LOS ANGELES-Atlantic Pearl Investments has acquired a 53,552-square-foot office building located at 1990 Westwood Blvd. for $12 million. Formerly owned by Jamison Services Inc., the Westside property has an 84% occupancy rate but, at $224 per-square-foot, presents an attractive value-add opportunity.

Madison Partners' Bob Safai and Matt Case represented the seller, who purchased the property in 2003 for $6.5 million, according to GlobeSt.com industry sources.

Value-add properties were one of the market themes noted by experts at Allen Matkins recent View From the Top conference, and since West Los Angeles has the highest rental rates of any other submarket—about $3.35 according to Voit's third quarter office market report—the submarket is an attractive for value-add investment. However, the same Voit report also shows the West Los Angeles submarket has an above-median vacancy rate, at 13.73%.

Overall, the Los Angeles office market “is finding its footing,” according to the report. Voit expects investment activity to pick up over the next few quarters as the market continues to stabilize. The research firm also estimates that leasing rates will increase in most submarkets, and leasing activity will pick up in the final quarter as short-term leases are up for renewal.

Last week, GlobeSt.com reported an undisclosed public REIT purchased a West Los Angeles value-add listed at $18 million. The building was 20% leased at the time of the sale, and the buyer plans to add $4 million to $6 million in updates.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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