Dividend Capital Pays $69M for Portfolio

Denver-based real estate investment trust Dividend Capital Diversified Property Fund Inc. has announced the acquisition of an office portfolio for $68.75 million. The subject of the transaction is a collection of four multi-tenant office properties located in the southwest submarket of Austin, at 1122 S. Capital of Texas Highway.

Dividend Capital Diversified Property Fund Inc. has acquired a four-building portfolio of Class A office buildings in southwest Austin for $68.75 million.

Located at 1122 S. Capital of Texas Highway, the portfolio encompasses 274,000 rentable square feet. At the time of the sale, the portfolio was 99 percent leased to 22 tenants. Three of the four buildings were built in 1985, and the fourth was completed in 1998.

The transaction was funded with cash on hand and availability under the Denver-based REIT’s revolving credit facility. “The acquisition of City View supports our stated investment strategy by adding a high-quality asset with a diverse tenant roster in a market that we believe has strong long-term fundamentals. Strategically, the acquisition adds to our presence in Austin, which we believe produces operational benefits for DPF,” commented Michael Lynch, President of Diversified Property Fund.

Earlier this year, DPF expanded its office footprint in Austin by purchasing Rialto I and Rialto II for $37.3 million, adding another 155,000 square feet of office space to its portfolio. With the latest transaction, Dividend owns 20 office properties totaling approximately 4.3 million square feet.