Starwood subsidiary sells James Center to Riverstone Properties for $108 mln

Riverstone Properties has acquired Richmond, Virginia-based James Center, comprised of three office towers, for $108 million. The seller was LNR Property, a subsidiary of Starwood Property Trust Inc. Holliday Fenoglio Fowler represented the seller on the transaction.

PRESS RELEASE

CHARLOTTE, N.C.–(BUSINESS WIRE)–Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has closed the $108 million sale of the James Center, three iconic office towers totaling approximately one million square feet in the Richmond, Virginia, CBD.

HFF marketed the property on behalf of the seller, LNR Property, a subsidiary of Starwood Property Trust, Inc., and procured the buyer, Riverstone Properties. The property was sold free and clear of existing debt.

The James Center comprises three iconic office towers – the 21-story One James Center, the 22-story Two James Center and the 14-story Three James Center – that are steeped in American history, and each building was designed to stand out in sharp contrast to the neighboring buildings. Developed in 1985, the James Center’s site functioned once as the Great Turning Basin of the James River. Original stones from the basin were used to construct seating in The Plaza, an outdoor area that welcomes visitors to the James Center and hosts activities, concerts and the Grand Illumination, which is part of downtown Richmond’s holiday lighting tradition. The James Center features Class A amenities, ample on-site parking, two on-site restaurants and, through its connection to the nearby Omni Hotel, access to four additional restaurants.

Situated on 3.388 acres at 901, 1021 and 1051 East Carey Street, the James Center is located in downtown Richmond’s River District and along the James River. The property is proximate to more than 100 restaurants, multiple hotels and a variety of retail and entertainment outlets, including the James River Park System, Short Pump Mall, Richmond Coliseum and Stone Brewery. Additionally, Amtrak’s Main Street Station, which runs to Norfolk, Washington, D.C., New York City and Boston, is within walking distance of the property.

The HFF investment sales team representing the seller was led by senior managing directors Ryan Clutter and Dek Potts, director Scot Humphrey and associate director Christopher Lingerfelt.

“The James Center was one of the most competitively pursued assets we have marketed this year, and it received significant interest from a deep pool of institutional and private capital,” Lingerfelt said. “The three office towers are staples of the Richmond skyline and offer a tremendous opportunity to acquire substantial critical mass in the Richmond CBD.”

About Starwood Property Trust, Inc.
Starwood Property Trust, Inc. (NYSE: STWD), an affiliate of global private investment firm Starwood Capital Group, is the largest commercial mortgage real estate investment trust in the United States. The company’s core business focuses on originating, acquiring, financing and managing commercial mortgage loans and other commercial real estate debt and equity investments. Through its subsidiary LNR Property, LLC, the company also operates as the largest commercial mortgage special servicer in the United States.

About Riverstone Properties
Riverstone Properties is the commercial real estate arm of the Riverstone Group, a private, family-owned holding company that owns and operates luxury hotels and resorts, including The Jefferson Hotel in Richmond, Virginia, Kiawah Island Golf Resort in Kiawah Island, South Carolina and The Sea Pines Resort in Hilton Head, South Carolina. Riverstone Properties owns and manages a large commercial and residential real estate portfolio throughout the Southeast.

About HFF
Holliday Fenoglio Fowler, L.P. (“HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 24 offices and is a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.