The 10 Most Expensive Commercial Real Estate Transactions in LA County – Third Quarter 2014
FORMER ROBINSON'S MAY PROPERTY & SANTA MONICA APPLE STORE, AMONG OTHERS
The following is a list of the ten most expensive commercial real estate purchases in LA County. The list was compiled from information provided by CoStar, and includes properties in various asset classes. Transactions include properties sold between July 1 and September 30, 2014.
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1. BEVERLY HILLS: Former Robinson’s May Property
9900 Wilshire Blvd., Beverly Hills, CA 90210
$420 million
Buyer: Dalian Wanda Group
Total space: 332,028 sq. ft. (7.62 acres)
Price per square foot: $1,265
Date sold: 09/09/14
Category: Land
Most recently the site of the Robinson’s May Department store, the building & property has been vacant for the past decade. The lot became even emptier when the building was demolished in July 2014. Two months later, it was officially sold to the Dalian Wanda Group for $420 million. The Chinese conglomerate also purchased the AMC movie theater chain for $2.6 billion.
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2. KOREATOWN: The Vermont
3150 Wilshire Blvd., Los Angeles, CA 90010
$283 million
Buyer: Capri Capital Partners, LLC
Total space: 500,000 sq. ft.
Price per square foot: $566
Year completed: 2014
Date sold: 07/25/14
Category: Multi-family (464 units)
The Vermont is comprised of two high-rise towers that feature 464 luxury high rise apartments. It is centrally located, being minutes away from Downtown LA, Beverly Hills, Century City and Hollywood. The complex is also next to the Metro Purple & Red Line subway stations. The Koreatown buildings are home to one of the largest residential projects built in LA since the Great Recession.
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3. BEVERLY GROVE: Beverly Connection
100 N. La Cienega Blvd., Los Angeles, CA 90048
$260 million
Buyer: Ashkenazy Acquisition Corporation
Total space: 272,288 sq. ft.
Price per square foot: $774.17
Year completed: 1948, renovated 1998
Date sold: 07/09/14
Category: Retail (power center)
The New York based real estate investment company purchased the shopping mall earlier this year for just over a quarter billion dollars. The shopping complex is adjacent to the Beverly Center and features retailers such as CityTarget, Nordstrom Rack, Marshalls and CVS Pharmacy.
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4. DOWNTOWN: 801 Tower
801 S. Figueroa St., Los Angeles, CA 90017
$190 million
Buyer: Cornerstone Real Estate Advisors LLC
Total space: 458,149 sq. ft.
Price per square foot: $414.71
Year completed: 1991
Date sold: 09/30/14
Category: Office, Class A
Closing just last Tuesday, the Downtown building was sold to Cornerstone from the Mani Brothers Real Estate Group for $190 million. Located in South Park, the building is 25 stories and is said to have “significant upside potential” due to the revitalization of the neighborhood, particularly with the Staples Center and the Nokia Theater, both at L.A. Live.
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5. DOWNTOWN: Watermarke Tower
705 W. 9th St., Los Angeles, CA 90015
$160.5 million
Buyer: ASB Capital Management, LLC
Total space: 254,326 sq. ft.
Price per square foot: $631.08
Year completed: 2010
Date sold: 09/03/14
Category: Multi-family (214 units)
This property is also located in South Park and is just around the block from the 801 Tower (#4). The 35-story tower houses 214 luxury apartment units, which were originally meant to be condos – but this plan was scrapped during the Great Recession. The transaction has the distinction of being perhaps one of, if not, the most expensive apartments sold. Each unit sold for exactly $750,000.
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6. DOWNTOWN: Broadway Trade Center
801-831 S. Broadway, Los Angeles, CA 90014
$125 million
Buyer: Waterbridge Capital LLC
Total space: 1,080,000 sq. ft.
Price per square foot: $115.74
Year completed: 1908
Date sold: 08/21/14
Category: Industrial, Class C
Previously a May Co. department store, among other tenants, the Broadway Trade Center sold for $125 million in August 2014.The new owners, Waterbridge Capital, are looking to outfit the massive, 1.1 million square foot low-rise building with a hotel, offices, retail and apartment. The century old edifice also used to house the LA Public Library and a 1,000 seat theater.
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7. WESTWOOD: Murdock Plaza
10900 Wilshire Blvd., Los Angeles, CA 90024
$124.7 million
Buyer: Tishman Speyer
Total space: 237,147 sq. ft.
Price per square foot: $525.83
Year completed: 1981
Date sold: 08/22/14
Category: Office, Class A
Sold for nearly $125 million, the previous owner, Kambiz Hekmat’s Indivest, Inc., took a loss of approximately $5 million when he divested of the property in August. Located on the corner of Westwood and Wilshire Boulevards, the skyscraper is currently the home base of former LA Mayor Richard Riordan and Ted Field, media mogul and heir to the Marshall Field’s fortune.
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8. DOWNTOWN: Luxe City Center Hotel
1020 S. Figueroa St., Los Angeles, CA 90015
$100.7 million
Buyer: Hazens Investment, LLC
Total space: 100,966 sq. ft.
Price per square foot: $997.74
Year completed: 1964
Date sold: 08/01/14
Category: Hospitality (hotel – 178 rooms)
This particular Luxe Hotel is the third property on the list that is situated in South Park. Having this many properties being sold for at least $100 million is surely a testament to the confidence that real estate investors have in the previously rundown area. According to CoStar, the buyer will likely tear down the hotel and build a “more luxurious” hotel, along with condos and an office tower.
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9. SANTA MONICA: Apple Store
1415 3rd St. Promenade, Santa Monica, CA 90401
$100 million
Buyer: KLM Construction Corporation
Total space: 17,550 sq. ft.
Price per square foot: $5698
Year completed: 2012
Date sold: 07/17/14
Category: Retail
Selling for $5,700 per square foot, the transaction sets a record for the Westside retail market. Two years ago, the made-for-Apple glass building sold for only $60 million to Jordache Enterprises. Real estate professionals contend that the property sold for the high amount at least in part because of the much sought-after tenant, since it brings in more sales per square foot than any other retailer.
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10. EL SEGUNDO: Continental Tower
101 Continental Blvd., El Segundo, CA 90245
$98 million
Buyer: American Realty Capital Properties, Inc.
Total space: 332,685 sq. ft.
Price per square foot: $294.57
Year completed: 1972
Date sold: 07/09/14
Category: Office, Class A
Most of the Continental Tower is leased out to Northrop Grumman, an aerospace and defense equipment company. Make note that although it was listed in our last article as sold on 06/14/14 for $98 million, the transaction did not officially close until 07/09/14. Also, this is the only building on the list that sold for less than $100 million.