Nome Ventures Takes 10-Story Office From Blackstone for $56M
The property spans 237,145 square feet in the L.A.’s South Bay
By Greg Cornfield October 13, 2020 3:20 pm
reprints
Nome Ventures and Blackstone (BX) Group have struck another deal together in Los Angeles County.
Silicon Valley-based Nome acquired a recently renovated 10-story office from Blackstone in the South Bay region for $55.5 million, according to CBRE (CBRE), which helped arrange financing for the deal. The tower, called Pacific Gateway, spans 237,145 square feet at 19191 South Vermont Avenue in the city of Torrance, just south of 190th Street and the I-405/I-110 interchange.
The property is 84 percent leased, with tenants including DaVita HealthCare Partners and Farmers Insurance. It was built in 1981, and completely renovated last year.
The deal follows Blackstone’s sale of a 171,000-square-foot office property to Nome for $44 million in July. That property is located in the city of Cerritos in southeast L.A. County.
The office market has been severely depressed due to the coronavirus pandemic and a forced work-from-home experiment that has extended into at least seven months now. CBRE estimates the office recovery won’t begin until 2021, and that the market won’t fully rebound until the final quarter of next year. Base rates in Greater L.A. remained steady in the third quarter at $3.60 per square foot, according to CBRE.
CBRE’s Greg Grant, Mike Longo, Todd Tydlaska and Sean Sullivan helped arrange $39.3 million in financing with Wells Fargo (WFC) for Nome. Newmark (NMRK) Knight Frank’s Kevin Shannon, Bill Bloodgood, Ken White, Scott Schumacher and Aly Chelf represented Blackstone in the sale. Nome was self-represented in the transaction.
Blackstone Group has been notably active in L.A.’s office market, spurring a significant amount of the existing action despite a global pandemic. The firm recently loaned $110 million for a 288,000-square-foot property in the office and tech hub Culver City on L.A.’s Westside. And the firm made one of the deals of the year after taking a 49 percent stake in a Hollywood studio and office portfolio for $1.65 billion in June.
