Newmark has announced the sale of a 292,540-square-foot Class A office building located at 222 W. 6th Street along San Pedro’s waterfront.
Newmark Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Director Ken White and Senior Managing Director Scott Schumacher represented Jupiter Holdings in the $43.5 million sale to the buyer Harbor Associates.
The 11-story building, known as “Topaz,” includes an adjacent seven-story parking structure and 13,244 square feet of retail space. It was constructed in 1990 and substantially occupied for many years by information technology defense contractor Logicon which was later acquired by Northrop Grumman. Northrop vacated in 2010 leaving much of the building empty until it was acquired by Jupiter. Since acquiring the building, Jupiter has invested more than $10 million in building renovations that have now been completed.
“Downtown San Pedro and the Los Angeles waterfront are undergoing a major transformation into a true live/work/play destination with major projects in various stages of construction. All of the new development, along with many new walkable restaurants, breweries and retail amenities, bodes well for Topaz as it’s the only true Class A office building in San Pedro,” said Shannon.
Some of the new properties transforming the area include: Holland Partner’s 375-unit mixed-use apartment development (located adjacent to Topaz); the Ratkovich/Jerico $150 million redevelopment of the 30-acre Ports O’ Call Village into the San Pedro Public Market; and the 35-acre, $500 million Gensler-designed AltaSea ocean institute.
“Topaz also has significant development upside due to the potential to redevelop a portion of the property into a residential use as well as air rights over the existing parking structure. The redevelopment value is further enhanced due to its location within a Qualified Opportunity Zone providing substantial tax savings on the capital gains,” said Schumacher.
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.
Discussion of Forward-Looking Statements about Newmark Group
Statements in this document regarding Newmark Group 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. Except as required by law, Newmark Group 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 Group’s Securities and Exchange Commission filings, including, but not limited to, any updates to such risk factors contained in subsequent Forms 10-K, 10-Q, or Forms 8-K.