Los Angeles – June 6, 2016 – CBRE Group, Inc. announced the close of the sale of an office building in the heart of Santa Monica, California, by a joint venture between Buchanan Street Partners and Davenport Partners for an undisclosed amount.
The three-story, 44,504 square-foot property located at 2601 Ocean Park Boulevard is 88% percent leased to multiple tenants. The property, which was built in 1980, is within walking distance of numerous restaurants and shops along Ocean Park Boulevard and across the street from the 1 million square-foot Santa Monica Business Park.
The Ocean Park submarket is home to some of the Westside’s largest media and technology companies including Activision, Pandora and Amobee. The lack of supply and increasing tenant demand in Santa Monica and the Westside has put significant upward pressure on rents, in particular the Ocean Park submarket, which has seen rental rates increase more than 60 percent in the last four years, according to CBRE data.
“This building generated strong interest from investors who saw it as a great creative office repositioning opportunity,” said Michael Longo at CBRE, which represented the seller. “It sits in the middle of LA’s Silicon Beach area, one of the region’s most coveted and one of the most supply-constrained submarkets in the country.”
Los Angeles had approximately $4.5 billion in venture capital transactions in 2015, and the majority of these start-ups are based in Santa Monica and Venice, according to Longo.
“2601 Ocean Park is home to Retention Science, one of the area’s fastest growing start-ups and is well suited to continue as a tech-focused incubator with its large interior courtyard, great walkable amenities and above-standard parking,” said Longo.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
About Davenport Partners
Davenport Partners, a commercial real estate investment and management company headquartered in Newport Beach, CA, operates properties throughout Southern California as well as other select West Coast markets, including Hawaii. The Company primarily focuses on multi-tenant office, flex and industrial properties and, in some cases, associated retail uses.
About Buchanan Street Partners
Buchanan Street Partners is a real estate investment management firm based in Newport Beach, California that invests debt and equity capital on behalf of institutional and private investors. Since its inception, Buchanan Street has invested and structured approximately $17 billion of capital in a broad range of equity and debt real estate investments throughout the United States. A highly skilled team has invested through multiple real estate cycles enabling them to identify opportunities and maximize value while prioritizing principal preservation. For more information: www.buchananstreet.com.
