Pacific Office Properties Trust, Inc. (AMEX: PCE), the West Coast office building REIT, announced today the acquisition of seven complexes (the “SoCal Portfolio”) consisting of over one million leasable square feet in 15 office and flex buildings located in Los Angeles, Orange County, and San Diego. The $195 million SoCal Portfolio joint venture increases Pacific Office’s total portfolio under management by 30% to 4.3 million leasable square feet.
Consistent with its co-investment strategy, Pacific Office will hold a managing ownership interest in the SoCal Portfolio, which will be owned in partnership with an institutional co-investor. Pacific Office’s co-investor in the SoCal Portfolio is a real estate fund organized and managed by a subsidiary of Invesco, Ltd. (NYSE: IVZ), a leading global investment manager with assets under management of over $500 billion.
“The acquisition of the million square foot SoCal Portfolio is very exciting for Pacific Office, as we expect it to generate exceptional venture-related preferential and performance returns,” said Dallas Lucas, president and chief executive officer. “The SoCal Portfolio also represents our entrance into our target market of Los Angeles, a selective expansion into the Orange County market, and further growth of our dominant presence in San Diego.”
Following is an overview of the properties included in the SoCal Portfolio:
- Gateway Corporate Center – 85,000 square foot institutional quality office building in Eastern San Gabriel Valley
- Savi Tech Center – four-building office/flex campus with 372,000 square feet in the North County Anaheim Hills submarket
- Yorba Linda Business Park – five office/flex buildings totaling 166,000 square feet in the North County Anaheim Hills submarket
- South Coast Executive Center – 61,000 square foot office building located in the heart of the sought-after South Coast Metro submarket
- Carlsbad Corporate Center – a prominent 125,000 square foot office/flex building located in the attractive submarket of Carlsbad
- Via Frontera Business Park – two office/flex buildings totaling 79,000 square feet located in the high-tech area of Rancho Bernardo
- Poway Flex – a two-story office structure with an attached industrial building totaling 112,000 square feet in the Poway light industrial submarket
Pacific Office was formed on March 19, 2008 through a contribution of The Shidler Group’s Western U.S. office building portfolio and operations to an existing public entity. As part of its formation transactions, Pacific Office was granted an option to acquire certain properties that The Shidler Group had acquired, or had under contract to acquire, prior to the formation, including the SoCal Portfolio. Pacific Office’s acquisition price for each option property is equal to the property’s original cost to The Shidler Group. With the purchase of the SoCal Portfolio, Pacific Office has completed the acquisition of all of the 18 properties that were subject to the option.
About Pacific Office Properties Trust, Inc.
Pacific Office Properties Trust, Inc. (www.pacificofficeproperties.com) is a real estate investment trust that acquires, owns, and operates office properties in the western U.S., focusing initially on the four high-growth markets of Honolulu, San Diego, Los Angeles, and Phoenix. The Company is externally managed by Pacific Office Management, Inc., an affiliate of The Shidler Group.
The Company’s strategy is to acquire, in partnership with institutional co-investors, value-added office buildings whose potential can be maximized through improvements, repositioning, and superior leasing and management. The Company continues The Shidler Group’s highly successful institutional joint-venture operations, which focus on acquiring opportunistic and value-added commercial real estate in partnership with institutional co-investors.
About The Shidler Group
The Shidler Group (www.shidler.com) is a private long-term investor in commercial real estate. Over the past 30 years, through its private and public affiliates, it has acquired, owned, and managed more than 2,000 properties containing over 150 million square feet of leasable area. In addition to the formation of Pacific Office Properties Trust, Inc., The Shidler Group has founded three other publicly traded real estate investment trusts – Corporate Office Properties Trust (NYSE: OFC), First Industrial Realty Trust (NYSE: FR), and TriNet Corporate Realty Trust (formerly, NYSE: TRI, now part of iStar Financial (NYSE: SFI)).
Certain Information About Forward Looking Statements
Statements contained in this release except for historical information are forward-looking statements that are based on current expectations and involve risks and uncertainties. Without limiting the generality of the foregoing, words such as “should,”“may,” “will,”“expect,” “believe,”“anticipate,” “intend,”“could,” “estimate,” or “continue,” or the negative or other variations thereof or comparable terminology, are intended to identify forward-looking statements. The risks and uncertainties inherent in such statements may cause actual future events or results to differ materially and adversely from those described in the forward-looking statements. Important factors that may cause a difference between forward-looking statements and actual results for Pacific Office are discussed in the Company’s filings from time to time with the SEC, including but not limited to the Quarterly Report on form 10-Q for the quarter ended March 31, 2008. Pacific Office and The Shidler Group disclaim any obligation to revise or update any forward-looking statements contained in this press release, which speak only as of the date hereof.
Dallas E. Lucas, 310-395-6540
President and Chief Executive Officer