Located in the University Towne Center market, the Aventine comprises a 217,000-sf class A office building, a 23,000 sf restaurant complex and a 1,181-space underground parking garage. The San Mateo-based REIT says it acquired the office portion of the project for $286 per sf, or $62 million. The building's vacancy rate was not immediately available. The tenant roster includes New York Life and American Express.
The Aventine is part of a larger development that also includes the Hyatt Regency La Jolla and is visible from Interstates 5 and 805 and State Highway 52. The property is in "a highly desirable, supply-constrained market near transportation centers and executive housing," says Andrew Batinovich, Glenborough's president and chief operating officer.
As of June 30, Glenborough owned 14 million sf in 77 primarily office and industrial properties that were 89.9% occupied, compared to 94.6% one year earlier. The properties generated a second quarter net income was $0.24 per diluted common share, as compared with $0.20 for the second quarter 2001.
In line with consensus estimates, Funds from Operations was $0.64 per diluted common share, as compared with $0.58 last year. Cash Available for Distribution was $0.47 per share, three cents less than last year. Same store net operating income declined by 1.5% compared with the second quarter of 2001. Portfolio occupancy stood at 89.9%, as compared with 92.4% last quarter and 94.6% one year ago.
On July 24, the Glenborough was added to Standard & Poor's SmallCap 600 Index, and is now one of five REITs in the Index. On that day, the company's stock traded at 10 times normal volume and jumped $1.50 to close at $19.20. On Wednesday, the company's share price rose $0.32 cents on less than one-third normal volume to close at $20.51. Over the past 52 weeks, shares in the company have traded for as high as $23.75 and as low as $16.76.
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