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LONG BEACH, CA-An investment fund of Northern California-based Legacy Partners has acquired the 573,000-sf One World Trade Center office complex for $148.9 million from G REIT, the latest asset to be sold by the Orange County-based specialist in properties occupied by government tenants. G REIT had owned the property since December 2003, when it bought it for nearly $114 million.

The sale was one of the largest in the history of the Long Beach office market, according to Dave Doupè of Jones Lang LaSalle Americas, which represented G REIT. Doupè notes that Legacy Partners has been invested in the Long Beach market for more than two years. Foster City-based Legacy acquired the One World Trade Center property through is Legacy Partners Realty Fund II.

“This acquisition allows them to strengthen their role as one of Downtown’s largest landlords” and positions Legacy to take advantage of strengthening market conditions in the seaside city, Doupè adds. In addition to Doupè, the JLL team on the deal included Larry Krasner and Cheri Pierce.

Stockholders of G REIT, which is managed by Santa Ana-based tenant-in-common sponsor Triple Net Properties, approved a liquidation plan for the One World Trade Center and all of the company’s other assets more than a year ago. It has sold 12 of the properties since then, including 10 in 2006 and two this year, plus two more that are under contract to sell.

The One World Trade Center project, completed in 1989, is a 27-story class A tower that is approximately 88% leased by a mix of federal government tenants, legal and professional services firms and international trade companies. Tenants include the US Customs Service, the FBI, the Department of Defense and the US Postal Service.

G REIT acquires properties separately from Triple Net, but Triple Net acts as adviser to the REIT and manages the latter’s day-to-day operations. The idea behind G REIT is that government-oriented tenants provide a stable source of rent and, when they grow, are likely to expand within the same buildings they already occupy. G REIT is one of a number of investment entities that Triple Net manages in addition to its own portfolio.

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