IRA Capital has acquired The Post, a fully leased class-A office building in Beverly Hills for $153 million. Live Nation occupies 92% of the property, while the US Postal Service occupies the remaining 8% of the building. They are the building's only two occupants.
Located at 325 North Maple Drive, the four-story building totals 102,500 square feet with an open floor plan featuring 22-foot ceilings and outdoor patios for work and collaboration and it has a LEED certification. In 2019, the previous ownership completed a $44 million renovation.
Live Nation utilizes the building as the headquarters for its concert division, which accounts for 80% of the company's consolidated revenue. As a result, the property is regarded as one of the most high-profile creative-office properties in Beverly Hills. The location and the tenancy drove IRA's interest in the opportunity, even considering the recent disruption to both the live entertainment market and the office market during the pandemic.
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Overall, investors have been bullish on the Beverly Hills market. Medial office developer and investor Meridian acquired the Beverly Hills Medical Plaza for $81.5 million in partnership with an unnamed institutional investor earlier this month. The three-story class-A medical office building is 67,510 square feet and was 88% leased at the time of the sale. LaSalle Investment Management purchased a 49,721-square-foot, class-A medical office building in Beverly Hills, CA for $74.4 million from UBS Realty Investors. The building, designed by SIM & Associates, offers a world-class surgery center, a full-service pharmacy, valet parking and a rooftop deck. And, Alagem Capital Group and Cain International formed a joint venture to develop a 17.5-acre premier site in Beverly Hills. One Beverly Hills will be a mixed-use urban resort adjacent to the Beverly Hilton and Waldorf Astoria Beverly Hills. The three-building property will include condos and a hotel, along with 8 acres of botanical gardens on the property. Those are only a handful of the recent deals in the market.
IRA Capital has closed several large transactions this year. In August, Nuveen US Cities Office Fund and an institutional capital partner acquired a medical portfolio from IRA Capital for $620.4 million. The portfolio 747,000-square-foot, 29-property portfolio is located in 13 states, including Arizona, California, Florida, Illinois, Michigan, North Carolina, New Jersey, New York, Pennsylvania, Texas and Wisconsin. Twenty of the properties are located in areas where local governments require an extensive approval process to prove that there is a need to develop new healthcare facilities, creating high barriers to entry and regulatory restrictions around new supply. The portfolio is 99% occupied by 38 tenants, most of which are investment-grade tenants.
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Kelsi Maree Borland
