Baltimore, MD – A joint venture owned by Alex. Brown Realty (ABR) and Vertical Ventures, LLC (Vertical), a Walnut Creek, California-based real estate investment company, has acquired the Pacific Corporate Center in Livermore, California. ABR Chesapeake Fund IV, a value-added real estate fund sponsored by ABR, invested $5.8 million in the venture.
The Pacific Corporate Center was developed between 2001 and 2002 and includes five single-story R&D/flex office buildings. The single-story, concrete tilt-up buildings contain 207,806 square feet and are currently 93% occupied by two high-credit tenants whose leases are expected to provide strong cash flow throughout the joint venture’s projected holding period.
“Pacific Corporate Center is a great opportunity to purchase a Class A asset in a very desirable area at well below-replacement cost,” stated Hamid Rezapour of Vertical. Rezapour further noted that the property is in close proximity to the Lawrence Livermore National Laboratory and the Sandia National Laboratory, two of the country’s most important research centers.
“We are really pleased with this acquisition,” commented Tom Burton, ABR’s chief investment officer. “The in-place income from the existing tenants will enable us to provide immediate and attractive dividends to our investors. Additionally, the existing tenants have made substantial improvements to their space and their lease terms extend beyond our projected holding period. Consequently, we can offer future potential buyers the ability to acquire a proven cash flow stream, which should ultimately enhance our overall return.”
The acquisition represents the first transaction between ABR and Vertical Ventures.
Alex. Brown Realty (ABR) is a privately-owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States. www.abrealty.com
Vertical Ventures, LLC (Vertical) is a Walnut Creek-based real estate investment company formed in 2004. Vertical Ventures focuses on the acquisition of office, medical office, industrial and retail properties in supply constrained second tier California markets.