JV Buys Calabasas Office Campus at Discount for $69M
The price is about 12% less than seller Gemdale USA paid for it in 2021
By Nick Trombola February 3, 2025 3:12 pm
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Even a fully leased office in a wealthy hillside enclave like Southern California’s Calabasas isn’t immune to distressed office pricing these days.
A partnership between Cross Ocean Partners, a Greenwich, Conn.-based asset management firm, and Los Angeles-based investment firm the Palisades Group has paid $69.4 million for a three-story, 222,667-square-foot Class A office, dubbed The Park Calabasas, in the region made famous by the likes of the Kardashians and Kanye West.
“4500 Park Granada is a rare opportunity to acquire a Class A office campus in a market with significant barriers to entry at a deeply discounted basis,” Terence Kim, managing director for Cross Ocean, said in a statement.
Indeed, Gemdale USA, the U.S. arm of China-based investment company Gemdale, sold the 20-acre property for about 12 percent less than the $79 million Gemdale paid for the property in 2021, records show.
The property is fully leased to seven tenants, including Focus Health, Karpel Law Firm and cruise line company AmaWaterways. It was developed in 1986 as the corporate headquarters for Lockheed Martin, though the aerospace and defense company left the campus in the mid-1990s. The property recently underwent “extensive” renovations, according to a Palisades Group spokesperson, though more details were not immediately available.
Newmark (NMRK)’s Kevin Shannon, Ken White, Rob Hannan, Michael Moll, Laura Stumm and Alex Beaton represented the seller, though it was not immediately clear who represented Cross Ocean and Palisades in the deal.
Office trades in the mostly residential city of Calabasas are rare, but they do squeak by from time to time. In late 2023, a trio of L.A.-based investors paid just $21 million for Calabasas Courtyard, a 130,000-square-foot office campus less than a mile northwest of The Park Calabasas, with intentions to upgrade the common areas, suites and amenities of the three buildings on the property.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
