LOS ANGELES—Watt Investment Partners has purchased 3000 Robertson Blvd., a 107,000-square-foot value-add office property on the Westside, for $27 million from Brown Family Trust. The property is a major renovation and repositioning opportunity with only 42% occupancy and a fantastic Robertson Blvd. location. The investor, which already owns on the Westside, says that it plans to give the building an identity while offering a low-cost alternative to potential tenants.  

"3000 Robertson presented the opportunity to make an investment in a transit oriented location, in a growth market, at a low basis," Nadine Watt, president of Watt Investment Partners, and Jennifer McElyea, managing director of Watt Investment Partners, tell GloebSt.com. "WIP has been particularly focused on properties that are downside protected by virtue of pricing at a discount to average trades, with in-place income; that exhibit the potential to push rents through capital improvement programs and repositioning; and that are located along Los Angeles' growing transit infrastructure." 

Watt was able to purchase the circa 1986 building at a significant discount to replacement cost, spending $251 per square foot when nearby properties in Culver City trade for $475 per square foot. The investor did see competition for the deal, but relied on its reputation to for competitive advantage. "The market for Westside office is very competitive. Given the lack of quality product, auctions can become very crowded with buyers. Having the strength of the Watt brand and history in the market certainly provides a competitive advantage," says Watt and McElyea. "Beyond that, we seek to differentiate ourselves by doing an exceptional amount of up front diligence. Our goal is to set ourselves apart during the buyer interview and give comfort to the seller that we have done our homework on the building, stand behind our offer number and most importantly, can perform as promised."

The renovation plans for the building include updating the common areas and the exterior of the building. "Currently the building offers a clean and functional space, but is lacking in identity. WIP intends to focus its investment dollars on the lobby, courtyard, and on improvements to the facade in the form of signage and other design elements, allowing the creation of a brand and taking advantage of the building's incredible signage opportunities off of South Robertson and the 10-freeway." CBRE vice chairman Kevin Shannon and Scott Schumacher along with local West Los Angeles market specialists Deron White, and Kurt Davis represented the seller in the transaction.

Value-add office has also become popular in markets throughout the city, especially in emerging office markets like Downtown Los Angeles and Long Beach.