Behringer Harvard buys office property in Hamburg

Behringer Harvard has acquired 20 Holstenplatz, a multi-tenant office property in the Altona district of Hamburg from Eurocastle Investment for an undisclosed sum. The property was purchased for Behringer Harvard's Opportunity REIT II.

'Holstenplatz provides us with an attractive opportunity to acquire a dynamic, transit-oriented office asset at a substantial discount to replacement cost and appraised value,' said Samuel Gillespie, chief operating officer of Behringer Harvard Opportunity REIT II. 'We will tap into the local management and leasing expertise of our Hamburg office to maximize occupancy and reposition this well-located asset in Germany’s second-largest city.'

Behringer Harvard Europe's office in Hamburg is managed by Oliver Georg and Olaf Fortmann. 'Although this building has had a long operating history as a stable asset, it currently has some space available, which we believe adds a nice value-added return component above the discount-to-replacement purchase basis,' Georg said. 'Holstenplatz features three separate entrances and flexible floor plans designed to accommodate businesses requiring suites from approximately 1,600 to 13,000 square feet per floor.'

The eight-story office building, constructed in 1998, provides more than 80,000 square feet of rentable space. Major tenants include Deutsche Bahn, the major German railway company; the Hanseatic Academy for Marketing and Media (HAMM); and Thomsen Group International Strategy Consultants.

The purchase was financed by the Hamburg branch of Eurohypo. CB Richard Ellis advised the sellers.