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Optimus Properties sold a single-tenant office building spanning about 61K SF in the South Bay to Rose Equities, which plans to demolish the office and replace it with apartments.
Optimus purchased the office property in 2019 for approximately $15.8M. The building and the 5.5 acres it sits on sold off-market to Rose Equities for $30.6M.
“We're very happy,” Rose Equities principal Leonard Glickman told Bisnow, adding his company intends to hold the property for 60 to 70 years.
Plans to redevelop the site are already in motion. Rose Equities, along with its partner, Garden Communities, filed plans in February with the city of Torrance to build 272 apartments at the site at 2325 Crenshaw Blvd. in Torrance, Urbanize LA reported at the time. The plans were approved in June.
Rose Equities is also at work on a 1,000-unit project in Costa Mesa that received approval in June after years of back-and-forth, the Daily Pilot reported.
“The sale reflects an on-going trend of redeveloping antiquated office properties in target multifamily markets as demand shifts in the office sector,” Newmark Managing Director Anthony Muhlstein said in a statement.
Muhlstein and a capital markets team at Newmark represented Optimus Properties.
Optimus doesn't plan to sell any more of its office properties in similar deals.
“Our other office deals are in A+ locations and are typically 98% full,” Optimus Properties principal and co-founder Joseph Shabani told Bisnow in an email.
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