Investcorp Pays $54M for Office Portfolio

Jeffrey R. Dunne and Steven P. Bardsley of CB Richard Ellis' New York Tri-State Investment Team represented the seller Riverside Investors LLC, a partnership between Lexham Private Investors LLC and Normandy Realty Partners LLC. They also procured the buyer.

The Riverside Portfolio consists of three subdivided properties with seven buildings located on the Saugatuck River waterfront. The 285 Riverside building at 54,756 sf is the largest of all the properties in the portfolio and was substantially renovated in 2003 to 2004 during its conversion from a single-tenant facility to a multi-tenanted building. 321-329 Riverside Ave. consists of five two-story buildings that more than 10,000 sf each and are leased to a total of five tenants.

355 Riverside Ave., which totals 41,336 sf, serves as the US headquarters for Allied Domecq. Herb Meyers, a principal of Investcorp, says of the deal, "The Riverside Portfolio represented an opportunity to acquire well-leased real estate in a great waterfront location with significant barriers to new supply."

CBRE's Dunne adds, "The Riverside Portfolio acquisition provided a rare opportunity to acquire a substantial inventory of highly leased assets, without existing debt, in a supply-constrained market that is dominated by office properties between 30,000 sf and 60,000 sf."

The acquisition is the fifth for Investcorp so far this year. On April 18, the firm announced that it had purchased 250 W. 39th St. in Manhattan in partnership with L&L Acquisitions for $41.4 million.