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Real estate industry

Trizec Properties Acquires $1.63 Billion Portfolio in Southern California

Strategic Insights

— 1 min read

Trizec Properties, Inc., a real estate investment trust (REIT) headquartered in Chicago, has announced the signing of an agreement to acquire a high-quality Southern California office portfolio from Arden Realty, Inc. for $1.63 billion. The portfolio comprises 13 properties, totaling 4.1 million square feet, and several development land parcels. This acquisition is part of the deal between Trizec and GE Real Estate, a division of GE Commercial Finance, which plans to acquire Arden Realty, Inc.

The portfolio includes notable properties such as the Howard Hughes Center, Westwood Center, and World Savings Center in West Los Angeles, and Arden Towers at Sorrento and 701 B Street in San Diego. The acquisition is expected to be completed by the end of the second quarter of 2006, subject to approval by Arden's common shareholders and certain other customary closing conditions.

Key Takeaways:

  • Trizec Properties acquires a $1.63 billion portfolio in Southern California from Arden Realty, Inc.
  • The portfolio comprises 13 properties, totaling 4.1 million square feet, and several development land parcels.
  • The acquisition is part of Trizec's capital recycling program, which has resulted in acquisitions totaling $2.8 billion over the past 18 months.
  • The portfolio includes notable properties such as the Howard Hughes Center, Westwood Center, and World Savings Center in West Los Angeles, and Arden Towers at Sorrento and 701 B Street in San Diego.
  • Southern California will become Trizec's largest market, representing more than 28 percent of the company's total net operating income.
  • The acquisition is expected to be completed by the end of the second quarter of 2006.
  • Trizec will conduct a conference call on December 22 to discuss the details of the acquisition.
  • The portfolio is expected to be approximately 91 percent occupied at the closing of this transaction.

Statistics:

  • Total acquisition price: $1.63 billion
  • Number of properties: 13
  • Total square footage: 4.1 million square feet
  • Development land parcels: Several
  • Acquisition price per square foot: $396
  • Expected occupancy rate: 91%
  • Trizec's current portfolio: 37 million square feet
  • Trizec's 2004 Form 10-K, filed with the Securities and Exchange Commission on March 11, 2005.

Sources:

  • Trizec Properties, Inc. press release
  • Trizec Properties, Inc. 2004 Form 10-K, filed with the Securities and Exchange Commission on March 11, 2005.

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