The American Real Estate Partners firm is poised to complete the acquisition of a number of quality office assets, according to inside sources. COO Brian Katz told news reporters yesterday that the investment firm has been contracted to purchase two plum offices in the CBD of Herndon, VA, but refused to say anything more. He promised that the details would be made available soon, however.
Meanwhile, the firm is on the verge of announcing a deal for two more office buildings located in Basking Ridge, NJ, and Richmond, which is new ground for the firm, sources have revealed.
The two buildings, Westgate I and Riverside on the James, were purchased for $67 million and $63.7 million respectively, according to our unnamed source. The source told us that Adam Spies of Eastdil and Bill Prutting of CB Richard Ellis were the two brokers involved in the deals.
The buyer for the NJ property was said to be a pension fund company, while the Richmond office has been take over by a life insurance company.
“Both buildings are well leased right now. They are wonderful developments which have surpassed our return objectives,” commented Katz, who added that his firm is looking for more acquisitions in the near future as well.
“We hope to be very active for the next two or three years,” he said.
However, Mr. Katz refused to confirm who was behind the deal, nor would he reveal any figures about how much cash changed hands.
The Westgate I building, which measures a sprawling 230,518 square feet, is in a prime location about 35 miles from central Manhattan. Currently, it is leased to Everest R.E.
Meanwhile, Riverside on the James in Richmond is a huge office and retail project that measures 263,000 square feet. The building, which is 91% leased at the moment, houses firms including Harris Williams/PNC, Troutman Sanders LLP and Rutherford, which is a subsidiary of the Marsh Company.