Arden Acquires Office Building in El Segundo

Beverly Hills-based real estate investment trust Arden Realty Inc. has acquired the 240,000-square-foot Continental Grand Plaza office building in the fast-rebounding El Segundo market for between $45 million and $50 million, according to sources familiar with the transaction. Arden purchased the property from an affiliate of Highridge Partners, which had bought the building five years ago when the local economy and real estate market were in a severe recession. Arden declined to discuss the sale, and Highridge co-managing partner John Long wouldn’t disclose details except to say that it was structured as a so-called up-REIT transaction in which the seller accepts shares and/or partnership units in the REIT that acquires a property. Arden has quickly become a leading owner of Southland office buildings--including about 2 million square feet in and around El Segundo--over the last several years. Highridge is a real estate investment and development firm with headquarters in the Continental Grand building.