LeFraks Buy Building for Record Price

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LeFrak Organization Inc., a New York-based real estate company that is accumulating trophy property in Los Angeles, on Tuesday bought a Beverly Hills medical office building for what is believed to be a record per-foot price in that city.


The family company has paid about $55 million, or $862 per square foot, for the Wilshire Spalding Building, according to a real estate industry source.


The LeFraks bought the 63,800-square-foot building at120 S. Spalding Drive from Angelo Gordon & Co. LP and Cambra Real Estate, both real estate investment groups that owned the building in a joint venture. The building is fully leased.


Bob Safai of Madison Partners brokered both sides of the off-market transaction.


The joint venture had purchased the building from Arden Realty Inc. in December 2006 for $41.85 million, or about $609 per foot. While the joint venture owned the property, a Madison Partners leasing team handled renewals for about 40 percent of the existing tenants at a lease rate of about $6.25 per square foot per month, full-service gross.


Last year the LeFraks bought two high-profile local buildings beginning the family’s plan to expand its holdings from beyond New York and New Jersey, where it owns 34 million square feet of real estate. Jamie LeFrak, managing director of LeFrak Organization, told the Business Journal last year that his family would like to own at least 1 million square feet of Los Angeles real estate.


In June the family bought the tallest office building in Beverly Hills for $80 million and in August the LeFraks bought a Hollywood office building for $50 million. Safai and Jamie LeFrak did not immediately return calls seeking comment.

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