The 10 Most Expensive Commercial Real Estate Transactions in LA County – Fourth Quarter 2016

The 10 Most Expensive Commercial Real Estate Transactions in LA County – Fourth Quarter 2016

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 buildings in creative office, office, and multifamily categories. Transactions include property sold only between October 1 and December 31, 2016.

1. SANTA MONICA: 2600 & 2700 Colorado
2600-2800 Colorado Ave., Santa Monica, CA 90404
$367.6 MILLION

Google Street View

Google Street View

Buyer: Oracle Corporation
Total space: 315,346 sq. ft.
Price per square foot: $1,166
Year completed: 1988
Date sold: 11/09/16
Category: Office, Class A

This Santa Monica office building was the most expensive CRE deal in LA County last quarter. Oracle Corporation, the massive tech corporation from Silicon Beach, purchased the building for almost $368 million. On a price per square foot basis, it is the highest price paid for a commercial property in the city. Current tenants include Viacom and Lions Gate Entertainment. Oracle plans to occupy the Viacom space when they move to Hollywood later this year.

2. DOWNTOWN: Citigroup Center
444 S. Flower St., Los Angeles, CA 90071
$336 MILLION

CoStar

CoStar

Buyer: Coletrust Capital Partners
Total space: 891,056 sq. ft.
Price per square foot: $377.08
Year completed: 1981
Date sold: 11/28/16
Category: Office, Class A

Citigroup Center was acquired by Coletrust Capital Partners and was the most expensive transaction in Downtown in the last quarter of 2016. Tenants include Citigroup, AC Martin (the building’s architect), Securities & Exchange Commission, Bank of China, Equinox, Starbucks, and a Citibank branch.

3. CARTHAY CIRCLE: Office Building
6500 Wilshire Blvd., Los Angeles, CA 90048
$295 MILLION

CoStar

CoStar

Buyer: Cedars-Sinai Medical Center
Total space: 456,679 sq. ft.
Price per square foot: $645.97
Year completed: 1986
Date sold: 11/01/16
Category: Office, Class A

Cedars-Sinai is the new owner of the 24-story office building on the southeast corner of Wilshire & San Vicente Boulevards. Cedars-Sinai previously leased a significant portion of the building, so it will save on rent payments by being the landlord of the building, less than a mile away from their hospital.

4. PLAYA VISTA: Bluffs at Playa Vista - East Building
12121 Bluff Creek Dr., Playa Vista, CA 90094
$215.7 MILLION

CoStar

CoStar

Buyer: Edward J. Minskoff Equities, Inc.
Total space: 261,669 sq. ft.
Price per square foot: $824.45
Year completed: 2009
Date sold: 10/14/16
Category: Office, Class A

An East Coast based real estate investment company has purchased a West Coast building, Bluffs at Playa Vista. Tenants include Fox Interactive Media, Rubicon Project, and California Pizza Kitchen headquarters.

5. PLAYA VISTA: Bluffs at Playa Vista - West Building
12181 Bluff Creek Dr., Playa Vista, CA 90094
$197.3 MILLION

CoStar

CoStar

Buyer: Edward J. Minskoff Equities, Inc.
Total space: 239,274 sq. ft.
Price per square foot: $824.45
Year completed: 2009
Date sold: 10/14/16
Category: Office, Class A

The Bluffs at Playa Vista is just one of many complexes sold in the area lately, Playa Jefferson – home to the LA headquarters for Facebook – for $165 million. Also, the Spruce Goose complex down the street sold for over $300 million to a Japanese investment company.

6. SANTA MONICA: Lantana Center
3000 W. Olympic Blvd., Santa Monica, CA 90404
$176.2 MILLION

CoStar

CoStar

Buyer: Brightstone Capital Partners & Artisan Realty Advisors
Total space: 210,942 sq. ft.
Price per square foot: $835.45
Year completed: 1959, renovated 2006
Date sold: 11/07/16
Category: Creative Office

Lantana Center is the largest building of a Santa Monica office portfolio that was sold to Brightstone Capital Partners & Artisan Realty Advisors. Three other properties were part of the package – office buildings at 3301 & 3303 Exposition Blvd & 2900 W. Olympic Blvd. In total, the four properties were sold for $403 million.

7. WESTCHESTER: Howard Hughes Tower
6701 Center Dr. W., Los Angeles, CA 90045
$159.9 MILLION

CoStar

CoStar

Buyer: The Blackstone Group
Total space: 332,778 sq. ft.
Price per square foot: $480.56
Year completed: 1987, renovated 2001
Date sold: 11/11/16
Category: Office, Class A

This Westchester office property (along with #9 and #10 on this list) was one of the many properties that seller Hines REIT sold to The Blackstone Group. Other properties that were part of the portfolio are located in Northern California and Washington.

8. PASADENA: Trio
44 N. Madison Ave., Pasadena, CA 91101
$154 MILLION

CoStar

CoStar

Buyer: Cherng Family Trust
Total space: 340,944 sq. ft.
Price per square foot: $451.69 (Price per unit: $506,579)
Year completed: 2004
Date sold: 11/02/16
Category: Multifamily

Located in the center of Pasadena, Trio is a mixed-use development composed of 304 apartments and over 13,000 sq. ft. of restaurant & retail space. It is within walking distance to the Paseo Colorado shopping center and Downtown Pasadena amenities. Panda Express owners Andrew & Peggy Cherng bought the apartment/retail complex in November.

9. WESTCHESTER: 6100 Center Drive
6100 Center Dr., Los Angeles, CA 90045
$150.7 MILLION

CoStar

CoStar

Buyer: The Blackstone Group
Total space: 313,543 sq. ft.
Price per square foot: $480.56
Year completed: 2002
Date sold: 11/11/16
Category: Office, Class A

6100 Center Dr is the second time in 3 years this property has been on the market, the last time it sold for $110 million in January 2014. It was also one of the 10 most expensive CRE properties in Q1 2014

10. WESTCHESTER: Howard Hughes Center
6080 Center Dr., Los Angeles, CA 90045
$147.2 MILLION

CoStar

CoStar

Buyer: The Blackstone Group
Total space: 306,388 sq. ft.
Price per square foot: $480.56
Year completed: 2001
Date sold: 11/11/16
Category: Office, Class A

The Howard Hughes Center property at 6080 Center Drive sits in a convenient location, close to the 405 freeway, The Promenade shopping center, and LAX airport. It is interesting in that The Blackstone Group was a previous owner of this property (along with #7 & #9), before Hines REIT purchased it in 2014.

Westside LA Commercial Real Estate Outlook - Q1 2017

EB-5 and its Impact on Commercial Real Estate

EB-5 and its Impact on Commercial Real Estate