NGKF Capital Markets and NGKF Industrial Services are bringing to market a unique 71,493-square-foot district energy facility at 2052 Century Park East in the Century City submarket of Los Angeles. The asset is owned by a private entity and fully occupied by Veolia, a leader in water, waste solutions and energy services. Veolia, which is headquartered in Paris and has been in existence for more than 160 years, has a long-term, triple-net ground lease with 25 years remaining. The offering includes approximately seven miles of valuable subterranean multi-use infrastructure, currently used to deliver chilled water to various commercial properties in the Century City/Beverly Hills area. The property does not have an asking price as potential buyers are asked to give their best offer for consideration.
Geoffrey Kasselman, SIOR, LEED AP, will lead the project for NGKF’s Industrial Services group while Sean Fulp, David Colen, and Scott Selke with NGKF Capital Markets are responsible for marketing the asset on behalf of the undisclosed seller. Kasselman handled the sale of a similar district energy property in Chicago last summer for a record low 3.1% cap rate. Offers for 2052 Century Park East are due May 19, 2016.
“The ideal investor for this asset will be one that is looking to enjoy the benefits of a long-term, inflation-protected income stream with annual rental increases and an institutional-grade tenant,” said Sean Fulp, executive managing director in the West Los Angeles office of NGKF. “This is a rare opportunity to own a low-risk property in a world-class location that is anticipated to see ongoing property appreciation. It is also one of the few remaining potential redevelopment sites left in Century City.”
Situated on a 1.64-acre site, 2052 Century Park East was built in 1965 and renovated in 1973. It is located in the heart of Century City, is adjacent to Beverly Hills, and is within walking distance to numerous Class A office buildings, restaurants, residential buildings and the Westfield Century City shopping mall, which is undergoing significant renovations to transform it into a 21st century lifestyle center. It is also near Interstate 405 which connects West Los Angeles to Ventura County in the north and San Diego in the south while Interstate 10 connects West Los Angeles to Santa Monica in the west and Downtown/East Los Angeles to the east. The asset is an integral component of the Century City infrastructure, a thriving central business district.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF’s 12,800 professionals operate from more than 370 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
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