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OFFICE

Platform Venture’s investments in the office sector comprise of distressed note purchases, asset acquisitions and alternative finance such as preferred equity in targeted markets where we see positive employment growth and strong market fundamentals. The key investment parameters which have driven past success and investments in this sector include buying at an attractive discount to replacement cost, bringing special tenanting strategies and relationships to the asset, and transacting with undercapitalized and/or forced sellers.

DEAL HIGHLIGHT

TORRANCE TECHNOLOGY CAMPUS

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INVESTMENT VEHICLE: Fund IV

LOCATION: Los Angeles Metro

YEAR ACQUIRED: 2020

PROPERTY: Office/industrial asset totaling 573,167 square feet

OPPORTUNITY

  • Torrance Technology Campus is an office/industrial asset that totals 573,167 square feet located in Torrance, CA (Los Angeles Metro) that was sourced through a local leasing broker relationship

  • The asset was purchased in September 2016 with approximately 70% occupancy

 

VALUE CREATION STRATEGY

  • The investment presented an opportunity to purchase a well-located asset below replacement cost in a supply constrained market (Los Angeles MSA)

  • Leveraged the leasing relationship to secure a new 15-year, ~460,000 square foot lease with the largest tenant expanding its footprint in the property by an additional ~120,000 square feet by committing to address significant deferred maintenance at the property

  • Executed a 5-year, ~60,000 square foot renewal lease with another tenant pushing occupancy up to ~91%

 

RESULT

  • After executing the property renovation and tenant improvements, we sold the building in January 2019 for approximately 1.9x our original purchase price