Completed in 1981 and renovated in 2000, the class A office property comprises a six-story office tower and an attached two-story annex building over a single-level subterranean garage, situated on 1.7 acres. The project is 61% leased to tenants that include the federal government, Household Finance and HealthCare Partners.
Michael Schlesinger, Cambra Realty principal, says that while Glendale Financial Square sold at a low cap rate on existing rents, the property will provide the new owners with the near-term stability of a high-quality, diversified tenant base as well as a significant opportunity to enhance cash flow through the lease-up of available space.
In addition to the more than 30% of rentable square footage that is vacant, he says, there is also upside in the roll-over of leases that are now at below-market rents.
Schlesinger tells GlobeSt.com that Cambra was one of a number of bidders on the property, including institutional investors. The business plan for the partnership of Cambra and Angelo Gordon calls for holding the property for about seven to 10 years, he says, noting that Cambra worked with the local office of Angelo Gordon on the deal.
Schlesinger says that the new owners also were attracted by the the property's location adjacent to the 1.3-million-sf Glendale Galleria mall and the $429-million Americana at Brand retail and residential development. Both the buyer and the seller were represented by Lynwood Fields of the Brentwood office of Madison Partners.
Bob Safai at Madison Partners also represented the buyer in the placement of floating rate debt with Capmark Finance Inc. The new owners have also tapped Madison partners as the leasing agent for the property.
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