Honolulu real estate investor Jay Shidler has moved a step closer to gaining control of a publicly traded Arizona-based real estate investment trust and his plans to grow the company with joint-venture investment partners.

Shareholders of Arizona Land Income Corp. yesterday approved a complex transaction that essentially calls for the company to be merged with some of Shidler's operations and for its name to be changed to Pacific Office Properties Trust Inc., a company that is expected to trade on the American Stock Exchange.

The shareholder vote was a major hurdle for the transaction, now moving toward completion pending a satisfactory closing of remaining conditions.

"We appreciate the shareholders' approval and demonstration of confidence in the impending transformation of AZL to Pacific Office Properties, said Shidler, in a press statement.

"We believe Pacific Office Properties is the first of a new generation of REITs which will use their highly efficient and transparent operating platforms to acquire commercial properties in partnership with institutional co-investors."

The REIT isn't the first for Shidler, one of Hawai'i's most adept and successful real estate investors. Shidler, who in 2006 contributed $25 million to the University of Hawai'i's School of Business, has been previously involved with three REITS, and still serves as chairman of two — First Industrial Realty Trust and Corporate Office Properties Trust. Both REITs have market capitalizations in excess of $1.3 billion.

Shidler has worked on the deal with Arizona Land Income for more than a year after striking a merger agreement with the company that was liquidating its mortgage loan portfolio and land holdings in the Phoenix area.

Shidler is becoming chairman of Pacific Office Properties and has tapped Dallas Lucas, a former executive vice president and chief financial officer of Los Angeles-based Maguire Properties, as his new company's chief executive officer.

Besides Shidler's connection with Hawai'i, the REIT will gain some of Shidler's portfolio of properties here and on the Mainland, including the Davies Pacific Center, the Pan Am Building and the Waterfront Plaza.

Pacific Office Properties also plans to focus initially on acquiring properties in Honolulu, San Diego, Los Angeles and Phoenix. It will have its headquarters in Los Angeles.

"Going forward, the company's co-investment strategy will provide access to private capital in addition to the public capital markets generally available to REITs and should generate venture-related preferential returns," said Lucas.

"We greatly look forward to the closing of the transactions and the launch of operations as Pacific Office Properties."

Reach Greg Wiles at gwiles@honoluluadvertiser.com.