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Sunday, Nov 24, 2024

2023 Commercial Real Estate Awards: Best Office Sale of the Year

VITAL STATISTICS
21415-21615 Plummer St., Chatsworth
Square Footage: 231,770
Deal Value: $42 million

The CBRE team brokered the sale of a 231,770 square foot, two- building office/flex property in Chatsworth (within Chatsworth Business Park) for $42 million – equivalent to $106 per land square foot. CBRE represented the seller, Laramar Group, a national real estate investment and management company. The buyer was Rexford Industrial. At the time of sale, both buildings were 85% leased to two tenants, including the County of Los Angeles, which had been at the property since 2000. Upon lease expirations, Rexford’s intent was to redevelop the 9.1 acres of industrially zoned land by removing the existing 231,770 square feet of legacy flex/office improvements and constructing two Class A, 32-foot-clear warehouse buildings totaling 182,000 square feet.

An incredibly strong demand in the market for Class-A industrial space created a unique opportunity to redevelopment low-rise office to industrial in infill locations. It was very rare to find a 9.1-acre industrially zoned redevelopment opportunity with income in an infill location such as the San Fernando Valley. Taking a broader look at the market, the unprecedented demand for infill warehouse distribution space coupled with the accelerated rent growth for Class-A warehouse distribution space was creating an opportunity for investors to redevelop low-rise, surface-parked suburban office buildings to state-of-the-art industrial in various infill locations.

VITAL STATISTICS
AGOURA HILLS MEDICAL PLAZA
29525 Canwood St., Agoura Hills Square Footage: 51,775
Deal Value: $21.5 million

Sold for $21,450,000, this 49,261 square foot, 5.2% Cap medical plaza is at the center of another excellent value-add medical office story in the Conejo Valley. Seller purchased the asset for $13,800,000 in 2017, executed an extensive capital improvement and lease up program, then sold for $7,650,000 more in under five years. Preferring to sell off-market, the marketing team created a competitive bidding process between local investors, REITs, and healthcare focused private equity. The ultimate buyer was Pennsylvania-Based Anchor Health Properties, who had added motivation based on their pending acquisition of 3180 Willow Lane in Westlake Village, also sold by the marketing team.

VITAL STATISTICS
3180 Willow Lane, Thousand Oaks
Square Footage: 29,609
Deal Value: $17 million

Sold for $16,950,000, this 29,609 square foot, 4.9% Cap Rate medical property featured the lowest Cap Rate for a stabilized, multi-tenant office property in Ventura County or the San Fernando Valley in the last decade.

It also drew the highest price per square foot of an off-campus medical office building with no credit tenancy in Ventura County or the San Fernando Valley in the last decade with one of the highest price per foot and lowest cap rate off- campus medical office sales in the country in 2022.

 

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