Omninet Capital has purchased office campuses in Commerce and Torrance for a combined $78 million.
In Commerce, Omninet acquired Commerce Plaza — a two-building complex at 5601 E. Slauson Ave. and 5701 S. Eastern Ave. — for $39 million.
The property has 194,908 square feet of office space.
Newmark Knight Frank’s Kevin Shannon, Ken White and Scott Schumacher represented the seller, downtown-based Colony Capital Inc., in the transaction. Beverly Hills-based Omninet Capital, which also owns Commerce Office Park across the street, was self-represented in the sale.
Commerce Plaza is leased to 13 tenants, including DaVita Medical Management and waste management services for Los Angeles County.
The county, according to Newmark Knight Frank, plans to lease more than 51,000 additional square feet. Once it does, the building will be 100% leased.
“The current vacancy for this office submarket is one of the lowest in Los Angeles County as there are limited options for tenants seeking quality office space within the industrial-dominated Vernon/Commerce area,” Shannon said in a statement. “Commerce offers a superb credit tenant base with approximately 40% of the office product leased to federal, state and county tenants in part due to the abundant free parking, central regional location and competitive occupancy costs, ultimately making it a desirable alternative to the downtown Los Angeles and Orange County office markets.”
Omninet Capital also purchased Park Del Amo, a three-building office campus in Torrance for $39 million.
The 204,468-square-foot office campus is at 2355 and 2377 Crenshaw Blvd.
NKF’s Shannon, White and Michael Moore represented the seller, TA Associates. Omninet Capital was self-represented.
Moore said in a statement that Omninet Capital was interested in the campus due to its location.
Shannon added that the sales price was competitive.
“This sale price represents a substantial discount to replacement cost and a massive basis advantage compared to the adjacent El Segundo office submarket,” Shannon said in a statement.
Torrance has no new office buildings under construction and a vacancy rate of just 8.1%, according to NKF data.
The property, which was built in 1985, is 92% occupied. Tenants include insurance consulting firm Keenan & Associates.
Brokerage CBRE Group Inc. forecasts that nationwide real estate will take 12 to 36 months to return to pre-Covid levels of rent and leasing activity. Office properties are expected to take roughly 24 months.
CBRE expects to see a 10% decline in office rent by the end of the year.
Still, there is some good news: Requests for rent relief in the office sector have remained low.
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