Wetherly Capital Group LLC, a West L.A. boutique investment banking and investment firm, has signed a lease renewal and expansion at its headquarters office building.
The lease rate reflects the impact the recession has had on the Class A office market in Los Angeles. Simply put: Rents are way down.
The lease at 11601 Wilshire Blvd. begins at just under $4 per square foot per month on a full-service gross basis. While $4 rents are now near the top of the market, about a year and a half ago the property owner, Equity Office Properties, was seeking $6.75, said Peter Best of Madison Partners.
“We were asking that one and a half years ago and getting low sixes,” said Best , who represented EOP, a unit of Blackstone Group LP, a New York private equity group. “So we’ve had to make some adjustments. (But) we haven’t dropped ourselves all the way down to where some of the other buildings are.”
The lease, valued at $1.6 million for 64 months, starts April 1. Previously, Wetherly had 4,600 square feet at the property, known as the Wachovia Building. The new deal is for 6,300 square feet.
“They strongly considering relocation alternatives and ultimately chose the best solution,” said Matthew Miller, of Cresa Partners, who represented the tenant.
Wetherly’s new 1,700-square-foot space is being remodeled. The Wachovia Building is a 500,475-square-foot, 25-story office building that Blackstone acquired with its 2006 purchase of Trizec Properties Inc.
Lisa St. John and Dan Baumeister of Madison Partners also represented the landlord.
Vicky Schiff, managing director of Wetherly, said in an e-mail that she could not comment because of a confidentiality agreement.
Apartment Sale
A 22-unit apartment building at 310 S. Sherbourne Drive near Beverly Hills has traded hands for $4.53 million. It was the first time the property had been on the market in more than three decades.
The building, which has 14 one- and eight two-bedroom units, was listed in October for $5 million. It sold at a discount at $205,682 per unit, but the deal shows that multifamily properties in good neighborhoods are still trading.
The 1962 building is on an 18,339-square-foot lot, which offers potential for redevelopment, said David Eitches, a Charles Dunn Co. broker who represented the seller, real estate investor Alkana Properties.
The buyer was an undisclosed local family that invests in real estate. It purchased the property under the name Lohan Apartments LLC.
“Ten years down the road or three years ago there is development potential. That holds some added value,” Eitches said.
The building, which has four vacant units, has a central courtyard, swimming pool and is protected by the city of Los Angeles’ rent control ordinance. It’s just blocks from La Cienega Boulevard, and near trendy shops and restaurants on Third Street.
“The buyer feels (he’s) got a good property in a good area,” said Eric Sackler of Coldwell Banker Commercial, who represented Lohan Apartments.
David Aschkenasy of Charles Dunn also represented the seller.
Pasadena Renewal
AARP, the advocacy group for persons 50 and older, has signed a seven-year lease renewal at 200 S. Los Robles Ave. in Pasadena, where the group maintains its Southern California regional headquarters.
The March 6 transaction with the landlord, an unnamed pension fund advised by American Realty Advisors, is valued at $2.81 million.
The 11,238-square-foot lease renewal on the fourth floor of the Class A building will start in November. The organization looked at other properties in Pasadena before deciding to stay at the Class A building, said Transwestern broker Jonathan Larsen, who represented AARP.
“After negotiating with about five other properties we made our decision,” said Larsen. “The landlord made a decision to be aggressive enough in the current market place to keep them.”
Carlton Maese of CB Richard Ellis Group Inc. said that it was important for the landlord to keep AARP as a tenant. With the deal, the six-story building is over 90 percent leased, with about 17,000 square feet of space remaining.
“They are one of the largest tenants,” said Maese, who represented the landlord.
Katie Bernhisel of Transwestern also represented the tenant. Patrick Church of CB Richard Ellis also represented the landlord.
Staff reporter Daniel Miller can be reached at [email protected] or (323) 549-5225, ext. 263.
