A three-story, 223,000-square-foot Class A office building in Calabasas sold recently for $69.4 million in an all-cash transaction.
The buyer was a joint venture between Connecticut-based global asset management platform Cross Ocean Partners and Century City-based real estate investment management firm Palisade Group. The property was fully leased at the time of sale, home to seven tenants across multiple industries, including consumer goods, insurance, hospitality, coworking and financial services, according to a release. It sits on a 20-acre site featuring expansive courtyards, landscaped gardens and executive parking.
“4500 Park Granada is a one-of-a-kind project benefiting from a beautiful campus
setting, long-term tenants and a leading amenity package,” Spencer Rose, managing principal at Palisade Group, said in a statement. “We were attracted by the Calabasas neighborhood location, easy freeway access and high-quality improvements that consistently attract leading firms. The benefits of in-office collaboration are undeniable, and we will work to enhance the offerings at 4500 Park Granada to help foster a dynamic office experience and create an environment where employees want to be.”
The deal came out to $312 per square foot which, according to the buyers, is considered below replacement cost for the property.
“4500 Park Granada is a rare opportunity to acquire a Class A office campus in a market with significant barriers to entry at a deeply discounted basis,” Terence Kim, managing director for Cross Ocean Partners, said in a statement. “We are excited to find such a unique opportunity like this in Calabasas and we look forward to continuing the project’s position as a dynamic workplace environment for leading employers in the area.”
Newmark’s co-head of U.S. Capital Markets Kevin Shannon, vice chairs Ken White, Rob Hannan, Michael Moll and Laura Stumm, as well as director Alex Beaton, represented the seller, Pasadena-based real estate investment and development company Gemdale USA.
“This Class A multi-tenant office property offered our all-cash buyer a strong tenant mix with nearly seven years of average remaining lease term, a major discount to replacement cost and prior peak cap rates, all in a superb area with significant barriers to entry,” Shannon said in a statement.
The building was originally developed as a corporate headquarters facility for global aerospace manufacturer Lockheed Martin, which has an office in El Segundo, and later served as the headquarters for Countrywide Financial Corp., which was purchased by Bank of America in 2008, during which it operated as a single-tenant campus for nearly 20 years. Recently, it underwent extensive renovations in order to improve efficiency and sustainability.
