Despite an overall decline in commercial office sales, Elat Properties has made a significant investment in the Los Angeles market by acquiring 801 South Grand, a 215,097 square foot office tower, from CIM for approximately $46 million, or about $214 per square foot, according to an announcement from Newmark.
Newmark Co-Head, U.S. Capital Markets Kevin Shannon, Executive Managing Directors Ken White and Rob Hannan, Senior Managing Directors Laura Stumm and Michael Moll, and Associate Director Alex Beaton represented the seller in the transaction.
“These transactions clearly demonstrate the tremendous basis advantage available for contrarian investors, which will allow them to be extremely competitive to attract new tenants,” said Shannon.
801 South Grand maintains close proximity to the 110 Freeway and the 7th Street Metro station. The building is located in South Park, which has access to top amenities such as Whole Foods Market, L.A. Live, Crypto.com Arena, and numerous retailers and restaurants. The area is also experiencing strong residential growth, with more than 28,000 residential units in the pipeline.
According to Newmark’s 4Q22 Capital Markets report, sales across various property sectors have declined; however, Los Angeles still stands as the second leading market for office investment sales, with only Manhattan, New York, surpassing it. The report highlights that hospitality was the only sector that increased quarter-over-quarter, while there were small seasonal increases in deal closings during December 2022, except for multifamily.
Newmark Group Inc. is a world leader in commercial real estate, providing services tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. The company has nearly 6,700 professionals operating from approximately 180 offices worldwide and generated revenues of approximately $2.7 billion for the year ending December 31, 2022. To learn more, visit nmrk.com or follow @newmark.
