SANTA CLARITA, CA-Pacific Office Properties Trust Inc. of San Diego has acquired the three-building, 194,000-square-foot Valencia Corporate Center office complex from American Assets Trust Inc., also a San Diego-based REIT, for $31 million. Pacific Office will co-own Valencia Corporate Center through a joint venture with Angelo, Gordon & Co., a privately held investment manager.
Situated on a 13.8-acre campus, the Valencia Corporate Center was developed in 1999 and 2007 with amenities including an on-site gym and dining choices. The three buildings are at 28470, 28480 and 28490Stanford Ave.
Matthew Root, chief investment officer for Pacific Office, said in an announcement regarding the deal that the acquisition "reflects our strategy of purchasing high-quality value-add office buildings with institutional co-investors in markets that offer solid long-term growth fundamentals.” The joint venture partnership will be the latest in a long history of joint ventures formed between Pacific Office’s management group and Angelo Gordon, which together have completed over $1 billion in acquisitions.
American Assets president and CEO John Chamberlain said in his company's announcement of the sale that "The disposition of Valencia Corporate Center reflects our strategy of recycling capital out of assets in non-core markets and into assets located in our core and high-barrier-to-entry markets such as Portland." American Assets owns and operates both office and retail properties in Southern California, Northern California, Hawaii and Oregon. The company's retail portfolio comprises approximately 3.0 million rentable square feet, and its office portfolio comprises approximately 2.2 million square feet.
According to the latest Pacific Office Properties quarterly financial report for the period ending June 30, the company through its operating partnership as of June 30 owned six office properties comprising approximately 1.5 million rentable square feet and interests (ranging from 5% to approximately 32%) in 18 joint venture properties, of which it has managing ownership interests in 15, comprising approximately 3.3 million rentable square feet.
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