Local real estate private equity fund Big Rock Partners LLC has purchased a 1950s Beverly Hills office building from Blue Real Estate for $16 million.
The renovated building at 400 S. Beverly Drive is a Class B property at a well-traveled Beverly Hills location. "It is on the corner a good, prominent corner of Olympic Boulevard and Beverly Drive," said Bob Safai of Madison Partners.
The deal breaks down to about $377 per square foot for the 42,422-square-foot building.
The multi-tenant four-story building is next door to the Avalon Hotel, a small boutique hotel. The building, which sits on about a quarter acre, was 94 percent occupied at the time of closing of the sale in late May.
Safai said that existing rents are in the $2.20 per foot per month range the lower end of the spectrum for the neighborhood. The average asking rate for Class B space in Beverly Hills was $3.56 in the first quarter. That was up from $3.10 a year earlier, according to Grubb & Ellis Co.
Those lower rates create an opportunity for rent growth, especially considering Big Rock's plans. The firm will renovate the building's exterior fa & #231;ade and also expects to add a retail tenant on the ground floor, where there is 9,000 square feet of available space, according to Big Rock principal Nicole Belcore.
"We think there is an opportunity to take advantage of increasing demands," Belcore said.
Beverly Hills-based Big Rock owns the nearby office building at 315 S. Beverly Drive and recently renovated that building, adding a trendy Lisa Kline clothing store to the ground floor of that property. Belcore said the renovation of Big Rock's new acquisition will be similar.
The company represented itself in-house on the deal and Safai represented Blue Real Estate.
Boingo Wireless Inc. has signed a five-year lease for about $6 million at 10960 Wilshire Blvd.
The deal for 25,000 square feet a full floor of space at the Westwood building closed in early May. The building is owned by private equity firm Blackstone Group LP, which acquired the property in its purchase of Equity Office Properties Trust earlier this year.
The firm is moving out of Santa Monica's Water Garden because it is "doubling in size," said Matthew Miller of brokerage Cresa Partners LLC, who represented Boingo in the deal. Boingo will move into its new digs in September.
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