TORRANCE, CA-G REIT, the Santa Ana-based REIT that specializes in buildings occupied by government entities, has sold its Madrona Buildings office complex at 20770 Madrona Ave. for $52.5 million in the latest in a series of office building sales and leases in the South Bay. Dominguez Industrial Center acquired the buildings from G REIT in a transaction that was brokered by Kevin Shannon of CB Richard Ellis on behalf of the Santa Ana-based seller.

The 211,000-sf Madrona complex consists of four class A office buildings of two and three stories, surrounded by a landscaped garden with streams, reflecting pools, rock formations and waterfalls. The property is nearly 87% leased by three tenants: NavCom Technology, Kaiser Foundation Health Plan, and American Honda Motor Co.

G REIT bought the portfolio in March 2004 for $45.9 million and will realize approximately $15 million in proceeds from the deal after payment of a related mortgage loan, closing costs and other transaction expenses. The sale of the complex is the latest disposition in a stockholder-approved plan of liquidation in which G REIT sold 10 properties in 2006 and seven thus far in 2007.

Brokers active in the Torrance submarket and other parts of the South Bay say that the area has become one of the most active in the region lately. In another deal that closed in recent days, for example, Los Angeles-based Madison Partners reports that Lexham Private Investors LLC acquired the 65,855-sf Torrance Medical Plaza at 3655 Lomita Blvd. from Wilduns Torrance LLC for $16.9 million.

The deal was an off-market transaction, with Madison Partners principal Bob Safai representing both the seller and the buyer. The building sold on 4% cap rate on existing occupancy of 81.3%.

The Madrona and Torrance Medical Plaza deals follow closely after the $43-million sale of the 250,000-sf Hamilton Place office project, reported on this week. Brokers involved in that deal say that the Torrance office submarket has grown into one of the most active in the region lately, especially in the 190th Street Corridor.

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