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Sunrise Real Estate Group, in partnership with Robhana Group and 4M Investment Corp., has acquired the West Los Angeles office building, 12301 Wilshire Blvd, in an off-market deal according to Newmark Grubb Knight Frank (NGKF), which represented the buyers. The $39 million purchase highlights confidence in the West Los Angeles market, which is leading the city’s office recovery.
The six-story, 107,000-square-foot Class A office building is 75 percent leased and includes a diverse mix of tenants such as movie distribution company Open Road Films, Opus Bank, and several dentist and dermatologist offices. The property has abundant parking, featuring a three-level subterranean parking garage and additional large surface lot to accommodate tenants and visitors. The building recently underwent a Gensler-designed $5.5 million capital improvement campaign by the seller, TPMC Realty Corp., which bought the property in 2008. The ground-floor exterior façade was upgraded, the lobby, restrooms and common areas were renovated, and the elevators were overhauled with new cabs.
The acquisition, Sunrise’s second to date this year, marks an aggressive push into the West Los Angeles market, a shift from its significant holdings in the San Fernando Valley. The building will be operated by SRG Management, a subsidiary of Sunrise Real Estate Group.
“We’re looking at properties in emerging pockets of the city that offer upside potential and 12301 Wilshire offered just that,” said Daniel Abrams, a principal of Sunrise Real Estate Group.
The vacancy rate in West Los Angeles in the first quarter was 13.9 percent, which was 2.4 percentage points lower than the overall Los Angeles office market rate, according to NGKF first-quarter figures. That is driving rents higher in West Los Angeles. The average asking rent for Class A office properties there is up 7.9 percent over last year.
“This is a smart move by Sunrise to get into this area as it’s on the upswing,” said Ali Bararsani, a managing director in NGKF’s Los Angeles office who represented the buyers. “Demand in Brentwood and the rest of West Los Angeles is driving the overall improvement in the LA office market.”
TPMC Realty Corp. used in-house representation in the deal. Financing was provided by IDB Bank, represented by Barak Volner and Rachel H. Magner.
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 12,000 professionals operate from more than 320 offices in established and emerging property markets on five 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.
NGKF is a part of BGC Partners, Inc. (NASDAQ: BGCP), a leading global brokerage company primarily servicing the wholesale financial and real estate markets. For further information, visit www.bgcpartners.com.