In the Culver City transaction, the foreign buyer acquired the Promontory, an institutional quality building at 5901 Deep Valley Circle, from Pacifica Real Estate Group for $29.5 million. According to Kevin Shannon of CBRE, the building is 100% leased to nine tenants in the West Los Angeles office market area, with "superb long-term credit tenants for the majority of the property."
Shannon led a CBRE team including Michael Moore and Stan Gerlach who represented the seller. Jeff Pion of CBRE represented the buyer.
The deal involved a debt assumption of an existing loan, according to Shannon, who notes that, "There are more debt assumption deals as the debt market settles and foreign capital becomes an increasingly important factor." Coastal Development Services occupies 52% of the project and the State of California Board of Equalization occupies 31%. The four-story office building was built in 1979 and renovated in 1994 and 2003.
In the Torrance transaction, Continental Development bought two hospital-adjacent, high image medical office buildings at 3500 Lomita Blvd. and 23560 Madison St. for $20.88 million in a deal that also involved the assumption of existing Washington Mutual debt by Continental. Shannon, Moore, Dave Smith and Tim Vaughn represented both Continental Development and the seller, Newport Beach, CA-based WRA Management.
The two office assets are located in a market that is driven by two major hospitals, Torrance Memorial and Little Company of Mary. The buildings feature adjacent access to the Torrance Memorial and a strong tenant roster, Shannon says. The three-story Lomita building was constructed in 1981 and the two-story Madison building, constructed in 1976, was renovated in 1996. "Medical product has enjoyed increased favor with capital during the credit crunch," Shannon notes. "Doctors tend to stay and the demographic trends favor this product type."
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