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Saturday, Sep 23, 2023

Office Buildings Sell for $37 Million

Two off-market office building sales were announced last week.

In one transaction, Calabasas-based Agora Realty & Management acquired a 75,000-square-foot medical office building in Tarzana for $30 million.

The three-story Tarzana Medical Plaza, located at 5525 Etiwanda Ave., is 90% occupied, with tenants that include Providence Healthcare Systems, Cedars-Sinai Medical Care and Unilab Corp. 

As a value-add opportunity for Agora, the firm will complete interior and exterior changes to the property. The interior renovation will include upgraded elevator cabs, modern corridor finishes, lighting upgrades and expanded and renovated lobby areas with enhanced wayfinding. Solar panels will be added to reduce operating costs. 

“The building is strategically located next to the new Providence Cedars-Sinai Tarzana healthcare campus set to open April of 2023, with access directly into the hospital,” Cary Lefton, chief executive officer of Agora Realty, said in a statement. “This current acquisition falls in line with Agora’s strategic objective to continue building its commercial portfolio by supplementing its grocery-anchored shopping centers with healthcare co-tenancy.”

In total, Agora’s portfolio encompasses more than 2 million square feet of retail space in the Western U.S. with several new, ground-up developments in various phases of development totaling over 330,000 square feet of space in Nevada.

In Santa Clarita, an office building located at 25101 The Old Road sold for $7.1 million in an off-market transaction.

The two-story building is located along a major thoroughfare, The Old Road, and boasts 23,388 square feet of office space. 

The facility, which is comprised of a diverse mix of 90 private offices, features contemporary architecture and illumination from sunlight. Common areas and individual suites share panoramic views of the Santa Clarita Valley and Towsley Canyon Hills. 

The building, which was built in 1998, will be modernized by the new owner to position the offices to meet the increased demand for executive suite space.  

Matt Sreden, senior vice president of Spectrum Commercial Real Estate Inc., represented the buyer, 360 Executive Suites SCV in the sale. The seller was undisclosed.

The buyer has now acquired five properties in Santa Clarita, which total 49,130 square feet and include 164 private suites.

Hannah Madans Welk
Hannah Madans Welk
Hannah Madans Welk is a managing editor at the Los Angeles Business Journal and the San Fernando Valley Business Journal. She previously covered real estate for the Los Angeles Business Journal. She has done work with publications including The Orange County Register, The Real Deal and doityourself.com.

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