Lone Star Bets on Cincinnati Offices
- Jul 08, 2015
By Adrian Maties, Associate Editor
A Dallas-based private equity firm has purchased three office buildings in Greater Cincinnati. The properties sold for a total of $25.3 million.
The Cincinnati Business Courier reports that Equity Commonwealth, a Chicago-based real estate investment trust, sold the Cornell Center in Blue Ash, 3 Crowne Point in Sharonville and 5300 Kings Island Drive in Mason to affiliates of Lone Star Funds, as part of a 53-property portfolio sale. CBRE represented the seller in the transaction. The CBRE team included senior associates Keith Yarout and Jim Vondran. The transaction closed at the end of May.
The Class B office building at 5300 Kings Island Drive in Mason is the largest of the three properties. It offers 159,000 square feet of space and was 79 percent occupied at closing. The 93,000-square-foot Cornell Center in Blue Ash is a Class B building at 11311 Cornell Parkway was 83 percent occupied.
Unlike the first two properties, Sharonville’s 3 Crowne Point is a Class A office building. Lone Star paid about $8.4 million for it, according to the Business Courier. The property offers almost 75,500 square feet of space and, at the time of the sale, it was fully occupied.
According to CBRE’s latest market report, the steady economic growth in Greater Cincinnati continues to provide a strong pipeline for the leasing and sale of office property. Demand for quality assets is high and, as a result, the yearly transaction volume for 2014 reached its highest level since the 2007 market peak. Prices have also gone up. CBRE also said it expects 2015 to be “a standout year in terms of investment sales volume,” thanks to the large number of completed transactions combined with a robust office product pipeline.
Charts courtesy of CBRE.