The transaction represents what Macquarie calls "a strategicgeographic re-weighting to strong US office markets," according toSimon Jones, CEO of Macquarie Office Management LTD. As part ofthat strategy and in a separate deal, it is selling two Dallasproperties owned in a venture with Equity Office Properties.Macquarie's US adviser is Principal Real Estate Investors, whichbrought the deal to Macquarie on behalf of one of its associates.The Stadium Gateway building, at 1900 S. State College Blvd.adjacent to the Angels' baseball stadium, was completed in 2001 andis 100% occupied, with a weighted average lease term of five years.Jones says Macquarie liked the leasing profile of the building,where the rate of expiration of leases in coming years isrelatively low in an office market where leasing has been gainingmomentum and rental rates have been rising.

Seller Principal Real Estate Investors is a member of the DesMoines-based Principal Financial Group. It bought the StadiumGateway about two years ago from a partnership of Summit CommercialProperties of El Segundo, Mack-Cali Realty Corp. of Cranford, NJand an East Coast financial institution. The six-story officebuilding is part of the city of Anaheim's master-planned, mixed-usedevelopment for the area around the baseball stadium near theintersection of the I-5 Freeway and state highways 57 and 22.