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ANAHEIM, CA-San Francisco-based pension fund advisor RREEF has struck a deal to re-acquire the 800,000-sf Stadium Plaza Business Park in Anaheim for a little more than $60 million from Spieker Properties, having sold the industrial park in the shadow of Edison Field to the Menlo Park-based real estate investment trust in 1986.

RREEF was forced to sell the property, a complex of industrial buildings off of the 57 freeway near Katella Avenue, in 1986 because the partnership that owned the development was structured to sell at a pre-set time.

Stadium Plaza Business Park has been on the market for only a few months. Spieker decided to sell the project as part of an effort to reallocate capital in the search for better returns.

John Lutzius, a senior analyst with Newport Beach-based Green Street Advisors, one of the nation’s most influential and respected REIT research firms, says many REITs talk about reallocating capital, but that Spieker is among the few who are actually doing it.

“It’s fairly common for REITs to talk about this,” he says. “The buzzword is ‘recycling’ capital. The idea is that, if you have assets that have very limited upside remaining in them, why not sell them into a strong private market and redeploy the sale proceeds into assets that have better growth prospects?”

Increasingly, REITs are looking to recycle capital because of their relatively low valuations on Wall Street, Lutzius says. Spieker will likely use the sale proceeds from Stadium Plaza to acquire other properties in Southern California.

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