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11/24/15
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Watt Investment Partners closed a $27 mil office acquisition on L.A.’s Westside, picking up a 107.4k sf ($251/sf) building in the Palms area. The property, located at 3000 S. Robertson Blvd, adjacent to the north side of the I-10 Fwy, is highly visible from the freeway. It was sold by the Brown Family Trust.
The building, constructed in 1986, is 42 percent occupied. Current tenants include the Kaiser Foundation, which leases 23 percent of the space in a lease that runs through 2026. Kaiser has a major hospital facility nearby.
Watt is looking to reposition the property and take advantage of increasing tenant demand for repositioned office product, especially in West Los Angeles. The company plans on upgrading and remodeling the building to capitalize on the area’s increasing market rents due to lack of quality space. The asset is situated in the booming Westside office market, a high barrier-to-entry area where space availability is significantly limited with a vacancy of less than 12 percent.
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CBRE Group Inc’s South Bay team, led by Kevin Shannon and Scott Schumacher along with Deron White, and Kurt Davis, represented the seller in the transaction. The per-square-foot price for the four-story property compares favorably with recent transactions in neighboring Culver City where sale prices have exceeded $475 per-square-foot.
“This is a great opportunity for a repositioning play,” said Shannon. “Watt Investment will put significant money into this property to make it more competitive with adjacent neighborhoods such as Culver City at a significant rental discount to this market. Once they’ve accomplished that, this building will look very attractive to all the tech, media and entertainment companies that have been flocking to this area.”
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