Partners Group acquires 4msf of U.S. office space valued at over $1b

Partners Group has acquired a total of 4 million square feet of office space in the United States on behalf of its clients since the start of the year. This U.S. office portfolio has a total acquisition value of more than $1 billion.

"In the United States, our sourcing efforts in the office sector have been concentrated on finding properties in secondary CBD markets that are benefitting from corporate relocations, job growth and associated infrastructure improvements," said Ron Lamontagne, managing director and head of private real estate Americas at Partners Group. "These investments are in line with our over-arching strategy of acquiring high-quality assets in strong locations that could benefit from a repositioning, or other active property management and value creation initiatives to drive net operating income."

In May, Partners Group acquired 100 Peachtree, a 33-story and more than 622,000-square-foot office tower located in Atlanta, Ga. In June, the firm acquired Burns and McDonnell Plaza, a class A office building in Houston, while in October, it acquired Island Center and Waterford Plaza, two class A office buildings in Tampa, Fla. Most recently, Partners Group completed its acquisition of a 26-story, 403,000-square-foot office tower located in Buckhead, Atlanta's leading office submarket.

"This substantial U.S. office portfolio has been built by Partners Group's 'one team' approach to real estate investing, which encourages dialogue between our direct, primary and secondary team members," said Marc Weiss, partner and head of private real estate secondaries and primaries at Partners Group. "Our approach emphasizes the importance of proprietary sourcing through our network of local asset owners, GPs and operators, in order to avoid the highly competitive auction processes that tend to characterize transactions in the core space and traditional secondaries market."

In addition, Partners Group recently completed the acquisition of a 2.2 million square foot portfolio of class A office properties located in select suburban markets in Dallas, Chicago, Washington, D.C., Austin and Boston via a tail-end liquidity transaction.

Partners Group will draw on its long track record of experience in real estate asset management to execute value-added business plans for the acquired properties in conjunction with local operating partners. Value creation initiatives will vary but will typically include increasing the buildings' occupancy to market levels, renewing leases and upgrading amenities and common areas to meet the changing demand of current and future tenants.