Pacific Office JV Buys 1M-SF, $195M Portfolio

Dallas Lucas, president and chief executive officer of the Santa Monica-based REIT, says that the SoCal Portfolio 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." The $195 million SoCal Portfolio joint venture increases Pacific Office's total portfolio under management by 30% to 4.3-million leasable sf.

Lucas points out that the deal is consistent with the co-investment strategy that Pacific Office pursues. In this case, the REIT will hold a managing ownership interest in the SoCal Portfolio, which will be owned in partnership with the Invesco-sponsored fund as an institutional co-investor. Invesco is a global investment manager with assets of more than $500 billion under management.

[IMGCAP(2)]The Los Angeles property in the SoCal Portfolio is Gateway Corporate Center, an 85,000-sf institutional quality office building in the Eastern San Gabriel Valley at1370 Valley Vista Dr. In Orange County, Pacific's new assets include the 372,000-sf four-building Savi Tech Center at 22705-22745 Savi Ranch Parkway in the North County Anaheim Hills submarket, the five-building 166,000 office/flex Yorba Linda Business Park at 22343-22349 La Palma Ave. in Yorba Linda and the 61,000-sf South Coast Executive Center office building at 1503 South Coast Dr. in the South Coast Metro submarket.

The new San Diego properties are the 125,000-sf Carlsbad Corporate Center office/flex building located at 1950 Camino Vida Roble in Carlsbad; the 79,000-sf two-building office/flex Via Frontera Business Park at 10965 and 10993 Via Frontera Dr. in the Rancho Bernardo submarket; and the 112,000-sf Poway Flex, a two-story office structure with an attached industrial building at 13550 Stowe Dr. in the Poway submarket.