Pacific Center

Stream acquired the Class A office building in Torrance, California from Bixby Land Company for approximately $220.00 per rentable square foot. Pacific Center is located approximately two miles from the Pacific Ocean and is considered the South Bay submarket’s premier office project. The building is on Hawthorne Boulevard, one of Los Angeles County’s top five retail corridors, adjacent to a 2.3-million-square-foot shopping center, which at the time of purchase was undergoing a $200 million remodel. Stream’s business plan was to complete a capital improvement plan, lease up vacancy and bring current rents to market rates.

Stream invested more than $8 million in capital improvements and deferred maintenance projects across the asset’s interior and exterior spaces. By repositioning the asset with these upgrades and implementing an institutional marketing and leasing program, Stream increased occupancy from 77% at acquisition to 90% at the time of the sale (representing a net increase of 39,114 square feet). Rent rates also grew by 40% during our hold period, driving NOI growth of 82.4%. Given the operational improvements and continued tenant and investor demand for prime real estate in this submarket, Stream received buyer interest ahead of its underwritten exit timing.