Despite unsteady conditions in Los Angeles’ office market, several properties have been placed up for sale in recent months. One building that was recently placed on the market is a 16,545 square foot property in downtown Los Angeles. The listing by GOVT Real Estate Group shows that the fully leased asset has an asking price of $14 million, or more than $846 per square foot.
The property is located at 1401 W. 8th Street and last traded in 2021 for $6.4 million, or about $387 per square foot, according to public records. At that time, the property was acquired by an entity that shares an address with Elmwood Capital Group, a Beverly Hills-based investment firm that owns a number of government-occupied office properties in California as well as in other parts of the country.
Since then, the property has been renovated with numerous tenant improvements totaling approximately $1.85 million.
The property is fully occupied by the U.S. Social Security Administration, which utilizes it as its downtown Los Angeles branch. In December, the SSA signed a new lease for the property. The lease is set to run for a total of 20 years.
“The new downtown Los Angeles SSA branch office was a comprehensive redevelopment-to-suit for Social Security, designed and built according to tenant-specific needs and requirements, and in accordance with strict federal building standards and security specifications. Tenant improvements exceeded $1.85 million, with funding by SSA, demonstrating significant tenant investment and commitment to the new facility,” the listing states.
The property is situated in downtown Los Angeles, within walking distance to various sites like LA Live and the Crypto.com Arena. The building is also a short commute to both Interstates 101 and 110.
Elmwood Capital Group was founded in 2020 and is a real estate owner, operator and developer with a focus on procuring leases with the General Services Administration and acquiring industrial outdoor storage properties. As well as California, the company has properties in Texas, Utah, Montana and Georgia.
