Beacon Capital pays $160M to acquire Glendale office building

The Boston-based firm also owns a property on the same block

Nov.November 16, 2018 09:35 AM
Fred Seigel and 800 North Brand Boulevard

Beacon Capital Partners has agreed to pay $160 million to acquire a 22-story tower on Brand Boulevard in Glendale, The Real Deal has learned.

The deal is currently under contract and expected to close by the end of the year, a spokesperson for the firm confirmed. The purchase price pencils out to $303 per square foot.

Piedmont Office Realty Trust is the seller of the 527,340-square-foot office tower. It is currently the only West Coast property held by the Atlanta REIT, which owns about 15.7 million square feet.

The Glendale office tower, located at 800 North Brand Boulevard, served as the headquarters of food giant Nestlé. The company decided to relocate to Virginia in February 2017, after spending nearly three decades in the property.

A source familiar with the property said Nestlé is still paying rent, despite having vacated earlier this year.

Children’s Hospital Los Angeles is still a major tenant at the property, built in the 1990s.

For Beacon, a real estate investment firm based in Boston, the deal is its second large purchase in Glendale in two years. The firm paid $128.5 million to acquire the Glendale City Center, located at 101 North Brand Boulevard, from Legacy Partners in October 2016, TRD previously reported.

The company also invested in an office campus near Los Angeles International Airport in March, paying $43 million to seller LBA Realty, for a three-building complex at Pacific Concourse Drive.

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