Vornado is shopping its last LA property for $150M

REIT seeking $617 psf for Class A office property

New York /
Oct.October 04, 2016 08:00 AM

From the Los Angeles website: Looks like Vornado Realty Trust is finally done with La La Land.

The real estate investment trust is seeking a buyer for its last L.A. property, a 243,000-square-foot Class A office property at 800 Corporate Pointe in Culver City. The asking price is roughly $150 million, sources told The Real Deal.

Kevin Shannon and his team at Newmark Grubb Knight Frank are marketing the property, which is 98 percent leased by tenants including Ares Management and Thomson Reuters.

If Vornado gets its asking price, the deal would pencil out to about $617 a square foot, far exceeding the $317 a square foot Olive Hill Group paid in May when it acquired 200-300 Corporate Pointe for $65.5 million.

Culver City, however, is a lot cheaper than its Westside counterparts. Sources told TRD the offering for 800 Corporate Pointe compares the relative basis in the area to Playa Vista, which has seen trades for higher than $700 a square foot. Last year, Vornado sold another of its Westside buildings, at 520 Broadway in comparably pricey Santa Monica, to Tishman Speyer for $805 a square foot.

The 800 Corporate offering touts the fact that 22 percent of the property is occupied by tenants with leases expiring in 2018, giving the buyer the opportunity to raise rents that are 18 percent below market rate, sources said.

The property is the last man standing in Vornado’s L.A. portfolio, which the REIT has been downsizing over the past four years. In addition to the Santa Monica deal, it sold the Beverly Connection shopping center to Ashkenazy Acquisition Corp. for $260 million, or $744 a square foot, in 2014. It sold L.A. Mart at 1933 South Broadway for $55 million, or $69 a square foot, in 2012. That same year, it sold off the project known as the Reef at 1933 South Broadway for $53 million, or $67 a square foot.


Related Articles

arrow_forward_ios
Vornado's Steve Roth and 220 Central Park South (Credit: Getty Images, iStock)
Free and clear: Vornado pays off debt at 220 CPS
Free and clear: Vornado pays off debt at 220 CPS
Vornado chairman and CEO Steven Roth, and 608 Fifth Avenue (Credit: Getty Images)
“Negative surprises”: Vornado execs talk retail struggles on Q2 earnings call
“Negative surprises”: Vornado execs talk retail struggles on Q2 earnings call
Steven Roth, CEO of Vornado and 640 Fifth Avenue (Credit: Getty Images and Vornado Realty Trust)
Bank of China issues $500M to Vornado in refi of 640 Fifth Avenue
Bank of China issues $500M to Vornado in refi of 640 Fifth Avenue
Unit 55B of Central Park South and Steve Roth of Vornado Realty Trust. (Compass, Vornado, Getty)
220 Central Park South’s first resale in the works
220 Central Park South’s first resale in the works
(iStock)
These were Manhattan’s best office submarkets in Q4
These were Manhattan’s best office submarkets in Q4
Equitable CEO Mark Pearson and Fisher Brothers’ CEO Ken Fisher with 1345 Avenue of the Americas (Google Maps)
Equitable Life Insurance inks 130K sf lease for new office
Equitable Life Insurance inks 130K sf lease for new office
Newmark CEO Barry M Gosin (Newmark, Getty)
Newmark earnings fell 37% in 2020
Newmark earnings fell 37% in 2020
Vornado's Steve Roth, 555 California Street in San Francisco and Donald Trump (Getty, Wikipedia Commons)
Vornado, Trump Org lock in big renewals at SF office tower
Vornado, Trump Org lock in big renewals at SF office tower
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...