UPDATED, January 27, 2016, 11:10 a.m.: Sell much? Philip Orosco is on a spree, cashing out of four Westside properties totaling roughly $222 million, The Real Deal has learned.
Orosco’s investment firm Pacshore Partners is in advanced talks to sell the Telephone Building at 1314 Seventh Street in Santa Monica for roughly $52 million, or $867 a square foot, to San Francisco-based DivcoWest Real Estate Investments in a deal expected to close next week, sources said.
In a separate deal that closed Tuesday, Pacshore, in partnership with Canyon Catalyst Fund, sold three creative office buildings totaling roughly 205,000 square feet to LaSalle Investment Management, according to a release from CBRE. The portfolio price was in the ballpark of $170 million, or $829 a square foot, sources said.
The Telephone Building sale
Pacshore acquired the historic Telephone Building for $19.5 million in 2012, in partnership with Boston-based Alcion Ventures, CoStar shows. It spent three years restoring, updating and seismically retrofitting the 60,000-square-foot property.
The $867 per square foot price Divco paid was high, even for booming Santa Monica, sources said — considering Verizon maintained a condominium stake when it sold the building to Pacshore. The rest of the building is fully leased, and rents for around $5.50 a square foot, sources said.
HFF began marketing the property in the summer of 2016, seeking bids around $60 million.
The three-building portfolio
The partnership between Pacshore and Canyon — the CalPERS fund managed by Canyon Partners Real Estate — smiled all the way to the bank Tuesday when they handed off a portfolio of properties to LaSalle for more than twice what it paid.
The partners paid $72 million for the properties, which they acquired between 2013 and 2015. Two of them are in Playa Vista, at 5340 Alla Road and 12901 Jefferson Boulevard. The third, known as the Enclave, is in Malibu at 22619 Pacific Coast Highway.
Sean Sullivan, Todd Tydlaska, and Michael Longo of CBRE brokered its sale to LaSalle. Brad Zampa procured the financing for the buyer, which purchased the properties on behalf of a pension fund client.
LaSalle plans to hold onto the portfolio for the long term, Sullivan said.
Correction: A previous version of this story said the three creative office properties were purchased in 2015. The were purchased between 2013 and 2015 for $72 million.