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AFRT Sells Vacant Office Complex

PLEASANT HILL, CA-The new owner plans to renovate and remarket the property for multi-tenant lease. The former tenant, Bank of America, vacated the site in 2005.

By Brian K. Miller | Updated on October 03, 2006

PLEASANT HILL, CA-A vacant former Bank of America office campus here has changed hands. Publicly held American Financial Realty Trust of Jenkintown, PA sold the 131,000-sf Ellinwood Office Complex to DJM Acquisition Group LLC, a San Jose-based private equity fund that plans to renovate and remarket the class B property for multi-tenant use.

American Financial Realty originally acquired the three-building, 9.5-acre complex along Interstate 680 in June 2003 as part of a 158 property portfolio sale-leaseback transaction with Bank of America. Under the terms of that purchase agreement, Bank of America elected to vacate the Ellinwood Office Complex in 2005. The complex was developed in the mid 1980s as part of the Ellinwood mixed-use community.

AFRT invested about $16.2 million in the complex, or about $5.4 million for each of the three buildings, which equates to about $123 per sf. None of the parties involved have revealed the sale price, but local sources tell GlobeSt.com it had to be at a steep discount to replacement cost, which is estimated at around $275 per sf, because DJM will have to spend several million to rehab the 30-year-old buildings and to make a decent ROI would need to have its all in cost below $200 per sf.

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