Westside Office Building Fetches $39M

LOS ANGELES—A joint venture between Sunrise Real Estate Group, Robhana Group and 4M Investment Corp. has acquired a class-A office building on Wilshire Boulevard from TPMC Realty Corp. for $39 million in an off-market transaction. This is the second acquisition by Sunrise in that market this year as it is beginning to shift its asset base from the San Fernando Valley to the Westside.

According to Ali Bararsani, a managing director at Newmark Grubb Knight Frank who represented the buyers in the transaction, the area is trending up. He explains that increased demand in Brentwood and West Los Angeles markets is the catalyst for improvement in the L.A. office market. Office rents in the market are 7.9% higher than they were last year for class-A properties. NGKF also reports that the overall vacancy rate on the Westside is only 2.4% below the vacancy rate for the whole L.A. market, which the firm believes is the driver of the rental increases.