The seller was an entity of the law firm Ziffren Barranca, which occupies 100% of the building. Safai notes that the sale closed at a 5% cap with annual increases in the lease, which provides for the law firm to continue occupying the entire building.
Built in 1971 and renovated in 1977, the 1801 Century Park West building is known as Century Park Plaza and is a nine-story class A tower that sits on about a half acre of land. The building was redesigned by architect Barton Myers, a student of Louis Kahn and principal of Los Angeles-based Barton Myers Associates.
Barnett points out that the building "has risen in value enormously" since it was built. He says that the sales price "reflected today's limited availability of large class A office spaces at prestigious addresses in West Los Angeles."
The acquisition fits with Emmett's "overall submarket investment strategy," according to Jordan Kaplan, president and CEO of the REIT, who says that owning the new property "further enhances our footprint within the Century City submarket." Emmett already owns 866,123 sf of office space in the Century City submarket.
The REIT's acquisition strategy, according to its recent public filings, includes strategically increasing market share in its existing submarkets and selectively entering other submarkets. "Our acquisition strategy will focus primarily on long-term growth potential rather than short-term cash returns," the company said in one filing.
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