MetLife has provided a $47.4 million acquisition loan on the 216,099 sq ft Commonwealth Building office tower in Portland, Oregon.
The five-year, floating rate loan went to an affiliate of the KBS Growth and Income REIT, which purchased the asset from Unico Properties for $69 million, bringing the loan-to-value to 68.7 percent. HFF arranged the deal.
The Commonwealth Building is 95 percent leased with tenants that include clean energy companies Northwest Energy Efficiency Alliance and Green Building Services. Originally built in 1948, the office tower was renovated between 2013 and 2015 to be converted into a creative-tech office tower.
The office tower is located in Portland’s central business district (CBD), a hub of energy and technology companies, where asking rents for office properties have been rising the last couple of years.
A recent Cushman & Wakefield report showed that the average asking rents for office space in the CBD reached $27.94 per sq ft in the fourth quarter last year, an 8.7 percent year-over year increase from the $25.71 per sq ft in the fourth quarter 2014. Office investment volume in the CBD totaled $1.015 billion in 2015.
Last month, MetLife has provided a $150 million loan to refinance the 502-room Hyatt Regency Boston hotel and provided a $170 refinancing on The Bristol apartment building in the Sutton Place neighborhood of Manhattan.
KBS Growth and Income REIT is an affiliate of the private equity real estate company KBS Realty Advisors.