Texas-based real estate investor Behringer Harvard announced today it has agreed to purchase a portfolio of four office properties from affiliates of Boston-based Beacon Capital Partners. The properties will be acquired through Behringer Harvard REIT I.
“This is an extremely attractive portfolio due to the exceptional quality of the properties and the strength of the submarkets where these assets are located,” Robert Behringer, founder and chief executive officer, said in a statement.
The portfolio consists of four buildings in Chicago’s business district including One Financial Place, 10 South Riverside Plaza, 120 South Riverside Plaza and 200 South Wacker Drive. The transaction represents approximately 3.2 million square feet of rentable office space and pushes Behringer’s holdings in Chicago to 4.4 million square feet.
The 39-story One Financial Place complex offers approximately 1 million square feet of rentable space and connects to the Chicago Board of Options Exchange, which is connected to the Chicago Board of Trade. The 10 South Riverside and 120 South Riverside Plaza complex consists of two 21-story office buildings situated near the Chicago River and offers approximately 1.4 million square feet of office and retail space. The 40-story 200 South Wacker Drive property was renovated this year and has approximately 750,000 square feet of rentable space.
“With this acquisition our flagship core office REIT will have a significant presence with over 4 million square feet of attractively located properties in one of the nation’s most industry diverse and strengthening office markets,” Behringer added in the statement.
The firm has been busy in the office and residential property space recently. Last month, Behringer partnered with Brookfield Real Estate Opportunity Fund and Virginia developer Fairfield Residential on the development of four apartment buildings in the DC area.
The firm also announced yesterday that it was acquiring Canadian IPC US REIT and its portfolio of 35 office properties in the US. Under the terms of the agreement, the firm would purchase all of Toronto-based IPC US REIT’s subsidiaries for approximately $1.4 billion (€1.0 million). Approximately $600 million of the purchase price represents equity while the remaining $800 represents assumption of debt. The deal is expected to close by early November.