SANTA MONICA, CA—The Regents of the University of California has purchased a two-parcel retail property from technology solutions provider PCM Inc. for $20.2 million. The sale of the 37,500-square-foot property will give PCM a potential book gain of $15 million once the sale closes in the fourth quarter of 2014.
PCM is selling the property as part of a 1031 exchange. PCM has not yet found a suitable property for the exchange, but is seeking properties that benefit the company through direct ownership and limited lease obligations, according to the company. The company did not respond to a request for comment before the publication of this story.
The property has two buildings and developable land. The larger parcel totals 32,500 square feet and has a 9,750-square-foot building occupied by a PCM subsidy as a technology retail store. The occupier will vacate the property as part of the sale transaction. The second, smaller parcel totals 5,000 square feet and has a 3,297-square-foot building on the site, which is not currently being occupied. PCM is additionally closing three other retail stores, shifting focus to retail operations online and business-to-business sales.
We were unable to reach The Regents of the University of California before the publication of this story to determine their plans for the property, but we will update the story with additional information as it becomes available. The buyer did recently lease a 51,342-square-foot medical building in the submarket through 2042. The lease was signed as part of Montecito Medical acquisition of the property for $54.7 million.