Deutsche Bank’s real estate investment management business has acquired three West Coast commercial properties—two in California and one in Washington—for a total of $266 million.
The real estate arm of Deutsche Asset & Wealth Management, formerly known as RREEF Real Estate, purchased Courtyard at the Commons, a shopping center in Calabasas, California, from CBRE Global Investors for $50 million, according to data provider Real Capital Analytics (RCA). The firm also bought Oakmead West, an office campus in Sunnyvale, California, from The Blackstone Group for $119 million and 605-625 Union Station, an office property in Seattle, from the McCaw Group for $97 million.
Deutsche Asset & Wealth Management bought the three properties in separate transactions on behalf of three institutional investors. Although representatives from Deutsche declined to disclose the investors, RCA lists that 605-625 Union Station was purchased on behalf of the Los Angeles County Employees Retirement Association.
Todd Henderson, head of real estate for the Americas at Deutsche Asset & Wealth Management, said in a statement: “The investments in Courtyard at the Commons, Oakmead West and Union Station share similar attributes: a dynamic location within a core market, stable tenancy that should provide consistent income and low in-place rents relative to market, which we expect to provide appreciation potential over time.”
The Courtyard at the Commons, an 89,074-square-foot neighborhood shopping center, is located in an affluent and densely developed inner suburb of Los Angeles. The property is located adjacent to Highway 101 and is in close proximity to complementary retailers and entertainment.
Oakmead West is an office campus located in the north end of Silicon Valley. The property, comprised of seven two-story office buildings totaling 431,490 square feet, currently is leased to a mix of mature, public companies and smaller firms operating predominantly in the technology sector.
605-625 Union Station, located on 5th Avenue South and adjacent to Seattle’s Union Station transportation hub, is a two-building, 319,844-square-foot office property. Constructed in 2000, the Class A asset currently is LEED Silver certified.
These transactions follow Deutsche Asset & Wealth Management’s recent acquisition of the leased fee interest in the Milford Plaza hotel in New York City on behalf of an institutional investor, which was subject to a new 99-year ground lease and was acquired in partnership with David Werner, a New York-based investor.