LA-Area Offices Sell for $17 Million
July 31, 2001
Southwest Value Partners has sold another of its revitalized office properties in Torrance, Calif., within the Los Angeles Basin’s South Bay marketplace.
A West Los Angeles investment group operating as Torrance Center North LLC purchased the 142,000-square-foot office complex now known as Torrance Center North for just under $17 million, or around $120/sf.
The three-building, three-story complex at 21041-21081 Western Ave. was completed in the mid-1980s and is 93 percent leased. The Los Angeles Metro District office of Waste Management is a primary tenant.
Kevin Shannon of Grubb & Ellis and Philip Mattice and Steve Cramer of Colliers Seeley brokered the deal.
Southwest Value has been opportunistically selling area properties that it had acquired a couple of years earlier and improved. The sales have largely been handled by Colliers Seeley and Grubb & Ellis. Late last year, the San Diego-based firm sold a nearby 152,000-sf property to an affiliate of The Muller Co. for about $120/sf.
Also in Torrance, a group called Hermosa Center LLC recently purchased the Harbor Business Center at 19700-750 Vermont Ave. from Pacifica Capital Group for $11.8 million, or just under $100/sf. That two-building, 118,862-sf complex was more than 80 percent occupied.
But at least one other would-be seller recently pulled a well-leased, high-end Torrance office property off the sales block as market uncertainty has grown in recent months.
Cushman & Wakefield reports that the 29 million-sf South Bay office market had a tough second quarter as the amount of leased space shrank by more than 550,000 sf. That leaves an overall vacancy rate, including sublease space, of 14.4 percent. Asking rents average around $1.85 monthly, or $22.2/sf annually.