|
|
7/11/24
|
Rose Equities and Garden Communities have acquired a 65.3k sf office building situated on a 5.5-acre site in Torrance for $30.6 mil in an off-market deal. The building, located at 2325 Crenshaw Blvd, has served as the regional office of the County of Los Angeles Department of Children and Family Services since 1999.
The asset was purchased as a fully entitled multifamily development site. The property is considered an ideal development opportunity due to its location, high density and large parcel. It was sold by Optimus Properties, who determined that this was the best strategy for the property, rather than holding on to an aging office building.
Currently, the building is 100% percent leased to the County of Los Angeles, but will be redeveloped into 272 residential multifamily units with a 467-car parking garage, after having received unanimous approval from the City of Torrance. The County continues to occupy the property as they search for a new space and the buyer works through the planning and pre-development process for the new project.
Colliers Vice Chair Sean Fulp and Executive Vice Presidents Ryan Plummer and Mark Schuessler, West Region Capital Markets, brokered the sale on behalf of the seller in conjunction with Newmark Managing Director Anthony Muhlstein, Senior Managing Directors Chris Benton, Co-Head, U.S. Capital Markets Kevin Shannon, Vice Chairman Ken White, Associate Director Gabe Munson and Ryan Plummer.
“The sale reflects an on-going trend of redeveloping antiquated office properties in target multifamily markets as demand shifts in the office sector,” said Muhlstein. “Underutilized and underimproved office buildings on large land parcels will continue to be evaluated for multifamily and retail redevelopment, with existing floor area ratio in comparison to the land, construction costs, political climate, retrofit requirements and government subsidies among key factors driving decisions.”
“At Optimus, we always try to have multiple exit strategies to ensure a safe investment and high returns for our investors,” commented K. Joseph Shabani, Principal at Optimus Properties, LLC. “The large parcel allowed us to market this site to a multifamily builder and provide our investors with net returns approaching 26% per year.”
|
|
 Return to the Archive page
|
|
|
|
|
Printer-friendly Version
Email an Associate
