Pacific Office was formed via the contribution of the ShidlerGroup's Western US office building portfolio and certain investmentoperations to a newly formed operating partnership of Arizona LandIncome Corp. and the merger of Arizona Land with its wholly ownedsubsidiary, Pacific Office Properties Trust Inc. Pacific OfficeProperties, which was the surviving entity in the merger, as partof its formation was granted the option to acquire certainproperties that Shidler owned or had under contract.

The acquisition of the seven buildings in San Diego and Phoenixwill increase Pacific Office's portfolio by approximately 17% from2.4 million leasable sf to 2.8 million sf. These seven are part of18 office buildings totaling 1.9 million sf that Pacific Office hasan option to acquire under the terms of its recently completedformation. The 18 buildings are located in the REIT's markets ofHonolulu, San Diego, Phoenix, Los Angeles and Orange County.

Pacific expects to acquire the seven buildings in two separatetransactions that are scheduled to close next month, with each ofthe transactions subject to customary closing conditions, and eachof the buildings to be owned in partnership with an institutionalinvestor. Financial terms of the transactions were not disclosed.Shidler paid $24.3million for the Black Canyon Corporate Center last year,according to a GlobeSt.com report at the time of the sale. Theproperty, located in the Deer Valley submarket of Phoenix, standson a 19-acre site, which could accommodate additional officedevelopment, Pacific Office notes in its announcement regarding theacquisitions.