Metro LA Office Campus Changes Hands for $47M
- Feb 22, 2018
Felton Properties, of Portland, Ore., has purchased The Arbors, a four-building, 275,481-square-foot Class B office campus in Thousand Oaks, Calif., from SteelWave. The $47 million transaction was announced by NKF Capital Markets, which handled the sale for SteelWave, of Foster City, Calif.
The property is 71 percent occupied, primarily by three tenants: Skyworks Solutions (all of Building A; 61,400 square feet), Frontier Communications (all of Building D; 71,400 square feet) and ZS Associates.
The Arbors was built in phases from 1984 to 2007 and is sited on 16.4 acres at 649 Lawrence Drive, 2535-2545 Hillcrest Drive and 2560 Teller Road, adjacent to the 101 freeway in the Conejo Valley submarket.
An approximately $7 million renovation program executed by SteelWave last year included upgraded lobbies, corridors and other common areas, in addition to an amenity area with a bocce ball court, fire pit, seating areas and a built-in BBQ.
SteelWave had purchased the campus from Principal Financial Group in a 2014 portfolio sale valued at $38.2 million. Principal Financial had received title in 2012 via a deed-in-lieu from the then owner, Sares-Regis group, according to information supplied to Commercial Property Executive by Yardi Matrix.
NKF Capital Markets Co-Head of U.S. Capital Markets Kevin Shannon, Senior Managing Director Rob Hannan, Managing Directors Laura Stumm and Michael Moll, and Executive Managing Director Ken White represented the seller. Felton Properties was self-represented. NKF Capital Markets also arranged for the financing.
“With the renovation work done, the buyer now has a turn-key asset and huge opportunity to add value through lease-up of the remaining space,” Shannon said in a prepared statement.
A quiet, stable submarket
At year-end, the Thousand Oaks office market had an overall vacancy (including sublease space) of 14.6 percent, which was very typical for Ventura County as a whole, according to a fourth-quarter report from Daum Commercial Real Estate Services.
No new office space was delivered in 2017, and only 43,100 square feet is now under way, against a county-wide inventory of 20.5 million square feet (2.2 million in Thousand Oaks), again per Daum Commercial.
Image courtesy of Yardi Matrix