After it last traded about three years ago, a 209,404 square foot office building in Simi Valley is back on the market with an asking price of $36.5 million, or about $174 per square foot, according to the offering document from Anvers Capital Partners and Peak Commercial, which are marketing the property on behalf of its owner.
The property, located at 450 American St., last traded in 2020, according to public property records. At that time, it was acquired by Santa Monica-based Top Terraces Inc. for $30 million.
Built in 1990, the two-story building was renovated in 2000. In the late 1990s, the property was converted from its original use as industrial space into office space, taking advantage of the tall ceiling heights and open layout. The property also has a total of 1,148 parking stalls.
The building has been fully occupied by Bank of America since 1998 and currently has a net operating income of more than $3.2 million. The lease has a steady three percent increase in rental income year-over-year, with two additional five-year options to extend.
While the up-for-sale property is fully leased to a long-term tenant, many office buildings throughout Greater Los Angeles are seeing heightened vacancies.
The greater Los Angeles office market continues to face a number of challenges over the last several quarters as companies downsize or switch to remote and hybrid work options. According to a second quarter office market report from Cushman & Wakefield, the amount of vacant sublease space in Los Angeles expanded significantly, rising by 825,722 square feet or 16.8 percent quarter-over-quarter and by 1.9 million square feet or 51 percent year-over-year. Overall vacancy rates increased by 220 basis points year-over-year to 22.9 percent.