An investment group purchased the building that houses General Electric’snew Global Operations Center at the Banks for more than $107 million.
An affiliate of 90 North Real Estate Partners LLC purchased the 10-story, LEED-certified, 340,000-square-foot class A office building from master developer Carter and its equity partner Nicol Investment Co. for $107.3 million. That breaks down to a purchase price of more than $315 per square foot.
For a comparison, the largest single building office sale in recent years was American Realty Capital Properties’ purchase of Gateway Center in Covington in 2014 for $82.6 million, or about $188 per square foot.
Officials with Carter and Nicol did not return calls for comment and officials with 90 North Real Estate Partners were not immediately available for comment.
GE (NYSE: GE) has a 15-year lease for the building as well as five, five-year renewal options. Under the terms of GE’s tax incentives, the company is required to maintain operations at the Banks for 18 years.
I broke the news back in March that the new building was being marketed for sale before the building was complete. Eastdil Secured was marketing the building, according to multiple sources. There was no price on the listing.
Keith Yearout, senior managing director with NGKF Capital Markets in Cincinnati, said the deal is a reflection of having a great credit tenant with a long-term lease and the building’s location. Yearout was not involved in the deal.
“This is a new high-water mark A, because it’s GE and B, because of where it sits on the front doorstep of the Banks,” Yearout said.
90 North Real Estate Partners is a real estate investment firm. It was founded in 2011 and is based in London, with offices in Chicago and Kuala Lumpur.
In the United States, 90 North Real Estate Partners’ portfolio includes the FBI headquarters in Denver; Lenovo Global Server Division headquarters in Raleigh, N.C., and Lash Group headquarters just outside Charlotte. As of October 2016, 90 North had 2 million square feet of U.S. office space under management and its assets exceeded $1.5 billion.
Demeropolis covers commercial real estate and development.