metro
01-16-2008, 07:41 AM
Wed January 16, 2008
50 Penn Place to be sold to California investors
Daily Oklahoman
By Richard aka "Dick" Mize
Real Estate Editor
The Texas owners of 50 Penn Place have a contract to sell the upscale combination office-shopping center to California investors, the owners confirmed Tuesday.
Grubb & Ellis Co. published the transaction in its regional commercial real estate forecast for 2008. Mark Beffort, office specialist and a principal of Grubb & Ellis-Levy Beffort, told The Oklahoman that the deal involves "hard money” and that "it will close.”
Tim Strange of Sperry Van Ness Oklahoma City, who is handling the sale for owner Rainier Capital Management in Dallas, referred questions to Rainer.
Rainier spokeswoman Linda LeDuc confirmed that a sale to California buyers was under contract but declined further comment.
Grubb & Ellis erroneously reported that the sale had closed last month.
Beffort said the sale price is between $28.5 million and $29.5 million.
Rainier paid $25.7 million for the property, at 1900 Northwest Expressway, in 2004. It includes a 16-story office building with 184,896 square feet, a three-story shopping center with 233,472 square feet and a two-story parking garage with 263,340 square feet.
The county estimated its market value last year at $19.9 million.
Grubb & Ellis reported 50 Penn Place's occupancy at 96 percent.
"The 50 Penn buyer is counting on increased rents to obtain” the desired return, Grubb & Ellis said. With demand for Class A office space high and supplies tight, rents are on the rise, Beffort said.
Upon closing, Price Edwards & Co. will take over leasing and management of the property from CB Richard Ellis-Oklahoma.
The sale will be the third major office transaction in recent weeks.
Local investors paid $15.8 million for the 235,000-square-foot Bank of Oklahoma Plaza, 201 Robert S Kerr Ave. Caliber Expressway Properties paid $20.01 million for the 270,000-square-foot former Hertz Financial Center, now Caliber Center, 3817 Northwest Expressway. Both transactions were in mid-December.
Grubb & Ellis estimated the average price paid per square foot for the three buildings at $76, up from a market average of $72 per square foot in 2005 and 2006.
The firm said sale prices continue to trend up.
"We believe prices will approach $78 per square foot in 2008 for the following reasons. One, construction costs continue to be well over twice the average sales price. Two, a large portion of the acquisitions have been sold to a user, or a user is a part owner. Three, absorption remains positive and leasing activity brisk, driving up occupancies. Four, available land sites are limited to the far north and northwest corridors, and five, financing fundamentals have forced deals to be well capitalized with good sponsorship,” Grubb & Ellis said.
http://static.newsok.biz/article/20080116/3193243/50Penn.jpg_01-16-2008_1A635I6.jpg
Rainier Capital Management in Dallas confirms the pending sale of 50 Penn Place. BY CHRIS LANDSBERGER, THE OKLAHOMAN
50 Penn Place to be sold to California investors
Daily Oklahoman
By Richard aka "Dick" Mize
Real Estate Editor
The Texas owners of 50 Penn Place have a contract to sell the upscale combination office-shopping center to California investors, the owners confirmed Tuesday.
Grubb & Ellis Co. published the transaction in its regional commercial real estate forecast for 2008. Mark Beffort, office specialist and a principal of Grubb & Ellis-Levy Beffort, told The Oklahoman that the deal involves "hard money” and that "it will close.”
Tim Strange of Sperry Van Ness Oklahoma City, who is handling the sale for owner Rainier Capital Management in Dallas, referred questions to Rainer.
Rainier spokeswoman Linda LeDuc confirmed that a sale to California buyers was under contract but declined further comment.
Grubb & Ellis erroneously reported that the sale had closed last month.
Beffort said the sale price is between $28.5 million and $29.5 million.
Rainier paid $25.7 million for the property, at 1900 Northwest Expressway, in 2004. It includes a 16-story office building with 184,896 square feet, a three-story shopping center with 233,472 square feet and a two-story parking garage with 263,340 square feet.
The county estimated its market value last year at $19.9 million.
Grubb & Ellis reported 50 Penn Place's occupancy at 96 percent.
"The 50 Penn buyer is counting on increased rents to obtain” the desired return, Grubb & Ellis said. With demand for Class A office space high and supplies tight, rents are on the rise, Beffort said.
Upon closing, Price Edwards & Co. will take over leasing and management of the property from CB Richard Ellis-Oklahoma.
The sale will be the third major office transaction in recent weeks.
Local investors paid $15.8 million for the 235,000-square-foot Bank of Oklahoma Plaza, 201 Robert S Kerr Ave. Caliber Expressway Properties paid $20.01 million for the 270,000-square-foot former Hertz Financial Center, now Caliber Center, 3817 Northwest Expressway. Both transactions were in mid-December.
Grubb & Ellis estimated the average price paid per square foot for the three buildings at $76, up from a market average of $72 per square foot in 2005 and 2006.
The firm said sale prices continue to trend up.
"We believe prices will approach $78 per square foot in 2008 for the following reasons. One, construction costs continue to be well over twice the average sales price. Two, a large portion of the acquisitions have been sold to a user, or a user is a part owner. Three, absorption remains positive and leasing activity brisk, driving up occupancies. Four, available land sites are limited to the far north and northwest corridors, and five, financing fundamentals have forced deals to be well capitalized with good sponsorship,” Grubb & Ellis said.
http://static.newsok.biz/article/20080116/3193243/50Penn.jpg_01-16-2008_1A635I6.jpg
Rainier Capital Management in Dallas confirms the pending sale of 50 Penn Place. BY CHRIS LANDSBERGER, THE OKLAHOMAN