In an effort to enhance its business in the California market, PS Business Parks Inc. (PSB) acquired Bayshore Corporate Center in San Mateo. The company shelled out $60.5 million for the purchase of this office park that spans 340,000 square foot and consists of 8 buildings.
For PS Business Parks, which already has a 7.2 million square foot Bay Area portfolio, the Bayshore Corporate Center acquisition is a strategic one. Currently 81.8% leased, the property is advantageously located at the intersection of Highways 101 and 92 in San Mateo. The Highways experience significant traffic movement and this small-tenant office park has an average in-place tenant size of around 1,700 square feet of space.
Further, to enhance the property value and increase its occupancy, PS Business Parks plans to make cosmetic and amenity upgrades. As a matter of fact, the company is on an acquisition spree. In November, PS Business Parks acquired 9 multi-tenant flex buildings in the Valwood submarket of Dallas, Texas for $12.4 million. These properties span 245,000 square feet of space and were leased 83.5% at that time.
Apart from this, in October, PS Business Parks bought 4 multi-tenant flex parks with a 4-acre land parcel in Dallas, Texas. The assets, aggregating 559,000 square feet, were acquired for $27.9 million. The acquisitions enhanced PS Business Parks’ position as the submarket’s largest owner of flex space with a total of 548,000 square feet.
Going forward, we believe PS Business Parks is well positioned given its solid portfolio in diversified markets. The company aims to capitalize on opportunities present in both existing and new high growth markets through accretive acquisitions. As such, we believe that the recent acquisitions would help it to ride on the growth trajectory.
PS Business Parks, in which Public Storage (PSA) possesses a notable common equity interest, currently has a Zacks Rank #3 (Hold). Moreover, investors interested in the REIT industry may consider stocks like Getty Realty Corp. (GTY) and Sabra Health Care REIT, Inc. (SBRA). Both these stocks carry a Zacks Rank #1 (Strong Buy).
In an effort to enhance its business in the California market, PS Business Parks Inc. (PSB) acquired Bayshore Corporate Center in San Mateo. The company shelled out $60.5 million for the purchase of this office park that spans 340,000 square foot and consists of 8 buildings.
For PS Business Parks, which already has a 7.2 million square foot Bay Area portfolio, the Bayshore Corporate Center acquisition is a strategic one. Currently 81.8% leased, the property is advantageously located at the intersection of Highways 101 and 92 in San Mateo. The Highways experience significant traffic movement and this small-tenant office park has an average in-place tenant size of around 1,700 square feet of space.
Further, to enhance the property value and increase its occupancy, PS Business Parks plans to make cosmetic and amenity upgrades. As a matter of fact, the company is on an acquisition spree. In November, PS Business Parks acquired 9 multi-tenant flex buildings in the Valwood submarket of Dallas, Texas for $12.4 million. These properties span 245,000 square feet of space and were leased 83.5% at that time.
Apart from this, in October, PS Business Parks bought 4 multi-tenant flex parks with a 4-acre land parcel in Dallas, Texas. The assets, aggregating 559,000 square feet, were acquired for $27.9 million. The acquisitions enhanced PS Business Parks’ position as the submarket’s largest owner of flex space with a total of 548,000 square feet.
Going forward, we believe PS Business Parks is well positioned given its solid portfolio in diversified markets. The company aims to capitalize on opportunities present in both existing and new high growth markets through accretive acquisitions. As such, we believe that the recent acquisitions would help it to ride on the growth trajectory.
PS Business Parks, in which Public Storage (PSA) possesses a notable common equity interest, currently has a Zacks Rank #3 (Hold). Moreover, investors interested in the REIT industry may consider stocks like Getty Realty Corp. (GTY) and Sabra Health Care REIT, Inc. (SBRA). Both these stocks carry a Zacks Rank #1 (Strong Buy).
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