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Manulife US REIT Trades Sacramento Office Tower for $117M
Manulife US Real Estate Investment Trust (MUST) is selling 400 Capitol Mall, a 29-story office tower in downtown Sacramento, to an entity known as 400 CM Owner, LLC for $117 million. The REIT will use net sales proceeds and cash on hand to repay all its $130.7 million of loans maturing in 2025.
John Casasante, CEO and CIO of MUST manager Manulife US Real Estate Management Pte. Ltd.,
said, “We have taken a first major step towards the ‘recovery’ phase of our strategic roadmap.
Despite the ongoing challenges in the U.S. office market and the lack of debt availability that continues
to hamper transactions, we were able to secure the sale of Capitol to an all-cash buyer, which
provides us with the liquidity and flexibility to make an early repayment of the 2025 debt maturities
and mitigate risks amid an uncertain environment.”
A 501,308-square-foot Class A property, 400 Capitol is considered a non-strategic asset for MUST.
The divestment will allow MUST to use the capital that otherwise would go toward operating the property to drive leasing activity and strengthen the quality of the other assets it plans to hold.
- ◦Sale/Acquisition
