The seller, Triangle Plaza Venture LLC, a Starwood Capital Group company, retained the property for seven years before deciding to sell. Reports indicate Starwood purchased the property in 1998 for a little less than $100 million. The buildings, built in 1985, are each 14 stories with 23,000-sf floorplates.
According to Starwood rep Robert Rizzi, executive vice president with New York City-based Broad Street Advisors, LLC, the company felt the time was right to sell. With a current 80% occupancy, Rizzi says the plaza is on the brink of "substantial" lease expirations. In March, Starwood awarded Jones Lang LaSalle the leasing and management assignment for the complex.
"There are great market buyers who are giving a lot of value toward vacant space, and they are a little more tolerable of expiring space and rollover," Rizzi tells GlobeSt.com. "Starwood had a very strong cash flow for most of their holding period, they had above market rents, and they felt like they let it run its course."
The final shortlist of buyers consisted of four highly qualified candidates, Rizzi tells GlobeSt.com. "John Buck had significant competition made up of mostly institutional investors, so the quality of buyers was not a concern," he says. "We had complete confidence in all of the four finalists, but at the end of the day, price was a big determinate."
Although Rizzi could not disclose the sale amount, sources close to the deal tell GlobeSt.com the trading price is near the low $90-million mark. Rents in Triangle Plaza run from $14 to $20 per sf triple net. Current tenants include Rexam, Verizon, Alcan, EMC, Anheuser Busch and Toshiba.
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