Majestic Investments Buys Sherman Plaza for $50M

VAN NUYS, CA-Majestic Investments of Los Angeles has acquired the 267,955-square-foot Sherman Plaza office complex at 15350 Sherman Way from Embarcadero Capital Partners of Belmont, CA for $49.5 million in a deal arranged by Madison Partners. The office project is a two-building complex of four- and five-story buildings on seven acres that is 95% leased and is just east of Interstate 405, the San Diego Freeway.

Majestic assumed an existing loan of approximately $39 million at 5.9%, according to Bob Safai of Madison Partners, who represented the seller in what Safai described as a fully marketed transaction. Embarcadero maintains an L.A. Area office at the property, according to the Embarcadero web site.

Safai says that the property “features a strong and stable in-place cash flow with significant contractual term from many credit-worthy tenants, including the State of California Franchise Tax Board, the General Services Administration, and the North L.A. County Regional Center. Additionally, the Property’s on-site parking currently generates strong cash flow through monthly parking agreements, as well as transient parking, he said. He also cited “the synergy created by the neighboring office markets of Sherman Oaks, Woodland Hills, and the Tri-Cities.”