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Rockwood Capital Pays $110M for San Diego Office Gem

| Commercial Real Estate News, Deals, Finance, Office| Views: 261


HFF announced it has orchestrated the $109.5 million sale of and $81.2 million acquisition financing for 600 B Street, a Class A office tower in downtown San Diego.

HFF arranged the sale of the 24-story, 359,218-square-foot tower to Rockwood Capital LLC. The real estate investment management firm bought the asset free and clear of existing debt, from a partnership between Lincoln Property Co. and Angelo, Gordon & Co. The HFF team also secured the three-year, floating-rate, interest-only acquisition loan with two one-year extensions, through HSBC Bank USA. The investment team representing the seller included HFF Senior Managing Director Nick Psyllos, Senior Director Nick Frasco, Senior Managing Director Ryan Gallagher and analysts Taylor Bergthold and Kara Mathis. The HFF debt placement team included Senior Managing Director Aldon Cole.

“The buyer recognized the opportunity to acquire an asset that has a tremendous future with the resurgence of the downtown San Diego office market,” said Psyllos in a statement. “It provides both long-term tenancy with the Union-Tribune and WeWork, and a good mix of smaller tenants throughout the building to build on that momentum.”

600 B Street, San Diego (via Yardi Matrix)

600 B Street, San Diego (via Yardi Matrix)

The glass-clad tower at 600 B St. was completed in 1974 and fully renovated in 2007. The property is LEED Gold-certified and includes 359 parking spaces, per Yardi Matrix data. Tenants include Mitek Systems, The San-Diego Union Tribune, Swenson Advisors, Western Financial Corp. and WeWork, among others.

The prime San Diego office asset at 600 B St. last changed hands in late 2012, when Angelo, Gordon & Co. paid $49 million to acquire it from Wells Fargo Bank – REO. A previous $79.6 million loan held by the bank was foreclosed in 2008, according to Yardi Matrix.


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