SANTA MONICA, CALIF. — Hertz Investment Group has acquired a portfolio of six Class A office buildings in the Southeast for $417 million from Chicago-based Equity Commonwealth, according to media reports. The portfolio is comprised of more than 3 million square feet.
The purchase of the buildings will introduce Santa Monica-based Hertz to three southern markets: Birmingham, Ala.; Columbia, S.C.; and Greensboro, N.C.
The transaction is the largest acquisition in the company’s history.
One of the properties included in the sale was One Shell Square, a 1.26 million-square-foot, 51-story tower in the New Orleans central business district, where Hertz already has a presence.
Also included in the transaction were Inverness Central, a four-building complex with 475,895 square feet, located in suburban Birmingham; the Wells Fargo Tower, a 30-story tower with 514,893 square feet in Birmingham’s central business district; Meridian, a 17-story tower with 334,075 square feet in Columbia; 300 N. Greene St., a 21-story tower with 324,075 square feet in Greensboro; and 20th Place South, a four-story office building with 125,722 square feet, located in suburban Birmingham.
Hertz plans to perform $2.2 million in renovations on the Wells Fargo Tower, $500,000 on 300 N. Greene and will spend $1 million for work in Inverness Central.
According to Hertz, One Shell Square is 93.5 percent leased to Shell and law firms Adams and Reese, and Liskow and Lewis.
The Meridian building, built in 2004 and located in Columbia three blocks from the capitol, contains more than 334,000 square feet of office space. The building is 91 percent leased, Hertz said. Tenants include the Nelson Mullins Riley & Scarborough LLP and Ogletree Deakins law firms and Morgan Stanley.
Founded in 1979, Hertz is a fully integrated national real estate investment company specializing in the acquisition, marketing and management of properties throughout the country, including high-rise office buildings, landmark properties, luxury hotels, large retail centers and multifamily residential properties.
— Scott Reid