Sales  ·  office

LaSalle Investment Management Sells Two L.A. Offices for a Big Loss

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LaSalle Investment Management is getting two offices off its hands.

The JLL subsidiary sold two office buildings in Los Angeles’ Playa Vista neighborhood for $74.3 million in total, according to Newmark (NMRK), which brokered the deal for the seller. That’s roughly half the amount LaSalle paid for the two assets about seven years ago.

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Westside Neighborhood School purchased a 131,942-square-foot office property — dubbed The Annex — for $50.3 million at 5340 Alla Road. (The private school is already just around the corner at 5401 Beethoven Street.) 

One street away, the 48,412-square-foot single-tenant office building at 12901 West Jefferson Boulevard sold for roughly $24 million to Pacshore Partners and A2 Capital Management. IPG Mediabrands currently leases the entire building for the headquarters of media companies Deutsch LA and Steelhead.

“The sale of both assets is a reflection of the increased liquidity we are seeing in the market, especially in a desirable submarket like Playa Vista where investors and users can obtain today a comparatively very attractive basis,” Newmark’s Kevin Shannon said in a statement. Shannon brokered the deal for LaSalle alongside colleagues Ken White, Rob Hannan, Laura Stumm and Michael Moll. 

Business Journals first reported the office sales.

NAI Capital’s David Kimball and Sam Devorris represented Westside Neighborhood School in the transaction. It’s unclear who brokered the West Jefferson Boulevard sale for Pacshore Partners and A2 Capital Management.

Spokespeople for LaSalle, Newmark and NAI Capital did not immediately respond to requests for comment.

LaSalle first listed the two office properties for sale in December, The Real Deal reported, though the asking prices are unclear. Both sales appear to come at a cost for the original landlord; LaSalle purchased the two buildings in 2017 for $140 million, paying $95 and $45 million for the Alla Road and West Jefferson Boulevard properties, respectively. To refinance the two Playa Vista offices, LaSalle Investment Management secured $93.4 million from Barings in February, 2020. 

Anna Staropoli can be reached at astaropoli@commercialobserver.com.