Joss Realty Partners, a New York real estate investment firm making its first investment on the West Coast, has entered the market in a big way, buying a Santa Monica office building for the highest price per square foot ever in Los Angeles County.
Joss dropped $23.7 million, or $1,004 a square foot, for the 23,557-square-foot creative office building at 1315 Lincoln Blvd. The seller is a partnership formed by Lincoln Property Co. of Dallas and ASB Real Estate Investments of Bethesda, Md. The deal easily eclipsed the $717-a-square-foot average sale price for Santa Monica office buildings, according to CoStar Group Inc.
Larry Botel, managing partner of Joss, said the firm jumped at the chance to acquire the two-story building, built in 2005, because the opportunity to acquire such a property in the area is rare. Office space is in high demand in the supply-constrained market, which is dominated by long-term landlords.
The building is fully occupied by L.A.’s City National Bank, New York communications firm Chandler Chicco Agency, Chicago media software firm Centro Media, Beverly Hills luxury car dealership O’Gara Coach Co. the workout studio Dethrone Basecamp.
Botel said Joss will make improvements based on feedback from the five tenants, which he expects will remain at the property. The building also has a 136-stall parking structure, a rarity for the city.
The seller was represented by Bob Safai, president of Madison Partners, along with Brad Schlaak.
Lincoln Property acquired the building in 2011 from Praedium Group for $12.6 million, or $534.87 a square foot.