November 21, 2014

Two of Birmingham’s large Class A office buildings in the 280/459 submarket have been sold.

Hollywood, Fla-based PointOne Holdings and ESJ Capital Partners came together to acquire International Park and Blue Lake Center for a combined $51 million purchase.

The three buildings included in the portfolio total 377,921 square feet, selling for $135 per square foot.

“We are extremely excited to be entering the Birmingham market with such high-quality properties as our initial acquisition” said David Garfinkle, a PointOne Holdings managing member. “We are satisfied with the purchase price and see significant opportunity for additional growth via future new leases, leasing expansions and lease term extensions.”

The portfolio’s location along U.S. 280, near I-459, gives easy access to Birmingham’s Central Business District, as well as amenities along 280 like The Summit mall, The Shoppes of Colonnade and the soon to open Trinity Medical Center.

Birmingham’s CBRE office, which is a current tenant in the portfolio, will manage the three office buildings for the investors.

“We are thrilled to leverage our expertise to continue leasing and managing these quality assets, while building a long term relationship with PointOne Holdings,” said David Fullington, CBRE senior vice president.

The buildings combined are at around 90 percent occupancy and include a variety of tenants like Tyco, Prudential, Hoffman Media, Command Alkon, BE&K, Martin Marietta Materials, Principal Financial, RxBenefits, EBSCO, BASS, McKesson Corporation, Home Mortgage of America and IBM.

“The Blue Lake Center and International Park properties provided us with an attractive opportunity to acquire best-in-class, stabilized and cash-flowing assets in a desirable market with strong fundamentals” said Ben Colonomos, a PointOne Holdings managing member. “We expect these well-positioned buildings will benefit from the continuing commercial and residential growth occurring along Birmingham’s 280/459 corridor.”

CBRE Capital Markets’ Charles Foschini and Jason Hochman advised the investors on the acquisition, which was financed through a non-recourse, commercial mortgage-back securities loan at a fixed rate with a 10-year term from Starwood Mortgage capital.