Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

American Assets Trust (AAT) to Acquire Eastgate Office Park

By Zacks Investment ResearchStock MarketsMay 26, 2021 05:10AM ET
American Assets Trust (AAT) to Acquire Eastgate Office Park
By Zacks Investment Research   |  May 26, 2021 05:10AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

American Assets (NYSE:AAT) Trust, Inc. AAT announced that it entered an agreement for the acquisition of Eastgate Office Park, a multi-building office campus situated in the premier I-90 corridor submarket of Bellevue, WA. The company will use cash on hand to shell out $125 million for the acquisition.

The acquisition is subject to customary closing norms.

The office campus spans approximately 280,000 square feet across four multi-tenant office buildings. The campus is more than 95% leased to a diversified tenant base and has a weighted average lease term of around 3 years. This is likely to provide rental income visibility in the near term.

Also, the property offers excellent on-site amenities, a campus setting in a natural landscape with walking trails, a diverse tenant roster of technology and professional services companies and easy access to I-90. Given the growing preference for high-quality, well-located properties, which provide top-notch amenities; Eastgate Office Park is likely to continue seeing decent interest from office occupiers.

Also, the company believes that the contractual lease rates of the campus are below market rates prevailing in the submarket. This likely provides scope for improvement in lease rates.

Furthermore, the campus recently received municipal nods for rezoning and enhancing the floor area ratio from 0.5 to 1.0. This offers significant additional development opportunities and is likely to enhance the value of the property.

As the impact of the pandemic subsides, an increasing number of companies has announced plans to return to office. This along with significant government stimulus is likely to support office market fundamentals. Hence, the acquisition of this office asset will likely enable the company to participate in the rebound of the office real estate sector, which was earlier on tenterhooks due to shelter-at-home restrictions, low occupancy and a remarkable decline in leasing volume at the onset of the pandemic.

Shares of this Zacks Rank #3 (Hold) company have gained 21.6% over the past six months compared with the industry's growth of 17.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

However, the company’s retail portfolio does not seem to have escaped pandemic blues just yet. In fact, because of the pandemic, a significant number of tenants closed or continue to close their businesses temporarily or permanently. Others shortened or continue to shorten their operating hours or offer reduced services. As a result, issues like rent collections and lower leasing have emerged as a pressing concern for companies like American Assets Trust, Simon Property Group (NYSE:SPG) SPG, Kimco Realty Corporation (NYSE:KIM) KIM and Federal Realty (NYSE:FRT) FRT.

+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities

In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.

Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.

Click here to download this report FREE >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Kimco Realty Corporation (KIM): Free Stock Analysis Report

Federal Realty Investment Trust (FRT): Free Stock Analysis Report

Simon Property Group, Inc. (SPG): Free Stock Analysis Report

American Assets Trust, Inc. (AAT): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research
American Assets Trust (AAT) to Acquire Eastgate Office Park

Related Articles

American Assets Trust (AAT) to Acquire Eastgate Office Park

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email