These buildings are the highest quality buildings in the 190th Street Corridor submarket. They were purchased at a deep discount to replacement cost when the submarket was recovering. In place rents were substantially below market rents, which created the opportunity to increase value by increasing the lease rates to market levels when the existing leases expired. ZKS aggressively raised rental rates and sold the project for $66 million, generating a realized IRR of 23%.

INVESTMENT DATA

Capital Partner   The Carlyle Group

Purchased From   Nissan

Sold to   Arden Realty

Date Purchased   June 1999

Date Sold  August 2002

Purchase Price  $54,000,000 ($121 psf)

PROPERTY DESCRIPTION

Location   Torrance, CA

Submarket   190th Street Corridor

Property Type   Class A Office

Property Description   2 nine-story buildings

Rentable Square Feet   445,905

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