CBRE Global Buys Historic Office Asset in Amsterdam
- Mar 31, 2020
CBRE Global Investors enhances its presence in the Netherlands office market with the acquisition of Herenstaete, a historic office asset in Amsterdam. The real assets investment management firm purchased the approximately 64,600-square-foot property, which is in the midst of a comprehensive renovation, from a joint venture between Angelo Gordon and APF International.
Located at Herengracht 206-216, Herenstaete is an iconic destination that holds the distinction of being a UNESCO World Heritage Site. The property consists of two structures, one of which was originally developed centuries ago in 1616. The second building first opened its doors in 1917 as the home of Pierson & Co., an early predecessor of banking institution ABN AMRO MeesPierson. At the time of the transaction, the property was 10 percent leased.
APF and Angelo Gordon tapped Cruz y Ortiz Architects to spearhead the design of Herenstaete’s renovation. Upon completion of the project, the buildings’ historic features and spaces will have been restored and the remainder of the interior will have been transformed into premier, sustainable office accommodations. WeWork staked an early claim to the project by inking a long-term lease in 2018 for occupancy after Herenstaete emerges from redevelopment. The renovation program is on schedule to conclude in the first quarter of 2022.
Delving into the Dutch market
CBRE represented the sellers in CBRE Global’s acquisition of Herenstaete, which marks the firm’s second office purchase in Amsterdam in roughly six months. In the third quarter of 2019, CBRE Global acquired the Baker McKenzie House, a 118,400-square-foot trophy asset, in a joint venture with the Cicerone Fund. Amsterdam’s office market has been an investor’s dream for the last year or so. “The current dynamics show a market-wide imbalance between low supply and high demand,” according to a 2020 report by BNP Paribas Real Estate. “Amsterdam is running low on modern supply for occupiers and investors.”