San Fernando Valley office building was near full occupancy at time of sale
SHERMAN OAKS, CA – Dec. 28, 2017 – As a flurry of IRS-sanctioned 1031 Exchange transactions continued to close in the final weeks of 2017, a brokerage team from Colliers International has negotiated the sale of a five-story office building in Sherman Oaks, Calif. in a transaction valued at $16.7 million.
Located at 5900 N. Sepulveda Blvd. on 1.24 acres near the heavily-trafficked intersection of Burbank and Sepulveda boulevards, the building, originally constructed in 1981, was sold to Grand Pacific 7-28 LLC, a development and investment entity with real estate holdings throughout the San Fernando Valley. The seller was an unidentified private investor. Colliers represented both parties to the transaction.
“It was both strategic and wise of the owner to invest more than $2 million in capital improvements to the interior and exterior of this nearly fully occupied building, which improved the overall image of the updated structure as an investment vehicle,” said Colliers Vice President Patrick Barnes, who led negotiations. “In order to make money in real estate, you often have to spend money on improvements to structures like this, one of the most successful office buildings in what is essentially the financial district of the valley.”
With an occupancy level of 86 perecent at the time of the sale, the buyer assumed the in-place loan on the building because refinancing was not feasible when the transaction was closing, according to Barnes. He noted that turnover among the 33 tenants currently in the building is expected to be minimal over the next five years since most have long-term leases in place.
In addition to Barnes, the Colliers’ brokerage team also included Executive Vice Presidents David Maling and Chris Maling, all three of whom are based in the firm’s downtown Los Angeles office, and Executive Vice President Kevin Fenenbock and Associate Vice President Jacob Mumper, who are located in the company’s Los Angeles North office in Encino.
About Colliers International Group
Colliers International Group Inc. (NASDAQ and TSX: CIGI) is an industry-leading global real estate services company with 15,000 skilled professionals operating in 68 countries. With an enterprising culture and significant employee ownership, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting.
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