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9/20/16
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In a recent, institutional-quality office buy in the San Fernando Valley, Sandstone Properties purchased the Tower at Sherman Oaks, a 167.7k sf, Class A property in Sherman Oaks. The building, which includes street-level retail, was sold by Douglas Emmett Inc for $56.7 mil ($338/sf).
The 14-story building is located at 14724 Ventura Blvd, in a desirable area with easy access to the 101 and 405 freeways. The BOMA award-winning property offers excellent visibility and sweeping views of the San Fernando Valley.
Originally constructed in 1966, the Tower at Sherman Oaks has been managed to best-in-class standards and received numerous capital renovations and upgrades, including a complete renovation in 1991. Currently 96% occupied, the property features high-end common areas, tenant spaces with unobstructed views, on-site parking, and is walking distance to a broad range of eateries, nightlife, and retailers.
Sandstone Properties plans to reposition the asset and distinguish the property to create a leading vertical creative campus in the marketplace. The company has had similar successes repositioning office properties such at 11175 Santa Monica Blvd, which is home to Variety magazine.
Madison Partners’ Bob Safai, Matt Case and Brad Schlaak brokered the deal on behalf of Douglas Emmett. Additionally, Madison Partners arranged $48.1 mil in acquisition and renovation financing through Loancore Capital for the transaction. Safai and Madison Partners’ Chris DuMont and Bob Pearson have been retained to handle leasing efforts for the property.
The San Fernando Valley is a business-friendly community with a highly-skilled labor pool that has seen a tremendous amount of growth over the past several years. The area has become a major center for technology, entertainment, and information-related industries. Low vacancy levels of roughly 11% for this product type in the submarket of Sherman Oaks, combined with limited new supply and strong demographics position the property to benefit from the area’s ongoing momentum.
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