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7/30/25
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In a Santa Monica office trade, Washington Capital purchased 501 Santa Monica Blvd, a seven-story, 78.5k sf building, for $40 mil, or $510/sf. The asset, situated at the corner with 5th St, includes a four-level, standalone parking structure.
Situated in the Downtown Santa Monica submarket, the creative office building was 65% leased at the time of the sale. It features exposed concrete ceilings and duct work, concrete floors, LEED Gold certification, 13-foot clear ceiling heights and Santa Monica Blvd-facing signage. The property is located two blocks from the Metro E Line Station and presents convenient access to the I-10 freeway through 4th St and to walkable amenities, including Third Street Promenade.
Kevin Shannon, Rob Hannan, Ken White, Laura Stumm, Michael Moll and Alex Beaton with Newmark represented seller, Kilroy Realty Corporation, in the transaction. Washington Capital was self-represented. Jonathan Firestone and Blake Thompson with Newmark provided support on debt strategy and financing considerations throughout the transaction process.
“Opportunities to acquire prime assets located in Downtown Santa Monica are few and far between,” said Shannon. “The seller had owned this asset for almost 30 years, which is not an uncommon hold period for jewel box Santa Monica assets like 501 Santa Monica.”
In the first quarter of 2025, the U.S. capital markets showcased encouraging momentum, with commercial real estate debt origination surging 42% year-over-year, driven by increased activity in office, senior housing and hotel sectors, according to Newmark Research. Investment sales also demonstrated resilience, rising 18% year-over-year, with transactions under $100 mil comprising 67% of overall transaction volume across property types. Office cap rates at 6.5% and positive returns across all sectors, including a notable recovery in office returns at +0.2%, underscore an increasingly stable and dynamic landscape.
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