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Barker Pacific and Praedium Acquire West Los Angeles Office Building for Repositioning Play
38,594 Square Foot Multi-tenant Office Building Acquired for $10.85 Million
LOS ANGELES, CA – November 21, 2006 – Barker Pacific Group (BPG) and The Praedium Group have acquired a 38,594 square foot office building on the corner of West Third Street and Crescent Heights Boulevard in West Los Angeles for $10,850,000 or $281 per square foot. The property is located within a few blocks of CBS Studios, the Director’s Guild headquarters, the Writer’s Guild headquarters, Cedars-Sinai Medical Center, and The Grove. The building is 60% occupied by movie and television producers, video production companies, professional service firms and other entertainment and media related service-companies.
Barker Pacific Group made the acquisition in joint venture with its affiliated private equity fund, Hamilton Capital Partners and The Praedium Group, a New York City-based national real estate investment firm. Barker Pacific Group will manage the property for the investment partners.
8075 West Third Street will be repositioned and updated to cater to West Los Angeles tenants, with a particular focus on entertainment and media related companies. The new ownership plans to bring a retail tenant to the space on the corner of Third and Crescent Heights and the exterior of the building and the interior courtyard will be upgraded. The building will be leased by Christopher Rising, a principal in Hamilton Capital Partners, and President of The Rising Real Estate Group, and Nico Vilgiate of CB Richard Ellis.
“The acquisition of 8075 West Third Street presents the opportunity to reposition a well located asset to compete with Class-“A” office buildings in the West Los Angeles marketplace,” said Michael Barker, managing director of Barker Pacific Group. ”Space is tightening, office rents are rising and the supply-constrained market made 8075 West Third Street an attractive investment.”
Joe Kimaz and Nico Vilgiate of CB Richard Ellis’ Los Angeles office represented the seller in the transaction and Barker Pacific Group and Praedium were represented by The Rising Real Estate Group.
Barker Pacific Group is a firm comprised of experienced real estate professionals active in asset management, acquisitions and development of major commercial projects. The company was founded more than 20 years ago to specialize in the development and acquisition of institutional quality office, retail, and residential projects in select U.S. cities. As a developer, Barker Pacific Group has completed or has under development or redevelopment in excess of $1.5 billion in commercial projects including the award winning Hamilton Landing, a 550,000 square foot Class-A office conversion project on Hamilton Air Force Base in Marin County, California.
The Praedium Group is a real estate investor focusing on under-performing and under-valued assets throughout North America, with over $6 billion in total investments to date in more than 250 transactions comprised of 40 million square feet of commercial space and 50,000 multi-family units. Praedium was formed in 1991 with a leading international investment bank as its sole investor.
Building on the experience and exposure gained through this original investment program, Praedium has been a sponsor of commingled real estate private equity funds since 1994. The funds sponsored by Praedium have attracted investors that include public and corporate pension funds, financial institutions, insurance companies and endowments.
Praedium is investing its most recent $700 million real estate private equity fund, Praedium Fund VI. This equity will be leveraged to acquire more than $2 billion in properties. The fund invests in mid-cap assets throughout the United States and Canada in the $10 to $70 million range, targeting multi-family, office, retail and industrial property types. Cadim, a Montreal-based real estate investor and portfolio manager, is a major shareholder of The Praedium Group. Cadim is a division of the Caisse de depot et placement du Quebec and a member of the Real Estate group of the Caisse. The Caisse is one of the world's 10 largest real estate managers among pension fund managers. For more information, please see www.praediumgroup.com.
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