Hartford’s tallest downtown office tower is about to have a new owner.
A Massachusetts-based real estate investment trust will pay $99 million to buy CityPlace I, sources familiar with the situation told HBJ Today.
CommonWealth REIT, which has its headquarters in Newton, Mass., has entered an agreement to buy the 39-story, Class A office tower, which went up for sale in June.
CommonWealth REIT is expected to close the deal as soon as this week, sources said, but the company is still working on final due diligence and other customary closing conditions that could delay the process, sources said.
The 884,669 square foot tower, which is 98 percent leased, is being sold by CityPlace LLC, which is a limited partnership group of investors.
The office tower is located at the corner of Asylum and Trumbull streets, was constructed in 1983, and has undergone significant renovations during the past five years.Â
CommonWealth REIT couldn’t immediately be reached for comment
Real estate brokerage firm Jones Lang LaSalle, which is handling the sale of the building, was also unavailable for comment.
The deal comes at a time when neighboring property City Place II could also soon hit the market, and become an attractive buy for CommonWealth. City Place II, which is owned by Northland Investment Corp. was recently placed into strict foreclosure, and Northland must pay off a $31 million debt on the building or lose it to its lender.
Real estate sources say a combined sale of City Place I and II to a single buyer could make it a more attractive deal. Â
CityPlace’s anchor tenant is the UnitedHealth Group, which has a long-term lease at the property. Other tenants include Morgan Stanley Smith Barney and Willis.
CommonWealth REIT is already a significant investor in Connecticut, particularly of office towers along the I-91 corridor. The firm owns office buildings in Windsor, Berlin, Wallingford, North Haven, Orange and Milford and is likely not done with its deal making, sources said.
