February 11, 2016 – CBRE Group Inc. announced the sale of the Citibank building in Santa Monica to an affiliate of KLM Equities, Inc., a private real estate investor out of New York, for $6.25 million after drawing almost a dozen all-cash offers for the property. The acquisition is one of several recent transactions for the buyer in Southern California, according to Zach Kleinhandler, one of the buyer representatives.
The 2,200 square foot building, on 2301 Wilshire Blvd., sits on approximately 4,400 square feet of land. The transaction closed shortly after the branch opened for business. At more than $2,800 a square foot, this was one of the highest price-per -foot sales for a single-tenant bank branch ever recorded in L.A. County, according to the brokers.
CBRE’S Alex Kozakov and Patrick Wade represented the seller, an undisclosed private developer based in West Los Angeles, and the buyer in the transaction. This is the second bank transaction sold by the team in West LA County this month.
“This sale is symbolic of the high demand for quality retail space and credit tenancy in West Los Angeles,” said Kozakov. “This building sits in one of the hottest neighborhoods in the county that has been seeing tremendous rent growth and appreciation in property prices.”
Fourth-quarter asking lease rates in West Los Angeles jumped 6.9 percent to $7.16 a square foot from $6.70 in the prior quarter, according to CBRE data.
“This investment offers a long-term lease with a credit tenant with annual rental increases, providing a strong inflation hedge,” said Wade. “The barriers to entry on new construction in Santa Monica are so high; there is a value premium for completed retail projects with new leases”.
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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.
