SANTA MONICA, CA—New York-based investor JOSS Realty Partners has made its first investment in the Los Angeles market with the purchase of 1315 Lincoln Blvd., a 23,531-square-foot office building in Santa Monica. GlobeSt.com reported earlier this week that the property traded hands between an unnamed New York-based investor and a partnership between Lincoln Property Co., Linwood Ventures and ASB Real Estate Investments for $23.6 million, or $1,004 per square foot.

“This is as close as you can come to irreplaceable real estate,” Larry Botel, managing partner of JOSS Realty Partners, tells GlobeSt.com. “We like markets that have high barriers to entry, and that don't have a lot of land because we know that there is going to be constant tenant demand even in a cycle. We don't shy away from deals because of things like price-per-square-foot because we are buying in markets that have less of a risk profile.”

Still, paying a record price for a property shows an initiative to break into the market, and JOSS is definitely looking to make more acquisitions in L.A. “We love the L.A. market, and there are a few other submarkets [aside from Santa Monica] that we like here as well. I am pretty bullish on the L.A. market and what is going on here economically, and I like the demand drivers that are bringing about a lot of the growth,” says Botel. “So, we are very interested in looking at more properties out here.”

For the unfamiliar, JOSS has been around for a decade, investing in office assets in supply-constrained markets with strong job demand, like New York, Washington DC and South Florida. Although it is a smaller, boots-on-the-ground type of firm, it managed to stay competitive in this transaction, which drew 14 strong offers from investors nationwide, and win the deal. Botel attributes that to their speed. “We fashion ourselves has being pretty nimble in that we are a relatively small shop and the decision makers are the guys doing the work,” he explains. “I think the thing that put us over the top is that we were able to get the deal done quickly. We went from getting the deal awarded to us to closing in less than 40 days, and that is quick. We did our diligence quickly andwe were able to put money up quickly, and I think ultimately that differentiated us and enabled us to get the deal done.”

JOSS plans to hold the property for the long-term—their typical business strategy—and will make very minor repairs to add value wherever possible, although the property is newly built and in great condition. Botel mentioned the possibility of monetizing some additional money out of the parking garage, which is a rare asset in Santa Monica, but cited making tenants happy as he chief concern for the building.

Located at 1315 Lincoln Blvd. in Santa Monica, the property features 22-foot ceiling heights, modern floor plans, outdoor patio areas and ample parking. It is 100% occupied by a tenant mix that includes City National Bank, Chandler Chicco Agency, Centro Media, O'Gara Coach Co. and Dethrone Basecamp.