April 5, 2021 9:00 AM
Newmark Knight Frank (“Newmark”) announces it has arranged the sale of 3317-3325 Exposition Place, an adaptive reuse and creative office building fully leased to The RealReal, Inc., in Los Angeles, CA for $22.79 million.
Newmark’s Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Directors Sean Fulp, Ken White and Rob Hannan, Senior Managing Directors Laura Stumm, Chris Beck and Larry Wass and Managing Director Ryan Plummer represented the seller, Lion Real Estate Group, LLC. The buyer was The Luzzato Company, Inc.
“This asset, located in the heart of LA’s highly desirable and supply constrained creative office market, provides the buyer with durable, long-term cash flow,” said Fulp of Newmark’s Private Capital Group. “The West Adams neighborhood has recently been spurred by an influx of development and high-ticket leases. We have seen institutional and private investors heavily investing into the area as Fortune 100 companies expand east into West Adams from the Haden Tract in Culver City.”
Located in the Expo Place Corridor and next to the West Adams neighborhood of Los Angeles, the two-story brick building totals 29,680 square feet and features exposed steel beams, wood bow-truss ceilings and a large column-free space with an open galley kitchen space and partial loading/distribution option. Renovated in 2018, the open creative office and flex space is strategically located adjacent to an LA Metro line.
Beck added, “The West Adams area has tremendous momentum, benefitting from the expansion of the Expo line, the on-going development in the West Jefferson corridor and the strength of the neighboring Culver City market.”
Newmark also arranged the lease on behalf of the landlord and The RealReal, Inc. in 2019.
The adjacent Culver City development spurred demand for more housing in West Adams, which has grown significantly in Q3 and Q4 2020, pushing rates and decreasing vacancy, according to Newmark Research. Office owners have also been able to raise asking rents to above $5.00 PSF since Fortune 100 companies started moving into Culver City in 2018. This significant increase in asking rents in Q3 2018 contributed to the wave of office development in West Adams, especially considering the (W) rapper project, a 16-story 5-star office project set to be completed in December 2021. For more information and insight of the West Adams neighborhood, click here.
About Lion Real Estate Group, LLC
Lion Real Estate Group, LLC is a Los Angeles-based real estate investment and development firm founded in 2007 by Jeff Weller and Mory Barak. Lion Real Estate Group focuses on acquisition of value-add and opportunistic multifamily and creative office properties by leveraging its principals’ experience in order to create value for its investors through renovation, repositioning, better management and optimum capitalization of its properties. Lion has an entrepreneurial team that possesses a track record in the execution of sophisticated investment strategies and has been a part of more than $1 billion of joint venture, equity and mezzanine real estate transactions. The firm currently owns and operates 2,454 units across seventeen multifamily properties and two office properties located in the Los Angeles, Nashville, Durham, Dallas, and Austin areas.
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 2019, Newmark generated revenues in excess of $2.2 billion. To learn more, visit nmrk.com or follow @newmark.
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