Office Building Sells with 50% Price Gain in 4 Years

An office building in North Hollywood has sold for $69 million, or about $350 a square foot, according to commercial real estate database CoStar Group Inc. Beacon Capital Partners of Boston, Mass. has bought the building at 5161 Lankershim Blvd., a 197,000-square-foot Class A structure built in 1985 from Beverly Hills real estate investment firm Kennedy-Wilson Holdings Inc. According to CoStar, it was 87 percent leased at the time of the sale. The purchase price represented a nearly 54 percent gain for Kennedy-Wilson over the $45 million, or $228 a square foot, it paid for the property in 2013. Beacon’s purchase price is in line with similar recent comparable deals, such as the September sale of the Tower at Sherman Oaks at 14724 – 14726 Ventura Blvd. for $56.7 million, or nearly $348 a square foot. However, that 163,000-square-foot office property was built in 1967 but was also 93 percent leased at the time of the sale, according to CoStar. In the NoHo transaction, Michael Longo, Sean Sullivan and Todd Tydlaska of CBRE Group Inc. in Los Angeles negotiated the deal on behalf of both parties, according to CoStar. In other recent and local Kennedy-Wilson activity, the firm sold two Class A office buildings in Glendale for $144 million, or nearly $330 a square foot.