LA's Top 5 Summer Office Sales
Investor demand for office properties remained strong throughout the summer months. JLL VP Patrick Inglis (here with wife Samantha heli-skiing in British Columbia’s Selkirk Mountains) tells Bisnow the insatiable demand for creative office space has pushed investors to look at assets that can be converted or feature existing unique, open plan build-outs. Our pals at JLL helped us with this list of the top office five deals between May and August.
1. 100 N Crescent Dr, Beverly Hills
The biggest sale of the summer season occurred in July, when Cain Hoy Enterprises, a private investment firm based in Greenwich, CT, paid $130M, or $1,100/SF for the more than 118K SF Class-A office. The sales price represented a hefty 63% capital gain for the seller, Clarion Partners, which purchased the building in 2012 for $8M. The building in 97% leased, and serves as the HQ for anchor tech tenant 3-D Film.
2. One World Trade Center, Long Beach
The second-largest sale came in August when Greenlaw Partners paid nearly $106M for the 27-story One World Trade Center in Long Beach. The price paid is considered bargain basement for the 575k SF office tower, as the seller SteelWave paid nearly $150M for it at the peak of the real estate cycle in 2007. Greenlaw plans a $15M makeover to the 25-year-old structure.
3. The Burbank Collection, Burbank
No. 3 on the hot summer sales list occurred in May when Lincoln Property Co paid more than $84M for three high-profile office towers in Burbank at Burbank Executive Plaza, which Bisnow was first to report. The buildings are home to major media firms, including the Cartoon Network, Turner Broadcasting and MTV Network. Rebranded the Burbank Collection, the buildings are at 300 E Magnolia, 303 N Glenoaks Blvd and 333 N Glenoaks Blvd. The buildings total 326k SF and occupy a full city block in Downtown. Seller Kennedy Wilson took a hit in this deal, as the firm paid $95M for these properties in 2008.
4. Del Amo Crossing, Torrance
Fourth on the list was a deal valued at $62M for the 12-story, 367k SF Del Amo Financial Center at the corner of Del Amo and Hawthorne Boulevard in Torrance. A JV of The Muller Co and global investor GreenOak Real Estate made the buy from Jamison Properties, and has rebranded the 25-year-old office tower Del Amo Crossing. Plans now include a $35M repositioning as a high-end mixed-use project. Plans include a 42k SF on-site fitness center and replacing surface parking with a 10k SF restaurant and two levels of subterranean parking.
5. 17383 Sunset Blvd, Pacific Palisades
Lastly, Brickman Associates acquired a unique office complex overlooking the Pacific Ocean from Lincoln Property in an August deal valued at $53M. The property consists of one four-story and two three-story buildings that are nearly 104k SF. Located at the intersection of 17383 Sunset Blvd in Pacific Palisades, the property is on a bluff that provides sweeping ocean views and features landscaped courtyards with seating.