Lend Lease declined to verify the exact price paid, but a company spokesperson did confirm that local speculation of $28 per sf ($26.9 million) was "in the ballpark." If true, it would represent a significant loss for TrizecHahn, which reportedly paid $47 per sf for the property last fall with plans to convert it for use a "telecommunications hotel."
GlobeSt.com was not immediately able to reach TrizecHahn for comment. One Kent Valley industrial specialist tells GlobeSt.com the condition of the aging Valley Industrial Park is one factor that contributed to its low price. In the current market, sales prices on similarly-typed buildings in better condition are running in the high $40's.
Lend Lease officials say upgrades are in the park's future, but nothing definite it on the table. "The idea is to look at eventually making those upgrades, but I don't know of any (immediate) plans at this stage," a company spokesperson tells GlobeSt.com. CB Richard Ellis is now on board as the park's leasing agent.
Bradley Knowles of Cushman & Wakefield in Seattle handled the disposition for TrizecHahn, one of the largest public real estate companies in North America, which reported a disappointing fourth quarter last week. The company's share price closed Monday down 24 cents to $16.26, or $3.00 below a 52-week high that dates back to August.
"We had a difficult fourth quarter, as economic conditions deteriorated further and demand softened," TrizecHahn President and CEO Christopher Mackenzie said at the time. "Same-property NOI declined, our ability to close leases on a timely basis was hampered, and retail property results suffered due to the sharp drop in tourism in Hollywood and Las Vegas.
"Strategically, we made progress in selling the properties held for disposition. The remainders, following the substantial write-downs, are properly valued. The implementation of our plan to launch the publicly-traded U.S. office REIT is on track. This reorganization, together with a number of operating improvement initiatives, will unlock significant value for our shareholders."
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