Three office buildings sold this month in Playa Vista and Malibu and the sellers made a significant profit. The sellers were Canyon Catalyst Fund in Century City and Pacshore Partners in West L.A. and the property was bought by LaSalle Investment Management for$168 million. The properties combined add up to 212,000 square feet.
The 118,330-square-foot property at 5340 Alla Rd. in Playa Vista was purchased by LaSalle for $95 million which is a big difference than its $36.2 price in 2013. The other Playa Vista property, a 39,600-square-foot building at 12901 W. Jefferson Blvd., was bought for $45 million. This is a big jump from its $15.9 price tag from 2015.
According to LA Business Journal, “The price hike of the Malibu property was also notable, although not as drastic. The 36,500-square-foot complex at 22619 Pacific Coast Highway with patios and ocean views fetched $28 million in the sale to LaSalle. It last sold for $20 million in 2015, just as its sole occupant, Jakks Pacific Inc., announced plans to relocate to Santa Monica. The toy-maker had been a tenant since its founding in 1995.”
In a statement made this week, portfolio manager at LaSalle, Steve Inglis stated, “With its strong fundamentals and demographic profile, West L.A. continues to be a target market where LaSalle believes great value can be achieved for our investment clients on both a short- and long-term basis.”
LaSalle noted the market’s growth in a recent press release, “Playa Vista is one of the strongest submarkets in West L.A. with nearly one million square feet of positive net absorption since 2014. Much of the submarket’s growth has been driven by relocations of companies seeking flexible, efficient office space in an infill, coastal location. Additionally, Playa Vista has become a critical residential and employment base within L.A., given the region’s ability to accommodate significant development. Much of the development in the market has been lower density, campus style office buildings, which differentiates Playa Vista from most of the other infill West L.A. submarkets.”
The LA Business Journal reports that the sales of these properties are “proof of ongoing demand for renovated office space in L.A.’s seaside submarkets.”