BEVERLY HILLS, CA—New York-based investor Jenel Management Corp. has purchased an office building in the Beverly Hills Golden Triangle for $47.3 million from a conglomerate of trusts. The trusts represented several generations of the previous owners, who originally purchased the property from Burton Green in the 1920s. 

The sellers decided to dispose of the property because of the complicated ownership, which was passed down through generations. “From the original three business partners that bought the property from Burton Green of the Rodeo Land Co., seven family trusts existed today with numerous offspring, it was time to sell before ownership became even more splintered,” Patrick Sheekey, EVP at Coldwell Banker Commercial Westmac, tells GlobeSt.com. Sheekey represented the seller in the in the transaction along with his Coldwell Banker Commercial colleague Chris Holland.  John Bertram of Savills Studley represented the buyer.

Sheekey received a lot of interest in the property with 15 offers. The seller eventually narrowed the offers down to a group of five, then three, looking for a buyer that had patience and confidence because the deal had so many moving parts. In addition to the number of sellers, the transaction also had an unusual tenant issue. “[Originally,] Bank of America was the master tenant. Their lease was signed before the dollar was an accepted standard, so the rent was based on 96.8 ounces of London Troy gold, calibrated monthly,” explains Sheekey. “Bank of America subleased their bank building in 1995 to the Paley Center for Media, who then spent $15 million creating what you see today with the help of Richard Meier. This became a very expensive non-location for Bank of America during the last upswing in gold.” In choosing a buyer, Jenel stood out from the group, offering an all-cash bid.

Located at 461-469 N. Beverly Drive in Beverly Hills, the 26,500-square-foot property is occupied by the Paley Center for Media. “Triangle deals are rare, especially ones that include the potential for big upside in rents,” says Sheekey. “I think there will always be an incredibly strong pool of buyers waiting for the next opportunity in the Golden Triangle, regardless of market trends, peaks or valleys.”

It is rare to see a property of this size trade hands in the Golden Triangle. Earlier this year, the Hanes Family Trust sold a smaller retail property to an unnamed investor. The 7,700-square-foot property fetched $10.9 million, or $1, 430 per square foot.