Manulife US REIT to Buy Centerpointe I & II for $122M
The acquisition will deepen the Singapore-based REIT’s footprint in the Northeastern US as well as the Washington, DC-area market.
FAIRFAX CENTER, VA—Manulife US REIT has entered into a purchase agreement with Carr Properties to acquire Centerpointe I & II, a two-tower office, for $122 million.
The estimated total cost of the deal for Manulife US REIT, which is the first pure-play office REIT listed in Asia, is approximately $127 million, when the acquisition fee of $1.2 million and other transaction fees and expenses of $3.8 million are tallied up.
The acquisition will deepen Manulife US REIT’s exposure in the Northeastern US as well as the Washington, DC-area market. In June 2018, Manulife US REIT acquired 1750 Pennsylvania Ave., NW.
It was the location that drew Manulife US REIT to the building, according to Jill Smith, CEO of Manulife US Real Estate Management Pte. Ltd. “We believe Centerpointe, which is a 30-minute drive from Amazon HQ2 could potentially benefit from a multisector office, residential, hospitality and retail boom that will follow this further injection of growth,” she said in a prepared statement.
Centerpointe is the highest building in Fairfax Center. Centerpointe II was recently renovated with a lobby, a fitness centre, landscaped outdoor recreation area, and a café. The property has historically commanded high occupancy rates of 94% on average and rental rates of between 10% – 25% over the competitive set, during the past 8 years.
Centerpointe is being leased to 21 tenants including several large companies and a government agency. The property has a long weighted-average lease expiry of 6.9 years as of 31 March 2019.