$109.5M sale and $81.2M financing of downtown San Diego office tower announced by HFF
SAN DIEGO, CA – August 31, 2017 – Holliday Fenoglio Fowler, L.P. (HFF) announces the $109.5 million sale of and $81.2 million acquisition financing for 600 B Street, a 359,278-square-foot, institutional-quality, Class A office tower encompassing a city block in downtown San Diego, California.
The HFF team marketed the property on behalf of the seller, a partnership between Lincoln Property Company and Angelo, Gordon & Company. Rockwood Capital, LLC purchased the asset free and clear of existing debt. Additionally, the team arranged the three-year, floating-rate, interest-only loan with two one-year extensions with HSBC Bank USA.
600 B Street features floor-to-ceiling windows; highly efficient, column-free, 15,000-square-foot floor plates; panoramic bay and city views and ground-floor lobby finishes with flame granite pavers, wood paneling and stainless steel accents. The ENERGY STAR®-rated building has an on-site parking structure consisting of three subterranean levels housing 312 parking stalls. The 24-story tower is 89.7 percent leased to 33 tenants, including WeWork, The San Diego Union-Tribune, MiTek and Robbins Arroyo. Situated on 1.38 acres in downtown San Diego’s B Street corridor, 600 B Street takes up an entire city block between Sixth and Seventh Avenues. The property has a Walk Score® of 99 and is proximate to more than 25 restaurants, nine banks, 600 hotel rooms, five trolley stops and 3,300 residential units.
The HFF investment sales team representing the seller included senior managing director Nick Psyllos, senior director Nick Frasco, senior managing director Ryan Gallagher and analysts Taylor Bergthold and Kara Mathis.
The HFF debt placement team representing the new owner included senior managing director Aldon Cole.
“The buyer recognized the opportunity to acquire an asset that has a tremendous future with the resurgence of the downtown San Diego office market,” Psyllos said. “It provides both long-term tenancy with the Union-Tribune and WeWork and a good mix of smaller tenants throughout the building to build on that momentum. In addition, the various common areas provide additional opportunity to continue to improve and enhance the building.”
Holliday Fenoglio Fowler, L.P., acting by and through Holliday GP Corp., a real estate broker licensed with the California Department of Real Estate, License Number 01385740.
About Lincoln Property Company
Founded in Dallas, Texas, in 1965, LPC has 31 full service offices in the United States and eight in Europe and is nationally recognized for its full-service, vertically integrated institutional investment and property management platform. Since 1965, Lincoln has acquired and developed approximately $35 billion of residential and commercial property. LPC currently manages 356 million square feet of commercial property and 147,000 multifamily residential units for over 100 separate clients worldwide. Additionally, LPC currently owns and operates a portfolio of over 20 million square feet of commercial space in Southern California. Visit lpcwest.com to learn more.
About Angelo, Gordon & Co.
Angelo, Gordon & Co. is a privately held registered investment advisor dedicated to alternative investing. The firm was founded in 1988 and currently manages approximately $28 billion. It seeks to generate absolute returns with low volatility by exploiting inefficiencies in selected markets and capitalizing on situations that are not in the mainstream of investment opportunities. The company creatively seeks out new opportunities that allow it to remain a leader in alternative investments. For more information, visit angelogordon.com.
About Rockwood Capital, LLC
Rockwood Capital, LLC is a real estate investment management firm, founded in 1995 that provides equity capital combined with real estate operating expertise for repositioning, recapitalization, development and redevelopment of retail, hotel, residential, office and research and development space in key markets throughout the United States. Rockwood and its principals have invested on behalf of their clients approximately $23.2 billion of real estate through ten value-add vehicles and eight separate accounts. Today, Rockwood is an 82-person real estate investment firm with offices in New York, New York; San Francisco, California; Los Angeles, California; and Seoul, Korea, that manages a portfolio of approximately $3.6 billion of net equity value in approximately $8.8 billion of gross real estate value. Rockwood’s investors include public and private pension funds, endowments, foundations, insurance companies, fund of funds, high net worth individuals and family offices. Learn more at rockwoodcap.com.
HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). For more information please visit hfflp.com or follow HFF on Twitter @HFF.