StarPoint Acquires Beverly Hills Office Building for $193M
- Sep 06, 2018
StarPoint Properties CEO Paul Daneshrad has had his eye on 433 N. Camden Drive, the second-tallest building in Beverly Hills, Calif., for a long time. Now the 12-story tower known to most as the Wells Fargo Building is owned by StarPoint, which acquired the 207,432-square-foot property for $193 million.
Bob Safai of Madison Partners handled the sale as the listing broker. Madison Partners is also the leasing broker and manager, according to Yardi Matrix.
The 46-year-old building at 433 N. Camden Drive in the region’s “Golden Triangle” was owned by Ralph Shapiro since December 1992, when it was acquired for $19.8 million from Beverly Hills Bancorp, according to Yardi Matrix data. It was visible from StarPoint’s nearby headquarters.
“To say I’ve had my eye on this property is more than a figure of speech,” Daneshrad said in a prepared statement. “For years I’ve had a visual reminder of the enormous potential value of the building’s size and high-demand luxury location. I’ve also understood the long-term investment needed to reach that potential. Our plans will truly transform the property and create a fresh experience for both tenants and the public.”
Still it was StarPoint’s evaluation of the asset using its proprietary vetting process to determine if it met key property and economic indicators that drove StarPoint to purchase and reposition the high-rise. The building hadn’t been renovated in 15 years and falls 25 percent below the market’s average rent of $48.24 per square foot, according to StarPoint.
Renovation, repositioning planned
StarPoint, a commercial real estate investment and operating firm, plans to modernize indoor and outdoor spaces, update existing office spaces and provide amenities that match its premiere location at the western edge of Rodeo Drive.
“The property will become a profit engine that helps StarPoint and our tenants achieve a bottom line that is commensurate with the world-class location,” Daneshrad said.
StarPoint’s initial plans include transforming a 6,500-square-foot deck on the fourth floor to an open-air lobby that emphasizes natural light and features sculpture gardens and an improved façade. The building, which has nearly 500 parking spaces on the third floor and three underground levels, is expected to be repositioned as a full-service retail and office destination.
The building has 15,000 square feet of retail, including a Wells Fargo bank branch, on the ground floor. Current office tenants include numerous medical, dental, law and financial services firms. There is approximately 12,525 square feet of space available for leasing, according to Yardi Matrix data.
StarPoint, founded in 1995, has an $800 million portfolio consisting of properties that were acquired and repositioned to produce an average annualized return of about 39 percent, according to the firm. Since its inception, it has acquired more than 10 million square feet of commercial and residential properties. In February, real estate veteran Lonnie Vidaurri joined StarPoint as head of investments and capital markets. With almost 20 years of senior-level experience in the real estate capital markets, Vidaurri will direct and execute StarPoint’s investment strategy.
Images courtesy of StarPoint Properties