Investors love the 90210 ZIP code. And just in case that wasn’t clear, it was highlighted last month when a Beverly Hills office building sold for $1,100 a square foot, the highest per-square-foot price for an office asset the area has seen.
Cain Hoy Enterprises, a Greenwich, Conn., private investment firm, shelled out $130 million for the 118,400-square-foot Class A office building at 100 N. Crescent Drive. The seller, New York’s Clarion Partners, purchased the building in 2012 for $80 million, a 63 percent return in three years.
Beverly Hills is a tight market and office buildings don’t trade often, especially those as large as this one. That limited availability, coupled with rents averaging almost $5 a square foot a month, the highest in Los Angeles County, has helped drive prices up.
The only two recent trades that came close to the per-square-foot price Cain Hoy paid came last year. In those deals, New York’s Rockefeller Group purchased a portfolio at 9336-48 Civic Center Drive for $896 a square foot from New York firm Tishman Speyer and Kansas City, Mo., asset manager Deutsch Asset & Wealth Management acquired 331 N. Maple Drive from San Francisco real estate investment firm Spear Street Capital for $781 a square foot.
Cain Hoy representatives did not respond to requests for comment.
The building, which is 97 percent leased, serves as the headquarters of anchor tenant 3-D film technology firm RealD Inc. Other tenants include Concord Music Group, food and restaurant firm Wolfgang Puck Worldwide Inc. and California Republic Bank. Asking rents at the property are $5.61 a square foot a month, according to CoStar Group Inc., even higher than the average for the city.
Clarion declined to comment on the sale.
New York real estate firm Eastdil Secured represented Clarion in the transaction. The buyer was not represented.
Big in Manhattan
A Canadian developer snatched up a Manhattan Beach office property for roughly $96 million at auction last week.
Vancouver’s Onni Group, whose local properties include a 311,000-square-foot office building at 600 Wilshire Blvd. and extended-stay hotel Level DTLA, both in downtown Los Angeles, bought the Manhattan Towers, a pair of Class A office towers totaling about 310,000 square feet at 1230-40 Rosecrans Ave. The firm paid roughly $310 a square foot to the seller, CWCapital of Bethesda, Md.
Eastdil was marketing the property, but the auction was held on Irvine online real estate marketplace Auction.com’s website.
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