Largest Sales Comprised Well Leased Properties in Prime Locations
By Ryan Patap CoStar Analytics January 11, 2022 | 1:43 P.M.
Office transaction activity in Los Angeles in the fourth quarter of 2021 was strong, at $1.7 billion, demonstrating some investors remain bullish on the sector.
Beverly Hills saw two of the three largest sales in the Los Angeles office market during the fourth quarter.
In October, IRA Capital purchased The Post building at 325 N. Maple Drive from joint venture partners Worth Real Estate Group and Invesco. The 102,500-square-foot property traded for $153.2 million, or almost $1,500 per square foot, at a 4.9% in-place capitalization rate. The property was 100% leased at the time of sale, with 92% of the property leased to Live Nation, a leading entertainment promotion and ticketing company.
Also in October, joint venture partners Meridian Property Co. and Morgan Stanley acquired 150 N. Robertson Blvd., a 67,500-square-foot medical office building in Beverly Hills, from a private seller in an off-market transaction. The property sold for $81.5 million, or more than $1,200 per square foot, at a 3.25% in-place capitalization rate. The property was 88% leased at the time of sale, with over 50% of the tenant roster affiliated with nearby Cedars-Sinai Medical Center.
In Burbank, California, Pacshore Partners purchased 2600 W. Olive Ave. in November from Granite Properties for $90.5 million, or $590 per square foot. The property was 97% leased to media-related firms at the time of sale, with in-place income at the property equating to a 4.9% capitalization rate on the purchase price. Granite Properties acquired the asset in July 2014 for $49 million, or $320 per square foot, and during its seven-year hold period, Granite oversaw $2.7 million in renovations.