Buyer to Turn Tower at Sherman Oaks into Creative Offices

The Tower at Sherman Oaks has traded for nearly $57 million, with the new buyer saying it will turn the property into creative office space. Sandstone Properties Inc., a private equity-based real estate investment firm in Los Angeles, bought the roughly 167,700-square-foot, Class A office building at 14724 Ventura Blvd. for $56.7 million, or $338 per square foot. The 14-story building, built in 1967, sits above ground-level retail and is close to the 101 and 405 freeways. It was 96 percent occupied at the time of the sale, according to L.A. brokerage Madison Partners. Madison Partners’ brokers Bob Safai, Matt Case and Brad Schlaak negotiated the deal on behalf of the seller, Douglas Emmett Inc. The Santa Monica-based real estate investment trust bought it in 1997 for $19.8 million, according to CoStar Group Inc. The brokerage also arranged about $48 million in financing to buy and renovate the property. Sandstone plans a significant renovation including the facade, lobby and common areas, and plans to reposition it as creative office space, Case said. Madison Partners’ Chris DuMont, Bob Pearson and Safai will handle the property’s leasing. The Valley office vacancy rate for Class A space is roughly 11 percent, according to Madison, and technology, entertainment and information-related industries have a strong presence.