StarPoint sells Santa Monica dirt for $65M

The less than acre-wide parcel is in prime Downtown Santa Monica

Mar.March 07, 2019 02:30 PM
StarPoint CEO Paul Daneshrad and 1733 Ocean Avenue

StarPoint Properties has sold the ground underneath an office building on Santa Monica’s Ocean Avenue.

The $65 million sale was for the dirt at 1733 Ocean Avenue, where Terra Capital leases the land and owns the 100,000-square-foot office building on the property. The buyer of the land is an institutional private equity group, but Beverly Hills-based StarPoint would not identify the party.

The property is 0.79 acres, or around 34,200 square feet. The Los Angeles Business Journal first reported the sale.

StarPoint, led by Paul Daneshrad, owns multifamily, retail and office properties on the West Coast. Last year, the firm bought a 100,000-square-foot office building in Beverly Hills for $200 million.

Commercial space in Santa Monica commands higher rents than any other Los Angeles submarket, driven by the city’s strong tech sector. Major tech companies including Facebook and Google have offices there.

Average rent in the city is $63.18 per square foot as of the fourth quarter 2018, according to Savills Studley. The average of Westside markets together is $56.07 per square foot.

Ocean Avenue is one of Santa Monica’s busiest streets. Frank Gehry is designing a new project there. The StarPoint property is located a few blocks from the Santa Monica Pier and the Metro’s Downtown Santa Monica Station, which the Expo Line serves.

Related Articles

From left: Howard Schwimmer and Michael S. Frankel, with 1601 W. Mission Boulevard and 2757 E. Del Amo Boulevard (Credit: Google Maps)

Rexford Industrial adds to LA portfolio with $100M in acquisitions

Andrew McDonald and At Mateo in the Arts District

Cushman’s West Coast chief talks expansion, DTLA market, the death of the starving baby broker & more

3339 Exposition Blvd. and Asher Luzzatto

Luzzatto Co. assembling creative office hub in West Adams

Jason Illoulian and the Cemex plant

Faring makes $30M assemblage play on WeHo/LA border

Adam Shekhter and the 1415 5th Street project

WS Communities boosts affordable housing plans in Santa Monica

From left: Nuveen CEO Vijay Advani, Graymark founder/CEO Brian Hecktman

Graymark, Nuveen pay $97M for El Segundo creative office

La Mirada industrial building

Clarion pays $77M for La Mirada industrial project

510 Park Avenue and CEO of Monster Beverage Rodney Sacks

Monster Beverage affiliate guzzles down industrial project in San Fernando