LaSalle Completes Acquisition of Three Class A Office Properties in West Los Angeles
Off-market transaction adds more than 200,000 square feet of premier coastal property to LaSalle’s L.A. portfolio
CHICAGO (January 26, 2017) – LaSalle today announced it has closed on the acquisition of a portfolio comprised of three Class A office buildings located in Playa Vista and Malibu, California, totaling more than 212,000 square feet.
All three buildings in the portfolio are well-positioned in the West L.A. submarket, which ranks as one of LaSalle’s top 10 target office market destinations. Two of the assets are located in Playa Vista, at 5340 Alla Road and 12901 Jefferson Boulevard – the city’s primary thoroughfare, and the third property is located at 22619 Pacific Coast Highway in Malibu. The assets in Playa Vista offer a long-term growth opportunity through continued leasing demand, while the property in Malibu offers leasing upside through the execution of previously-permitted interior renovations that will convert the asset from a single-tenant office to a multi-tenant format.
Playa Vista is one of the strongest submarkets in West L.A. with nearly one million square feet of positive net absorption since 2014. Much of the submarket’s growth has been driven by relocations of companies seeking flexible, efficient office space in an infill, coastal location. Additionally, Playa Vista has become a critical residential and employment base within L.A., given the region’s ability to accommodate significant development. Much of the development in the market has been lower density, campus style office buildings, which differentiates Playa Vista from most of the other infill West L.A. submarkets.
The Malibu submarket caters to affluent niche tenants including family offices, law firms, and satellite workspaces for executives who reside in areas such as Westlake Village, Calabasas and Pacific Palisades. The lack of available Class A office space and high barrier-to-entry has driven demand and strong property fundamentals.
Erick Paulson, Managing Director of Acquisitions at LaSalle, commented: “We are pleased to complete this high-quality portfolio transaction through an off-market structure, and thank our partners for their collaboration to create value on both sides of the table. We will continue to seek out attractive acquisition opportunities such as this that align with our clients’ investment objectives.”
Steve Inglis, Portfolio Manager at LaSalle, commented: “With its strong fundamentals and demographic profile, West L.A. continues to be a target market where LaSalle believes great value can be achieved for our investment clients on both a short and long-term basis. We look forward to enhancing these three assets and driving property performance in an efficient and accretive manner.”
About LaSalle Investment Management
LaSalle Investment Management is one of the world’s leading real estate investment managers with approximately $60 billion of private and public equity and private debt investments under management as of Q3 2016. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. LaSalle is a wholly-owned, operationally independent subsidiary of Jones Lang LaSalle Incorporated (NYSE: JLL), one of the world’s largest real estate companies. For more information please visit www.lasalle.com.
This press release does not constitute an offer to sell, or the solicitation of an offer to buy any interests in any product offered by LaSalle, or for the advisory services of LaSalle, in any jurisdiction where prohibited by law or where contrary to local law or regulation. Any such offer to invest, if made, will only be made by means of a private placement memorandum.