SAN ANTONIO, July 7, 2011 /PRNewswire/ -- The Admiral Capital Real Estate Fund announced the acquisition of a 119,626 square-foot office building located at 1700 East Walnut Avenue in prestigious El Segundo, California. This acquisition provided the Fund with an opportunity to acquire an institutional quality asset at a significant discount to replacement cost and generate attractive returns through an active asset management strategy, a strong tenant base and recovering fundamentals in the region. The purchase price has not been disclosed.
The Admiral Capital Real Estate Fund is a newly launched partnership between USAA Real Estate Company and Admiral Capital Group formed by NBA Hall of Famer, philanthropist and 1987 U.S. 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. The Fund 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 six-story building. Other major tenants include market research firm iSuppli Corp and Otis Art Institute. A strong location, structured parking and numerous upgrades position the asset well in the market.
El Segundo, known for its business friendly environment, close proximity to the Los Angeles International Airport, prestigious costal amenities and housing has attracted numerous Fortune 500 companies including Boeing, Lockheed Martin and DIRECTV, which houses its 750,000-square-foot corporate headquarters in the area.
"This is a great example of our conservative approach for the Fund with a focus on high quality assets in strong markets," says David Robinson. "We received tremendous value from the USAA team and their in-depth knowledge of the market and the asset."
"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," says USAA Real Estate Company Chairman and CEO Pat Duncan. "1700 Walnut complements the Admiral Fund's goal of building a broad portfolio of assets offering attractive returns to investors."
USAA Real Estate Company manages a multi-billion dollar portfolio including recent acquisitions of $3 billion and development assets of $2 billion. The company provides co-investment asset management services to U.S. pension funds as well as foreign and domestic institutional investors. USAA Real Estate Company also provides capital to partners for development. The portfolio consists of office, industrial, multi-family, retail and hotel properties as well as investments in real estate operating companies. USAA Real Estate is a subsidiary of USAA, a leading financial services company, serving military families since 1922. For more information, visit www.usrealco.com.