December 17, 2020, 9:00AM
Newmark announces it has arranged the sale of 915 Wilshire, a 22-story, 388,126-square-foot Class A office building in the heart of Downtown Los Angeles’ financial district.
Newmark’s Co-head of Capital Markets Kevin Shannon, Executive Managing Directors Ken White and Rob Hannan and Senior Managing Director Laura Stumm represented the sellers, Rockwood Capital (“Rockwood”) and Lincoln Property Company West, in the transaction. The buyer, Deka Immobilien, a global real estate investment company based in Germany, purchased the asset off market. Newmark’s Vice Chairman David Milestone led the refinancing effort.
“This is yet another example of foreign capital buying Class A office assets in gateway markets with credit and attractive lease terms,” said Shannon. “The weighted average lease term on 915 Wilshire was over eight years and the rent roll was anchored by a GSA 15-year lease for nearly a third of the property.”
White added, “915’s above average parking ratio compared to other DTLA office assets will be valuable post pandemic as more employees will likely opt to drive downtown initially.”
The building is located at 915 Wilshire Boulevard and recently underwent a comprehensive renovation. Features include sweeping skyline views, highly efficient, 23,000-square-foot floor plates, an upgraded lobby, open-air mezzanine rooftop deck, elevator cabs, building signage and a nearly complete full service bar and restaurant. The building was 90 percent leased at the time of sale to 30 tenants spanning a variety of sectors, including professional and financial services, entertainment, insurance, law, healthcare and government.
The property is directly adjacent to the 110 Freeway, blocks away from the 7th Street Metro Station and presents optimal ingress and egress for all modes of transportation. With immediate proximity to dozens of top-rated restaurants, bars and hotels, including the neighboring Wilshire Grand, the asset offers tenants one of Downtown LA’s most central and accessible locations.
According to Newmark Research, Downtown Los Angeles has a number of long-term selling points, including being at the center of the metro’s transit system; substantial multi-housing development in recent years; an evolving amenity base, available office space for expansion or consolidation; and lower office rents than most West Los Angeles areas.
Rockwood is a private real estate investment firm with offices in Los Angeles, San Francisco and New York City. The firm and its principals have invested on behalf of their clients in approximately $32 billion of real estate through commingled funds and separate accounts.
LPC West, the West Coast arm of Lincoln Property Company (“LPC”), owns and operates a portfolio of over 21 million square feet of commercial space in Southern California alone, including over 10 million square-feet in Los Angeles, and is one of the most respected names in the marketplace.
About Newmark Group, Inc. (NASDAQ: NMRK)
Newmark Group, Inc. is a world leader in commercial real estate services, with a comprehensive suite of investor/owner and occupier services and products. Our integrated platform seamlessly powers every phase of owning or occupying a property. Our services are tailored to every type of client, from owners to occupiers, investors to founders, growing startups to leading companies. Harnessing the power of data, technology and industry expertise, Newmark brings ingenuity to every exchange, and imagination to every space. Together with London-based partner Knight Frank and independently owned offices, our 18,800 professionals operate from approximately 500 offices around the world, delivering a global perspective and a nimble approach. In 2019, Newmark Group, Inc. generated revenues in excess of $2.2 billion. To learn more, visit nmrk.com or follow @newmark.
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Statements in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the effects of the COVID-19 pandemic on the Company’s business, results, financial position, liquidity and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark’s Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.