Just days ago, Commerz Grundbesitz-Investmentgesellschaft mbH (CGI) acquired the Riverfront Plaza office complex in Richmond for hausInvest global, the open-ended property fund it manages. The price of purchase was 200 million.
Riverfront Plaza, Richmond's first-ever investment by an open-ended property fund
Riverfront Plaza consists of twin office towers of 21 storeys each, totalling 87,500 m² in rental floor space. 98% of the building are currently rented out to various renowned companies. Among these are the prestigious international law firm, Hunton & Williams, and Wachovia Securities, a subsidiary of Wachovia Corporation, which in turn is one of the largest national investment companies. More than 80% of the remaining lease terms extend to the year 2013 or beyond.
With its timeless design and the high-end construction, the Riverfront Plaza stands out in the Richmond skyline, and is considered the finest building on the local market.
Being the state capital of Virginia, the city's real estate market has been stable for years, manifesting a sound balance of supply and demand. On top of that, the city has experienced substantial economic growth in all industries in recent years.
Riverfront Plaza comes with long-term leases with prominent tenants, is located on a real estate market with a very stable development, and continues to have positive prospects for the future. Thus, we developed another stable source of revenues for hausInvest global," says Dr. Frank Pörscke, Managing Director of CGI.
In addition to investments in New York and Houston, Riverfront Plaza is the third object in the US to be added to the fund. Together with the fund objects in Canada, the commitment of CGI in North America now approximates 1 billion.