GE Names New Arden Team

As previously reported on GlobeSt.com, GE Real Estate purchased a majority of the assets of the Los Angeles-based developer in a deal that involves 175 buildings totaling 14.8 million sf. The transaction also includes the assumption of approximately $1.6 billion in Arden debt. In connection with the transaction, Trizec Properties Inc. of Chicago acquired 13 Arden properties for approximately $1.6 billion.

de Monet is currently managing director of GE Real Estate's operation in Mexico, which currently has a $1.7-billion portfolio of debt and equity investments. Since 2001, de Monet and his team have originated more than $1.2 billion of new investments.In addition to de Monet, others named to key posts at Arden are Robert Peddicord, former EVP, leasing and operations at Arden, who assumes the role of COO and Andres Gavinet, former first vice president and chief accounting officer at Arden, who was named CFO. Howard Stern and David Swartz remain SVP and chief investment officer, and SVP and general counsel, respectively.

GE and Arden officials say they will be looking to implement a strategic asset plan to expand further into core markets. GE will also use the Arden platform to grow significantly in other California markets, Washington and Arizona, company officials note.

"We invest where there are excellent opportunities for growth, both in asset value and portfolio size," says Joe Parsons, president, North American Equity at GE Real Estate. "This transaction significantly expands our footprint in a market that we think is one of the strongest markets in the US. We will continue to assess opportunities to acquire quality assets in Southern California, and look forward to Joaquin and Robert's leadership to help us expand Arden's presence in the Western region."

In connection with its purchase of a piece of the Arden business, Trizec Properties obtained a bridge loan from a group of lenders led by Deutsche Bank. The loan has a 12-month term, with two six-month extension options and currently carries an interest rate of Libor plus 140 basis points. In addition, Trizec has assumed a $58.5-million loan on 5670 Wilshire Blvd, one of the properties it acquired from Arden. The balance of the acquisition price was funded by borrowings under Trizec's existing unsecured credit facility, cash and the issuance of approximately 2.5 million common units, valued at approximately $61.4 million, in Trizec Holdings Operating LLC to certain eligible limited partners of Arden's operating partnership.