Madison International Realty acquires 26% stake win prime California portfolio
Madison International Realty has acquired a 26% ownership interest in a Californian portfolio consisting of two prime properties located in San Francisco and San Jose.
The portfolio is held by a closed-end fund sponsored by Deutsche Asset & Wealth Management, a subsidiary of Deutsche Bank AG. The purchase price has not been disclosed.
The portfolio consists of the 111,775-square-foot Saks Fifth Avenue Store in San Francisco and a 315,450-square-foot research and development centre in San Jose.
The Saks property is a high-end, department store, leased long-term to Saks Fifth Avenue and located on an island site in the heart of San Francisco at 384 Post Street on Union Square. The building was constructed in 1982 and substantially renovated in 2001.
The research and development centre is leased long-term to Celanese Americas Corporation and located at 3403 Yerba Buena Road in San Jose. The four storey centre is situated on a 36-acre site with 600 parking spaces.
Ronald Dickerman (pictured), President of Madison, says: “This deal enabled us to provide an exit strategy for existing investors while acquiring an interest in two high-quality assets in prime locations which offer major growth potential whilst also having the security of long-term tenants.
“This transaction typifies Madison’s specialised investment strategy to acquire interests in prime Class A properties and portfolios in the US, London and Europe through the provision of equity in joint venture and partnership structures.”