Younan chairman and CEO Zaya Younan tells GlobeSt.com that the class A office building off Highway 101 is owned and 40% occupied by the Western Regional Headquarters of Hitachi's Power & Industrial Division. Including other tenants, the building is 55% leased. The purchase price is not being released until the sale is complete later this year, says Younan.
Founded last year, Woodland Hills, CA-based Younan Properties specializes in acquiring, repositioning and managing office buildings throughout the country. In the last 12 months, the firm has acquired 2.1 million sf in 20 office buildings and sold 480,000 sf in eight buildings.
A few weeks ago, Younan acquired the 59,000-sf Mowry office building in Newark, CA, for $7 million, or $118.64 per sf, from Income Opportunity Realty Investors Mowry Corp. Located on Mowry School Road next to a two-year-old Hilton hotel, the three-story class B building was 30% leased at the time of sale.
"After our intensive analysis of the building and its market, we immediately realized that it has amazing potential due to its location and close proximity to Silicon Valley," says Younan Younan, adding that the property is now 50% leased thanks to recent upgrades and the hiring of a local broker. "The building was owned by an out-of-state institutional owner and an out-of-state broker had the leasing assignment," says Younan. "We've just marketed it more effectively."
Younan praises the work of Grubb & Ellis broker Nancy Morse and says he did his part by launching interior and exterior improvements such as new landscaping and improvements to the lobby, elevator and common areas. New leases are being done at a full-service gross rate of about $1.95 per sf, Younan says.
"Potential tenants saw we were doing work and that we were serious about making improvements and decided to sign leases with us," says Younan. "I will not be surprised if occupancy is at 90% 12 months from now."
Existing tenants in the building include Shin-Etsu Ploymer of America, Sulzer and MicroElectronics Inc. Mark Nardizzi of Regis Realty represented Income Opportunity Realty Investors in the transaction. Younan Properties represented itself.
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