HRPT Finalizes Cleveland Office Complex Acquisition
- Jun 10, 2008
HRPT Properties Trust has closed on the acquisition of the 877,000-square-foot North Point office complex in Downtown Cleveland, Ohio. All together, the two-building property sold for $123 million, or about $140 per square foot. North Point office complex consists of the five-story, 286,500-square-foot North Point I and the 19-story, 590,500-square-foot North Point II. The buildings are connected via a nine-story atrium and share various amenities, such as an amphitheater, conference center, fitness center and restaurant with outdoor deck facing Lake Erie.Combined, the complex is 92 percent occupied by tenants that include law firm Jones Day, with North Point I serving as its world headquarters. Wachovia Securities, United Healthcare and various federal government departments are also occupy space in the complex. The sale comes at a time when the Cleveland office market is holding its own against the slings and arrows of an uncertain economy. According to Grubb & Ellis, in the first quarter of 2008, the Cleveland office market continued to tighten. In fact, for the first time since 1990, the class A office vacancy rate in the Cleveland CBD has dropped below 10 percent, ending the first quarter of this year at 9.7 percent. Newton, Mass.-based HRPT currently owns about 65 million square feet of office and industrial properties in 37 states and Washington, D.C. Much of its portfolio is anchored federal government tenants. Holliday Fenoglio Fowler L.P. represented the seller, a global financial institution, in the deal.