LOS ANGELES—Driven by strong market fundamentals, KBS Capital Advisors has sold the Sepulveda Center, a 178,157-square-foot office building on the Westside of Los Angeles. The Swig Co. purchased the property for $68.7 million, and plans to renovate the property. KBS sold the asset to take advantage of good market timing and the significant demand.
“Most institutional investors continue to be under allocated in Southern California particularly Los Angeles for office product,” Ryan Gallagher, senior managing director at HFF, tells GlobeSt.com. “We expect to see strong fundamental rent growth on the Westside of LA for another few years. Investors see this particular gateway market as it great opportunity to buy at a discount to replacement cost where there is very limited new supply.” Gallagher represented the seller in the transaction along with director Andrew Harper and senior managing director Michael Leggett.
As a result of the demand is this market and the value-add strategy of the property, Gallagher and the sales team saw significant interest in the property. “We had very strong activity on the asset as investors saw it as a market that is continuing to recover and a very attractive basis relative to replacement cost,” he says.
Butt it isn't just the market. This particular property was an excellent value-add opportunity. It is 83% leased with a mix of media and technology tenants. “This is a landmark asset with good tenancy and a growing roster of new economy tenants. The property also had rents in-place that were at a significant discount to current market rents and strong leasing activity,” adds Gallagher. The Swig Co. will renovate the lobbies, bathrooms and outdoor facilities and will add to the buildings amenities.
To purchase the property, the Swig Co. secured a $43.3 million loan through MetLife Real Estate. The loan has a three-year term and a floating rate. HFF's senior managing director Bruce Ganong and director Jeff Sause secured the funds on behalf of the borrower.
More than 300 of the industry's leading national investors, REITs, banks, private equity firms, asset management firms and other institutions will join us as we explore the market conditions behind the trends at this year's RealShare National Investment & Finance, scheduled for Oct. 5 and 6 at the Roosevelt Hotel in New York City. Learn more.
LOS ANGELES—Driven by strong market fundamentals, KBS Capital Advisors has sold the Sepulveda Center, a 178,157-square-foot office building on the Westside of Los Angeles. The Swig Co. purchased the property for $68.7 million, and plans to renovate the property. KBS sold the asset to take advantage of good market timing and the significant demand.
“Most institutional investors continue to be under allocated in Southern California particularly Los Angeles for office product,” Ryan Gallagher, senior managing director at HFF, tells GlobeSt.com. “We expect to see strong fundamental rent growth on the Westside of LA for another few years. Investors see this particular gateway market as it great opportunity to buy at a discount to replacement cost where there is very limited new supply.” Gallagher represented the seller in the transaction along with director Andrew Harper and senior managing director Michael Leggett.
As a result of the demand is this market and the value-add strategy of the property, Gallagher and the sales team saw significant interest in the property. “We had very strong activity on the asset as investors saw it as a market that is continuing to recover and a very attractive basis relative to replacement cost,” he says.
Butt it isn't just the market. This particular property was an excellent value-add opportunity. It is 83% leased with a mix of media and technology tenants. “This is a landmark asset with good tenancy and a growing roster of new economy tenants. The property also had rents in-place that were at a significant discount to current market rents and strong leasing activity,” adds Gallagher. The Swig Co. will renovate the lobbies, bathrooms and outdoor facilities and will add to the buildings amenities.
To purchase the property, the Swig Co. secured a $43.3 million loan through
More than 300 of the industry's leading national investors, REITs, banks, private equity firms, asset management firms and other institutions will join us as we explore the market conditions behind the trends at this year's RealShare National Investment & Finance, scheduled for Oct. 5 and 6 at the Roosevelt Hotel in
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