Friday, August 19, 2016

Chicago investor buys Irving's Verizon campus valued at $344M

Chicago-based investor Mesirow Financial has acquired Irving's Verizon regional headquarters — a 51.2-acre, 1.15 million-square-foot campus — valued at $344 million.

Terms of the deal were not disclosed. Verizon will lease back the full property in a 20-year term with options to extend its lease.

The area surrounding the Verizon campus will include plans for a new mixed-use development in Irving. 

The deal will give Verizon an immediate financial benefit and will support the company's continuing interests in Irving's Las Colinas neighborhood, said John Vazquez, senior vice president and head of global real estate for Verizon.

"The extension of our tenancy through a sale and restructured lease affirms the value we see of having located in such a dynamic area for so many years," said Vazquez in a written statement.

Vazquez, along with a Cushman & Wakefield team led by Robert Elms and Jim Jordan, represented Verizon in the deal.

Garry Cohen and Douglas Barker of Mesirow Financial, along with partners Kawa Capital, arranged the deal on behalf of the buyer. The financing was structured in collaboration with a number of Mesirow Financial's internal groups.

"We are very excited to, again, partner with Verizon to help monetize a very strategic asset, this time in Irving," said Barker, a managing director at Mesirow in a statement. "In the last year and a half, we have monetized nearly $1 billion and 2.55 million square feet of key real estate for Verizon across two transactions."

Last May, Mesirow Financial acquired Verizon's campus in New Jersey, which was valued at $650 million, which are among the two largest non-government single asset credit tenant lease deals ever consummated, said Stephen Jacobson, a senior managing director of Mesirow's credit tenant leaseback and structured debt products group.

Written by Candace Carlisle/Dallas Business Journal