Pan Pacific, a real estate investment trust that owns neighborhood shopping centers, says it financed the acquisition by a combination of net proceeds from recent dispositions, facilitated through a 10-31 exchange, and a draw on the company's unsecured line of credit. During the fourth quarter of 2002, the company sold four non-strategic assets totaling $29.9 million.

Pavilions Place is near the San Diego Freeway (Interstate 405) at the intersection of Beach Boulevard and Heil Avenue, close to Pan Pacific's existing Marina Village Shopping Center. The shopping center's trade area population base totals approximately 214,000 within a three-mile radius, with an average annual household income exceeding $79,000. The center, which was built in 1986, is 91% leased and is anchored by Von's Pavilions Supermarket (a division of Safeway Inc.) and a Target department store.

Stuart A. Tanz, president and chief executive officer of Pan Pacific, says the acquisition of the Pavilions center reflects the REIT's strategy of selectively acquiring grocery-anchored shopping centers in demographically strong West Coast markets, including in-fill markets like Huntington Beach, which he described as an affluent, densely populated community that is supply-constrained.

Pan Pacific is based in Vista, near San Diego, and is the largest neighborhood shopping center REIT on the West Coast. The company's portfolio includes 105 shopping centers, encompassing 15.9 million sf of space in five Western U.S. markets: Northern California, Southern California, Washington, Oregon and Nevada.