The 36,535-sf Tides Building, at 331 Santa Monica Blvd., soldfor $21.8 million in a transaction that was brokered by principalBob Safai of Madison Partners. Donald Passman bought the buildingfrom Ten West Associates, which had acquired it a year ago in adeal that was also brokered by Madison Partners. The new buyersfinanced the acquisition with a conduit loan of $17.5 million thatMadison Partners arranged.

Safai calls the building "ideally located," noting that the saleclosed at an in-place capitalization rate of 5%, with retail rentsat 50%-60% below market. The three-story concrete and steelstructure stands on the corner of Fourth Street and Santa MonicaBoulevard, three blocks north of the I-10 Freeway and a block fromthe city's Third Street Promenade.

The Tides Building is occupied by two retail tenants on thefirst floor, a spa on the second and six high-end, townhouse-styleapartment units on the third story. When it traded last year, in a1031 exchange deal, Madison Partners represented both the buyer andthe seller of the building, which was completed in 2003.