Trust Pays $30 Million for Universal City Office Building

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Glenborough Realty Trust acquired a prominent Universal City office building for more than $30 million.


The San Mateo-based real estate investment trust is purchasing a 104,000-square-foot office building at 3330 Cahuenga Blvd. from Broadreach Capital Partners LLC, which bought the building about 18 months ago.


Broadreach Capital paid $21 million for the five-story office building, which at the time was more than a third vacant. Since then, Broadreach Capital stabilized the property and raised the building to 100 percent occupancy.


The property, which sits above a two-level underground parking garage, is near several on-ramps to the Hollywood (101) Freeway and Burbank’s media district.


“Cahuenga is a well located building that has great appeal to entertainment tenants,” Andrew Batinovich, Glenborough’s president and chief executive, said in a statement. “(The building) is a high quality asset that helps us continue to build a presence in our core market of Southern California.”


Cushman & Wakefield Inc.’s Steve Algermissen and John Minervini represented Broadreach Capital. Glenborough was represented internally.



Westside Listing


A low-rise Westside office park has hit the market and could fetch more than $30 million.


Pacific Structures LLC is selling Commerce Park, a three-building campus that contains a cumulative 110,000 square feet of office space. The business park sits on slightly more than five acres straddling the border of Santa Monica and West L.A.


The one- and two-story buildings are at 3211 Olympic Blvd., 1811-1855 Centinela Ave. and 3212-3232 Nebraska Ave. The project was built in the late 1970s and recently renovated, according to Bob Safai, a Madison Partners principal, who has the listing.


Madison Partners recently arranged a 10-year, $23.2 million loan on the property at 5.6 percent with the first five years interest only, Safai said. The property produces $2.2 million of net operating income.


The office complex is located in one of the best-performing markets in L.A. County. At the end of March, the area had one of the region’s lowest vacancy rates and highest asking rents, according to Grubb & Ellis Co.


The listing was first reported on the Web site of Commercial Real Estate Direct.



Airport Adjacent


A 13-story Inglewood office building near Los Angeles International Airport has been put up for sale.


Namco Capital Group Inc. has listed a 244,000-square-foot office property with 680 parking spaces at 9920 S. La Cienega Blvd., next to the San Diego (405) Freeway.


An asking price hasn’t been listed. For comparison, David Lee’s Jamison Properties Inc. paid $71 million in September for a 700,000-square-foot portfolio of LAX-adjacent office buildings.


At a similar price of $101.50 a foot, the Inglewood building would fetch about $25 million.


However, at the time of the transaction, Lee said buying the buildings made sense as a parking play because of the property’s proximity to LAX.


Namco’s building likely wouldn’t have the same advantage.


While the South Bay has begun to rebound recently, the submarket which includes LAX continues to be one of the poorer performing areas in L.A. County.


At the end of March, the South Bay’s vacancy rate was nearly 50 percent higher than the county average and asking rents were more than 20 percent lower than the county average.


Despite those figures, value-add buyers have been snatching-up South Bay properties in the hope that the region will see significant gains as nearby markets fill-up.


Namco has hired Madison Partners’ Safai to market the property.



Resort Play


Beny Alagem likes his Hilton hotels.


The owner of the Beverly Hilton hotel closed a deal recently to purchase the 375-room Hilton Los Cabos Beach & Golf Resort in Los Cabos, Mexico.


Alagem’s Oasis West Realty LLC is buying the 11.3-acre property from a partnership led by Grupo Questro, a leading Mexican resort developer. Terms of the deal weren’t disclosed, but hotel brokers believe the price is in the $125 million to $150 million range.


Financing for the transaction was provided by JPMorgan Chase Bank. The hotel will continue to be managed by Hilton Hotels Corp., which also runs Alagem’s Beverly Hills property.


Alagem is already considering ways to leverage the Hilton brand at both his properties. “Our long-term vision is to bring together two premier hotels with strong reputations to create a synergistic relationship,” said Alagem, chairman of Oasis West Realty, which owns the hotels.



Staff reporter Andy Fixmer can be reached by phone at (323) 549-5225, ext. 263, or by e-mail at

[email protected]

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