A single-tenant Newbury Park office building, fully leased to Anthem Blue Cross of California, has changed hands for $19.1 million, or about $178 a square foot.
A private investor from China acquired the 106,560-square-foot property at 2000 Corporate Center Dr. from New York-based REIT Gramercy Property Trust in a transaction that closed last week. The two-story building is located on the corner of Corporate Center Drive and Rancho Conejo Boulevard in the nearly 7-acre Conejo Corporate Center.
This is the first U.S. acquisition for the Chinese family that made the purchase, said Kevin Shannon, vice chairman at CBRE. The property was on the market about five weeks.
“This is another example of a growing trend we’re seeing play out in Orange County and Los Angeles, where Asian investors are coming in looking for attractive cash flow deals,” he said.
Since Anthem’s lease includes fixed annual rent increases of 3.9 percent and stretches through 2022, the buyer will get “a durable income stream and increasing yield from an industry-leading health care insurance firm,” Shannon said. “The property is in an ideal location in a strong submarket, as there is a limited supply of large single-tenant office space in Thousand Oaks and the adjacent cities, providing users with few alternatives and placing upward pressure on rents.”
It was a good time for Gramercy to sell the building, which was a non-strategic asset for the REIT, with interest rates remaining low and an attractive lease term in place, said Shannon. He represented both sides of the transaction with his colleagues Brad Burton, Mike Moll, Ken White and Michael Longo, along with a local market leasing team of Tom Dwyer and Michael Slater. Santa Monica investment firm Ocean West Capital Partners advised the buyer in the deal.