CBRE Group, Inc. Monday announced the sale of a trophy mixed-use property in downtown Santa Monica to Palisades Capital Partners for $33 million.
CBRE’s Mike Longo and Newmark Grubb Knight Frank’s Kevin Shannon, Rob Hannan and Ken White represented the sellers, PacShore Partners and GreenOak Real Estate LP, in the sale of the creative office and retail property, located at 631 Wilshire Boulevard.
The Art Deco-inspired property, originally built in 1958, has undergone more than $4 million in upgrades since 2013, including a remodeled lobby, outdoor common areas and locally focused murals. The 11,000 square feet of retail along Wilshire Boulevard have also been revamped and now include such popular food venues as Mendocino Farms, Sidecar Donuts & Coffee, and Juice Served Here.
“The seller’s impressive renovations have created an atmosphere of collaboration within the building and the local Santa Monica neighborhood,” said Longo.
The property is located on the corner of Wilshire Blvd and 7th Street and features a total of 40,000 square feet of office and retail space. The property also includes four lofts, featuring wood flooring, grand windows, loft space and exposed wood beams.
Santa Monica is one of the fastest-growing tech hubs in the county and has been a magnet for technology, media and entertainment-related companies. The lack of supply and increasing tenant demand on the Westside has buoyed asking rents. Other notable transactions in the Santa Monica area include the sale of 233 Wilshire to Douglas Emmet and the Qatar Investment Authority. Core buildings continue to be in high demand and pricing for these assets has surpassed previous all-time highs set back in the first quarter of 2008, according to CBRE Research.
“Santa Monica’s technology boom, unique supply constraints, and its enviable beachside lifestyle have made its 8.7 million square feet of office product one of the most preferred on the West Coast,” said Longo.