Brookfield Real Estate Opportunity Fund I, a private fund established by Brookfield Asset Management, sold Convergence Office Center for $123 million.
Convergence is a 950,000-sq.-ft. 10 building office/data centre property situated on 185 acres in. The transaction included nine office/data centre buildings totaling 846,000 sq. ft. along with approximately 40 acres of development land. The fund retained approximately 12 acres of land for future retail development.
"The sale of Convergence represents the successful execution of our strategy of acquiring underperforming assets, prudently investing capital to upgrade the properties, and actively managing them to create value for our fund investors," David Arthur, the fund's president and managing partner, said in a statement.
The fund acquired Convergence, which was 25 percent leased on acquisition, in November 2006 for $54 million. Over the past five years, the fund executed a multimillion dollar redevelopment and leasing plan to stabilize the property. The fund leased more than 800,000 sq. ft. of space at the property to office andcentre tenants including Cyrus One, MedFusion, Nationstar Mortgage, Tribune Company and JP Morgan Chase. In addition to the lease up of vacant space, the Fund sold one of the 10 buildings to a tenant, Texas Instruments. At sale, Convergence was 95 percent leased on a long-term basis.
The fund was represented in the sale transaction by CBRE and Cassidy Turley.