Value-Add Los Angeles County Office Building Sells For $30.5M
Cerritos , Calif. (September 16, 2015) – CBRE announced today the sale of Cerritos Tower located at 18000 Studebaker Road in Cerritos, California. Developed in 1986 and recently renovated, the nine-story, elevator served multi-tenant office building totals ±184,179 rentable square feet. CBRE Vice Chairman Kevin Shannon, along with Paul Jones, Ken White and Blake Bokosky, represented the Seller, Boston, Massachusetts based Winthrop Realty Trust. The Koll Company partnered with Rialto Capital Management in purchasing the Property.
Cerritos Tower combines architecturally distinctive design with exceptional functionality. Included in the sale was a dedicated parking structure providing the Property with an ample parking ratio of approximately 4.13 stalls per 1,000 rentable square feet. The Tower is ideally situated in the Mid-Counties submarket and offers high visibility and prestige form a prominent tenant base, as well as easy access to and from the adjacent San Gabriel River (I-605) Freeway and the Riverside (SR-91) Freeway. Numerous amenities are within walking distance including the Best Plaza Shopping Center and Los Cerritos Center shopping mall, both of which are currently undergoing multi-million dollar renovations and re-tenanting projects.
Currently leased at ±74%, Cerritos Tower provides the new investor the unique opportunity to acquire a Class A, institutional quality high-rise and enhance cash flow through continued improvement of the real estate and lease up of remaining vacancy.
“Over the past eighteen months Winthrop had put over one-million dollars in capital improvements into the Property which created a turnaround with the leasing activity,” said Mr. Jones adding; “Kolll and Rialto are planning to spend even more money on renovating the building to make it one of the premier office towers in the immediate area.”
According to Scott Meserve, Executive Vice President at The Koll Company, Koll and Rialto Capital were attracted to the property due to its prominent history in the market, the surrounding retail amenities, and its costs basis well below peak pricing and replacement cost.
CBRE Debt & Structured Finance experts Val Achtemeier and Brett Green secured the debt for the Buyer. This sale is the second transaction this CBRE team has closed in the city of Cerritos within the past two weeks – they also completed the sale of Carmenita Corporate Plaza, a single tenant office building located less than four miles away.
About CBRE Group, Inc.
CBRE Group, Inc (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 52,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 370 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
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