Cushman & Wakefield (NYSE: CWK) announced the firm has brokered the sale of The Switchyard, a 150,450-square-foot (SF) Class A creative office campus located in the Arts District of Los Angeles, California. San Francisco-based SteelWave acquired the modern two-building campus developed recently in two phases over the past decade from Los Angeles-based CEG Construction for $80 million. The buildings were vacant at the time of sale.
Mike Condon Jr., Steve Marcussen, Erica Finck, and Bailey Dawson with Cushman & Wakefield represented both buyer and seller in the investment transaction. The firm’s Pete Collins, Brittany Winn, Scott Menkus, and Alexa Delahooke also provided market leasing advisory, while Rob Rubano, Brian Share, Joseph Lieske, Ernesto Sanchez, Keith Padien, and Greg Napper assisted the buyer with financing.
“The sale of The Switchyard is a pivotal moment for enthusiasm and a sign that the recovery of office is in fact here as evidenced by the amount of institutional investor interest in the portfolio. This closing dispels some of the fears that office investment would not return at the quickened pace we are seeing,” said Condon, Vice Chairman.
The Switchyard consists of two adjacent, low-rise Class A office buildings centrally located in the Arts District at 500 & 540 S. Santa Fe Avenue. Constructed in 2019, the 500 property consists of a newly constructed creative office building totaling approx. 100,000 SF in five stories, and that also offers ground floor retail opportunities. The building also features a unique penthouse with an open deck area. The 540 property consists of a two-story office building totaling 50,888 SF that was built in 2012.
SteelWave intends to institute a well-conceived capital program that will elevate the building’s exterior and improve on-site amenities.
Marcussen, Executive Director summarized the deal, the market, and the asset by saying, “This is a best-in-class campus that may present a tenant with a unique opportunity to create a custom headquarters campus in the famed Arts District, and that provides quick access to a centralized freeway network, walkability to notable dining and entertainment amenities. The Switchyard is a huge project for the area.”
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 50,000 employees in over 400 offices and 60 countries. In 2020, the firm had revenue of $7.8 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.
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