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Monday, Jun 27, 2022

Westside Office Building Sells for $33M

An office building in the pricy Bel-Air area has sold for $32.5 million.
An unnamed buyer purchased the property at 640 N. Sepulveda Blvd. from Vectra Management Group, which has an office in Santa Monica.

The property, which was built in 1987, was 27% occupied at the time of the sale, and underwent a $3 million renovation in 2019.
Newmark Group Inc.’s Sean Fulp, Ryan Plummer and Mark Schuessler represented the seller in the transaction, while Newmark’s David Kluth and Aliya Coher represented the buyer.

“At just 27% occupied with significant leasing activity, the asset provided the perfect opportunity for an owner/user to benefit from the in-place income while also putting its own signature on the building,” Plummer said in a statement.

The property has roughly 12,000 square feet of outdoor work and recreation space, including a basketball court, pet area and water features.
“640 North Sepulveda offers a creative-office work environment that can accommodate multi-tenant or single-tenant floor plates, making it ideal for an owner/user,” Fulp said in a statement. “The property also offers unparalleled outdoor amenities and benefits from a central Westside location adjacent to some of the region’s most affluent communities.”

The Westside office market is priced higher than the county average. During the first quarter of the year, the average asking rent for Class A office space on the Westside was $5.61 a square foot, compared with the county average of $4.12 a square foot, according to data from Jones Lang LaSalle Inc.

During the quarter the Westside office market had an office vacancy rate of 19.2%, barely below the county average of 20.8%.
Still, the Westside market saw nearly 2.1 million square feet under construction during the quarter as developers continue to build in the high-priced market, according to JLL data.

Paola Mendez
Paola Mendez
Paola Mendez graduated from Los Angeles Valley College, then transferred to University of California, and now serves as a Receptionist and Office Assistant to the Los Angeles Business Journal. Paola wears many hats in different departments and is trilingual in English, Spanish and French.

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