Real estate investor Harvest Properties and Cerberus Capital Management have partnered to buy an office property in California.
Harvest and an affiliate of Cerberus have acquired DC Station, a nine-story, multi-tenant office building with around 383,000sqft.
According to public records, the companies paid $114.5m (€130.2m) for the asset.
Built in 2001, the DC Station property also includes a seven-level parking garage.
The property was originally offered to the market as a mixed-use, retail and office investment, which included the adjacent retail/movie multiplex building.
Harvest said this combination dissuaded several traditional office-only investors and allowed Harvest, after securing a strong foothold as an informed buyer, to propose separating the office building from the retail component at lower pricing levels than it believe would’ve been achieved under an office-only offering.
John Winther, a managing partner at Harvest, said: “Both Cerberus and Harvest see this as an opportunity to acquire a high-quality property at a compelling price and, ultimately, add value through thoughtful leasing activity as we capitalize on the changing demand drivers in the area.”
Tom Wagner, a co-head of North American real estate and senior managing director of Cerberus, said: “This is an attractive investment opportunity for Cerberus given the property’s accessibility, adjacency to mass transit, and Class A condition.
“Cerberus is excited to invest alongside an experienced partner like Harvest, and we are confident that together we will drive growing tenant interest in DC Station and enhance the property’s value.”