Dealmaker: Newmark Knight Frank Brokers $64M in Office Transactions
Newmark Knight Frank, New York, brokered two office sales totaling $63.6 million in California and Minnesota.
In Los Angeles’ El Segundo submarket, NKF and CBRE closed the $50.8 million sale of a two-building, 200,220-square-foot office campus at 650 and 700 Pacific Coast Highway.
NKF’s Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Director Ken White and Senior Managing Director Michael Moore worked with CBRE Senior Vice President Bill Bloodgood represented the Tenant-in-Common seller. The buyer, New York-based Vella Group, represented itself.
Boeing holds a lease on the property through December 2020 but plans to end its lease then. “Once Boeing vacates the asset, the buyer intends on completely redeveloping and repositioning the property into a creative campus,” Bloodgood said, noting the repositioned asset should be attractive to media, tech and entertainment tenants in particular.
The entire site occupies nearly six acres. Built in 1962, 650 Pacific Coast Highway has eight floors and totals 121,500 square feet. The smaller 700 Pacific Coast Highway dates to 1957 and totals 78,750 square feet.
El Segundo office rents have increased more than 30 percent over the last three years.
Newmark Knight Frank also represented Edina Business Plaza LLC and SH Commercial Real Estate Services when the joint venture sold Edina Business Plaza to The Ackerberg Group for $12.8 million. NKF Managing Director Peter Tanis and Senior Managing Director John McCarthy represented the JV.
The three-story, 84,380-square-foot office building at 7550 France Avenue South in Edina, Minn. is fully leased by a single tenant.
Tanis said the seller sought a 30-day timeframe to market and close on the sale due to a tax-deferral strategy. “Working against standard marketplace timeline challenges, including those posed by a reverse exchange, we signed a letter of intent in late May and completed all the due diligence and closing documents for a successful closing seven business days later. This timeframe included one holiday weekend, leaving a few hours to spare on our 30-day goal,” he said.
