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Friday, Jun 2, 2023

Playa Vista and Malibu Offices Sell for $168 Million

Three Westside office buildings sold this month for prices far higher than their trades just a few years ago, proof of ongoing demand for renovated office space in L.A.’s seaside submarkets.

The buyer, LaSalle Investment Management based in Chicago, purchased the properties for $168 million, according to public records, picking up more than 205,000 square feet in Playa Vista and Malibu.

The sellers were Canyon Catalyst Fund in Century City and Pacshore Partners in West L.A., according to a press release from CBRE, and were represented by Sean Sullivan, Todd Tydlaska, and Michael Longo from the brokerage’s capital markets team.

In Playa Vista, LaSalle landed two offices that recently underwent heavy makeovers. A 39,600-square-foot building at 12901 W. Jefferson Blvd., once a Class B industrial building, sold for $45 million, vaulting over its $15.9 million price from 2015. Advertising agency Deutsch Inc. in 2015 signed a 10-year lease to take the full space, but has yet to move in while final upgrades are underway.

LaSalle also purchased a 118,330-square-foot property at 5340 Alla Rd. for $95 million – far above the $36.2 million price tag from 2013. At that time, the property was only 60 percent leased. By late 2015 it had come close to full occupancy, largely drawing from the advertising industry.

The price hike of the Malibu property was also notable, although not as drastic. The 36,500-square-foot complex at 22619 Pacific Coast Highway with patios and ocean views fetched $28 million in the sale to LaSalle. It last sold for $20 million in 2015, just as its sole occupant, Jakks Pacific Inc., announced plans to relocate to Santa Monica. The toy-maker had been a tenant since its founding in 1995.

Canyon Catalyst Fund is a joint venture between CalPERS and Canyon Partners Real Estate. LaSalle made its purchase on behalf of a pension fund.

“There is an abundance of capital from investors eager to invest in West L.A.,” said Sullivan, an executive vice president at CBRE, in a statement.

Real estate reporter Daina Beth Solomon can be reached at dsolomon@labusinessjournal.com. Follow her on Twitter @dainabethcita for the latest in L.A. real estate news.

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