January 20, 2016 – CBRE Group Inc. announced the sale of the Bank of America building in West Los Angeles at an undisclosed amount to a private real estate investor after drawing more than 16 all-cash offers for the property.
The 13,296 square foot building, on 11501 Santa Monica Blvd., sits on nearly one acre of land. The transaction closed in less than 30 days at a capitalization rate of below 2 percent. According to the brokers, this was the lowest cap rate ever recorded for a long-term single-tenant lease in L.A. County.
CBRE’S Alex Kozakov, Patrick Wade, and Fred Aframian represented the seller, Gramercy Property Trust, and the buyer in the transaction.
“This sale is symbolic of the high demand for quality retail space in West Los Angeles,” said Patrick Wade. “This building sits in one of the hottest neighborhoods in the city that has been seeing tremendous rent growth and appreciation in property prices.”
Fourth-quarter asking lease rates in West L.A. jumped 6.9 percent to $7.16 a square foot from $6.70 in the prior quarter, according to CBRE data.
“This investment offers amazing intrinsic value and built-in future growth to the buyer,” said Wade.
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 2014 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.
