Newmark has announced the sale of Gateway Towers, a 443,517-square-foot class A office property located at 970 and 990 190th Street in Los Angeles. The 91 percent leased property is anchored by Herbalife International of America with an additional collection of credit-worthy professional service firms and financial institutions. Gateway Towers comprises twin, nine-story towers.
Newmark Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Director Ken White, Senior Managing Director Scott Schumacher and Senior Associate Guillermo Boisson represented the seller Equity Office Properties in the $106.25 million sale to the buyer The Ruth Group along with Roxborough Group as its capital partner. Newmark Vice Chairman David Milestone and Senior Managing Director Brett Green represented the buyer in securing debt.
“The Ruth Group plans to develop the land parcel located between the towers with cool restaurant amenity spaces as well as creative office. The project and the immediate area are ripe for these amenities which will create a unique competitive advantage for Gateway Towers,” said Schumacher. “Herbalife recently expanded within the project executing a 16-year renewal, and underscoring the strong tenant loyalty at the property due to its terrific regional access and exposure.”
Gateway Towers offers immediate access and visibility from the 405 and 110 freeway interchange which benefits from daily traffic volume of 1 million cars.
“This market is primed for future rental growth given current class A asking rates of $2.65 FSG at the project vs. asking rates ranging from $3.25 to $4.00 FSG in the nearby central Torrance and El Segundo submarkets respectively,” Shannon added.
According to Newmark, the South Bay market is supply constrained, restricted by major physical and economic barriers to entry for prime class A office product. The 190th submarket continues to experience migration by major tenants seeking better regional freeway access and lower occupancy costs.
Newmark (“Newmark”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 16,000 professionals operate from approximately 430 offices on six continents. Newmark’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com. Newmark Group is a publicly traded subsidiary of BGC Partners, Inc. (“BGC”) (NASDAQ: BGCP), a leading global brokerage company servicing the financial and real estate markets.
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