SAN FRANCISCO-RREEF Real Estate sold its Northern California industrial portfolio, some 5.3 million square feet. The sale was completed by RREEF America REIT II Corp. and its affiliate Northern California Industrial Portfolio Inc.
The buyer, PS Business Parks Inc., a public real estate investment trust based in Glendale, CA, paid $520 million for the package, according to a company statement. The portfolio consists of 45% warehouse and 55% higher finish flex space. There are 26 projects included in the deal across a range of locations in the San Francisco Bay Area.
In a statement from PS Business Parks, Inc., company president and chief executive officer, Joseph D. Russell Jr., observed, “This portfolio acquisition significantly enhances PSB’s presence in Northern California, providing a strong concentration of parks in markets that are poised for continued recovery.” In the same release, the company revealed that it now owns 7.2 million square feet of multi-tenant industrial and flex space in 30 business parks in Northern California.
Additionally, PS Business Parks, Inc. assumes a $250 million secured loan which has a fixed interest rate of 5.45% and matures in December, 2016. The firm also entered into a three-year unsecured term loan for $250 million with Wells Fargo Bank. Interest on the unsecured term loan is based on LIBOR plus 1.20%.
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