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WOODLAND HILLS, CA-Locally based Younan Properties Inc., which exited the Los Angeles market in 2006 with the sale of its last asset here, has returned to the market with the acquisition of a 62,000-square-foot office building at 5959 Topanga Canyon Blvd. that is known as WarnerView Corporate Center. This is the second time that Younan has owned the three-story building, which it first bought in 2004 and then sold less than 12 months later to Value Home Loan.

Zaya S. Younan, chairman and CEO of Younan Properties, described the deal as “an exceptional opportunity to acquire a property at a price well below the true market value.” He says that the significant rise in cap rates, “does not correlate to the deteriorating fundamentals, but more relates to the anxiety, fear and an oversold market.”

The seller, Value Topanga LLC, was represented by Jeff Albee and Jeff Gould of the Calabasas office of Sperry Van Ness. Gould tells GlobeSt.com that, in today’s difficult transaction environment, “Warnerview Center represents a bright spot in the market.” He says that the transaction “shows that the market is gaining some positive momentum and that elusive gap between buyers and sellers is slowly narrowing.”

Gould points out that Warnerview Center has also historically outperformed other class A office buildings in the submarket because it is a lower-rent alternative to the other buildings. The property is 93% occupied in a down market and has attractive existing debt in place which makes it an exceptional cash flow play for the buyer, according to Gould. “The two types of deals closing in today’s market are either assumable debt deals or owner/user transactions, while new debt remains hard to come by,” he says.

The 5959 Topanga Canyon Blvd. building was built in 1981 and is leased to a roster of professional tenants. More than $1.5 million was spent replacing the HVAC system, installing a new roof and making upgrades to the elevator and common areas.

Younan says that he sees, “an unparalleled opportunity to expand our presence nationwide with office buildings purchases at valuations well below their true value.” In a statement regarding the acquisition, he adds, “The unfounded perceptions of those in commercial real estate, which are fueled by the consistent, negative drumbeat of the media, are keeping values depressed.”

The real issue remains the lack of available credit and financing, the Younan Properties founder says. “We believe that those companies making acquisitions will realize extraordinary benefits within the next few years,” he says.

Younan represented itself in the transaction, terms of which were not disclosed. The company, which specializes in acquiring class A office properties in high-growth US markets, has accumulated nearly 15 million square feet of class A office buildings valued at more than $2 billion in California, Texas, Illinois and Arizona.

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