Cornerstone Real Estate Advisers has sold a San Mateo, California office property for $95 million — $30 million more than the price the firm paid for the asset in 2013.
Wafra Investment Advisory Group, the buyer, reportedly secured a seven-year, fixed rate $48 million loan from New York Life on the purchase of the seven-story, 187,372 sq ft building known as Keynote Plaza, making for a 51 percent loan-to-value. The acquisition marks Wafra’s first San Francisco Bay Area purchase.
A local report noted that JLL, which arranged the loan, considers the acquisition a value-add investment opportunity, with rents 30 percent below market rates and area office vacancies near historic lows. The current occupancy is about 90 percent, with Keynote Systems and IXL among its tenants.
Cornerstone, an affiliate of MassMutual Financial Group, bought the property for $65 million from Keynote Systems in November of 2013. Its equity investments have included core, core-plus, value-add, opportunistic and development strategies as well as public equity securities.
The firm, which according to its website manages more than $50 billion in assets, has a robust debt platform specializing in the direct origination of first mortgage bridge, construction, and mezzanine loans, B-notes, preferred equity and non-performing loan alternative investment strategies. It’s notable loans included a $260 million financing of the West Hollywood hotel earlier this year and a $556 million loan on 425 Park Avenue in Manhattan last year.