Mesa West Lends $51.5M in Beverly Hills Office Acquisition
Cruzan and Cigna Investment Management have teamed up to borrow $51.5 million in their purchase of an office building at 9171 Wilshire Boulevard in Beverly Hills, Calif., according to an announcement from HFF, the deal’s finance broker.
The loan, which is to fund the $69.2 million purchase, comes from Mesa West Capital, a lender whose Los Angeles offices are just four miles west along the same street.
The seven-story building, just east of the affluent enclave’s main drag, was offered for sale by John Hancock Real Estate. Its 106,890 square feet were 83 percent leased at the time of the sale, with tenants including a pharmacy, an agency that represents writers and entertainers and clinical offices for several mental-health clinicians.
“This was an extremely rare opportunity to acquire an asset with significant upside in one of the most sought-after core markets in the world,” HFF’s Andrew Harper, who brokered the deal, said in a statement. The average rental rate for Beverly Hills office space in 2017 was $61.40 per square foot per year, making it Los Angeles’ second-most expensive neighborhood after Santa Monica, according to research from Savills Studley.
Cruzan, the partner that will manage the property, aims to extensively renovated the building, including a reworking of the building’s lobby, hallways and restrooms as well as the construction of new spaces for shared amenities for tenants. The new owner also plans to modernize office space that is currently vacant.
Representatives from Cruzan, Cigna and Mesa West did not immediately respond to inquiries.