Local REIT Acquiring Portland Buildings for $92 MillionWednesday, May 25, 2011
San Diego-based investment firm American Assets Trust Inc. has agreed to purchase a six-building office portfolio in Portland, Ore., for approximately $92 million.
A statement issued May 20 by the real estate investment trust said the transaction will be completed with proceeds from the company’s $563.7 million initial public offering of common stock, which was completed in January.
The portfolio consists of six buildings, with a total of 588,397 rentable square feet, within four contiguous blocks in Portland’s Lloyd District. Those include a condominium interest in the 20-story Lloyd Tower, the 16-story Lloyd 700 building, and four low-rise landmark buildings within a complex known as Oregon Square.
The portfolio is approximately 92 percent leased, with current tenants including Integra Telecom Holdings, Inc., Knowledge Learning Corp. and PacifiCorp.
The acquisition is subject to the REIT’s due diligence and other customary closing conditions. Ashforth Pacific Inc., an affiliate of the properties’ seller, will be retained to provide property management services.
The portfolio has been designated for additional development rights, to include a high-density, mixed-use urban village, the statement said.
Portland’s Lloyd District is a major transportation hub and includes the city’s convention center, Lloyd Center Mall and the Rose Garden Arena, home of the Portland Trailblazers pro basketball team.
— Lou Hirsh