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Shorenstein Closes Sixth Fund with Florida Office Buy
By Jillian S. Ambroz - Commercial Real Estate Direct
March 30, 2005 - Shorenstein Co. has acquired a controlling interest in a 23-story, class-A office building in Fort Lauderdale, Fla., closing out its sixth fund.
The San Francisco-based firm is said to have paid about $120 million for a 90 percent stake in the 408,063-square-foot Las Olas City Centre.
Local developer Stiles Corp. sold the stake in the property, also known as Bank of America Plaza at Las Olas City Centre. Stiles will retain a 10 percent interest in the building while continuing to manage and lease it.
Stiles developed the property in 2002. The building also has a five-story parking garage and 45,800 sf of retail space. It is about 76 percent leased to tenants including Bank of America, law firm Greenberg Traurig and UBS Financial Services. Retail tenants include Bank of America, JR Dunn Jewelers, UPS Store, Ben & Jerry's, Subway and Offerdahl's Café Grill.
The transaction closes out Shorenstein's sixth investment fund, which was launched in 2001 with $609 million in equity. The fund has invested in 10 major assets, including Two Liberty Place, a 57-story, 1.2 million-sf tower in Philadelphia; 450 Lexington Ave., a 32-story, 911,000-sf leasehold property above Grand Central Post Office in New York; 500 West Monroe, a 45-story, 959,000-sf office tower in Chicago and U.S. Bank Plaza in Sacramento, a 25-story, 457,000-sf building.
Shorenstein recently kicked off its seventh fund with the $70 million purchase of the WebEx tower, a 282,000-sf office property in Santa Clara, Calif. The latest investment vehicle has raised $775 million in equity, giving it a buying capacity of about $2.2 billion.
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