11 JULY 2018BY JON PETERSON
LaSalle Investment Management is close to selling an office complex in Walnut Creek, California for $221m (€189m) less than two years after acquiring it for $158m.
Hines and Oaktree Capital Management are in the process of buying the 515,306sqft Ygnacio Center from one of LaSalle’s value-add real estate funds, according to sources with knowledge of the transaction.
LaSalle, which declined a request for comment, bought the three-building office complex for LaSalle Income & Growth Fund VII, according to a board meeting document from the Contra Costa County Employees’ Retirement Association (CCERA).
The fund, in which CCERS is an investor, raised $510m to invest in real estate that requires physical improvements and/or re-leasing.
KGAL celebrates 50th anniversary in 2018 following a record year
Value-add real estate managers have recently told IPE Real Assets that economic, financial and supply conditions favour their strategies.
Sources close to the Ygnacio Center transaction say it reflects a trend of institutional investors looking beyond the San Francisco office market, where assets can trade at more than $700 per square foot.
Ygancio Center is priced at $420 per square foot, and the Walnut Creek market is still expected to experience strong rental growth, the say.
KGAL celebrates 50th anniversary in 2018 following a record year
TAGS
lasalle investment management, Hines, Oaktree Capital Management
RELATED IMAGES
Ygnacio Center
inShare
RELATED ASSET MANAGERS
Hines
LaSalle Investment Management
Oaktree Capital Management
RELATED ARTICLES
LaSalle joint venture buys empty six-floor building in Boston
Fri, 23 Jun 2017
Korean Teachers Pension invests in LaSalle's latest value-add fund
Thu, 25 May 2017