GlobeSt.com UPDATE: Summit Commercial Acquires Kaiser Center in $100M Deal

OAKLAND, CA-Summit Commercial of El Segundo, Calif. has paid approximately $100 million to acquire the 1-million-sf Kaiser Center office complex here and entitlements for building another 1.5 million sf.

The reorganizing Kaiser Aluminum Corp. said on Friday it closed on the sale of its ownership in the property (including the entitlements) to Summit Commercial for $65.5 million as part of federal bankruptcy proceedings. Today (Monday, March 17), Summit said it paid another $34.5 million to buy out the other investors.

Summit President Jack Mahoney tells GlobeSt.com the previous ownership was a very complex tax structure deal that his company disassembled. “There was a complicated ground lease, master lease and sublease that we bought the pieces of to gain full control,” he says. Specifically, Mahoney says Summit paid Kaiser $65.5 million in cash for its part, paid a company called Newkirk-Kalan LP $28 million in cash, and then paid off a $6-million loan that Newkirk-Kalan had on the property.