Principle Obtains Nearly $53M to Acquire 385,000 SF

HOUSTON-A local LLC has obtained financing of $52.75 million to acquire two properties, with remaining equity of an undetermined amount obtained from TICs. The properties--a 103,000-sf office property in Fairfield, CA and a 282,000-sf office/flex complex in Phoenix--are now in the portfolio of Bay City-based Principle Equity Management, LLC.

The California asset, known as Green Valley Technical Plaza, was completed in 1999, and is 100% occupied. Located at 5253 Business Center Dr., the property's tenants include the University of Phoenix and Department of the Navy. The property in Phoenix, also completed in 1999 and hovering at 94% occupancy, consists of three buildings at 4801-4805 E. Thistle Landing Dr. Both properties were purchased from Plumcor/Thistle, LLC of Sacramento, CA. The Palmer Team out of California represented both sides in the transactions.

"They don't isolate themselves to any particular property type, but do target high-quality individual assets in multifamily, retail and office sectors," says Matt Franke, vice president with Q10 Kinghorn, Driver, Hough & Co. in Houston, who assisted Principle in acquiring the financing.

The financing, a conduit loan from PNC Bank in Pittsburgh, offered a fixed-rate below 5%, with a 30-year amortization. "This wasn't hard to place," Franke tells GlobeSt.com. "We ended up choosing PNC because of their attractive interest rates and their experience in financing TIC transactions."

Franke adds that Principle--which owns retail property in Chicago and San Antonio, isn't yet done with its shopping spree. "I'm looking at other projects for them now, including a mixed-use facility in Portland, OR and an office building in Downtown Dallas," he says, adding that Principle is examining a variety of real estate product.

"Their desire is to seek out institutional-quality assets in core markets across the country," he says. "They target high-quality individual assets in multifamily, retail and office sectors."