The recent sale of the 118,400-square-foot Class A Beverly Hills office building located at 100 N. Crescent Drive was sold at the highest per-square-foot price of an office asset that the area has ever seen. According to reports, the space sold for $130 million, which comes to $1,100 per square foot.
A Worthwhile Investment
Before the transition, the building was owned by Clarion Partners, which is based out of New York. Reportedly, Clarion Partners purchased the building for $80 million in 2012. As such, the company enjoyed a 63 percent return in just three years when it sold the building to Cain Hoy Enterprises, which is a private investment firm located in Greenwich, Connecticut.
Currently, the building serves as the headquarters to its anchor tenant, RealD Inc., which is a 3-D film technology firm. Other tenants within the building, which is 97 percent leased, include food and restaurant firm Wolfgang Puck Worldwide Inc., Concord Music Group and California Republic Bank. CoStar Group Inc. reports that the asking rental rate within the building is $5.61 per square foot each month, which is higher than the city’s average. It is not far out of line for buildings in Beverly Hills, however, which typically sees rents averaging around $5 per square foot. This is partially due to the fact that Beverly Hills is a tight market where office buildings do not trade frequently, particularly office buildings as large as the one located at 100 N. Crescent Drive.
To find other trades of a comparable size and per-square-foot cost within the area, it is necessary to look back at trades made last year. One of these was the sale of a portfolio consisting of the properties located at 9336, 9346 and 9348 Civic Center Drive, which was sold at a price of $896 per square foot. The portfolio was purchased by New York’s Rockefeller Group from the New York firm Tishman Speyer. The properties located at these addresses are known as UTA Plaza and The Ice House.
UTA Plaza, which was originally constructed in 1985, is comprised of two four-story buildings offering approximately 191,000 square feet of space. Major tenants within the building include Playboy Enterprises and United Talent Agency. The Ice House, which is a four-story building offering approximately 45,000 square feet of space situated on 3.4 acres of land, serves as the headquarters for Live Nation Worldwide. The Ice House, which was originally built in 1925 for ice manufacturing, was renovated in 1993 and again in 2014.
Another comparable sale also came last year at a cost of $781 per square foot. This trade involved the building located at 331 N. Maple Drive. The building was acquired by the Kansas City, Missouri asset manager Deutsch Asset & Wealth Management from the San Francisco real estate firm Spear Street Capital. The 84,406-square-foot Class A building was originally constructed by entertainment companies Geffen Records and Dreamworks. As such, it features infrastructure for media-related and technology-related companies, including a 450 seat screening room and recording and editing studios.
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(all data current as of 6/22/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.