RICHLAND, WA-Global real estate advisor Savills LLC has been retained by Centurion Properties III as the exclusive financial advisor on the refinancing of a leasehold interest in a five-building, 340,000-square-foot portfolio here. The portfolio comprises four class-A office buildings totaling 311,000 square feet and a 46-unit, 29,000-square-foot short- to long-term-stay facility on the campus of the US Department of Energy’s Pacific Northwest National Laboratory.
Savills will help Centurion refinance a $58 million bridge loan. The asset, which is fully leased on a triple-net basis by the S&P A+ rated government contractor Battelle, generates $6.7 million of net operating income per annum, according to a prepared statement.
The portfolio was constructed on Battelle’s land over a 12-year period beginning in 1991. Battelle has an option to purchase the five buildings for one dollar each at expiration of the ground leases in 2051-2060, according to a prepared statement. The purchase option requires full and continuous occupancy by Battelle through the expiration dates.
“In today’s market, we anticipate considerable lender interest in an asset featuring an investment-grade tenant secured by an absolute triple-net leased class-A portfolio,” says Dan Gorczycki, managing director for Savills. “Leveraging Savills' keen understanding of capital markets, we expect to assemble a transaction that delivers highly favorable terms for our client.”
The tenant has invested approximately $17.7 million—or $57 per square foot—in base-building capital expenditures since 1997, including new roofs, state-of-the-art HVAC equipment, and security upgrades, among other improvements. The portfolio benefits from its location on a 350-acre, 2.3-million-square-foot campus, where Battelle’s R&D budget approximates $900 million per year.
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Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
