EL SEGUNDO, CA-Admiral Capital Real Estate Fund, a newly launched joint venture of USAA Real Estate Co. and Admiral Capital Group, has acquired the 119,626-square-foot 1700 E. Walnut Ave. office building from Alliance Commercial Partners of Lakewood, CO. The purchase price was not disclosed, but the buyers said they acquired the building “at a significant discount to replacement cost.”
Alliance had owned the building since February 2007, according to information on the company’s web site. Built in 1986, 1700 E. Walnut is a six-story building on the south side of East Walnut Avenue, between Washington Street and Sepulveda Boulevard.
The Admiral-USAA joint venture says that it expects to “generate attractive returns through an active asset management strategy, a strong tenant base and recovering fundamentals in the region.” The Admiral Capital Real Estate Fund is a newly launched partnership between USAA Real Estate Co. and Admiral Capital Group formed by NBA Hall of Famer, philanthropist and 1987 US Naval Academy graduate David Robinson and managing partner, Dan Bassichis.
The fund targets real estate assets including office properties, retail shopping centers, multi-family properties, hotels and mixed-used properties. It seeks value-add opportunities in major domestic markets with a target transaction size of $25 million to $100 million. In addition to pursuing traditional opportunities, the fund's sponsors also seek to support community initiatives in cities where the fund invests that embrace Robinson's mission to improve education in lower-income communities.
Anchoring 1700 Walnut is the Transportation Security Administration, which currently leases nearly one third of the building. Other major tenants include market research firm iSuppli Corp and Otis Art Institute.
"This is a great example of our conservative approach for the fund with a focus on high-quality assets in strong markets," says Robinson. USAA Real Estate Co. chairman and CEO Pat Duncan added, "Close proximity to the expanding ports of Los Angeles and Long Beach, Los Angeles International Airport, quality executive housing and a friendly business environment continue to draw high quality tenants to the South Bay area."
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