Canadian investor Pacific Reach Properties is expanding its investment portfolio in Los Angeles to new asset classes. The firm has been investing in multifamily and hotel properties since 2011, but has now added its first US office asset to the roster of L.A. properties. The investor purchased the 270,000-square-foot Sherman Plaza property. Pacific already owned 1,750 apartment units and 1,015 hotel rooms in the L.A. area. With this new addition, we sat down with Dan Dibadj, acquisitions manager at Pacific Reach Properties, to talk about the firm's investment strategy and growing interest in the L.A. market.
GlobeSt.com: Why was this office property a good acquisition opportunity for the firm, considering that you have focused on multifamily properties in the past?
Dan Dibadj: We are long term, value-add investors and Sherman Plaza fits our criteria well. The building has consistently outperformed its submarket through multiple cycles and given the location and the quality of the building we expect it will continue to generate consistent returns for our portfolio. The excess land also provides us with the opportunity to increase density in the future.
GlobeSt.com: We are seeing more capital coming from Canada. Why are you attracted to the L.A. market, and what is your business strategy here?
Dibadj: We have been invested in L.A. since 2011. L.A. is a major international city, has a diversified economy, a great climate, well-reputed post-secondary institutions, a wide range of housing options, which are all great real estate fundamentals. Our investment strategy in L.A. is to acquire well-located assets with long-term growth potential.
GlobeSt.com: Are you planning more investment activity in Los Angeles?
Dibadj: Yes, absolutely. We have been successful in our investments to date and are currently actively looking at a number of asset classes in the region including hotel, office, multifamily, and development land.
GlobeSt.com:Los Angeles is getting a lot of attention from the investment community. Are you finding a lot of competition from other investors, both domestic and foreign, for assets like this, and if so, how are you remaining competitive?
Dibadj: Yield is scarce and the market is competitive. As a private, vertically integrated investment firm, with ready access to capital, we offer transparency and can move fast. We are also comfortable dealing with some of the larger and more complicated deals that others may pass on.
GlobeSt.com: What is your business plan for the Sherman Plaza asset?
Dibadj: We have some minor capital projects planned and a few creative ideas that will enhance the property further. Majestic Asset Management has done a great job managing the asset, and our plan will be to continue that.
Canadian investor Pacific Reach Properties is expanding its investment portfolio in Los Angeles to new asset classes. The firm has been investing in multifamily and hotel properties since 2011, but has now added its first US office asset to the roster of L.A. properties. The investor purchased the 270,000-square-foot Sherman Plaza property. Pacific already owned 1,750 apartment units and 1,015 hotel rooms in the L.A. area. With this new addition, we sat down with Dan Dibadj, acquisitions manager at Pacific Reach Properties, to talk about the firm's investment strategy and growing interest in the L.A. market.
GlobeSt.com: Why was this office property a good acquisition opportunity for the firm, considering that you have focused on multifamily properties in the past?
Dan Dibadj: We are long term, value-add investors and Sherman Plaza fits our criteria well. The building has consistently outperformed its submarket through multiple cycles and given the location and the quality of the building we expect it will continue to generate consistent returns for our portfolio. The excess land also provides us with the opportunity to increase density in the future.
GlobeSt.com: We are seeing more capital coming from Canada. Why are you attracted to the L.A. market, and what is your business strategy here?
Dibadj: We have been invested in L.A. since 2011. L.A. is a major international city, has a diversified economy, a great climate, well-reputed post-secondary institutions, a wide range of housing options, which are all great real estate fundamentals. Our investment strategy in L.A. is to acquire well-located assets with long-term growth potential.
GlobeSt.com: Are you planning more investment activity in Los Angeles?
Dibadj: Yes, absolutely. We have been successful in our investments to date and are currently actively looking at a number of asset classes in the region including hotel, office, multifamily, and development land.
GlobeSt.com:Los Angeles is getting a lot of attention from the investment community. Are you finding a lot of competition from other investors, both domestic and foreign, for assets like this, and if so, how are you remaining competitive?
Dibadj: Yield is scarce and the market is competitive. As a private, vertically integrated investment firm, with ready access to capital, we offer transparency and can move fast. We are also comfortable dealing with some of the larger and more complicated deals that others may pass on.
GlobeSt.com: What is your business plan for the Sherman Plaza asset?
Dibadj: We have some minor capital projects planned and a few creative ideas that will enhance the property further. Majestic Asset Management has done a great job managing the asset, and our plan will be to continue that.
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