(EDITOR’S NOTE: According to a third quarter earnings report from Kilroy Realty (the seller), the property was sold for $48 million, or about $499 per square foot in late August. However, information regarding pricing was only just released.)
Los Angeles, CA — Newmark announces it has arranged the sale of 3130 Wilshire Boulevard, a 96,085-square-foot office property located in West Los Angeles’ Santa Monica submarket. The sale also includes a surface parking lot approximately one block away from the property.
Newmark Co-Head of Capital Markets Kevin Shannon, Executive Managing Directors Ken White and Rob Hannan, Senior Managing Director Laura Stumm and Associate Director Michael Kolcum represented the undisclosed seller. Newmark’s Private Capital Group led by Vice Chairman Sean Fulp and Managing Director Ryan Plummer assisted with the sale. The buyer was The Swig Company, and the acquisition marks their first purchase in Santa Monica.
The Swig Company owns four other major commercial office buildings in the greater Los Angeles area, with their footprint totaling almost a million square feet.
“The interest in this Westside office asset was tremendous and very competitive even in today’s market,” said Shannon. “We had exactly a dozen family office buyers submit offers on this asset.
Private capital isn’t trying to time the market and is simply looking for an attractive entry basis in long-term desirable office markets, like Santa Monica.” Hannan added, “Santa Monica office ownership is truly an exclusive club. Assets in this submarket rarely trade, with so many being long-term investors, who have little to no inclination to sell.”
The Swig Company plans to significantly invest in building upgrades including a modernization of the infrastructure systems as well as cosmetic improvements and the addition of various tenant amenities.
3130 Wilshire has five levels of attached, secured parking and sits within easy reach of the I-405 and 10 Freeways. It is surrounded by numerous café and restaurant options, walkable amenities, and three high-end grocery stores including Bristol Farms and Erewhon Market.
According to Newmark Research’s 2Q22 Capital Markets report, Los Angeles ranked second, behind Manhattan, among markets with the largest office investment sales in the first half of 2022. Quarterly investment volume overall, across all property types, increased 17.5% year-over-year, representing the third largest quarter volume total in history. While multifamily remains the most sought-after property type, office, retail and hospitality volume have normalized as investors have grown more confident about the recovery of travel and leisure spending as well as the return of more employees to the office.
About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum.
Newmark generated revenues of nearly $3.2 billion for the twelve months ending June 30, 2022. Newmark’s company-owned offices, together with its business partners, operate from approximately 170 offices with over 6,500 professionals around the world.
