The Real Deal Los Angeles

Tiny office building near East Hollywood sells for $3.45M

Unimat bets on emerging market

February 04, 2016 02:35PM

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The building at 137 North Virgil Avenue in Koreatown

The building at 137 North Virgil Avenue in Koreatown

Unimat Real Estate Services shelled out $3.45 million, or roughly $220 a square foot, for a 15,711-square-foot office property on the edge of Koreatown near the border of East Hollywood and Silver Lake.

The privately-run firm led by Oliver Mateen invested right next to the neighborhood recently dubbed Virgil Village.

Built in 1983, the two-story building at 137 North Virgil Avenue was 80 percent occupied at the close of escrow. The selling entity, which is also a tenant at the property, is leasing back its space on the ground floor for an additional 12 months.

John Anthony, Chris Steck, and Chris Giordano of Charles Dunn Company represented the sellers, private local investors.

“Small office buildings that are located near the Downtown and Hollywood markets are becoming increasingly more attractive to users and investors as they offer smaller users a less pricey alternative…and investors have the opportunity to capitalize on a more competitive price per square foot,” Anthony said. “The buyer plans to renovate and reposition the asset in order to add value over the coming months.”

The Mateens plan to continue operating the building as an office property. The office holdings of their Cannon Commercial firm include the Galleria Towers in Dallas, Texas, which they acquired for $300 million in 2008. – Hannah Miet