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Sunday, May 28, 2023

Pacshore, Canyon Make Creative Office Grab

Pacshore Partners, an L.A. real estate investment firm run by Philip Orosco, and Canyon Catalyst Fund, a joint venture between L.A.’s Canyon Capital Realty Advisors and California Public Employees’ Retirement System, have partnered to acquire creative office buildings in Malibu and Playa Vista in two separate transactions totaling $36 million.

The Pacshore-led venture purchased the Enclave, a 32,417-square-foot Class B office complex at 22619 Pacific Coast Highway above Carbon Beach in Malibu earlier this month from Theory R Properties, a family real estate office in Ladera Ranch.

The partners paid $20.5 million, or about $617 a square foot, for the three-building office campus, designed by architect Clive Bridgwater, that has been the headquarters of Jakks Pacific Inc. since the toy company’s founding in 1995. Jakks expanded to be the sole tenant of the building in 2005, but is now relocating to Santa Monica. The buyers plan to lease the building to several smaller companies.

“Pacshore saw this as an opportunity to acquire a trophy building in Malibu, where office vacancy is less than 3 percent and there is a tremendous barrier to entry,” said Andrew Jennison, a partner at Santa Monica firm Industry Partners who represented both the buyers and the seller, and will handle leasing for the property.

“A building like this, built into the hills, couldn’t be constructed today with the current restrictions,” Jennison said.

Theory R sold the complex because it is focusing on acquisitions in Arizona and is selling its California buildings, he said.

The Pacshore-led venture also purchased a 39,600-square-foot Class B industrial office building in Playa Vista from L.A. firm Garbo Holdings for $15.9 million, or $425 a square foot, last month.

Garbo had been leasing the warehouse, at 12901 Jefferson Blvd., for film production, which wasn’t its most profitable use, Jennison said. Garbo elected to move to a less expensive space in Gardena, cashing in on the hot Playa Vista market.

The two-story building will undergo a significant core and shell renovation that will add mezzanine space and increase the square footage of the property, he said.

The joint venture, which has also acquired the Telephone Building at 1314 Seventh St. in Santa Monica and owns five acres of land under a Santa Monica media park at Olympic Boulevard and Centinela Avenue, is focused on developing industrial buildings into creative space, for which there is high demand in Playa Vista, he said.

Jennison, along with Industry Partners’ Travis Landrum and Jim Jacobsen represented the buyers and the sellers in both sales.

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