Acquisitions
Investment Philosophy:
PS Business Parks, Inc. (NYSE: PSB) acquires properties in select sub-markets located in high growth markets across the country. Property types include multi-tenant flex, office and light industrial buildings located within business parks. Properties should provide long-term income growth and be priced below replacement cost.
General Acquisition Parameters:
PS Business Parks, Inc. (PSB) is a self-advised and self-managed equity real estate investment trust that acquires, develops, owns and operates multi-tenant commercial properties, primarily flex, office and industrial space. The Company defines “flex” space as buildings that are configured with a combination of office and warehouse space and can be designed to fit a number of uses (including office, assembly, showroom, laboratory, light manufacturing and warehouse space).
PSB intends to continue to acquire multi-tenant commercial properties located throughout the United States. Although the Company currently operates commercial properties in eight states, it will consider expanding its operations to other major markets.
Investment Criteria:
As a general rule, we prefer product with the ability to increase value (through increasing improvements, i.e. increase build-out, reposition asset, lease-up or roll over) with sufficient parking. We will consider value-added transactions. NOI growth is an important consideration in all transactions. PSB will consider product in other large markets if the portfolio is over 500,000 square feet and offers the company management economies and upside potential. In addition, the Company will consider other value-added opportunities, redevelopment and related product type (distribution and retail) where the Company is currently managing product.
Property Type:
• Multi-tenant or buildings that are easily multi-tenanted
• Prefer Industrial / flex / service center / light manufacturing buildings; R&D and low-rise office buildings
• Parking ratio adequate for the type of product
• Prefer good highway access/visibility
• Development opportunities
Investment Range: $10 million to $1 billion
We have the ability to acquire any size portfolio and will consider acquisitions below $10 million that are close to existing properties owned by PS Business Parks.
Terms: All cash or cash to existing debt.
Contract Capabilities: A typical transaction would involve a 30-day due diligence period with a 5-day closing.
Return Requirements: Our requirements vary depending on opportunity and income growth potential.
Ross Parkin | Vice President
Acquisitions & Dispositions
701 Western Avenue Glendale, CA 91201
Tel. (818) 244-8080 x 1662
Fax (818) 242-0566
rparkin@psbusinessparks.com
