Starwood Capital Purchases North Fayette Office Property in Pittsburgh
An affiliate of Starwood Capital Group has purchased the seven-story 2000 Park Lane office building in North Fayette, Pittsburgh. The acquisition was part of a larger transaction that involved nine commercial office buildings located predominately in the country’s Sun Belt region. Wells Real Estate Investment Trust II, Inc. sold the properties for a combined $260.5 million.
According to the Pittsburgh Business Times, the North Fayette office building was constructed in 1993 and has an assessed value of $23.5 million. Wells Real Estate Investment Trust II purchased the 231,213-square-foot property from a subsidiary of Computer Associates International, Inc. in December 2005 for $29.5 million.
The total portfolio included in the sale amounts to 1.9 million square feet of Class A office space. The other buildings that were purchased are located in the urban or suburban areas of Orlando, Tampa, Charlotte, Winston-Salem, and Salt Lake City.
“We are pleased to have worked with Wells REIT II to reach an agreement to acquire a critical mass of high-quality properties with strong tenant rosters that generate significant cash flow,” said Mark Keatley, senior vice president at Starwood Capital. “Most of these buildings are located in markets with outsized job and population growth projections.”
In regional hospitality news, an 86-room Studio 6 extended-stay hotel will soon break ground in Houston, Washington County. Developer Tejas Gosai told the Observer-Reporter that the new property located off the Houston/Route 519 exit of Interstate 79 will be the first Studio 6 in Pennsylvania.
Expected to open by the end of next year, the hotel will cater primarily to Marcellus Shale drillers. Rooms will be equipped with a kitchenette, desk, small-screen TV and sitting area.
Blackstone Group LP purchased the Studio 6 and Motel 6 chains of extended-stay properties from ACCOR in October for $1.9 billion. The portfolio currently includes 1,102 units in the United States and Canada.
Photo credits: www.corporate-event-pittsburgh.com