Transwestern Assumes Asset Management of $1.3B Office Portfolio
Keppel Pacific Oak US REIT Management Pte. Ltd. has tapped Transwestern to take over the asset management responsibilities of a 13-property office portfolio across the country that's worth roughly $1.3 billion.
The assets are located in eight major markets: Dallas, Sacramento, Denver, Orlando, Houston and Bellevue/Redmond. The KORE US REIT portfolio spans about 4.8 million square feet, with committed occupancy currently at 87.2 percent. The largest concentration is located in Bellevue/Redmond (49.80 percent), offering a combined carrying value of $659.8 million across 1.61 million square feet.
Additionally, Transwestern will provide accounting, management and leasing services at the properties. According to the commercial real estate firm, it owns $64 billion in total assets and operates 33 offices in the nation.
"The Transwestern Services team has a long history of providing property management and leasing services for these assets," Charles Hazen, president of Transwestern Investments, said in a statement.
"Our newly expanded role allows us to bring Transwestern's integrated investment management capabilities to help execute the long-term strategy for the REIT."
The US REIT for the full year 2025 posted net property income of $80.7 million, which climbed by three percent year-over-year, according to its latest financial report. Also, leasing volume came in at 622,029 square feet last year, which made up roughly 13 percent of the total portfolio.
Overall, office nationally is starting to pick up momentum, with vacancy dropping to 17.6 percent in February, two percentage points lower year-over-year, according to Yardi's recent CommercialCafe report. Miami had the lowest vacancy (12.8 percent), followed by Manhattan and Tampa.
Meanwhile, tech hubs such as Seattle, San Francisco and Austin continue to struggle, with all posting rates above 24 percent.
Source: GlobeSt/ALM