As Los Angeles’s office market continues to make a comeback, investors are finding renewed interest in the region’s commercial office assets. Evidence of this was shown in a recent transaction revealed in a third quarter Hollywood-Wilshire Corridor submarket report from CBRE.
According to the report, a 86,850 square-foot office property at 425 Shatto Place in Koreatown sold for $23.5 million, or approximately $270 per square foot. The property was acquired by an entity associated with Shatto Presentation Inc., and was sold by Shatto Corporation. Public records show that the selling entity is associated with Gene Jinsoo Kim, which purchased the property in 2019.
The property was built in 1970 and located on 1.59 acres of land, according to public records. Currently, the property is occupied by the California Department of Child and Family Services.
425 Shatto Place is located in Koreatown, just northwest of Downtown Los Angeles, putting it in close proximity to popular downtown attractions, including the Staples Center, Grammy Museum and the Los Angeles Convention Center. It is also located near various bus stops and in close proximity to State Road 110.
Despite the sale of 425 Shatto Place, the report from CBRE shows that the submarket is primarily being carried by the tech, media and entertainment industry. For instance, in the third quarter, a $500 million joint venture between King Street Capital, Alberta Investment Corporation, and East End Studios to acquire and develop additional studio space in the region. Further, The Star filed plans with the city of Los Angeles for a 500,000 square foot office tower in Hollywood. Overall, availability in the Hollywood-Wilshire submarket reached 27.1 percent in the third quarter of the year, with net absorption at 96,862 square feet.
