Developer Titan Unloads US Forest Service Offices in $51M Deal

ALBUQUERQUE, NM-Following a 14-day marketing period, Easterly Partners beat out multiple offers for ownership bragging rights of build-to-suits Masthead I and Masthead II.  The Washington, DC-headquartered Easterly paid $51.5 million to local developer/seller Titan Development for the two buildings, which are under a long-term net lease to the U.S. Forest Service.

“There was a high level of demand for these properties,” comments Marcus & Millichap Real Estate Investment Services’ Travis Trautvetter, who operates out of the company’s San Diego office. Trautvetter represented the seller and helped procure the buyer for the assets on 3900 Masthead and 4000 Masthead streets. Also involved in the transaction was David Laney with Marcus & Millichap’s New Mexico office.

“The long-term leases and mission-critical nature of the buildings in terms of what’s there, combined with the overall environment existing for quality single-tenant properties brought out the bidders,” Trautvetter says.

Trautvetter tells GlobeSt.com that Easterly’s strong track record and knowledge of federal government assets gave it a leg up over the bidding competition. Furthermore, “they have a good background in terms of financing,” Trautvetter comments. “A loan had to be assumed for one of the buildings, and they were able to do that.” The loan for Masthead I was assumed, while new financing put in place for Masthead II.

Trautvetter says Masthead I, at 92,455 square feet on 5.62 acres, came online in 2006 and the U.S. Forest Service immediately took possession. However, space needs dictated that a second building, the 98,720-square-foot Masthead II, be built on the remaining 4.43 acres. Masthead II was completed in 2011, and contains a parking facility, conference rooms and a fitness center.  Both buildings are Energy Star qualified.

“The buildings work cohesively; they’re sister buildings,” Trautvetter notes. “The idea here was to create a campus-like setting.”