Pacifica began as a Los Angeles-based real estate investment company in 1982. From its inception, the organization was committed to implementing the investment philosophy it now executes in public equities: buying interests in exceptional businesses in industries it deeply understands and at a significant discount to intrinsic value.
With its private investors Pacifica developed, acquired, and managed commercial income property. Its affiliate, Leonard & Ohren, provided commercial brokerage services for its independent landlord and tenant clientele as well as for Pacifica’s properties.
In the early to mid-1980’s, Southern California began recovering from a deep recession that resulted in depressed prices for commercial real estate. Pacifica seized on the opportunity to acquire income properties at below their replacement cost and built a portfolio extending from West Los Angeles to the South Bay area of Los Angeles County. As the market improved, selective properties were added where development and re-development could create value. As prices became inflated in the late 1980’s, Pacifica began selling its holdings, and looking elsewhere for investment opportunities.
A regional search led to Denver in 1988, where severely depressed real estate prices followed the regional industry boom and bust of the 1980’s. Repeating its successful Southern California business plan, Pacifica began acquiring commercial income property for its private clients. It soon opened offices in Denver that accommodated some of Pacifica’s top executives who relocated from Los Angeles to take full advantage of the opportunity. As the market improved, Pacifica began partnering with institutional investors on both acquisitions and development.
Excessive building in Colorado in the mid-1990’s became a concern, so in 1998 Pacifica sold its 8 million square foot portfolio for approximately $750 million resulting in an exceptionally high Internal Rate of Return (“IRR”) for the portfolio. As it was exiting the Denver market, Pacifica began to see opportunities to acquire and develop again in Southern California. From 1996 thru 1999 Pacifica assembled a portfolio of approximately 4 million square feet.
Those efforts culminated in 2004 when Pacifica sold the last buildings in the portfolio for a sale of approximately $400 million, again resulting in an impressive IRR on the investment. During this period Pacifica established an office in Madrid, Spain, and began assembling and developing a 180 acre retail center and industrial park within the city limits of Madrid.
Pacifica Capital Investments was formed in April of 1998 and has applied the same philosophy Pacifica executed so successfully in real estate investments. Now in its 16th year, PCI has grown significantly with assets under management of $329 million as of the beginning of 2014.