Pacific Gulf Properties Buys Garden Grove Industrial Center
Pacific Gulf Properties Inc., a real estate investment trust, said Thursday that it has purchased the Garden Grove Industrial Center for $8.8 million, less than what it would cost to build the project today.
“We think that the price we paid for the Garden Grove property was good, and we’ve found that rents are bottoming out there and will start to climb as demand increases,” said Glenn Carpenter, president of Pacific Gulf.
The purchase of the 252,000-square-foot property from a pension fund administered by TCW Realty Advisors in Los Angeles boosts Pacific Gulf’s industrial properties portfolio to 1.7 million square feet. The company’s apartment portfolio, with properties in Texas, California and the Pacific Northwest, totals 2.5 million square feet.
After completing its initial public offering in February, Pacific Gulf bought the apartment and industrial properties of Santa Anita Realty Enterprises Inc., an REIT based in Arcadia that currently owns 3.5% of the company’s outstanding common stock.