Los Angeles Office Complex Trades for $62M

Majestic Asset Management sold a two-building property in Van Nuys, Calif., to Pacific Reach Properties. At the time of sale, the asset was 99 percent leased.

Second Building of Sherman Plaza in Van Nuys, Calif.
Second Building of Sherman Plaza in Van Nuys, Calif.

Pacific Reach Properties purchased Sherman Plaza, a two-building, 270,000-square-foot office complex in Los Angeles. Majestic Asset Management sold the four- and five-story properties for $62 million. This marks the buyer’s first U.S. office deal.

High occupancy

Located at 15350 and 15400 Sherman Way, the asset sits half a mile from the San Diego Freeway. Sherman Plaza offers easy access to public transportation, dining and shopping options, including Costa Grande, Kyushu Ramen and Jon’s Marketplace. The asset was 99 percent leased at the time of sale. Tenants include Virginia College, ExamWorks and International Studies Abroad.

Kevin Shannon, Ken White, Rob Hannan and Brad Burton of Newmark Knight Frank represented the seller in the transaction.

“Sherman Plaza is one of only three institutional-quality projects in Van Nuys, which is a lower-cost alternative for tenants as compared to the adjacent submarkets of Sherman Oaks and Encino,” Shannon, NKF’s Capital Markets West Coast president, said in a prepared statement. Earlier this month, he was also involved in the sale of Monarch Industrial, a 277,000-square-foot warehouse facility in Garden Grove, Calif.

According to Yardi Matrix data, Majestic Asset Management acquired Sherman Plaza in 2011 from Embarcadero Capital Partners for $45 million.

Image courtesy of Yardi Matrix