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.
"It was a combination of the right space, a great location and attractive economics," said Miller. "Westwood is basically a Class A market. It's a good location with good amenities."
Technology company Boingo has built and operates a global Wi-Fi network that includes over 25,000 wireless Internet hotspots.
Specifics of the per-foot per-month rental rate were not available, but first quarter asking rent for Class A space in Westwood was $4.09 per foot per month, according to Grubb & Ellis.
"Rates have gone up quite a bit in the last 24 months in Westwood," Miller said. "It's a good location with good amenities. It is close to employees and it has good walking distance amenities. There aren't a lot of vacant full floors on the Westside."
Blackstone represented itself in-house on the deal.
Language services company Coto Global Solutions LLC has signed a seven-year lease for a 46,451-square-foot industrial building at 2249 N. Hollywood Way in Burbank. The $1.15 million deal closed at the end of April.
Glendale-based Coto Global, which provides services such as multilingual customer service and sales support and document translation, will use the single-story building for research and development, said Jonathan Larsen of Transwestern.
"They liked that they were growing and it gave them more room for growth," said Larsen, who represented Coto Global in the deal. "It was an attractive in terms of terms and conditions." Coto Global is moving to the space after leaving another office in Burbank.
The per-month rental rate will average out to about $1.13 a foot over the seven year period, what Larsen called a market-rate transaction.
Daniel Wallis of Transwestern also represented Coto Global and landlord Studio City Land Co. was represented by George Kalman of Beitler Commercial Realty Services.
Staff reporter Daniel Miller can be reached at (323) 549-5225, ext. 263, or email@example.com .
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