Office Complex Trades for $97M

SAN FRANCISCO-Hawthorne Plaza, a 420,000-sf office complex here has been sold to G REIT Inc. for $97 million. The two-building development is 97% leased, with 85% of the space controlled by the US government on long-term leases.The purchase includes the 20-story building at 75 Hawthorne that was completed in 1986 and the five-story building at 95 Hawthorne building completed in 1910 and renovated in 1990. The seller was GE Real Estate on behalf of ITW Mortgage Investments. Edward Suharski, Rob Dumas and Edmund Najera of Grubb & Ellis represent the seller. Triple Net Properties represented itself. None of the brokers involved could be reached for comment Wednesday; however, local brokers familiar with the property tell GlobeSt.com that ITW took title the property through foreclosure in 2002 and had GE Real Estate stabilize the property before having Grubb & Ellis bring it to market in January. The offering reportedly attracted more than 20 offers over $90 million.Publicly traded G REIT, which focuses on buildings with government tenants, is managed by Santa Ana, CA-based Triple Net Properties. In the last month or so, G REIT has acquired the 136,000-sf Brunswick Square in Downtown Los Angeles for $23.8 million and the 211,000-sf office building at 20770 Madrona Ave. in Torrance, CA, for $45.9 million.