(EDITOR’S NOTE: According to sources with knowledge of the transaction, the property sold for around $35 million, or about $135 per square foot.)
Los Angeles, CA — Newmark 1 announces it has arranged the sale of 9911 West Pico Boulevard, a vacant 15-story office building located in Century City, California. Also known as “beverlywest,” the building totals approximately 258,544 square feet. The asset sold for an undisclosed amount.
Newmark Co-Head of Capital Markets Kevin Shannon, Executive Managing Directors Ken White and Rob Hannan, Senior Managing Director Laura Stumm and Associate Director Alex Beaton represented the undisclosed seller. The buyer was Alon Abady of Green 26, LLC.
“Adaptive reuse is a much more common theme for older office buildings these days,” commented Shannon. “9911 Pico provides a perfect example of optionality with residential, creative office and medical office conversion as future possibilities.”
“This is really a development deal,” added Hannan. “It is difficult to come by development opportunities of this scale on the Westside that offer an existing 15-story building with unobstructed views, strategically situated between Century City and Culver City, arguably L.A.’s two hottest submarkets.”
The property has the potential to accommodate a variety of potential uses. Prior to any leasing activity, the property will undergo extensive repositioning. “We will evaluate all possible scenarios for the highest and best use of the asset,” commented Abady. “As of now, we have no definitive plans for the property.”
Located just one block south of the heart of Century City, the property benefits from the tremendous momentum Century City is experiencing.
Shannon added, “With a direct vacancy rate of only 10.7%, the submarket has clearly emerged not only as one of the county’s best performing office markets but one of the strongest in the entire U.S.”
Though down from pre-pandemic levels, Los Angeles was the second leading market for volume of office investment sales, trailing only Manhattan, New York. According to Newmark’s 4Q22 Capital Markets report, sales declined overall year-over-year across property sectors. There were small seasonal increases in December 2022 deal closings, except for multifamily.
About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle.
Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues of approximately $2.7 billion for the year ending December 31, 2022. Newmark’s company-owned offices, together with its business partners, operate from approximately 180 offices with nearly 6,700 professionals around the world.
