LaSalle Investment Management has bought a 216,864sqft California office building for its US value-add strategy.

LaSalle Income & Growth has acquired the 4 Hutton Centre building in Orange County for an undisclosed sum.

The LaSalle Income & Growth funds are the firm’s flagship closed-end US value add fund series, with the first fund in the series launched in 1996. The fund seeks to acquire under-managed, under-capitalised, or mispriced assets to be repositioned as core assets.

LaSalle said the 10-story property is 80% occupied by a diverse mix of 21 tenants with a short weighted average lease term of 2.9 years allowing the fund to immediately benefit from property improvements.

Joe Munoz, CIO for LaSalle’s Income & Growth funds, said, “The acquisition of 4 Hutton Centre is a great fit for our portfolio, and aligns with our objective to reposition well-located office properties to core assets through our active asset management program.

“Office property fundamentals in the Airport submarket continue to strengthen, and we expect demand to continue to exceed supply in support of income growth.”

Erick Paulson, MD of acquisitions at LaSalle, said: “4 Hutton Centre offers many favourable characteristics, including close proximity to transportation nodes, executive housing, John Wayne Airport, and a strong amenity base.

“The Orange County office market continues to strengthen with steady growth from technology, healthcare and financial services, providing diversification that was not present in the submarket during the previous real estate investment cycle.”