LOS ANGELES, Aug. 17, 2017 /PRNewswire/ -- Pacific Reach Properties of Vancouver has purchased Sherman Plaza, a two-building, 270,000-square-foot office complex on seven acres in Los Angeles.
"We are excited to add Sherman Plaza to our portfolio," said Vera Liu, Director of Acquisitions of Pacific Reach. "Sherman Plaza has had a strong performance history and we expect that the property will continue to improve. The San Fernando Valley office market is strengthening, the building is occupied by credit tenants, and there is future development potential on the excess land. We look forward to continuing our expansion in Los Angeles across multiple asset classes."
The deal marks the first acquisition of a U.S. office complex for Pacific Reach, which currently owns and manages 1,750 apartment units, 640,000 sq. ft. of commercial space, and 1,015 hotel rooms across Los Angeles, Phoenix, Toronto and Vancouver. Other notable properties owned by Pacific Reach include National City Tower in Downtown Los Angeles, Blu Apartments in Beverly Hills, and the Rosewood Hotel Georgia in Vancouver.
"This is a significant acquisition for Pacific Reach in Los Angeles, which has grown from a primarily Canadian-focused business to a major West Coast real estate player," said Pacific Reach's transactional real estate counsel Andrew Kirsh of Los Angeles law firm Sklar Kirsh LLP, which over the past year has closed over $2.5 billion worth of real estate transactions.
Newmark Knight Frank's Capital Markets President, West Coast Kevin Shannon, Executive Managing Director Ken White, Senior Managing Director Rob Hannan, and Managing Director Brad Burton represented the seller, Majestic Asset Management, Inc.
"Sherman Plaza is currently 99 percent leased and has a historical occupancy of over 90 percent," said Shannon. "It is one of only three institutional-quality projects in Van Nuys, which is a lower-cost alternative for tenants as compared to the adjacent submarkets of Sherman Oaks and Encino. That positioning made this an ideal opportunity to acquire a high-quality, stabilized asset at a significant discount to replacement cost."
About Pacific Reach Properties
Pacific Reach Properties is a real estate investment company that operates and manages commercial, multi-family, and hotel assets throughout the United States and Canada. For more information, visit: www.pacificreach.com
About Majestic Asset Management
Majestic Asset Management, Inc. is a full service real estate investment and property management company that specializes in the development, acquisition, and management of income producing properties. Majestic's success has delivered a consistent stream of dividends and an internal rate of return of 20%+ since inception. For more information, visit: www.majesticllc.com
About Newmark Knight Frank
Newmark Knight Frank (NKF) is one of the world's leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NKF's 14,100 professionals operate from more than 400 offices in established and emerging property markets on six continents. NKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. For more information, visit: www.ngkf.com.
About Sklar Kirsh
Sklar Kirsh LLP counsels privately held and public companies, family offices, growing businesses, and high net-worth individuals on legal and business matters that arise at all stages of the business and real estate life cycles, including mergers and acquisitions, purchase and sale agreements, equity and debt financings, fund formation, leasing, corporate governance, tax, executive compensation and employment arrangements, and dispute resolution. For more information, visit: www.SklarKirsh.com.
SOURCE Pacific Reach Properties