La Salle Investment Management has sold office properties in Playa Vista at a loss of roughly 47%.
The Annex, a roughly 132K SF low-rise creative office campus at 5340 Alla Road, sold for $50.3M to the private Westside Neighborhood School, LA Business First reported. The property, which sits on more than five acres, allows for the development of another 160K SF.
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The school already occupies a property adjacent to The Annex where it has a preschool, elementary and middle school. It's unclear what the plan is for The Annex.
The other property, a 48K SF office building at 12901 W. Jefferson Blvd., sold for approximately $24M. It was purchased by a venture between Pacshore Partners and A2 Capital Management and is fully leased to two IPG media companies, Deutsch LA and Steelhead.
“The sale of both assets is a reflection of the increased liquidity we are seeing in the market, especially in a desirable submarket like Playa Vista where investors and users can obtain today a comparatively very attractive basis,” Newmark co-Head of Capital Markets Kevin Shannon said in a statement. Shannon and his team represented the seller.
Chicago-based La Salle bought both offices from Canyon Partners in 2017. It spent $95M for The Annex and $45M for the West Jefferson property, records show.
Playa Vista was once a burgeoning tech hub sought by tenants looking for larger spaces and newer office stock than they might be able to find elsewhere on the Westside. But like so many other submarkets, its office properties have been hit hard by hybrid and remote work arrangements.
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