Oscar Engelbert, Jens Grede Buy Beverly Hills Office at 26 Percent Discount
By Nick Trombola October 24, 2024 2:55 pm
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Even as his other venture narrowly avoids bankruptcy, Oscar Properties founder Oscar Engelbert has eyed his next target, this time in Beverly Hills.
The 47-year-old Swedish entrepreneur — along with Jens Grede, co-founder and CEO of Kim Kardashian’s shapewear brand Skims — has purchased an office building at 331 North Maple Drive for $61 million from DivcoWest, according to The Real Deal, citing a confidential source. Newmark (NMRK)’s Kevin Shannon brokered the deal, which represents a nearly 26 percent discount from the $82.2 million DivcoWest paid former owner Deutsche Bank for the building in 2018.
The ubiquitous German lender provided Engelbert and Grede a little over $75 million for the purchase of its former digs, according to property records. DivcoWest was also a participant in the loan, a person with knowledge of the deal told Commercial Observer. The excess funds will pay for tenant upgrades at the property, per TRD.
The three-story, nearly 90,000-square-foot office at the corner of Maple Drive and West Third Street will house Frame, a denim brand co-founded by Grede and fellow fashion entrepreneur Erik Torstensson, which signed a lease for the property earlier this year, per TRD. JLL (JLL)’s Jaclyn Ward and Peter Hajimihalis marketed the property for lease, according to the brokerage firm’s website.
Previous tenants at the Gwathmey Siegel Kaufman Architects-designed building include the Huffington Post and Maverick Records, though it was commissioned by Geffen Records founder David Geffen in 2000.
Representatives for Engelbert did not immediately respond to requests for comment. A spokesperson for DivcoWest declined to comment.
Beverly Hills has experienced a slew of transactions in recent months, including One Cole Group’s $39.2 million — or a whopping $3,524 per-square-foot — purchase in August of two buildings in the ritzy enclave’s Golden Triangle retail district. That same month, Fashion Nova founder and CEO Richard Saghian spent $118 million for a new 175,000-square-foot headquarters only about a block away from Engelbert and Grede’s new building.
Back in Sweden, meanwhile, Engelbert is still dealing with the aftermath of Oscar Properties barely dodging insolvency after reaching a settlement with one of its creditors in August, reports say. The company had about $171 million in debt which it struggled to pay — not uncommon for Swedish companies lately amid tumbling property values and high borrowing costs.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
