News Release
AMSTAR GROUP SUCCESSFULLY REPOSITIONS TORRANCE POINTE WITH STRATEGIC CAPITAL IMPROVEMENT PLAN AND 50,000 SQUARE FEET OF LEASING; CUSHMAN & WAKEFIELD RETAINED TO MARKET CENTRAL TORRANCE ASSET
New Leases with AT&T And Network Global Help Bring the 143,000-square-foot Corporate Style Office Campus to 93 Percent Occupancy.
Los Angeles , CALIFORNIA (April 18, 2008) –Amstar Group today announced the execution of new lease transactions with AT&T for 37,535 square feet and Network Global Logistics for 14,296 square feet at Torrance Pointe office center in Torrance, California. This new recent leasing activity Torrance Pointe helps bring the occupancy of the 143,000-square-foot campus environment to 93 percent, compared to the 38 percent occupancy when Amstar Group acquired the asset in June 2005. The Denver-based real estate private equity group also announced it has assigned Cushman & Wakefield to market the asset for disposition as part of Amstar’s on-going three-to-five year hold business strategy.
“Significant renovations, including landscape design and upgrading of the common areas in all three buildings, have helped us to successfully reposition this building and attract a high-quality tenant base,” said D. Scott Gibler, Executive Director of the Amstar Group.
Colliers Seeley’s Geoff Ludwig and Doug Brawn represented Amstar Group in both transactions. Robert Healey and Timothy Vaughan of CB Richard Ellis represented AT&T. Nathan Piehl and Brett Racanelli of Equis represented Network Global Logistics.
“This is an excellent building anchored by excellent tenants as American Honda Motor Corp., AT&T, and Global Logistics. In addition, these leases are excellent examples of the overall health of the South Bay office market,” said Jeff Cole, executive director of Cushman & Wakefield’s Capital Markets Group. “The combination of an improving market, upgrading the buildings’ curbside appeal and giving the office center an overall face-lift, has allowed the Amstar Group to capitalize on this investment.”
According to Cole, the Los Angeles County office market is currently experiencing steady net absorption, decreasing vacancy rates and rising asking rents. “Last year, vacancy rates were approximately 17 percent; this year the vacancy is currently 14 percent and will perhaps be 10 percent by year-end with over 1 million square feet of net absorption. We expect vacancy to continue to drop next year into the seven percent area with 2.4 million square feet of absorption,” said Cole.
In addition, the approximately 100,000 square-feet of office space in Torrance, left vacant by Nissan’s headquarter relocation last year, is now nearly occupied, more proof of the upswing market in the South Bay.
“AT&T was attracted to Torrance Pointe’s convenient parking, leasing rate, aesthetics, and proximity to the freeway and nearby AT&T locations,” said Gibler. “Network Global Logistics plans to relocate their national headquarters to the new space.”
Both companies have occupied the space at Torrance Pointe.
Torrance Pointe is owned and managed by Amstar Group. It is a Class A office center located on Western Avenue in Torrance, adjacent to the U.S. headquarters of America Honda and Toyota.
About Amstar Group
Established in 1987, Amstar Group is a leading real estate private equity firm headquartered in Denver. The company invests nationally in value-add acquisition and development opportunities, often with local partners. In its history Amstar has acquired, developed and sold more than $3.6 billion of real estate. Amstar’s current $2.0 billion portfolio includes office, multifamily, industrial, retail, hospitality and mixed-use assets and development projects. The firm’s acquisition and disposition volume during 2007 exceeded $600 million. For more information about Amstar Group visit the company’s website at www.amstargroup.com.