Deutsche Pays $266M for West Coast Trio

NEW YORK CITY-Deutsche Asset & Wealth Management said Tuesday afternoon that its real estate investment business, formerly known as RREEF Real Estate, has acquired a trio of West Coast commercial properties on behalf of three institutional investors. The combined purchase price was $266 million.

Largest of the three was Oakmead West, a seven-building office campus in the Silicon Valley community of Sunnyvale, CA. Totaling 431,490 square feet, the two-story properties are currently leased to a mix of mature public companies and smaller growth-oriented firms mainly in the technology sector, according to a release. Published reports say the price for Oakmead West was $97 million and the seller was Equity Office.

Also in the office sector is 605-625 Union Station, a two-building campus on 5th Avenue in Seattle adjacent to the Seattle Union Station Transportation Hub. Constructed in 2000, 605-625 Union totals 319,844 square feet and is certified LEED Silver.

Rounding out the purchase was the Courtyard at the Commons, an 89,074- square-foot neighborhood shopping center in the Los Angeles suburb of Calabasas, CA. The property is located adjacent to Highway 101 and is in close proximity to complementary retailers and entertainment, according to Deutsche.

“As we continue to leverage our strong industry relationships and expertise in the local markets in which we operate, we are very pleased to add these high-quality assets to our clients' portfolios,” Todd Henderson, head of real estate, Americas at Deutsche, says in a release.  “The investments in Courtyard at the Commons, Oakmead West and Union Station share similar attributes: a dynamic location within a core market, currently with stable tenancy that should provide consistent income, and low in-place rents relative to market which we expect to provide appreciation potential over time.”

The acquisitions follow Deutsche's recent acquisition of the leased fee interest in the Milford hotel in New York City in partnership with David Werner, a New York based investor, for a reported $325 million. The sellers were a partnership of Highgate Holdings and the Rockpoint Group.