The 10 Most Expensive Commercial Real Estate Transactions in LA County – First Quarter 2014
FOURTH RICHEST MAN BUYS GUCCI BUILDING ON RODEO DRIVE FOR $8000 PER SQ FT
The following is a list of the ten most expensive commercial real estate purchases in LA County. The list was compiled from information provided by CoStar, and includes buildings in retail, office and multifamily categories. Transactions include property sold only between January 1, 2014 and March 31, 2014.
1. DOWNTOWN: Two California Plaza,
350 S. Grand Ave, Los Angeles, CA 90071
$297.7 million
Image © Ryan Quick, Creative Commons License.
Buyer: CIM Group, LP
Total space: 1,415,445 sq. ft.
Price per square foot: $210.32
Year completed: 1992
Date sold: 02/12/14
Category: Office, Class A
The CIM Group acquired Two California Plaza in February for almost $300 million. Standing at 750 feet, it is the third tallest building in Los Angeles. This skyscraper is located in Bunker Hill, which is home to points of interest such as the Walt Disney Concert Hall and the U.S. Bank Tower -- the tallest building west of the Mississippi River. The tower is considered one of LA’s premier office buildings, and is part of California Plaza, which connects to the Museum of Contemporary Art and an apartment building.
2. WESTCHESTER: Pacific Place Apartments,
5211 Pacific Concourse Dr., Los Angeles, CA 90045
$143 million
Google Maps
Buyer: Equity Residential
Total space: 406,104 sq. ft.
Price per square foot: $352.13
Year completed: 2008
Date sold: 01/09/14
Category: Multifamily
The purchase of the Pacific Place Apartments by Equity Residential is the second most expensive commercial real estate transaction in the first quarter of 2014. The large apartment complex is located near LAX, on the southwest corner where the 105 and 405 freeways cross each other. The complex’s website touts that prospective renters can “enjoy urban luxury living with a relaxed coastal vibe.”
3. WESTCHESTER: Howard Hughes Center,
6701 Center Dr. W., Los Angeles, CA 90045
$126.9 million
Google StreetView
Buyer: Hines Global REIT, Inc.
Total space: 336,031 sq. ft.
Price per square foot: $377.67
Year completed: 1987, renovated in 2001
Date sold: 01/16/14
Category: Office, Class A
In January, Hines REIT agreed to purchase the Howard Hughes Center, a five building complex for $506 million. The total cost includes buildings located at 6060, 6080, 6100, 6601 and 6701 Center Drive. Four of the five buildings make up the list of the ten most expensive commercial real estate transactions in 1Q 2014 (6060, 6080, 6100, 6701). 6601 Center Dr. W. was the only building to not make the list, as it sold for $39.7 million.
4. WESTCHESTER: Howard Hughes Center,
6080 Center Dr., Los Angeles, CA 90045
$119.2 million
Google StreetView
Buyer: Hines Global REIT, Inc.
Total space: 315,592 sq. ft.
Price per square foot: $377.67
Year completed: 2001
Date sold: 01/16/14
Category: Office, Class A
6080 Center Drive is part of the half-billion dollar purchase made by Hines REIT. This particular building houses Sony Entertainment Network’s worldwide headquarters, among other tenants. The mid-rise building offers state-of-the-art amenities such as a fitness center and restaurant. The grounds even feature a 1.5 acre park and sand volleyball courts. Not a bad place to call work.
5. WESTCHESTER: Howard Hughes Center,
6100 Center Dr., Los Angeles, CA 90045
$110.9 million
Google StreetView
Buyer: Hines Global REIT, Inc.
Total space: 293,708 sq. ft.
Price per square foot: $377.67
Year completed: 2002
Date sold: 01/16/14
Category: Office, Class A
The building, part of the 70-acre Howard Hughes Center, is home partly to Pepperdine University’s Graduate School of Education and Psychology and the Graziadio School of Business and Management. Other tenants include AFLAC, InMotion Hosting and Tourism Australia. Previously, the building was owned by Brookfield Office Properties, which purchased it for $80 million in 2006.
6. BURBANK: Tower Burbank,
3900 W. Alameda Ave., Burbank, CA 91505
$109 million
Google StreetView
Buyer: Worthe Real Estate Group
Total space: 486,972 sq. ft.
Price per square foot: $223.83
Year completed: 1989
Date sold: 03/18/14
Category: Office, Class A
Burbank’s tallest building was sold to the Worthe Real Estate Group for $109 million in March. This was down from the $167 million price paid by BlackRock Inc. in May 2005.Worthe is currently the largest landlord in Burbank. The skyscraper had been largely occupied by the Walt Disney Company until Spring 2013, when it consolidated its headquarters in other buildings in Glendale and Burbank.
7. BEVERLY HILLS: Gucci Building,
345-347 N. Rodeo Dr., Beverly Hills, CA 90210
$108 million
Google StreetView
Buyer: Ponte Gadea Group
Total space: 13,533 sq. ft.
Price per square foot: $7980
Year completed: 1939
Date sold: 01/08/14
Category: Retail
One of the richest men in the world purchased this Rodeo Drive building. The purchase was fitting for Spanish billionaire Amancio Ortega and his affiliate company, Ponte Gadea Group. Ortega is the man behind the Zara clothing line and its retail stores. Ortega paid more than $100 million to the previous landlord, Festival, who purchased it for $39 million in 2007. With a net worth of $64 billion, the world’s third richest man can certainly afford to be one of Rodeo Drive’s newest store owners.
8. WESTCHESTER: Howard Hughes Center,
6060 Center Dr., Los Angeles,CA 90045
$101.3 million
Google StreetView
Buyer: Hines Global REIT, Inc.
Total space: 268,102 sq. ft.
Price per square foot: $377.67
Year completed: 2000
Date sold: 01/16/14
Category: Office, Class A
The 10-story low-rise building is the fourth most expensive building of the Howard Hughes Center portfolio. Hines REIT purchased the complex from The Blackstone Group, which is the largest private real estate owner in the United States. Companies with headquarters at 6060 Center Drive include Corbis, Keiwit, Cricket Communications, 1-800-DENTIST and USA Today Sports.
9. PASADENA: AT&T Building,
177 E. Colorado Blvd., Pasadena, CA 91105
$81 million
Google StreetView
Buyer: Saunders Property Company
Total space: 291,735 sq. ft.
Price per square foot: $277.65
Year completed: 1970
Date sold: 03/03/14
Category: Office, Class B
In March, the Saunders Property Company purchased the AT&T Building from Pacific Bell Telephone Company. Pacific Bell should ring a ‘bell’ to cell phone users of the 1990s. In 2001, the company was rebranded SBC until 2005, when it became AT&T. The mobile carrier will reportedly lease back its existing space, which accounts for 125,000 or about 43% of the total square footage.
10. BEVERLY HILLS: Wilshire Roxbury Building,
9680-9696 Wilshire Blvd., Beverly Hills, CA 90212
$77 million
Google StreetView
Buyer: Camelback Services Inc.
Total space: 42,115 sq. ft.
Price per square foot: $1828
Year completed: 1981
Date sold: 01/02/14
Category: Office, Class B
Part of Camelback Services Inc. New Year’s resolution must have been to buy the Wilshire Roxbury Building, which was purchased January 2. This edifice, located in Beverly Hills, is located within walking distance to Saks Fifth Avenue, Neiman Marcus and Rodeo Drive shops. It is worthwhile to note the price per square foot. At almost $2000 per square foot, it dwarfs nearly every other building on this list. That is, except for the Gucci building on Rodeo Drive (#7) -- which sold for nearly $8000 per square foot.