LOS ANGELES—A joint venture between Sunrise Real EstateGroup, Robhana Group and 4MInvestment Corp. has acquired a class-A officebuilding on Wilshire Boulevard from TPMC RealtyCorp. for $39 million in an off-market transaction. Thisis the second acquisition by Sunrise in that market this year as itis beginning to shift its asset base from the San Fernando Valleyto the Westside.

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According to Ali Bararsani, a managing directorat Newmark Grubb Knight Frank who represented thebuyers in the transaction, the area is trending up. He explainsthat increased demand in Brentwood and West Los Angeles markets isthe catalyst for improvement in the L.A. officemarket. Office rents in the market are 7.9% higher thanthey were last year for class-A properties. NGKF also reports thatthe overall vacancy rate on the Westside is only2.4% below the vacancy rate for the whole L.A. market, which thefirm believes is the driver of the rental increases.

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Located at 12301 Wilshire Blvd., the office building acquired bythe joint venture is 107,000 square feet with six stories. It wasrecently renovated to the tune of $5.5 million byGensler. The improvements included a newground-floor exterior and renovated restrooms, lobby, common areasand elevators. The property has 75% occupancy with a tenant mixthat includes Open Road Films, OpusBankand dentist and dermatologist offices. IDBBank, Barak Volner and Rachel H. Magner served as lendersand secured financing for the acquisition.

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The recently reported Riot Games lease isanother example of the increase in Westside office leases. RiotGames leased 77,000 square feet of office space atKilroy Realty's Westside MediaCenter. The lease is the second that Riot Games has signedin under six months. The first was for 284,000 square feet atHudson Pacific Properties' Element LACampus.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.