LOS ANGELES—CIM Group has sold an office property in Los Angeles to a medical group owner/occupier for $24 million. In June 2013, CIM Group had purchased the property for $14 million, and with this sale, has earned an appreciation of 41% on the property in less than two years. This was an off-market transaction.

According to the brokerage team, CIM Group was in the process of repositioning the property when the buyer approached them with its $24 million offer. The healthy sales price allowed them to achieve their original goal without undergoing to value-add component, making the transaction a win-win for both parties. Lynwood Fields and Bob Safai of Madison Partners represented the seller in the transaction. Madison Partners also represented CIM Group when it purchased the property originally in June 2013.

Located at 8436 West 3rd Street, the 37,962-square-foot property stands nine stories tall. It is in a prime location one-half block east of La Cienega, near plenty of upscale shops and restaurants, including the Beverly Center, as well as other amenities, like Cedars Sinai Medical Center and a talented and specialized labor pool, both of which were attractive to the buyer, who plans to occupy a portion of the building. With 360-views of the Hollywood Hills and Century City, the building has great signage opportunities from both the east and west. Additionally, the building features full-length balconies and the potential for creative tenants with 14-foot plenum height.

Office transactions like this are rare in this area of Los Angeles, and the supply is only getting tighter. The Q414 office report from CBRE showed that Los Angeles is leading the Southern California market in terms of absorption, with vacancy rates continuing to plummet. At the end of the year, the vacancy rates for Los Angeles office space were 16%, the lowest since 2007.