Westside Office Demand Encourages Institutional Sales

The 12-story property is 83% leased.

LOS ANGELES—Driven by strong market fundamentals, KBS Capital Advisors has sold the Sepulveda Center, a 178,157-square-foot office building on the Westside of Los Angeles. The Swig Co. purchased the property for $68.7 million, and plans to renovate the property. KBS sold the asset to take advantage of good market timing and the significant demand.

“Most institutional investors continue to be under allocated in Southern California particularly Los Angeles for office product,” Ryan Gallagher, senior managing director at HFF, tells GlobeSt.com. “We expect to see strong fundamental rent growth on the Westside of LA for another few years.  Investors see this particular gateway market as it great opportunity to buy at a discount to replacement cost where there is very limited new supply.” Gallagher represented the seller in the transaction along with director Andrew Harper and senior managing director Michael Leggett.