DALLAS, TX - Summarizing key accomplishments in 2010, Behringer Harvard announced that it invested nearly $900 million during the year in the continued expansion of the commercial real estate assets owned and managed by the company. This heightened investment pace represents an increase of 102 percent in the amount invested by Behringer Harvard in 2009. The rapid expansion of Behringer Harvard's multifamily portfolio, which was a major result of its investment activity in 2010, positioned the company as the second most active buyer of U.S. apartments, according to Real Capital Analytics.
Source: Behringer Harvard
Since January, Behringer Harvard has completed 20 acquisitions comprising 28 properties with an aggregate purchase price of more than $897 million. These 2010 investments added to Behringer Harvard's portfolio more than 3.3 million square feet of office/industrial/retail space, 4,389 apartment units and 311 hotel rooms. Across all of its investment platforms as of the end of 2010, Behringer Harvard has interests in or manages more than $11 billion in assets comprising approximately 33 million square feet of office/industrial/retail space; 11,514 apartment units; 4,983 hotel rooms and 695 acres of developable land.
"While 2010's year-over-year improvement in commercial real estate market fundamentals and the availability of capital were welcomed, the recovery has been tempered and investment activity still has not returned to pre-recession highs," said Mr. Robert S. Aisner, President and co-COO of Behringer Harvard. "In spite of these challenges, Behringer Harvard successfully identified attractive investment opportunities to capitalize on the continuing market distress."
"As a result, our acquisition pace accelerated during 2010 and we ultimately invested twice as much capital as we did in 2009," Mr. Aisner said. "Our newly acquired assets generally were purchased at significant discounts to replacement value and well below the peak market prices of recent years. We are confident that these investments offer strong upside potential as the economy continues to recover in 2011 and beyond."
The multifamily platform received a further boost in early 2010 with the commitment from PGGM Private Real Estate Fund, an investment vehicle for Dutch pension funds, to increase its investment in Behringer Harvard's growing portfolio of multifamily communities to $300 million.
In addition to the company's investment activity, 2010 saw the launch of Behringer Harvard Residential, the property management and operating platform for multifamily assets. Behringer Harvard Residential now enables Behringer Harvard to bring to the market an integrated, end-to-end solution for the acquisition and management of high-quality multifamily communities.
Behringer Harvard has an ongoing commitment to sustainable practices, and the company continued to expand its green building initiatives in 2010. LEED Existing Building Operations and Maintenance (EB O&M) Gold certifications were achieved in 2010 for office buildings including One City Centre, One and Two Eldridge Place, and One Briar Lake Plaza, which are located in Houston, and 1325 G Street in Washington, D.C. LEED EB O&M Silver certification was earned by 10 and 120 S. Riverside in Chicago. Two Behringer Harvard multifamily communities in Portland, Tupelo Alley and Cyan/PDX, earned LEED Gold New Construction certifications in 2010. Interchange Business Park, a newly acquired industrial development in the eastern portion of the Los Angeles metro area, holds LEED Core and Shell Silver certification.
These buildings now join the growing list of Behringer Harvard properties that have achieved LEED certifications. Previously earned certifications include two office buildings in Houston: Three Eldridge in Houston, which has earned LEED Core & Shell Gold certification, and Westway One, which has earned LEED Core & Shell Silver certification. Another Behringer Harvard property, Bank of America Plaza in Charlotte, N.C., has earned LEED EB O&M Gold certification. Lawson Commons, an office building in the Minneapolis/St. Paul area, holds a LEED EB O&M Silver certification.
Thirty-six properties owned by Behringer Harvard's investment programs have earned the ENERGY STAR label for prudent energy management strategies, representing 45 percent of the square footage available in Behringer Harvard's office properties.
As Behringer Harvard concludes 2010 on the high notes of accelerated investment activity, expansion into a new multifamily property management business, and continued progress with its sustainable practices and green building initiatives, the company is looking to carry forward similar successes in 2011.
Behringer Harvard creates and manages global institutional-quality investment programs for individual and institutional investors through its real estate investment trusts, joint ventures and proprietary program structures. The company also offers strategic advisory, asset management and capital market solutions. Behringer Harvard has interests in or manages more than $11 billion in assets.