Acquisition, Credit Line Reflect Strategy

The Santa Monica-based REIT's ability to secure the revolving credit line "in such a challenging credit market is a testament to the underlying strength of our portfolio," says Dallas Lucas, president and CEO of Pacific Office Properties Trust. When the deal closed, Pacific Office Properties'acquisition of the $195-million portfolio--which totals more than one million sf--was a joint venture with a real estate fund organized and managed by a subsidiary of Atlanta-based Invesco Ltd.

[IMGCAP(2)]The seven-property, 15-building SoCal Portfolio includes properties in Los Angeles, Orange County and San Diego. The REIT's new JV holdings include Gateway Corporate Center, an 85,000-sf institutional quality office building in the Eastern San Gabriel Valley at 1370 Valley Vista Dr. Among its new high-profile San Diego assets is the 125,000-sf Carlsbad Corporate Center office/flex building located at 1950 Camino Vida Roble in Carlsbad

The REIT's new $40-million revolving credit line is with Cleveland-based KeyBank. Lucas says proceeds will be used to acquire "opportunistic and value-added office properties in partnership with institutional co-investors." Some of the credit line also will be available for general corporate purposes.

Pacific Office is a new entity, relatively speaking, having been established earlier this year. As of June 30, the company's total market capitalization exceeded $750 million based on the closing price of its common stock.

The REIT's strategy, as outlined in its SEC filings and Lucas' comments to GlobeSt.com, is to acquire value-added office buildings that present the potential for upside through improvements, repositioning and improved leasing/management. In addition, a keystone of the REIT's strategy is to operate in partnership with institutional co-investors, like Invesco was in its latest acquisition. In its public filings, Pacific Office says that the strategy revolves around continuing that of the Shidler Group, which it calls "highly successful institutional joint-venture operations."