DivcoWest, a San Francisco-based real estate investment company, is continuing to make moves in Los Angeles. The company has just added its fourth office property in the Southern California submarket with a $92 million ($460 per square foot) acquisition of a North Hollywood office complex, according to sources with knowledge of the transaction details.
The property, which is located at 5250 Lankershim Boulevard, totals 200,000 square feet and is currently occupied by Kaiser Permanente and Regus, a global coworking firm. According to public records, the property was previously owned by J.H. Snyder, which purchased the property in 2013 for an undisclosed amount.
Currently, the company’s Los Angeles portfolio consists of three office properties totaling 894,000 square feet. These are the 3rd & Maple building in Beverly Hills, 655 North Central in Glendale and UTA Plaza and Ice House in Los Angeles. In recent years, however, the company has sold a number of its Los Angeles properties, as well, including the historic Telephone Building, a 58,000 square-foot property in Santa Monica.
Founded in 1993, DivcoWest is a multidisciplinary investment firm, which primarily focuses on the acquisition of traditional office buildings as well as life science assets. In 2020, the company announced the final closure of its latest value-add real estate investment fund, DivcoWest Fund VI, which allowed the company to spend $2.25 billion on office and life assets across its key markets.
“Like our tenants, we constantly have to innovate. Through the current volatility, and leveraging on our team’s experience, we believe we have an opportunity in Fund VI to capitalize on dislocations and explore and transform the markets where we do business,” said Stuart Shiff, DivcoWest CEO and Founder, in a statement at the time of the closing.
Most recently, however, the company has switched gears, announcing plans to spend $250 million to acquire single-family rental home properties across the Western U.S., in partnership with Denver-based real estate investment company Atlas Real Estate. The partnership targets markets already in DivcoWest’s wheelhouse, while also expanding its reach into several of Atlas’ primary markets, including Nevada, Colorado, Arizona, Idaho and Utah.