American Assets Trust Expands Portfolio with Genesee Park Acquisition

American Assets Trust, Inc. (NYSE: AAT) announced today the acquisition of Genesee Park, a prime 192-unit apartment community located in the vibrant city of San Diego, California. This transaction underscores the Company’s commitment to enhancing its portfolio through strategic investments in high-demand markets.

The purchase, finalized for approximately $67.9 million before closing prorations, was executed using cash reserves, marking a significant addition to American Assets Trust’s residential holdings.

Currently, Genesee Park boasts a leasing rate of approximately 93%, with the Company identifying rental rates that are notably below the prevailing market levels for the submarket. This discrepancy presents an appealing opportunity for American Assets Trust to implement strategic asset management initiatives aimed at enhancing the property's overall value.

Adam Wyll, President and CEO of American Assets Trust, expressed enthusiasm about the acquisition, stating, “Genesee Park is a valuable addition to our portfolio, offering strong upside potential in a prime San Diego location. By optimizing rental rates and exploring opportunities to enhance density, we plan to unlock the property's full value while elevating the living experience for our residents.”

Genesee Park is strategically situated in San Diego, providing residents with convenient access to public transportation and major freeways. This location ensures seamless connectivity to key destinations, including Downtown San Diego, the San Diego International Airport, leading retail centers, and prestigious universities, as well as a wide array of dining and entertainment options.

The accessibility and desirability of the location are expected to contribute to the property’s long-term value and performance, aligning with American Assets Trust's ongoing strategy of acquiring and enhancing high-quality assets in key markets.

American Assets Trust, Inc. is a vertically integrated and self-administered real estate investment trust (REIT) with a strong track record of over 55 years in the real estate sector. Headquartered in San Diego, the Company has established itself as a formidable player in acquiring, improving, developing, and managing premier office, retail, and residential properties across the United States.

With a portfolio that includes approximately 4.1 million rentable square feet of office space and 2.4 million rentable square feet of retail space, as well as a mixed-use property and 2,302 multifamily units, American Assets Trust continues to leverage its extensive experience and knowledge to pursue growth opportunities in dynamic, high-barrier-to-entry markets.

The acquisition of Genesee Park apartments represents a strategic move by American Assets Trust to bolster its presence in the San Diego real estate market. By focusing on optimizing rental income and enhancing property value through strategic initiatives, the Company is well-positioned to capitalize on the growing demand for quality residential living in prime locations. As American Assets Trust continues to expand its portfolio, stakeholders will be keenly watching how this latest acquisition contributes to the Company’s overall performance in the coming years.