Lee & Associates-LA North/Ventura Transacts Multi-Tenant Office Building Sale for $7.2 Million
Rare Ventura Boulevard property attracts multiple buyers
LOS ANGELES – Dec. 16, 2015 – A 19,000-square-foot multi-tenant office building in the Sherman Oaks submarket of Los Angeles has traded for $7,200,000 after multiple offers were received on the property, according to Scott Romick, a principal of Lee & Associates-LA North/Ventura who represented the seller in the transaction.
“There have probably been no more than 10 Ventura Boulevard office buildings in the 9,000-square-foot to 20,000-square- foot range between Sherman Oaks and Studio City that have traded in the last 10 years,” Romick said, “and these types of properties can work for owner-users as well as investors, so we marketed to both types of buyers, and we had a lot of interest.”
Dixie Properties LLC, the seller of the property located at 13412 Ventura Boulevard, had owned the building since 1992, and Romick has represented the company as leasing agent since 2009. The property was fully occupied with seven tenants at the time of the sale.
“Office building sale prices have risen dramatically in the past few years,” Romick said, “and the seller felt that, coupled with the demand for these types of properties, this was the right time to divest. The price and cap rate we achieved reflect the current real estate market as well as the fact that many of the tenants had been there for a number of years and rents were below market as a result.”
Office building sales activity and prices have increased dramatically in the past few years. As of the third quarter, the median price of office buildings sold in the Los Angeles North market was $223 per square foot, a 16 percent increase over the median price at the close of 2014.
In addition to its superior location in the heart of Sherman Oaks, close to many amenities, the building offers all tenants access to a balconies with private balconies for some units.
The buyer, Rubikon Development, LLC, was represented by Anthony Palermo at Coldwell Banker Beverly Hills.