April 1, 2021 9:00 AM
Newmark Knight Frank (“Newmark”) announces it has arranged the sale of The Park Calabasas, a creative office campus, for $79 million to Gemdale USA, a subsidiary of China-based Gemdale Corporation.
Newmark’s Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Directors Ken White and Rob Hannan and Senior Managing Director Laura Stumm represented the sellers, Rising Realty Partners and Fortress Investment Group. Newmark’s Vice Chairman David Milestone and Senior Managing Director Brett Green secured the acquisition financing on behalf of the buyer, Gemdale.
“With over 10 years of weighted average remaining lease term, The Park Calabasas is another example of investors flocking to office assets with long term tenants,” said Shannon. “Since the onset of the pandemic, we have seen a notable increase in foreign capital, like Gemdale, along with family office and 1031 exchange capital, buying office assets to fill the void of diminished institutional demand for the asset class.”
Stumm added, “Rising and Fortress thoughtfully executed a stunning renovation to curate a premier tenant experience at The Park Calabasas. The resulting long-term tenant commitments are a direct reflection of the quality of this unique creative campus. Post-Covid, the campus’ 20-acre site, abundance of open space and tenant controlled larger blocks offer an ideal environment where social distancing is encouraged.
Located at 4500 Park Granada, the 222,524-square-foot, low-rise campus is 92 percent leased to six tenants and features expansive outdoor courtyards, new on-site amenities, landscaped gardens and executive parking.
Originally developed as a corporate headquarters facility for Lockheed Martin and later serving as the headquarters for Countrywide Financial (Bank of America), The Park Calabasas had been utilized as a single-tenant campus for nearly 20 years. Following the recently completed, $12 million extensive capital renovation by Rising Realty and Fortress Investment Group, this corporate facility has been elevated to a true trophy, multi-tenanted, creative office campus.
The property is within walking distance to several dining, shopping and entertainment options, including Caruso’s the Commons at Calabasas lifestyle center, and provides convenient access to the San Fernando Valley, the Westside of Los Angeles and Malibu via the 101 Freeway and Mulholland Highway.
The Los Angeles North market is comprised of 31 million square feet of office space, according to Newmark Research. Calabasas’ office vacancy rate totaled 6.5 percent in Q4 2020. The migration trend of tenants from West Los Angeles and San Fernando Valley toward the Conejo Valley bodes well for this submarket given the competitive occupancy costs and favorable municipal tax advantages.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), 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, we bring 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 2020, Newmark generated revenues in excess of $1.9 billion. To learn more, visit nmrk.com or follow @newmark.
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