Clarion Grabs 120 KSF Beverly Hills Office Building for $80M
- Oct 09, 2012
Clarion Partners has been on a bit of an office shopping spree this year and its latest acquisition is a premier asset with a full tenant roster in Beverly Hills, Calif. In a transaction valued at $80 million, the real estate investment manager purchased the 120,000-square-foot office building at 100 N. Crescent Drive.
Once popularly known as the Clarity Building, 100 N. Crescent first opened its doors in the city’s coveted Golden Triangle enclave in 1989. The four-story structure features a three-level parking facility and a unique amenity that is indicative of its target market: a 100-seat screening room with a separate entrance to accommodate media and entertainment events.
A property like 100 N. Crescent does not hit the market very often, as evidenced by its $666 per square-foot price tag. While there are no guarantees in real estate, the building’s location offers the closest thing to a promise of long-term stability.
As Dean Rostovsky, director with Clarion, noted in a prepared statement, “The Golden Triangle office market is supply constrained as a result of small land parcels, a code restriction on building height, and very high existing property values.”
And the numbers add to the story. At $3.70 per square-foot, Beverly Hills has one of the highest rental rates in the West Los Angeles submarket, according to a second quarter report by commercial real estate services firm Colliers International.
In Beverly Hills in general, owners do not appear overly eager to let go of their assets. But when properties do trade hands, they trade at a premium. Within the last several months, Spear Street capital acquired the building at 331 N. Maple Dr. for $43 million, or $521 per square-foot; and The Gores Group shelled out $24.2 million for 9800 Wilshire Blvd., which came at a cost of $577 per square-foot.
Lenders are keen on Beverly Hills, too. In July, commercial real estate advisory firm Lucent Capital, acting on behalf of an unidentified borrower, was able to arrange a $10 million senior bridge loan for the repositioning of the 45,000-square-foot office property at 400 S. Beverly Dr., a Class B building with an occupancy level of just 34 percent.