Arden represented itself in the purchase, with Grosvenor represented by Lawrence Krasner, David Doupe, Kimberly Schneider and Mark Leonard of CB Richard Ellis. The acquisition represents "another key component of our capital recycling plan," according to Victor Coleman, Arden's COO, who says the new building provides the REIT with significant penetration into the "highly desirable" Warner Center market with a superior asset and tenant roster.
With this purchase, the REIT's West San Fernando Valley portfolio now totals more than 1.7 million sf. Warner Corporate Center is located in the Woodland Hills submarket, which includes the mixed-use Warner Center project and consists of approximately 6.3 million sf of office space. As of Sept. 30, the direct vacancy rate was 10.1% and approximately 330,000 sf has been absorbed in this submarket, year-to-date in 2004.
Including Warner Corporate Center, Arden has acquired approximately $97 million in class A office properties in 2004 while selling approximately $78 million of non-core assets. The purchase of the Warner Center building is the second major acquisition reported in the past week by the REIT, which last week announced its purchase of a 138,000-sf office building at 30700 Russell Ranch Rd, in Westlake Village for $32.3 million.
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