A two-story office campus in Torrance sold for $24.8 million. The deal closed earlier this month.
The 116,220-square-foot property, known as DYAD South Bay, sits on more than 5 acres of land at 19700 and 19750 South Vermont Ave.
Affiliates of Borstein Enterprises purchased the property from the seller, an entity owned by funds managed by Westport Capital Partners.
Colliers’ Steve Solomon, Mark Schuessler, Sean Fulp, Ryan Plummer and Kristen Bowman represented the buyer and the seller in the transaction.
The property is currently 92% occupied. Most tenants signed leases post-Covid.
“While office transactions remain scarce, the DYAD sale demonstrates that demand remains strong for high-quality assets with a unique story,” Schuessler, an executive vice president at Colliers, said in a statement. “This acquisition was a perfect fit for Borstein Enterprises’ growing portfolio of well-located properties with a long-term hold strategy.”
The property was renovated in 2020.
“We’re thrilled to push this deal across the finish line for Westport and into the hands of an established owner with a very long-term outlook,” Solomon, a vice chair at Colliers, said in a statement. “Westport executed a substantial renovation and repositioning strategy, which presented high occupancy and strong tenant satisfaction. Several surrounding competitive office buildings have been purchased by industrial developers with plans for demolition and construction of state-of-the-art warehouses. Due to this trend, we expect the DYAD South Bay campus to benefit significantly from reduced office supply in the market. Tenant demand remains strong in Torrance, and so far, we have seen over 300,000 square feet of tenants relocate to newer, renovated properties in surrounding South Bay submarkets.”
In the first quarter of the year, the office vacancy rate in Torrance was 25.2%, down from 30.5% this time last year, according to data from Jones Lang LaSalle Inc. Asking rents for Class A properties in the area was $3.07 a square foot during the quarter.