Partnership Sells Calabasas Office Campus for $79M
The sellers, Rising Realty Partners and Fortress Investment Group recently implemented an extensive $12 million capital renovation at the 222,524-square-foot campus.
LOS ANGELES, CA – The partnership of Rising Realty Partners and Fortress Investment Group have sold the creative office campus, the Park Calabasas, to the subsidiary of China-based, Gemdale Corp., Gemdale USA, for $79 million.
The sale represents Conejo Valley’s largest office trade since 2008.
The 222,524-square-foot, low-rise campus, located at 4500 Park Granada, features outdoor courtyards, new on-site amenities, landscaped gardens and executive parking.
The sellers recently implemented a $12 million extensive capital renovation in effort to elevate the property into a trophy, multi-tenanted, creative office campus.
The office campus is currently 92% leased to six tenants.
The Park Calabasas has been utilized as a single-tenant campus for nearly 20 years. The property was originally developed as Lockheed Martin’s corporate headquarter facility, and later served as Countrywide Financial’s (Bank of America) headquarters.
Newmark Knight Frank arranged the sale on behalf of the sellers and the buyers.
Newmark’s co-head of US capital markets, Kevin Shannon, executive managing director, Ken White, executive managing director, Rob Hannan and senior managing director, Laura Stumm represented the sellers. Newmark’s vice chairman, David Milestone and senior managing director, Brett Green secured the acquisition financing on behalf of the buyer, Gemdale.
“With over 10 years of weighted average remaining lease term, the Park Calabasas is another example of investors flocking to office assets with long term tenants,” says Shannon. “Since the onset of the pandemic, we have seen a notable increase in foreign capital, like Gemdale, along with family office and 1031 exchange capital, buying office assets to fill the void of diminished institutional demand for the asset class.”
“Rising and Fortress thoughtfully executed a stunning renovation to curate a premier tenant experience at the Park Calabasas,” states Stumm. “The resulting long-term tenant commitments are a direct reflection of the quality of this unique creative campus. Post-COVID, the campus’ 20-acre site, abundance of open space and tenant controlled larger blocks offer an ideal environment where social distancing is encouraged.”