 million square feet.

Bank of America had repossessed the portfolio from an investor. “It is unusual at this stage of the cycle to have a big REO portfolio come to market,” the industry source tells GlobeSt.com. “I can't think of anything else this year or even close to it. In 2009 and 2010, there were plenty of those, but now it is unusual to have this kind of scale in a value-add, bank-owned portfolio.” Due to its rarity, the sale attracted several buyers and procured multiple offers.

The properties came to market as a portfolio, but there was an option to buy individual assets as well. CBRE's Kevin Shannon and Scott Schumacher marketed the property for Bank of America. Both Shannon and Schumacher declined to comment on the transaction, while Colony Capital did not respond to a request for comment.

The 11 properties include Catalina Landing, Commerce Square, Commerce Plaza, Kearny Mesa Executive Center, Glendora Promenade, Auburn Business Park and the Landmark Building, among others. Colony plans to renovate the portfolio asset by asset. Catalina Landing, which is the largest property in the portfolio, will be repositioned as a creative office property. Overall, the portfolio is 65% occupied, although it varies asset to asset.