Pacific Office Properties Nabs $195M Portfolio
- Aug 21, 2008
Pacific Office Properties Trust Inc. and an institutional co-investor have acquired a portfolio of seven Southern California office complexes for $195 million. The combined properties contain more than 1 million leasable square feet across 15 office and flex buildings. The acquisition increases Pacific’s total portfolio under management by 30 percent to 4.3 million leasable square feet. The Santa Monica-based firm, which was formed in March of this year, typically acquires with co-investors. In this case, the company will hold a managing ownership interest in the SoCal portfolio and own in partnership with a real estate fund organized and managed by a subsidiary of Toronto-based Invesco Ltd., a global investment manager with more than $500 billion of assets under management. In a prepared statement, Pacific president & CEO Dallas Lucas noted that the acquisition marked the young company’s entry into its Los Angeles target market, a selective expansion into the Orange County market and growth of its holdings in San Diego. The firm’s strategy is to focus on acquisitions that can be improved and repositioned in the western United States. Its primary target markets include Honolulu, San Diego, Los Angeles and Phoenix. The portfolio includes one property in Los Angeles–an 85,000-square-foot institutional quality office building in Eastern San Gabriel Valley. There are three properties in Orange County: the four-building 372,000-square-foot Savi Tech Center in the North County Anaheim Hills submarket; the Yorba Linda Business Park with five office/flex buildings totaling 166,000 square feet, also in the North County Anaheim Hills area; and the South Coast Executive Center, a 61,000-square-foot office building in the sought-after South Coast Metro submarket. The San Diego properties include Carlsbad Corporate Center, a 125,000-square-foot office/flex building; the Via Frontera Business Park, a two-building office/flex property with 79,000 square feet in the high-tech Rancho Bernardo submarket; and Poway Flex, a two-story office with an attached industrial building totaling 112,000 square feet in the Poway light industrial submarket. Pacific Office Management, an affiliate of The Shidler Group, manages Pacific Office Properties Trust, which was formed through a contribution of The Shidler Group’s Western U.S. office building portfolio and operations. As part of its formative transactions, PCE received an option to acquire 18 properties that The Shidler Group had acquired or had under contract to acquire. These included the SoCal portfolio. With the purchase of this portfolio, PCE has completed the acquisition of all 18 properties covered by the option.