Los Angeles-based Younan Properties Inc. seems to be pursuing some sort of recycling investment strategy these days, at least in regards to the property located at 5959 Topanga Canyon Blvd. in Woodland Hills.
The real estate investment and asset management firm bought the three-story office building in 2004, sold it less than 12 months later to Value Home Loan, and purchased it again in the past couple of weeks.
The 62,000 square foot Class A office building, known as WarnerView Corporate Center, was built in 1981 and is 93 percent leased to what the company said is a “desirable roster of professional tenants.”
More than $1.5 million was spent replacing the HVAC system, installing a new roof and making upgrades to the elevator and common areas.
“Although it is unusual for us to re-acquire a property we previously owned, this is an exceptional opportunity to acquire a property at a price well below the true market value,” said Zaya S. Younan in a press release.
“The significant expansion in the cap rate does not correlate to the deteriorating fundamentals, but more relates to the anxiety, fear and oversold market,” he added.
Younan represented itself in the transaction. Jeff Albee and Jeff Gould of the Calabasas office of Sperry Van Ness Real Estate Services Inc. were listing agents on the deal.
Gould said the deal went down for $11.9 million with a cap rate of 8.5 percent. And the existing financing (an approximately $9.4 million loan with five years left on the note and interest rate of 5.75 percent) was key to the sale.
“Without the existing financing it would have been harder to sell the property,” said Jeff Gould. “I think it’s one of the few transactions that tells the investment community and landlord community where cap rates are at these days. It sets the bar and is a good comp for Class A assets.”
Paying for Prestige
I normally don’t report on real estate transactions by Valley firms that deal with non-Valley properties. But the sale of the Hugo Boss building on N. Rodeo Drive. in Beverly Hills goes to show people are still willing to pay a premium for one thing: prestige.
National Equity Advisors represented seller, Spanish figurine company Lladro, for the 11,333 square foot building located at 414 N. Rodeo Drive. David Feldman of Marcus
