Culver City is heating up fast. Just as we reported that office investors are becoming more bullish on the market—with an expectation that it will soon outperform surrounding markets—one of the largest office transactions, and the largest since the Sony deal in 2014, has closed. Northwood Investors purchased 800 Corporate Point from Vornado Realty Trust for $148 million, making it one of the largest transactions in the market and the largest in several years.

“Values have been trending upward in Culver City and this transaction reflects that improving trend line,” Kevin Shannon, West Coast capital markets president at NKF, tells GlobeSt.com. “The investment market is healthy and firing on all cylinders especially in desirable markets like West Los Angeles. There is plenty of both equity and debt for markets like Culver City, which is putting upward pressure on pricing. The improving submarket fundamentals on the leasing front is augmenting this upward pressure.” Shannon represented the seller in the deal.

It isn't only the high pricing that is impressive. Shannon and his team—which includes executive managing director Ken White, senior managing director Rob Hannan, and managing directors Michael Moll and Laura Stumm—saw strong interest and competition for this asset from domestic and foreign capital and both core and core-plus funds. “Culver City has been getting increasingly more popular with capital over the last few years,” says Shannon. “As Playa Vista gets closer to being fully built out, investors have headed to markets proximate to Playa Vista that are benefitting from increased tenant demand like Culver City and El Segundo. They have gone to where the puck is going relative to tenants. These investors are repositioning many of these assets and creating a work environment similar to Playa at significantly lower rents.” The final buyer was advising capital from Europe.