CBRE Global Investors Takes 2 Office Towers in LA Region
- Feb 01, 2018
Los Angeles-based CBRE Global Investors has made a big office building purchase right in its own back yard, picking up two Glendale, Calif., towers totaling nearly 427,000 square feet. The company paid $122 million to acquire the properties for one of its funds.
The CBRE Strategic Partners U.S. Value 8 Fund acquired 801 North Brand Blvd., a 13-story building with 290,847 square feet, and 700 North Central Ave., an eight-story building with 136,016 square feet. The office buildings are well located, with convenient access to major freeways and close to retail amenities, including The Americana at Brand. The site is also close to the Metrolink stop at Glendale, which connects the city with all six Southern California counties. CBRE Global Investors cited the recent addition of more than 3,500 multifamily units to the submarket as another reason why it was attracted to the properties.
“The Glendale submarket has rapidly transformed with the development of retail amenities and multifamily communities that are helping drive office demand among tenants who want to be near both to attract employees. The submarket has experienced significant positive net absorption since 2010, and vacancy is projected to remain low over the next five years. These factors, coupled with the convenient freeway access of these buildings, make this acquisition a good fit with our fund’s transit-connected edge city strategy,” Robert Perry, portfolio manager for the CBRE Strategic Partners U.S. Value 8 fund, said in a prepared statement.
Top office tenants
The properties are currently 89.9 percent occupied by a stable base of institutional-quality tenants, including New York Life Insurance, Service Titan, Fuse, Gamblit Gaming, Intercare Holdings and The Search Agency.
The deal also included 50 percent ownership interest in the adjacent parking garage at 127 Burchett St., which brings total parking at the properties to 1,113 stalls, according to HFF, which marketed the properties on behalf of the seller and procured the buyer.
Neither HFF nor CBRE Global Investors would confirm the seller, but numerous media reports indicate it was Blackstone Group, which had owned the properties as part of the Equity Office portfolio it acquired in 2007.
The HFF investment advisory team representing the seller included Senior Managing Director Ryan Gallagher and Managing Director Andrew Harper.
Image courtesy of HFF