Locally headquartered American Assets Trust Inc. has entered into an agreement to purchase the 533-unit Pacific Ridge Apartments in San Diego for approximately $232 million, the company announced.
According to CoStar Group, the luxury apartment property was built in 2013 at 5945 Linda Vista Road, in the city’s Morena submarket. American Assets Trust plans to acquire it from its San Francisco-based developer, Carmel Partners.
An American Assets Trust statement said the property is currently 97 percent leased. The real estate investment trust plans to acquire it with a combination of cash on hand and funds drawn from the company’s existing credit facility.
Officials said the acquisition is expected to close later this year, subject to customary closing conditions. The transaction is being structured to accommodate a possible tax-deferred exchange under provisions of Section 1031 of the Internal Revenue Code.
That section allows investors to defer capital gains taxes on the sale of certain properties, provided an investment is completed on another pre-identified, similar type of property, usually within 180 days.
American Assets Trust Inc. (NYSE: AAT) is based in Carmel Valley and is led by Chairman and CEO Ernest Rady. The company invests in retail, office, residential, hotel and mixed-use properties, primarily in the western United States.