The portfolio is dominated by assets acquired and owned by the Divco's Page Mill Properties Fund. About 2.5 million sf is in the San Francisco Bay Area and includes the 770,000-sf Market Center in San Francisco and the 200,000-sf Park Center development in Downtown San Jose. The balance of the office space is in Denver and Boston and includes the 1.2 million-sf Crosspoint development in Boston.
Aside from those larger properties, the bulk of the portfolio is a mix of smaller class A and b office buildings that he describes as two- to four-story office and R&D properties. In addition to office space, the portfolio includes interests in two Bay Area boutique hotels.
Divco CFO Steven Dietsch tells GlobeSt.com that the Market Center property, which was 18% occupied when acquired and is now at 60%, is the prototypical property play for the Page Mill fund, which was formed in late 2001 to invest in the tech-crach and dot-com-crash markets. "We did a lot of that type of investing in 2003 and 2004 and that is the bulk of what is being offered for sale right now," he says.
The plan is to hit the street with the offering memorandum by the end of the month, says Dietsch. Bids for the entire portfolio or any of the assets available for purchase, will be due in mid-November. Each bid will be required to show per asset pricing and the sellers may ultimately decide to refinance or recapitalize some of the assets.
Steve Silk, Stephen Van Dusen, Greg Cioth, Jay Borzi and Michael Van Konynenburg of Secured Capital's Los Angeles office have the disposition assignment. The sales transactions are expected to begin closing in the first quarter.
"As we have seen in recent single dispositions in the Bay Area and elsewhere, the capital markets currently offer a tremendous opportunity to realize significant returns on well positioned properties," says Dietsch. "We believe that by structuring and offering an execution option on a large portfolio, we will reach an even deeper universe of buyers -- including larger institutional buyers and others -- with a variety of appetites at premium pricing levels."
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