Los Angeles-based Arden, a real estate investment trust, says the purchase of the 432,894-sf property makes the REIT the largest owner of class A office space in the 190th-Street corridor of the South Bay Market.
Arden, which discussed the purchase in its second-quarter conference call on Thursday, Aug. 8, says the property is approximately 93% leased and includes an additional five-acre development parcel. Among the nine-story office project's credit tenants are Nissan, Allstate Insurance, CB Richard Ellis, Mellon Bank, First Business Bank and Trammell Crow.
Built in the mid-1980s and renovated several years ago, Gateway Towers is at the intersection of the San Diego (405) and the Harbor (110) freeways, and 10 minutes from Los Angeles International Airport.
In the company's quarterly conference call this week, Arden's president and chief operating officer, Victor Coleman, said the purchase price was "well below replacement costs."
Arden was not the high bidder on the project, Coleman noted, but the company won the deal because of an existing relationship with the seller and Arden's capacity to close quickly on the sale.
Gateway brings Arden's holdings to more than 3 million sf in the South Bay market, where the company owns three other office projects. Arden owns more than 19 million sf of office space in Southern California, including 566,000 sf that is under development.
Arden represented itself and Carlyle was represented by Steve Silk and Jay Borzoi of Secured Capital in the transaction.
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