The asset portfolio is estimated to fetch $175 million at a low-6% cap rate, says Kevin Gazley, senior vice president with Colliers Bennett & Kahnweiler Inc., the brokerage company retained to sell the portfolio. "Allstate is capturing the robust investment market, in addition to getting out of the landlord business," Gazley tells GlobeSt.com. "I think it's an ongoing trend to really free-up real estate assets and redeploy that money into a company's core business."
The projected 2006 NOI for the asset collection is $10 million, and is expected to grow to nearly $14 million throughout the next 10 years. Other tenants, 15% that are investment-grade tenants, currently occupy a total of 171,297 sf. A total of 11.3% or 108,744 sf of the portfolio is vacant, much of which extends from the northwest assets.
The office buildings are located in or near six major markets, including Seattle; Milwaukee; Pittsburgh; Charlotte, NC; Roanoke, VA; and Tampa, FL. The largest piece of the portfolio, making up 32.1%, is a three-building complex located at 740, 780 and 800 Carillon Parkway in St. Petersburg, FL. Totaling 308,690 sf, the complex is 56.2% occupied by Allstate, 31.7% occupied by existing tenants and 12.1% vacant.
Located at 18911 and 19015 N. Creek Parkway, Bothell, WA, these two properties make up 20.1% of the portfolio with a total 193,337 sf. Allstate occupies 47% of the pair, while other tenants make up 16%. Combined, the two buildings are 37% vacant. At 191,681 sf, the facility at 401 McCullough Dr. in Charlotte, NC is 100% leased by Allstate, as is 1819 Electric Road in Roanoke, VA. The Virginia-based property adds 165,808 sf to the portfolio. In Brookfield, WI, an 83,301-sf facility is 100% leased, with Allstate taking up 49.4% of the building. The final property, making up 19,526 sf, is located in Pittsburgh and 100% leased by Allstate.
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