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Bank of America Plaza Changes Hands Again

LAS VEGAS-The Canada REIT that acquired the 17-story, 254,000-sf Downtown office building in 2005 sells to privately held Behringer Harvard.

By Brian K. Miller | Updated on December 18, 2007

LAS VEGAS-Bank of America Plaza, a 17-story Downtown office building with an attached seven-story parking garage has changed hands for the second time in less than three years. The Canada REIT that acquired the 254,000-sf building at 300 S. Fourth St. in 2005 sold itself to privately held Behringer Harvard last week for $1.4 billion in cash and debt.

Given IPC US REIT’s 9.6 million-sf portfolio, its sale to Behringer Harvard translates to $145 per sf, which is below the company’s net asset value. For example, industry sources say Behringer Harvard allocated $36.3 million ($143 per sf) of the $1.4-billion purchase price to Bank of America Plaza, which IPC US REIT acquired in February 2005 for $72 million or $283 per sf.

David Dinniwell, EVP and CFO for the Toronto-based IPC US REIT told GlobeSt.com in August that the pure-play US office REIT started to explore its options as value differentials narrowed between Canadian and US currency. It did consider remaining a publicly traded REIT. “But, our ability to grow with interest rates where they are right now was constrained,” Dinniwell said.

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