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2/12/16
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A 2.2k sf, single-tenant Citibank building in Santa Monica traded hands in a $6.25 mil transaction that works out to more than $2,800 per sf, in one of the highest price-per-foot sales for a single-tenant bank branch ever recorded in L.A. County. The building is located at 2301 Wilshire Blvd, north of I-10 and west of 26th St, on approximately 4.4k sf of land.
The property was purchased by an affiliate of KLM Equities Inc, a private real estate investor out of New York. The listing had generated almost a dozen all-cash offers for the property.
CBRE’S Alex Kozakov and Patrick Wade represented the buyer and the seller, an unnamed private developer based in West Los Angeles. This is the second bank transaction sold by the team in West LA County this month.
Kozakov and Wade, along with colleague Fred Aframian, also repped both parties in the sale of a 13.3k sf Bank of America building on a 38k sf land parcel at 11501 Santa Monica Blvd just three weeks earlier. That property generated more than 16 all-cash offers and sold at a cap rate below 2%, as reported by RENTV at the time.
Fourth-quarter asking lease rates in West Los Angeles jumped 6.9 percent to $7.16 a square foot from $6.70 in the prior quarter, according to CBRE data.
“This investment offers a long-term lease with a credit tenant with annual rental increases, providing a strong inflation hedge,” said Wade. “The barriers to entry on new construction in Santa Monica are so high; there is a value premium for completed retail projects with new leases”.
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