Worth Real Estate Group and Invesco Real Estate have closed one of Los Angeles’ priciest office deals of the year with a $153.2 million sale in Beverly Hills.
The partners sold The Post at 325 N. Maple Drive to Irvine-based IRA Capital, according to the Commercial Observer. Worthe and Invesco completed a $44 million office conversion of the former post office in 2019.
Live Nation signed an 11-year lease for 95,000 square feet at The Post early that year, before the conversion work was completed.
The concerts division of the entertainment promoter headquarters is based at the building in the city’s Golden Triangle. The remaining 8,000 square feet or so is leased to the U.S. Postal Service.
The deal for the 102,500-square-foot former post office figures out to about $1494 per square foot. A medical office building in Beverly Hills sold for a similar price per square foot in March. The four-story building has open floor plans, 22-foot-high ceilings, and outdoor patio areas.
Developers continue to build offices but the trading of existing properties has slowed considerably since the pandemic, which forced workers out of buildings and to their home offices.
While tenants leased twice as much square footage in the third quarter of this year as Q3 2020, availability hit a 10-year high of 24.4 percent.
Many tenants listed their space for sublease after the pandemic hit, which contributed to rising availability rates. Subleasing outpaced listings for the first time since the start of the pandemic in the third quarter.
The largest trade so far this year in the L.A. area has been the J.H. Snyder’s $186 million sale of Hollywood 959. The deal was negotiated last year and closed around New Years.
Invesco happened to be involved in that deal as well, providing Goldman Sachs and Lincoln Property Company with $140.7 million in acquisition financing.
[CO] — Dennis Lynch