Workspace Property Trust, the investment firm set up last year by Mack-Cali alumni Thomas Rizk and Roger Thomas, has bolstered its portfolio to 10 million square feet with just its second deal.
The PA-based company just closed on the $969 million purchase of 108 office and flex buildings, plus 26.7 acres of land, in five markets from Liberty Property Trust.
Itʼs first purchase was also from Liberty last year when it paid $245 million for a collection of office buildings in Pennsylvania.
“This exciting acquisition is a key step in establishing our platform for investment in high quality suburban office properties in select markets,ˮ said Thomas Rizk, chief executive officer and a founding principal of WPT.
Workspace partnered with Safanad, a global principal investment firm, and affiliates of Square Mile Capital Management on its latest purchase.
Rizk said, “The addition of Safanad, with its management in world wide investments, and Square Mile, which along with its affiliates has approximately $15 billion of assets under management, provides the financial strength to continue building our portfolio.”
Along with the acquisition, Workspace has hired 50 new employees to expand its franchise.
Roger Thomas, president, chief operating officer and a founding principal of WPT, said, “Everyone at WPT is ecstatic to have acquired these well-maintained, well-located assets from Liberty. This exceptional acquisition adds tremendous growth and potential to our platform.
“We have built an outstanding organization with fantastic talent in all aspects of owning, managing, and leasing quality suburban properties. We look forward to a successful future as a leader in suburban office markets.”
Last year, Workspace partnered with Forum Partners, JMP Group, and EverWatch Capital when it purchased the first 41 buildings from Liberty.
Elliot Rattner, principal for Square Mile commented, “We are pleased to join WPT, its existing capital partners and Safanad in this high quality and diversified portfolio acquisition. “Square Mile invests utilizing a value-oriented approach to commercial real estate assets through alignment with likeminded and institutional sponsors.
“Tom, Roger, and the WPT portfolio fit squarely with these objectives and we are excited to be a part of this important step towards their firm’s growth and future success.”
3FTI Consulting, Eastdil Secured, and JMP Securities served as advisors to Workspace Property Trust on this transaction. J.P. Morgan Securities, LLC served as advisor to Liberty.