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4/06/21
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The Luzzato Company purchased a 29.7k sf adaptive reuse and creative office building in Los Angeles for $22.79 mil ($767/sf). The property, located at 3317-3325 Exposition Place, just east of Crenshaw Blvd, is fully leased to The RealReal Inc.
Located in the Expo Place Corridor and next to the West Adams neighborhood of Los Angeles, the two-story brick building features exposed steel beams, wood bow-truss ceilings and a large column-free space with an open galley kitchen space and partial loading/distribution option. Renovated in 2018, the open creative office and flex space is strategically located adjacent to an LA Metro line.
Newmark’s Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Directors Sean Fulp, Ken White and Rob Hannan, Senior Managing Directors Laura Stumm, Chris Beck and Larry Wass and Managing Director Ryan Plummer represented the seller, Lion Real Estate Group LLC. Newmark also arranged the lease on behalf of the landlord and The RealReal in 2019.
“This asset, located in the heart of LA’s highly desirable and supply constrained creative office market, provides the buyer with durable, long-term cash flow,” said Fulp of Newmark’s Private Capital Group. “The West Adams neighborhood has recently been spurred by an influx of development and high-ticket leases. We have seen institutional and private investors heavily investing into the area as Fortune 100 companies expand east into West Adams from the Haden Tract in Culver City.”
The adjacent Culver City development spurred demand for more housing in West Adams, which has grown significantly in Q3 and Q4 2020, pushing rates and decreasing vacancy, according to Newmark Research. Office owners have also been able to raise asking rents to above $5.00 PSF since Fortune 100 companies started moving into Culver City in 2018. This significant increase in asking rents in Q3 2018 contributed to the wave of office development in West Adams, especially considering the (W) rapper project, a 16-story 5-star office project set to be completed in December 2021.
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