The purchase price was $20 million, according to Jeffrey Goodfriend of Lee & Associates, who represented the buyer.
David Meir of REMax Commercial, who represented the seller along with partner Al Levy, tells GlobeSt.com that the two-story building features extensive improvements made by the tenant, who spent about $2.5 million on the building after moving its headquarters there from New Jersey. The seller of the building, which is at the southwest corner of DeSoto Avenue and Erwin Street, was AP6019 DeSoto Ltd., a partnership that developed the property.
The building, which was completed in 1970 and renovated in 1989, includes 276 on-site parking spaces and is in the Warner Center office district of Woodland Hills. The building is a two-story structure that was built in two phases on 3.66 acres of land. The 1970 first phase consisted of a single-story, concrete tilt-up structure. A renovation and expansion in 1989 added a second story with steel and wood beams and steel columns, while seismic retrofitting in 1994-1995 brought the property into compliance with L.A. City earthquake safety requirements.
Meir describes the deal as "a very good leased investment" because of the credit-worthiness of the tenant and the length of the lease. The tenant has more than eight years remaining on a 21-year deal that was signed in 1989, with annual CPI increases built in and two five-year options to extend the lease. He says Wella occupies the upper floor of the building, while subsidiary Sebastian International is on the lower floor. Besides its use as a headquarters office building, Meir says, Wella also uses the facility for training and for shooting commercials.
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