Wednesday, March 14, 2007

Fireman's Fund HQ in Novato, CA Sold for $310 Million

CoStar Group - March 12, 2007

American Financial Realty Trust (NYSE: AFR) is selling the Fireman's Fund Insurance Co. headquarters in Novato, CA to an undisclosed buyer for more than $310 million, or $436 a square foot.

The sale of the 710,330-square-foot, three-building property in the Marin County city north of San Francisco is expected to close in the second quarter. Jenkintown, PA-based AFR would only describe the buyer as a California-based private real estate investment group partnering with an institutional real estate investor.

First State Investors LLC, an AFR subsidiary, bought the 65-acre office complex from San Marin Assurance Co. in August 2005 for $283.5 million, or just under $400 a square foot. The building sold at a cap rate of 7.82% based on projected lease income from Fireman's Fund, which agreed to continue to lease the property on a net lease basis through November 2018. Susan Murdy, director of media relations for the national insurer, told CoStar that said the company’s headquarters would remain in Novato.

Fireman's Fund is one of the largest tenants in Marin County's modest office market, which amounts to about 7.5 million square feet.

Eastdil Secured is representing American Financial in the sale. Sphere: Related Content

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