Shidler Buys Offices From CalSTRS

The Shidler Group has acquired a two-building, 550,000-square-foot office portfolio from the California State Teachers' Retirement System for $90 million.The portfolio represents almost 5% of the total Honolulu office market and about 10% of the downtown Honolulu class A market, according to the San Diego-based commercial real estate investor. The portfolio consists of the 22-story Davies Pacific Center and the 17-story Pan Am Building, which is the largest office building in its submarket, Shidler said. The seller had acquired the two properties in 1989 for $145 million, according to Shidler, and has also invested "significant capital" in the properties. Matt Root, a Shidler Group partner, sees the deal as an opportunity to acquire "institutional-quality office buildings at 50% of replacement cost at the bottom of the market cycle, with trends pointing to an imminent economic recovery."