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CULVER CITY, CA-Broadreach Capital Partners has acquired a 204,612-sf class A office complex at 200 & 300 Corporate Pointe for $51.25 million from Scanlan Kemper Bard of Portland, OR. The complex consists of two mid-rise office buildings and an adjacent 732-space parking structure on four acres of land fronting Slauson Avenue a half-mileeast of the 405/90 freeway interchange.

Built in 1984 and renovated in 2004, the buildings are collectively 85% leased, with a credit tenant roster that includes the University of Phoenix, Paychex and State Farm Insurance.Broadreach managing director David Simon, who heads the real estate private equity firm’soperations in Southern California, says that the acquisition “meets our investment strategy of acquiring well-located, value-add assets significantly below replacement cost.”

The deal is an especially good one for the Los Angeles area, where rents are rising in many markets, Simon points out. “Even in the softest markets, replicating this type of product in today’s climate would cost in excess of $400 per sf,” Simon observes.

Both Broadreach and Scanlan Kemper Bard were represented by principals Lynwood Fields and Bob Safai of Madison Partners. Fields called the transaction an “exceptional deal” that “takes advantage of today’s low interest rates, availability of capital and the limited number of good investment opportunities in Los Angeles’ Westside.”

Fields adds, “In this climate, investors are willing to pay a premium price for prime assets such as Corporate Pointe.” The property sold for a 6% cap rate on existing income, with the buyer defeasing the existing conduit loan upon expiration of the lockout in June 2007.

Madison Partners will retain the leasing of the property, which consists of one 90,209-sf, four-story building and one 114,403-sf, five-story building. The property fronts Slauson Avenue and extends along Hannum Avenue.

The Broadreach Southern California portfolio totals approximately three millionsf of office properties and land with a stabilized value of nearly $900 million. Its assets include the CNN Building in Hollywood and the Sunset Millennium in West Hollywood.

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