Bluerock Real Estate Sells 1 MSF Portfolio for $80M
- Apr 23, 2020
In one of the largest office park sales in the Southeast, six institutional-quality properties in Huntsville, Ala., have sold for more than $80 million. Bluerock Real Estate was identified as the seller, according to Yardi Matrix data, while the buyer of the 1 million-square-foot collection of assets remained undisclosed.
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Transwestern Real Estate Services brokered the transaction, which included five assets within the Cummings Research Park, the second-largest research park in the U.S. and fourth-largest in the world, and a downtown Huntsville tower. Transwestern Managing Directors John Bell and Kevin Markwordt handled the transaction on behalf of the seller.
Bell said in a prepared statement the portfolio attracted interest from national and international investors who were drawn to the opportunities presented by the diverse properties with long-standing, credit tenants. Currently 97 percent occupied, the portfolio’s other notable tenants include Regions Bank, Toyota Motor North America, Inc. and BAE Systems. Northrop Grumman’s Space & Missions Systems is located at 301 Voyager Way NW in the Cummings Research Park. The four-story building has 110,275 square feet.
Markwordt said in prepared remarks the city of Huntsville, which is known as a national center for space and defense technology firms, is seen as an emerging growth market that has attracted the interest of major investors around the world. He noted the city has proven its ability to outperform competing markets and weather economic downturns due to its balanced and diverse economy. In addition to the space and defense technology firms, the city is home to more than 72 federal agencies, including the U.S. Army, FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives and NASA’s Marshall Space Flight Center. It also attracts telecommunications, biotechnology, manufacturing and automotive industries. Other major contractors located in Huntsville included Lockheed Martin, Boeing, Raytheon and Airbus.
Additional portfolio details
Regions Center, an 11-story tower totaling 154,297 square feet, is the only property in the portfolio that is not in the Cummings Research Park. The building is located at 200 Clinton Ave. NW in the city’s downtown. The iconic office asset has abundant walkable amenities, immediate access to exclusive surrounding neighborhoods and a major market presence.
The four remaining Cummings Research Park properties are:
- Intuitive Center I and II, 5030 Bradford Drive, two Class A two-story buildings totaling 133,967 square feet.
- Research Place, 5000 Bradford Drive, includes three one-story buildings totaling 274,657 square feet.
- Research Office Park Center, 7037-7067 Madison Pike NW, four one-story buildings totaling 236,453 square feet.
- Lakeside Office Center, 620 Discovery Drive, two Class A three-story buildings totaling 121,839 square feet.