More details will follow as the day plays out. Koll Development Co.'s portfolio buy consists of office buildings in seven states and four European countries--some of which will be leased back to the Plano, TX-based EDS.
Touted as one of the largest transactions of this year for office properties, Koll teamed with three real estate investment groups to pull off the coup. The Dallas-based Koll pulled together Citigroup Property Investors of Europe, NorthStar Realty Finance Corp. and Invesco Real Estate. A Trammell Crow Co. team picked up the EDS assignment in the spring. The sale did not include EDS' headquarters building, data centers and undeveloped land.
"KDC tailored a transaction that met EDS' goal of realigning its real estate portfolio by bringing together a great group of institutional partners to quickly execute it," Bill Rafkin, KDC senior vice president of investments, says in this morning's press release.
The purchase includes the 1.2-million-sf campus, with three office buildings in Legacy Business Park. Portions of the buildings were leased on a short-term basis. According to the Koll press release, the entire campus will be redeveloped and marketed to major corporate tenants.
KDC set up three pools to close the deal. Koll and Dallas-based Invesco Real Estate will jointly own and manage 1.45 million sf in Plano, Denver and Dayton, OH. The NorthStar JV took 892,000 sf, an office grouping occupied by EDS for the long term. Citigroup's European arm teamed on a 496,000-sf portfolio of warehouses and office properties in France, Germany, Italy and the UK.
"When we learned that EDS was selling some of their properties, we were able to design a long-term, flexible plan that made sense for them, our various real estate partners in this transaction and KDC," says Steve Van Amburgh, KDC's CEO. "We articulated a vision for the office buildings we purchased, which is apart and separate from EDS' prior use."
On the other side of the metroplex, Perot sold a stake in 40 buildings in the 23.9-million-sf AllianceTexas to Prudential Real Estate Investors. Word got out about four months ago that Hillwood was scouting the capital markets for an institution to partner on the 17,000-acre, world-famous development.
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