Silicon Beach Asset in Santa Monica Trades Hands for Highest Per-Square-Foot-Rate in 2015
- Apr 28, 2015
We’ve previously covered the growing strength of the area of Santa Monica known as Silicon Beach, but the tech-centric submarket seems to finally be hitting its stride. Recently, New York-based real estate investment management firm JOSS Realty Partners acquired a creative office asset in Santa Monica for a total of $23.7 million. The property traded at a per square foot rate of $1,004, the highest rate paid for an asset in the greater Los Angeles area in 2015.
Located at 1315 Lincoln Boulevard in downtown Santa Monica, the Class A office property benefits from its placement in a market where office space supply is limited, and demand very high. The area known as Silicon Beach currently features around 600 tech, media, entertainment and creative industry companies, as well as one of the best performing retail streets in the region. The 23,531-square-foot property is a best-in-class asset in the Silicon Beach submarket that offers individual patio areas, ample parking, and is surrounded by residential communities such as Santa Monica, Beverly Hills, Malibu and Bel Air. The property is currently fully leased with its tenant roster consisting of five companies: City National Bank, Chandler Chicco Agency, Centro Media, O’Gara Coach Company and Dethrone Basecamp.
According to Larry Botel, managing partner of JOSS Realty Partners, this is the company’s first acquisition in the Los Angeles market, but given its location, “we are confident that this new venture will be as successful as our East Coast properties.” Botel also noted that the price paid for the property “rivals the cost of office space in our other markets, New York City and Washington, DC, but the high demand and constrained supply for office space in this area makes this the next logical step for us.”
Image courtesy of parcommercial.com