Meriwether Buys GSA Building
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SEATTLE, February 8, 2003 – A Seattle-based investment group led by Fred Hines has acquired the 117,000 square foot GSABuilding located in Salt Lake City, Utah. The $19,000,000 acquisition was arranged by Meriwether Partners who also placed a $14,925,000 loan for the acquistion. Robert Briscoe and Joel Aslanian, principals at Seattle-based Meriwether Partners LLC, represented the buyer in the transactions.
The GSABuilding was built in 1977 for the General Services Administration and is 100 percent leased on a long-term basis to the GSA. Two divisions United States Department of Agriculture occupy the building: the Aerial Photography Field Office and the Agricultural Photo Lab. The property includes a two-story office building and adjacent surface level parking on a 4.41 acre site.
“The credit quality of the tenant, the 9-plus year lease term, and the asset quality helped us overcome lingering concerns about the softness in the Salt Lake City leasing market and absence of recent sales comparables. The acquisition provides for an extremely strong going-in cap of over 9.6 percent and leveraged returns that exceeded our client’s expectations,” noted Briscoe.
Acquisition financing was provided by Sterling Savings Bank. “Sterling Savings won the beauty contest to provide a long-term loan for the property,” said Aslanian. “Meriwether marketed the deal nationwide to banks and life companies, but we ultimately selected Sterling because of their compelling economic terms, reputation for closing and long-standing relationship with the borrower.”