San Diego Business Journal

Major Southern California commercial landlord Arden Realty was acquired by a division of General Electric Co. for $3.2 billion in a deal that includes several prime Downtown San Diego high-rises.

As part of the deal, GE said it is selling 13 of the Arden buildings to Chicago-based Trizec Properties Inc. for $1.6 billion. Those properties include 701 B St., a 24-story office building; the 18-story Washington Mutual building at 707 Broadway; and Arden Towers in Sorrento Mesa.

Together, the three offices contain more than 1.3 million square feet.
The other 10 properties acquired by Trizec are concentrated in West Los Angeles.

With the transaction, Trizec will nearly double its Southern California office portfolio to more than 8.6 million square feet, and the region will become Trizec's largest, representing more than 28 percent of the real estate investment trust's net operating income, according to the company.

Under the terms of the agreement announced Dec. 22, GE will pay Arden shareholders $45.25 for each of their shares, a 3.7 percent discount to its Dec. 21 closing price. The transaction also includes assumption of about $1.6 billion in Arden debt, bringing the overall value of the deal to about $4.8 billion.

, Mike Allen