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Black Creek Diversified Property Fund to Sell San Francisco Office Tower for $191.5 Million

Black Creek Diversified Property Fund Inc., a publicly registered NAV REIT formerly known as Dividend Capital Diversified Property Fund, has agreed to sell a Class A 263,000-square-foot office property located at 655 Montgomery in San Francisco’s financial district for approximately $191.5 million.

Black Creek Diversified Property Fund Inc., a publicly registered NAV REIT formerly known as Dividend Capital Diversified Property Fund, has agreed to sell a Class A 263,000-square-foot office property located at 655 Montgomery in San Francisco’s financial district for approximately $191.5 million.

In November 2013, the REIT purchased the 25-story LEED Platinum property for approximately $109.7 million.

Tenants at 655 Montgomery include WeWork LLC, Telmate, Redfin Corporation. As of December 31, 2018, the property was approximately 89.1 percent leased with a weighted-average remaining lease term of approximately 6.1 years based on annualized base rent.

The property has a mortgage note and mezzanine loan with a total outstanding principal balance of approximately $98.6 million and a weighted-average variable interest rate of 5.25 percent. Both the note and loan mature in September 2020, and the company plans to pay both upon closing the transaction

The sale is expected to close on May 6, 2019.

In other company news, Black Creek Diversified Property Fund recently entered into a $775 million credit facility with a syndicate of lenders to amend and restate its existing senior unsecured revolving and term credit facility.

Black Creek Diversified Property Fund, based in Denver, Colorado, invests in a portfolio of commercial real estate assets. The company’s original offering was declared effective in January 2006 and has raised more than $2.7 billion in investor equity through multiple follow-on offerings, as of the third quarter of 2018, according to Summit Investment Research. The company owns 46 properties with an investment cost of nearly $2 billion.

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