LOS ANGELES—The San Fernando Valley office market is a hot investment market, if the recent sale of the Tower at Sherman Oaks is any indication. Investor Douglas Emmett sold the property to Sandstone Properties for $56.7 million, or $338 per square foot. The market has excellent fundamentals with tremendous rent growth and a vacancy rate that trends several points below the Los Angeles market.

Located at 14724 Ventura Boulevard in Sherman Oaks, the 1966 property has 14 stories that offer views of the San Fernando Valley. The sale included an onsite-parking garage. The property is located walking distance from retail and near the 101 and 405 freeways.

While the property is outdated, its good bones made it an excellent redevelopment opportunity. The buyer secured a $48 million loan to purchase and renovate the property through Loancore Capital. “This is a 96% leased building and will undergo a full renovation,” Bob Safai of Madison Partners, tells GlobeSt.com. “This is value-add opportunity with upside in rents, and those factors made it a good acquisition opportunity for the buyer.” It was last renovated in 1991.

Safai represented the seller in the transaction, along with Matt Case and Brad Schlaak of Madison Partners. Douglas Emmett did not respond to a request for comment about why they decided to sell the asset or if market conditions played a role. Safai also declined to answer the question.

“This is a strong and amenity-rich market,” says Safai. The market has strong demographics and a skilled labor pool, which has helped to drive growth in the market. It has become a major center for technology, entertainment, and information-related industries.

LOS ANGELES—The San Fernando Valley office market is a hot investment market, if the recent sale of the Tower at Sherman Oaks is any indication. Investor Douglas Emmett sold the property to Sandstone Properties for $56.7 million, or $338 per square foot. The market has excellent fundamentals with tremendous rent growth and a vacancy rate that trends several points below the Los Angeles market.

Located at 14724 Ventura Boulevard in Sherman Oaks, the 1966 property has 14 stories that offer views of the San Fernando Valley. The sale included an onsite-parking garage. The property is located walking distance from retail and near the 101 and 405 freeways.

While the property is outdated, its good bones made it an excellent redevelopment opportunity. The buyer secured a $48 million loan to purchase and renovate the property through Loancore Capital. “This is a 96% leased building and will undergo a full renovation,” Bob Safai of Madison Partners, tells GlobeSt.com. “This is value-add opportunity with upside in rents, and those factors made it a good acquisition opportunity for the buyer.” It was last renovated in 1991.

Safai represented the seller in the transaction, along with Matt Case and Brad Schlaak of Madison Partners. Douglas Emmett did not respond to a request for comment about why they decided to sell the asset or if market conditions played a role. Safai also declined to answer the question.

“This is a strong and amenity-rich market,” says Safai. The market has strong demographics and a skilled labor pool, which has helped to drive growth in the market. It has become a major center for technology, entertainment, and information-related industries.