Intercontinental says the property represents an opportunity to invest in an asset that is presently generating "attractive" current return and has the potential to appreciate capital through what it calls a "moderate degree" of asset repositioning.
Peter Palandjian, chairman and CEO of Intercontinental, says, "We are continually focused on our acquisition program to find the right property for our investors. 575 University Ave. is an excellent property and will provide our investors with attractive current returns."
The building is 100% leased to three public-credit tenants and has averaged 94% occupancy over the past five years. Leases aren't due to expire until mid-2006.
Intercontinental expects to invest approximately $600 million in Fund III's core plus strategy targeting major US markets. This deal marks the seventh in a series of property acquisitions in areas such as Austin, Chicago, Boston, and Charleston, SC.
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