LOS ANGELES—An unnamed investor is bringing a rare energy facility in Century City to market, GlobeSt.com has learned exclusively. Described as a legacy asset by brokers, the 71,493-square-foot property is fully occupied by water, waste and energy solutions firm Veolia, which has a 25-year lease in place. In addition to the property, the offering includes seven miles of subterranean multi-use infrastructure. While it is coming to market without a price, industry insiders peg the value at approximately $70 million.
“This is a legitimate world-class location with a guaranteed long-term revenue stream that is fully inflation hedged and backed by investment-grade corporate credit,” Geoffrey Kasselman, a broker at Newmark Grubb Knight Frank, tells GlobeSt.com. Plus the facility is 'mission critical' and impossible to replace including over 7 miles of subterranean infrastructure, and one day many years down the road the site may be ideally suited for higher-density development. Opportunities like this simply don't come along very often.” Kasselman is leading the marketing efforts, along with Sean Fulp, David Colen and Scott Selke.
The brokerage team is looking for an institutional or private buyer with a core-investment strategy. “We think this is a legacy asset. The ideal buyer profile is probably a family office or high net worth individual. Someone that wants a bond-like investment but understands the future value of the land will be significant,” Fulp tells GlobeSt.com. “This property will really help diversify a family office or high net worth's investment holdings as well. It's so unique due to the tenant credit, lease term, infrastructure, easements, zoning and location. In 25 years one can only imagine how valuable this site will be, but in the meantime, an investor can clip a good return with no inflation exposure.”
The seller is disposing of the asset because of the ideal market timing. It plans to reinvest the proceeds from the sale into other commercial real estate opportunities. As a result, it is creating a big opportunity for other investors. “An investor has a chance to obtain a very secure 25-year cash flow stream that also has annual CPI increases,” adds Fulp. “Not to mention that the buyer will also have great residual value due to the location and what could be developed.”
Located at 2052 Century Park East in Century City, the property was built in 1965 and last renovated in 1973. It sits on 1.69 acres and is an integral component to Century City's infrastructure.
LOS ANGELES—An unnamed investor is bringing a rare energy facility in Century City to market, GlobeSt.com has learned exclusively. Described as a legacy asset by brokers, the 71,493-square-foot property is fully occupied by water, waste and energy solutions firm Veolia, which has a 25-year lease in place. In addition to the property, the offering includes seven miles of subterranean multi-use infrastructure. While it is coming to market without a price, industry insiders peg the value at approximately $70 million.
“This is a legitimate world-class location with a guaranteed long-term revenue stream that is fully inflation hedged and backed by investment-grade corporate credit,” Geoffrey Kasselman, a broker at Newmark Grubb Knight Frank, tells GlobeSt.com. Plus the facility is 'mission critical' and impossible to replace including over 7 miles of subterranean infrastructure, and one day many years down the road the site may be ideally suited for higher-density development. Opportunities like this simply don't come along very often.” Kasselman is leading the marketing efforts, along with Sean Fulp, David Colen and Scott Selke.
The brokerage team is looking for an institutional or private buyer with a core-investment strategy. “We think this is a legacy asset. The ideal buyer profile is probably a family office or high net worth individual. Someone that wants a bond-like investment but understands the future value of the land will be significant,” Fulp tells GlobeSt.com. “This property will really help diversify a family office or high net worth's investment holdings as well. It's so unique due to the tenant credit, lease term, infrastructure, easements, zoning and location. In 25 years one can only imagine how valuable this site will be, but in the meantime, an investor can clip a good return with no inflation exposure.”
The seller is disposing of the asset because of the ideal market timing. It plans to reinvest the proceeds from the sale into other commercial real estate opportunities. As a result, it is creating a big opportunity for other investors. “An investor has a chance to obtain a very secure 25-year cash flow stream that also has annual CPI increases,” adds Fulp. “Not to mention that the buyer will also have great residual value due to the location and what could be developed.”
Located at 2052 Century Park East in Century City, the property was built in 1965 and last renovated in 1973. It sits on 1.69 acres and is an integral component to Century City's infrastructure.
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