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10/15/20
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Nome Ventures, a Silicon Valley-based real estate investment firm, has acquired Pacific Gateway, a recently renovated, 237.1k sf, Class A office tower located at 19191 S. Vermont Ave in Torrance, in a $55.5 mil ($234/sf) transaction. The purchase was financed with a loan of $39.3 mil.
The 10-story tower sits adjacent to the intersection of the 405 and 110 freeways and is part of the 190th Street office submarket in L.A.’s South Bay. The building, which is nearly 84% leased, recently underwent a $6 mil renovation including an upgraded lobby designed by Gensler, new corridors, a new tenant amenity center and exterior improvements that include outdoor meeting and dining areas. The project’s rent roll includes a strong mix of tenants such as Optum Care (formerly DaVita Medical Group) and Farmers Insurance Federal Credit, among others.
Newmark Knight Frank’s Kevin Shannon, Bill Bloodgood, Ken White, Scott Schumacher and Aly Chelf represented the undisclosed seller in the deal. The buyer was self-represented. Greg Grant of CBRE Capital Markets arranged the financing, with support from CBRE’s Mike Longo, Todd Tydlaska and Sean Sullivan.
“The 190th Street Market has experienced tremendous leasing momentum and rental growth and has seen significant redevelopment of several prominent assets including the adjacent approximate 20k sf center, The Enclave, currently under construction by The Ruth Group,” said Shannon.
The South Bay as a whole benefits from its beach communities, executive housing, outstanding amenities, quality schools and proximity to LAX, which is the third busiest airport in the world. For companies, the region will continue to appeal to office tenants priced out of West Los Angeles, and, with this migration, rents will increase, according to NKF Research. This is especially true in periods of economic expansion.
Vacancy in the Greater Los Angeles office market was unchanged from one year ago during the second quarter, even amid COVID-19, according to NKF’s 2Q20 Los Angeles Office Market report. As of 2Q20, the 190th Street Corridor has no new office product under construction and presents a 15.7 vacancy rate.
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