A subsidiary of New York Life Insurance has sold an office campus in Culver City for upward of $70 million.
Sunny Hills Capital Management Company bought the buildings at 400 and 600 Corporate Pointe for $72.5 million. The deal for the 461,960-square-foot complex works out to $160 per square foot.
The seller was New York Life Real Estate Investors, according to property records. The deed for the property was signed by Thomas Hwang, senior director of asset management at New York Life Real Estate Investors. The Los Angeles Times first reported news of the sale but did not identify the seller.
“This is another example of a family office syndicate, which included both domestic and foreign investors, taking advantage of a tremendous basis opportunity,” Newmark’s Kevin Shannon told the L.A. Times. “Culver City is a desirable West Los Angeles submarket, which will provide tremendous long-term upside for these patient basis investors.” Shannon was joined by Newmark’s Ken White, Rob Hannan, Michael Moll and Laura Stumm in representing New York Life in the sale.
In recent years, the Culver City offices underwent a capital renovation to the tune of $18.7 million, or approximately $40 per square foot. The property is currently leased to 35 tenants in sectors ranging from insurance, real estate, health care and research to entertainment, cosmetics and coworking.
Investors seem to be capitalizing on Culver City’s office market availabilities.
Elsewhere in the Westside enclave, Lincoln Property Company and Broad Street Principal Investments, an affiliate of Goldman Sachs, sold the 11-story Entrada office building to Fenway Capital Advisors for $130 million, or about $413 per square foot. The 315,000-square-foot office building at 6181 Centinela Avenue marked the priciest sale in West L.A. so far this year.
Culver City remains a top technology and media hotspot within the broader Silicon Beach market, according to Newmark Research. In the first quarter of this year, the city’s offices saw 1.2 million square feet of leasing activity with rental rates averaging about $5.25 per square foot. Notable local tenants include Apple, Amazon and HBO.
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