News Release
AMSTAR GROUP RE-ENTERS LOS ANGELES OFFICE MARKET WITH $20.3 MILLION ACQUISITION OF TORRANCE CENTER NORTH
First Office Transaction in Area by Denver-Based Real Estate Private Equity Firm Since Disposition of Santa Monica’s Colorado Center in 2004
LOS ANGELES (June 28, 2005) – Amstar Group acquired its first office asset in the Los Angeles-area since it sold its interests in Colorado Center in 2004. The Denver-based real estate private equity firm acquired Torrance Center North, a 143,000-square-foot office building in Torrance, California from NSLP, Inc, a division of Citibank, for $20.3 million.
“While this investment is on the low end of our target size, the all-cash acquisition of Torrance Center North allows Amstar to return to the Los Angeles market, a market we have sold out of over the last two years,” said D. Scott Gibler, Executive Director of the Amstar Group. “We are also able to capitalize on a value-added investment opportunity. We believe that Torrance Center North has been penalized in the market due to undercapitalized ownership and financially handcuffed management. We believe through aggressive leasing in an improving office market and upgrading the appearance and market perception, this investment will prove to be quite successful.”
“The acquisition of Torrance Center North matches Amstar’s core strategy of finding investment opportunities that are well located in improving office markets where the company can add value through aggressive management and leasing,” said Gabe L. Finke, CEO of the Amstar Group. Although Amstar has realized significant investment returns for itself and joint venture partners through a disciplined disposition program, the company continues to be an active investor. Over the next few years, Amstar plans to place approximately $1.5 billion in leveraged equity investments. Currently, the company has more than $300 million of its own discretionary equity available for investment.
In 2004, Amstar completed or placed under contract more than $1 billion in transaction activity, including acquisitions, dispositions, and developments. This involved more than 2.8 million square feet of office space, 696 multi-family units and 791 hotel rooms.
Secured Capital Corp.’s Stephen Somer, Jay Borzi and Steve Silk handled the sales transaction for both parties. Colliers Seeley’s Stephen Cramer, Eric Lastition, Geoff Ludwig and Doug Brawn have been appointed exclusive leasing representatives for the building.
“Amstar has acquired a property in a market where rents are firming up and vacancies are dropping,” said Cramer, senior vice president in Colliers Seeley’s South Bay office. Colliers Seeley notes that rents have improved approximately 8.6% in the past 12 months, and the vacancy rate for office product currently is stabilized at 12%, down from 15% in mid-2004.
Torrance Center North is located on Western Avenue in Torrance, adjacent to the U.S. headquarters of American Honda, and near the U.S. headquarters of both Toyota and Nissan. American Honda and Western Medical are two of the major tenants in the project, which is currently 38 percent occupied.
About Amstar Group
Established in 1987, Amstar Group is one of the leading real estate private equity firms in the United States. Headquartered in Denver, Colorado, the company has acquired and developed more than 75 properties valued at $2 billion. Its current portfolio includes a diversified mix of office, multifamily and hospitality holdings. The company currently has holdings in California, Florida, Texas, Philadelphia, Chicago, Denver, Phoenix, and Washington, D.C. For more information about Amstar Group visit the company’s website at www.amstargroup.com.