Alabama Office Portfolio Trades for $80M
The six-asset portfolio traded well below replacement cost, says Transwestern’s John Bell.
HUNTSVILLE, AL—Transwestern Real Estate Services recently brokered the sale of six office properties here, for more than $80 million. Transwestern Managing Directors John Bell and Kevin Markwordt facilitated the transaction totaling 1.03 million square feet on behalf of the undisclosed seller.
Transwestern tells GlobeSt.com that the transaction closed at the early stage of the coronavirus crisis and was about a week away from being at potential risk. Both the buyer and seller worked expeditiously to close the transaction before that happened, according to Transwestern.
The seller is an institutional asset manager and the buyer is a private capital group.
One of the largest office park sales in the Southeast, five of the six properties are located within Huntsville’s Cummings Research Park. The six institutional-quality properties are:
- Northrop Grumman Headquarters, a four-story, Class A building totaling 110,275 square feet.
- Intuitive Center I and II, two Class A, two-story buildings totaling 133,967 square feet.
- Research Place, which includes three one-story buildings totaling 274,657 square feet.
- Research Office Park Center, consisting of four one-story buildings totaling 236,453 square feet.
- Lakeside Office Center, includes two Class A, three-story buildings totaling 121,839 square feet.
- Regions Center, the only property not in Huntsville’s Cummings Research Park, but located in downtown Huntsville, is a Class A, 11-story tower totaling 154,297 square feet.
The portfolio traded well below replacement cost, according to Bell. “We received an impressive amount of national and international interest from investors drawn to the opportunities these diverse properties present.”
Currently 97% occupied, the portfolio includes notable tenants Northrop Grumman Space & Missions Systems, Regions Bank, Toyota Motor North America Inc., and BAE Systems.
Cummings Research Park is the second-largest research park in the country and the fourth-largest in the world.