LaSalle value-add fund to sell $221m Ygnacio Center after less than two years

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.

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.

Related images

  • Ygnacio Center

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2548

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 300-400m.
    Closing date: 2019-07-30.

  • QN-2549

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 300-700m.
    Closing date: 2019-07-30.

  • QN-2550

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2551

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2552

    Asset class: Fixed Income, High Yield (Active).
    Asset region: High Yield (US).
    Size: CHF 500-600m.
    Closing date: 2019-07-29.

  • QN-2553

    Asset class: Fixed Income, High Yield (Passive or Passive Enhanced).
    Asset region: High Yield (US).
    Size: CHF 500-1'100m.
    Closing date: 2019-07-29.

  • QN-2554

    Asset class: Global Real Estate (Equity, unlisted Funds).
    Asset region: World (ex-Switzerland).
    Size: CHF 200 mn (potential for further growth).
    Closing date: 2019-08-07.

  • QN-2555

    Asset class: Real Estate.
    Asset region: European.
    Size: EUR 50 - 100 million.
    Closing date: 2019-07-22.

  • QN-2556

    Asset class: FX Hedging.
    Asset region: Global.
    Size: Mandate size of CHF 1.5 bn.
    Closing date: 2019-08-09.

  • QN-2557

    Asset class: All/large Cap Equities.
    Asset region: China A-shares.
    Size: Unit linked platform (0m USD in initial investment).
    Closing date: 2019-08-01.

Begin Your Search Now