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Sunday, May 22, 2022

Office Buildings Pull in Record Sale Prices

A pair of building sales that carried high per-square-foot price tags were announced July 15, providing further proof that L.A.’s office market remains strong.

PRG Investment & Management Inc. sold the 53,000-square-foot Laurel Park Commerci Center in Rancho Dominguez for $10.5 million. The property, at 19500-19520 Rancho Way, has 10 tenants and was 100% leased at the time of the sale.

The Rancho Dominguez site sold for nearly $200 per square foot — among the highest prices paid per square foot in the South Bay for comparable assets, PRG said.

The company acquired the building in 2011 for $3.9 million. It was 80% vacant at the time.

“Our original business plan was to execute our PRG value-add strategy, which involved cosmetic enhancements, leasing the units to quality tenants seeking a good value and creating strong property cash flow,” Britten Shuford, co-founder and managing partner of the company, said in a statement. “We were successful in quickly stabilizing the business park sooner than expected at rents which were higher than projected.” 

Michael Kendall of Colliers International Group Inc. and Steve Bohannon of Cushman & Wakefield Inc. represented the seller in the transaction. The buyer, who was not identified, was represented by Eric Strauss of America West Properties Inc.

The campus was built in 1986 by Watson Land Co.

Across the county, a three-story office building in Larchmont Village sold for $10.5 million, according to Colliers International.

The sale price amounted to $810 per square foot, a record for the area in buildings of up to 20,000 square feet, according to Colliers.

Colliers’ Nathan Pellow, Michael Weiner and Nick Nybakken represented the seller, the Cerrell family, which built the building. Cerrell Associates Inc. will continue to occupy part of the building in a sale-leaseback agreement. Realty Advisory Group Inc.’s John Repstad represented the buyer, a local investment partnership.

“The market is super-hot right now and timing is everything,” Pellow said in a statement. “We were able to select the most qualified buyer from the multiple offers we received, allowing us to close escrow in record time.”

The building at 320 N. Larchmont Blvd. is 12,400 square feet.

Hannah Madans Welk
Hannah Madans Welk
Hannah Madans covers real estate for the Los Angeles Business Journal. A USC grad, Madans has done work with publications including The Orange County Register, The Real Deal and doityourself.com.

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