A six-story Brentwood office building on an up-and-coming stretch of Wilshire Boulevard sold late last month for $39.3 million in an off-market deal.
Wilshire Pacific Plaza, a 100,000-square-foot Class A office building at 12301 Wilshire Blvd., sold on March 31 to a joint venture formed by Woodland Hills’ Sunrise Real Estate Group, downtown L.A.’s Robhana Group and Miracle Mile’s 4M Investment Corp.
The seller, Dallas real estate investment company TPMC Realty Corp., originally bought the 38-year-old building in 2008 for an undisclosed price and spent about $5.5 million to renovate it a year later.
The building was about 75 percent leased at the time of sale. Tenants include movie distribution company Open Road Films and several medical offices for dentists and dermatologists.
Sunrise’s Daniel Abrams, a principal in the family business, said the Brentwood acquisition represented a shift in the company’s strategy. Rather than continue to invest in properties in the San Fernando Valley and Ventura County, where Sunrise owns more than 1 million square feet of commercial real estate, the company is looking to West Los Angeles, the Wilshire Corridor and downtown.
“We’re reshuffling the deck,” he said. “We find the fundamentals in high density and urban markets in West Los Angeles and downtown to be very attractive and poised for significant growth in the years to come.”
While all three partners in the acquisition are also operators to some extent, the management arm for Sunrise will take the lead handling the Brentwood property.
Ali Bararsani of Newmark Grubb Knight Frank represented the buyers in the deal and TPMC handled the deal internally.
Little Tokyo Trade
Brunswig Square, an eight-story Class B office building in Little Tokyo, sold last week to a private investor for $33 million.
Mid-Wilshire real estate company Jamison Services Inc. sold the building at 360 E. Second St. to Torrance investment firm Arenda Capital Management for $220 a square foot. Jamison, founded by David Lee, had owned the building since 2006, when it paid $26.9 million, or about $179 a square foot. The company was the largest private office landlord in Los Angeles until it sold off more than 10 percent of its portfolio during the recession.
The 150,000-square-foot art deco building, only about 45 percent leased at the time of sale, was built 80 years ago and last renovated in 1986. It’s the fourth building Arenda has acquired in the last two years. Others include the Commons, a $21 million neighborhood retail center in Pasadena’s South Lake district; a $2.7 million industrial property at 835 Seward St. in Hollywood; and a $6.4 million Class B office property at 2800 W. Olympic Blvd.
Lee J. Polster, a broker for Coldwell Banker Commercial Westmac, represented both the buyer and seller in the off-market deal.
“The property is located at ground zero in the gentrification zone of downtown Los Angeles between South Park and the Arts District,” Polster said.
He said the buyer plans to spend significant capital to reposition the property as Class A creative office.
As development booms in Hollywood, office tenants are starting to buy the hype.
Earlier this month, four new tenants signed leases for a combined total of nearly 22,000 square feet at the Sunset Media Center. The 22-story office tower at 6255 W. Sunset Blvd., owned by West L.A. real estate investment trust Kilroy Realty Corp., is now about 94 percent leased as completion of a $15 million renovation nears.
Of the four recent additions to the property, tax incentive consulting business Tax Credit Co. took the most space, signing a lease for about 12,900 square feet. Canadian production company DHX Media signed for about 3,900 square feet, and the other two tenants took smaller spaces. Production company Wind Dancer Films and bridal magazine Inside Weddings signed leases for about 2,600 square feet and 2,500 square feet, respectively.
These leases follow a couple of other recent lease deals for the property. In January, YouTube fashion network StyleHaul Inc. signed a lease for about 6,600 square feet in the 322,000-square-foot office tower, and in October, online couponing company Slickdeals Inc. signed for about 6,650 square feet. The latter more recently expanded into an additional 2,050 square feet.
Brokers for Jones Lang LaSalle Inc. who handle leasing at the Sunset Media Center for Kilroy declined to disclose terms for recent leases, but said rental rates have increased in the building from about $2.85 a square foot a month in August 2012 to $3.90.
“Firms are benefitting from the city’s revitalization along with a creative and diverse employment base,” said broker Nicole Mihalka of Jones Lang LaSalle.
Carl Muhlstein, Hayley Blockley and Blake Thomas of Jones Lang LaSalle also represented Kilroy Realty.
Staff reporter Bethany Firnhaber can be reached at email@example.com or (323) 549-5225, ext. 235.
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