(To read more on the net lease market, click here.)

LOS ANGELES-Hager Pacific Properties, a specialist in value-added deals, has acquired three office buildings totaling 490,000 sf that are net leased to national credit tenants in Salt Lake City, Chicago and Dallas. The new assets are the first in each of the three markets for Hager Pacific, which bought the portfolio from Levitt Properties Trust in a transaction brokered by Ted Gibbons, president of Investment Realty Advisors in Bellevue, WA.

Although the leases on the buildings are short-term, Hager Pacific found the properties appealing because it bought them at a “high cap rate and below replacement values,” according to Adam Milstein, managing partner of Hager Pacific. In addition, the properties are in markets that are growing significantly, Milstein adds.

Gibbons tells GlobeSt.com that the properties offer potential for adding value through a number of avenues, including below-market lease rates that could be renegotiated at higher rates when the leases expire. Also, Gibbons notes, one of the properties is a Cigna Healthcare office facility in suburban Chicago that has enough excess land to double the size of the building.

The three properties include a 209,000-sf building on 14 acres at 1801 Valley View Lane in Farmers Branch, TX, in the Dallas metropolitan area. Built in 1987, the property is occupied by Cingular Wireless’ Farmers Branch service center, the largest provider of advanced mobile wireless voice and data communications in the US.

The second building is a 153,000-sf, 19-acre facility at the intersection of Interstate 45 and Indian Oak Road in Bourbonnais, IL that serves as a regional service center for Cigna. Built in 2000, the property is close to Interstate 57 and is part of the Kankakee County metropolitan area.

The third new Hager Pacific asset is a 128,000-sf building on 14 acres at 8475 S. Sandy Pkwy in the suburb of Sandy in the Salt Lake City metropolitan area. Built in 1990, the property serves as a service center for Discover Card, which signed a five-year lease renewal in September.

Gibbons tells GlobeSt.com that the portfolio drew broad interest from a variety of types of investors, including 1031 exchange buyers, institutional investors and value-added specialists. Hager Pacific bought three properties in a five-property portfolio that Gibbons was marketing on behalf of Levitt Properties Trust, which is selling the other two to other buyers.

Hager Pacific, which operates from offices in both Los Angeles and Orange counties, owns properties in California and the Midwest and is currently investing $300 million to $400 million in commercial real estate throughout major metropolitan markets nationwide.

The company, which funds all of its deals internally without outside financing, specializes in acquiring under-performing, aged or environmentally impacted real estate and then adding value through repositioning, renovation or reuse of the property.

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