Peregrine Purchases Commercial Real Estate In California
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporationposted in Commercial Real Estate on Wednesday, August 8, 2012.
Real estate can be a profitable venture if the right decisions are made. One of the potential ways to make profit in this sector is by purchasing commercial real estate and then renting out office spaces. California firm Peregrine Realty Partners decided to pursue this avenue with the recent purchase of a 107,000 square-foot office building in Southern California. The six-story building is configured into multiple office spaces and was already completely leased, giving Peregrine the ability to begin making profit from rental income immediately following the transfer of ownership.
Many of the building's tenants are considered prominent companies in their fields. These tenants include companies such as Lockheed Martin, Orbital Sciences, Honeywell, and the Aerospace Corp. The property has a respectable reputation, and is also located next to Los Angeles Air Force Base. These attributes may help the real estate property maintain its value and possibly even increase the building's value over time.
Peregrine could not disclose the seller at this time; however, public records show that TA Realty bought the property from Investment Development Services Inc. for $24.5 million in 2008. This recent purchase is Peregrine's eighth acquisition in Southern California within the last 18 months. Within the past year the company has made over $100 million in acquisitions. In July, the company bought two class-A office buildings for $28.5 million, with a total of 153,029 square feet among the two properties.
Large commercial real estate acquisitions can be profitable, but also require careful planning. There could be many legal issues related to specific properties. A good grasp on real estate law in California will help investors navigate and avoid a range of potential legal pitfalls. Knowledge of other legislation pertaining to applicable safety regulations and tenant laws could also prove helpful in real estate acquisitions.
Source: GlobeSt.com, "Peregrine Realty Pays $28M for El Segundo Office," Natalie Dolce, July 30, 2012