Global private equity firm Lone Star has sold a West End headquarters office let to high-end flexible office group Argyll around a year after buying it in its £600 million acquisition of the Charles Street Buildings Group.
13-14 Curzon Street, a 12,785-square-foot building bought for the group's Lone Star Real Estate Fund VII, was refurbished in 2014 to provide seven floors of offices, while there is a 790 square feet on the ground floor occupied by Blank Street coffee house.
Lone Star brought the property to market in July, with Savills appointed to sell the office-led scheme that it described as having an "unprecedented embedded reversion in excess of 100% of base rent". The fully-let scheme generates a base rent of £1,061,250 a year.
CoStar News understands that the building has now been acquired by a private investor for circa £36 million, who was advised by Colliers. All parties have declined to comment.
The building is one of 10 from the Project Tiger portfolio acquisition that Bank of America collateralised as part of a £356.8 million commercial mortgage backed securitisation, as reported here.
Crosstree completed its acquisition of Argyll from Alpine Grove Partners and The Baupost Group for around £330 million in May. According to Argyll's website, it operates more than 20 assets across London, including the City of London's Cornhill building and Nova North in Victoria.
Earlier this month Lone Star completed the purchase of a multi-asset real estate portfolio from St James’s Place and its Property Unit Trust and Life and Pensions Trust for circa £400 million.
That portfolio comprises 16 high-quality assets across the UK, including multilet industrial, retail and office properties, the largest component of which is a MLI portfolio comprising 10 separate properties in Greater London and South East England.
All the office properties in the wider portfolio are in London, with the private equity firm planning on carrying out an active asset management strategy to build up the quality of the buildings.