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194,000-SF Office Building Fetches $341M

LONDON-New York-based Witkoff Group and London-based DCD Group agree to acquire 90 Long Acre in Covent Garden from a joint venture of JER Partners and GE Real Estate.

By Brian K. Miller | Updated on January 03, 2007

LONDON-A 194,000-sf London office property at 90 Long Acre in Covent Garden is changing hands for 175 million pounds (US $ 341.2 million). As is, the purchase price represents a year-one capitalization rate of 4.2% for the new owners, a joint venture of New York-based Witkoff Group and London-based DCD Group.

The sellers, a joint venture of JER Partners and GE Real Estate, bought the building in 2000 and proceeded to fully refurbish the building. The asset is now fully leased. Tenants include Scottish Equitable, Eurohypo, GMAC and Regus.

Witkoff Group principal Scott Alper tells GlobeSt.com that there is near-term rollover to contend with but that it should have a positive effect on the cap rate because rental rates have been on the rise. Further out on the horizon, Alper hopes add additional value by maximizing the use of the site, which has the potential to support an additional 120,000 sf of development. When the expansion might take place and whether the existing structures would be re-used or torn down is still being evaluated, Alper says.

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