Columbia Property Trust, Inc. has acquired the Spear Street Portfolio, two assets including the 315 Park Avenue South Building in Manhattan, New York, and the 1881 Campus Commons Drive Building in Reston, Virginia, for $436 million.
The Atlanta-based firm also acquired the 116 Huntington Avenue Building, a 274,218-square-foot office building in Boston, Massachusetts for $152.0 million, inclusive of capital credits. The 15-story building in Boston’s CBD/Back Bay is 78 percent leased.
The 315 Park Avenue South Building in Manhattan is a 20-story, 341,330-square-foot office building built in 1910. Renovations to the building were completed in 2007 and again in 2014. The buyer says the asset offers a lease roll-up opportunity as in-place rents are below market and more than three-quarters of the existing leases expire in the next three years. Major tenants in the building include Credit Suisse and Oracle.
The 1881 Campus Commons Drive Building is a 5-story, 244,565-square-foot office building in Reston, Virginia. The building provides access to public transportation and the interstate highway system. The property recently underwent renovations to its lobby,
fitness center and other common areas, and is currently 78 percent leased. Tenants include Siemens and SOS International.
These acquisitions were funded with a $300 million bridge loan, a $140 million draw under Columbia’s unsecured credit facility, and $148 million of cash on hand, primarily generated by 2014 disposition activity. These borrowings are expected to increase the company’s leverage to approximately 37% of gross real estate assets.
Columbia expects to repay these borrowings with future disposition proceeds and other financings.