Colliers Negotiates Third Sale in 15 Years of Same Office Building
Building with Recent Renovation and 90% Occupancy in Hermosa Beach Sells for $14.3M
Colliers International has negotiated the all-cash sale of a renovated, three-story 35,898-square-foot-office investment in Hermosa Beach, Calif., in a 1031 tax exchange transaction valued at $14.3 million.
Located at 2200 Pacific Coast Highway near the city’s recently revitalized downtown commercial district near Pier Avenue, the three-story office building was sold by Colliers’ Executive Vice Presidents Geoff Ludwig and Eric Lastition, who represented the seller, 2200 PCH LP. The two brokers have had the exclusive listing on the building for both leasing and sales for 15 years. This is the third time they have sold the building.
“With the revitalization of Pier Avenue and the city’s future plans to upgrade the heavily traveled corridors, Hermosa Beach is prospering and the timing was right to reposition and sell this asset,” said Ludwig. “Additionally, since the buyer needed to fulfill a 1031 obligation in a timely manner, we were able to close in just 45 days from start to finish.”
During its last sale in 2013, the mid-rise structure was repositioned as an attractive boutique building featuring a new exterior façade and renovated common areas. It is occupied by office and health-related firms.
In this most recent transaction, Vectra Management Group, a private development, investment and management firm with offices in New York, Salt Lake City and Santa Monica, purchased the building in the exchange transaction. Since Ludwig and Lastition have had the exclusive listing, the building has consistently boasted an average occupancy rate of 90%, with typical suites ranging from 300-3,000 square feet.
In addition to its central location, the building features exceptional visibility from Pacific Coast Highway, ocean views from westward facing suites, private balconies, an open air interior courtyard, and exterior entry to each suite. The upper suites feature high ceilings, skylights and mezzanine space. The project offers 4/1,000 parking from three sides with ingress/egress from a signalized turning lane at the intersection of 21st Street.