Rialto Capital Management and the Koll Company have sold an office building in Cerritos for $31.6 million, or about 3 percent more than they paid for the property in 2015.
Chicago-based nonprofit Logos Missions, which owns the Korean Christian Journal, bought the roughly 192,000-square-foot building at 18000 Studebaker Road, according to property records filed with L.A. County. The deal came out to about $164 per square foot.
In 2015, Rialto and Irvine-based Koll bought the building from Winthrop Realty Trust for $30.5 million, or about $166 per square foot, records show. Ares Commercial Real Estate had provided a loan on the building.
About a third of the office space at the building is available for lease, according to a CBRE listing. The monthly asking rent is $2.95 per square foot, about $1 lower than the average asking rent across Greater L.A. in the third quarter, according to CBRE data.
Few office buildings in L.A. County have traded over the last year, as buyers and sellers have been stuck in a stalemate over valuations. Interest rates, and the permanence of remote work, have also made financing harder.
In 2018, West Coast Capital bought an office tower at 12800 Center Court Drive South in Cerritos for about $229 per square foot.
Since the property is not within the city of L.A., the seller did not have to pay a 5 percent transfer tax on the sale, a factor that has deterred many from buying property in the city boundaries.
Cerritos, on the border of Los Angeles County with Orange County, does not have its own separate transfer taxes, meaning the sale was subject to L.A. County’s 0.11 percent transfer tax rate.