Landmark Square, one of only three Class A office properties in downtown Long Beach, sold earlier this month for more than $135 million.
Canadian-American real estate company Brookfield Office Properties Inc., with headquarters in both Toronto and New York, sold the 24-story tower at 111 W. Ocean Blvd. to a unit of John Hancock Life Insurance Co. of New York.
Built in 1990, the building was 89 percent occupied at the time of sale, with major tenants including Wells Fargo Bank and Occidental Petroleum Corp.
Ray Rothfelder, Western U.S. managing director for John Hancock real estate, said the company hopes to attract more creative and technology tenants who might otherwise settle in other parts of west Los Angeles County. The building has ample parking and is close to restaurants, retail and the Metro Blue Line.
“I think it’ll be a positive long-term hold for us,” he said.
Brookfield, in a joint venture with New York investment banking firm Blackstone Group, first took ownership of the property in 2006 when it purchased a 48-building portfolio of office properties from San Francisco investment company Swig Co. for $7.2 billion.
Brookfield did not respond to requests for comment, but according to CoStar Group Inc., the company sold Landmark Square as part of a plan to redistribute some of its assets. Brookfield owns at least 10 office and retail properties in the county, including the recently renovated retail complex Fig at 7th in downtown Los Angeles.
The sale of the 460,000-square-foot building, at about $294 a square foot, closed Aug. 12 after 64 days on the market.
Adam Edwards, K.C. Scheipe, Kelsey Stuart, Stephen Somer, Jay Borzi and David Benson of Eastdil Secured LLC represented Brookfield.
Iraqi Interest
Hancock Park, home to many consular offices, has added one more international presence to its ranks.
The Consulate General of Iraq purchased a three-story Class B office building at 4500 Wilshire Blvd. for $9.3 million in an off-market deal. The 13,500-square-foot office was fully occupied at the time of sale, including by the seller, film development company Helios Productions. The cash transaction closed in July, and the Iraqi Consulate will move in to occupy the entire building in January.
The consulate, which currently leases space at 350 S. Figueroa St. in downtown Los Angeles, serves the Western United States, Hawaii and Alaska.
James Song, a Realtor at Coldwell Banker Residential in Hancock Park who represented both parties in the deal, said the Iraqi Consulate was attracted to the building because of its proximity to other consulate properties, but also because the office’s moderate size was a good fit.
“I think they liked that it had three levels and the fact that there was ample space for all the people they’d have using the building,” he said. “Plus, the building was in great condition.”
The property was constructed in 1987 and has large outdoor patios on each level.
The price tag – about $685 a square foot – is high compared with other Class B office offerings in the area, but Song said both parties were pleased.
“Generally speaking, it’s a seller’s advantage when someone solicits something that’s not on the market, but I think both sides were happy,” he said.
June Lee of Coldwell Banker was also involved in the deal.
Business Park Buyer
Cerritos Corporate Center, a 23-acre industrial business park with seven freestanding buildings, snagged a buyer earlier this month after three months on the market.
New York’s Angelo Gordon & Co., in partnership with Crowsnest Properties in Los Angeles, purchased the property at 13810-950 Cerritos Corporate Drive from La Mirada’s Abbey Co. for $42.4 million, including the assumption of an existing $25 million loan. Abbey bought the property in 2009 for $31 million from TIAA-Cref, a New York financial services organization serving workers in the academic, research, medical and cultural fields.
The 460,000-square-foot business park, 500 feet off the 5 freeway, was 98 percent occupied at the time of the sale.
Kevin Shannon, managing director at CBRE Group Inc. in El Segundo and one of several brokers representing the seller, said the buyer could benefit from a rise in leasing activity and rental rates at business parks in recent months.
“This property offers tremendous upside with low existing rents compared to prior peaks and the ability to sell off buildings individually once the existing loan matures,” he said in a statement.
Other brokers from CBRE representing the seller included Darla Longo, Barbara Emmons, Scott Schumacher, Rick McGeagh and John Biven.
Staff reporter Bethany Firnhaber can be reached at [email protected] or (323) 549-5225, ext. 235.
