For our investment in Pacific Center, the seeds of success were sowed before purchase when we combined our extensive due diligence with our deep knowledge of the local market. We anticipated the recovery of the Los Angeles Central Business District. Importantly, we were confident that Pacific Center would benefit from our intensive asset management which gives attention to every detail in all areas of management and administration in a manner that meets the needs of our tenants and adds value to our investments.
Pacific Center is an over 400,000 sq. ft. Class A Office Building with ground floor retail in the heart of downtown Los Angeles. The property is an architectural showpiece and a designated historical landmark that is frequently the site of television and movie filming. The property is actually comprised of three seamlessly interconnected 12-story, 6-story and 4-story buildings that date from 1906. The upper nine stories of the tallest building have an H-shaped floor-plate which increases the window-line exposure. The exterior includes a decorative veneer designed in a classical style of pre-cast terra cotta and enameled concrete elements. The upper three stories of the 6-story and 4-story buildings have similar façades.
We purchased Pacific Center for $36.0 million or $89/sq.ft. in 2003. After investing $3.0 million in capital improvements, renewing several key tenants, increasing the occupancy to 74%, and negotiating several new retail leases with national tenants, Holualoa sold the property for $66.25 million or $164/sq.ft. in December 2005.