Principal Real Estate Investors is bidding its partner, Majestic Realty, adieu.
The subsidiary of Principal Financial bought out Majestic’s stake in 16 industrial properties in Los Angeles worth over $111.5 million, The Real Deal has learned. The exact amount Principal paid remains unknown.
As part of the “exchange agreement,” Principal acquired Majestic’s 50 percent stake in all of their jointly-owned commercial sites. The properties span 16 million square feet, according to information released by Principal. One of them is a two-building warehouse complex at 18560 and 18669 San Jose Avenue in the City of Industry, according to Real Capital Analytics.
“This exchange agreement improves the liquidity of our real estate portfolio,” Principal executive Todd Everett said in a statement. “We’d like to thank Majestic for our 46-year partnership and their portfolio value creation efforts over the years.”
The partnership, which dates back to 1971, developed and jointly owned over 100 commercial properties since inception in the region. The two companies built a portfolio that manages or sub-advises $75 billion in real estate, according to press release details.
Majestic owns another 15 properties in California, including the 110-acre Crossroads Business Park in the City of Industry, according to its website.