G REIT Sells $27M Asset to Jamison

G REIT acquired the eight-story Brunswig Square building at 360 E. Second St. for $23.8 million in April 2004. The building, which includes ground floor retail space, was 94% occupied at the time of the sale.

Built in 1931 and designed by A.C. Martin, the Brunswig Square building was renovated extensively in 1985 and 1986 with the addition of three new floors, the east and west ground-level retail wings and a parking deck. Jamison bought the building in a transaction that was negotiated by David Mellor and Robert Munson of Triple Net Properties along with Kevin Shannon of CB Richard Ellis, with Shannon representing both G REIT and Jamison Properties.

G REIT acquires properties separately from Triple Net, but Triple Net acts as adviser to the REIT and manages the latter's day-to-day operations. The idea behind G REIT is that government-oriented tenants provide a stable source of rent and, when they grow, are likely to expand within the same buildings they already occupy.

An example of this is at Brunswig Square, where the main tenants include the General Services Administration and the City of Los Angeles Pensions and Retirement System, whose interests in Brunswig Square are due in part to the building's close proximity to the Civic Center.

The Brunswig Square building is the latest of six that G REIT has sold last year and this year under a plan of liquidation authorized by its shareholders. In addition, 19 more properties have been listed for sale, and five properties are currently under contract for sale.

The transaction also represents the latest in a continuing series of deals for Los Angeles-based Jamison, which was founded and is headed by Dr. David Lee. Jamison is believed to own upwards of 20 million sf of commercial properties in Southern California, primarily office buildings but also medical offices, apartments and other property types.

G REIT is one of a number of investment entities that Triple Net manages in addition to its own portfolio. Among these are its new $1-billion apartment REIT, called NNN Apartment REIT, another called T-REIT and another new REIT that is in registration for $2 billion of capitalization.