Upscale Investment in Calabasas

In early 2019, the three-building Calabasas Park Centre office campus sold for $78 million. According to a company statement from real estate brokerage Newmark Knight Frank, which handled the transaction on the office campus, the buyer was a joint venture of Related Fund Management and Cruzan created to purchase the Calabasas property, which is adjacent Caruso’s open-air mall, the Commons at Calabasas. A small army of Newmark Knight Frank brokers, including Kevin Shannon, Rob Hannan, Brunson Howard, Michael Moll and Laura Stumm, represented seller Kilroy Realty Corp., which had originally developed the site in two phases between 2000 and 2001, and which is headquartered at Park Centre. ‘Unique scale’ Spanning a collective 225,340 square feet, Calabasas Park Centre consists of a pair of four-story office buildings and one two-story building at 23925, 23975 and 24025 Park Sorrento, which at the time of its sale was 96 percent leased to nearly 40 tenants. The office park also features a parking garage structure that can accommodate 732 vehicles. Calabasas Park Centre packs a diversity of tenants into its mix, including Marcus & Millichap Inc., Kaufman Borgeest & Ryan LLP, American Financial Network, KW Commercial, Lindbrook Capital LLC, FaceCake Marketing Technologies, Winstrust Mortgage, Luftman Dermatology, Roesler Facial Plastic Surgery, Dahlerbruch Accountancy Corp., Pinnacle Estate Properties, Topa Insurance Co., Wixen Music Publishing Inc., Sage Healthcare Management Group, and the aforementioned Kilroy. “Calabasas Park Centre’s stabilized in-place cash flow, amenity access, construction quality and strong historical asset performance drove significant investor interest,” Moll said in a statement. Added Shannon: “Calabasas Park Centre offered investors unique scale at an attractive discount to replacement cost for one of the Conejo Valley’s top office assets.” Related Fund Management is the fund management arm of Related Cos., a privately held developer and landlord based in New York City. Partner Cruzan has been an active investor in Los Angeles real estate. The San Diego firm, with insurer Cigna, locked up what the Real Deal reported as the most expensive deal of April 2018 with the purchase of a 112,000-square-foot Beverly Hills office building for $69 million. Kilroy originally listed the campus for sale in September 2018 for $84 million, or roughly $375 per square foot. According to a third quarter report from Colliers International, the adjacent San Fernando Valley submarket averaged 9.0 percent total vacancy on an inventory of roughly 32.7 million square feet, while the average direct rental rate was $2.54 per square foot during the third quarter.