Allstate Insurance Completes $59 Million Sale Leaseback of Three Office Buildings

Commercial Real Estate Direct - December 28, 2005

Capital Lease Funding has paid $59 million for a portfolio of three office properties totaling 377,500 square feet. The New York REIT purchased the properties from Allstate Insurance in a sale-leaseback transaction. Allstate, a Northbrook, Ill., insurance firm, placed the buildings on the sales block in September as part of a 1 million-sf portfolio offered through Colliers Bennett & Khanweiler Inc.

Under the terms of the agreement, Allstate will retain its current space in the buildings through December 2015 and is responsible for properties' operating costs. The total amount of space occupied by Allstate in the buildings is not known, but believed to be significant. All three properties are leased to multiple tenants.

The properties included in this sale are:

• 401 McCullough Drive, with 192,000 sf in Charlotte, N.C.;
• 1819 Electric Road, with 166,000 sf in Roanoke, Va., and
• 1721 Cochran Road, with 19,500 sf in Pittsburgh.

CapLease funded the purchase by placing $41.7 million in mortgage debt on the Charlotte and Roanoke properties. The financing package carries a fixed-rate of 5.68 percent and will mature in January 2016. It also includes a 36 month interest-only period. Sphere: Related Content