Newmark 1 announces it has completed the $32.5 million sale of 640 North Sepulveda, a two-story, 45,630-square-foot office building in Los Angeles, California. The building was 27% occupied at the time of sale.
The asset traded from Vectra Management Group to an undisclosed buyer. Newmark Private Capital Group’s Vice Chairman Sean Fulp and Managing Directors Ryan Plummer and Mark Schuessler represented the seller in the transaction. The buyer was represented by Newmark Executive Managing Director David Kluth and Managing Director Aliya Coher.
Built in 1987, 640 North Sepulveda underwent a $3 million renovation in 2019. It features nearly 12,000 square feet of outdoor work and recreation space, including an open courtyard, outdoor patio, barbeque area, basketball court, designated pet area, water features, ping pong tables, fire pit and lounge area.
“640 North Sepulveda offers a creative-office work environment that can accommodate multi-tenant or single-tenant floor plates, making it ideal for an owner/user,” said Fulp. “The property also offers unparalleled outdoor amenities and benefits from a central Westside location adjacent to some of the region’s most affluent communities.”
Plummer added, “At just 27% occupied with significant leasing activity, the asset provided the perfect opportunity for an owner/user to benefit from the in-place income while also putting its own signature on the building.”
640 North Sepulveda is ideally positioned within 500 feet of the I-405 freeway’s on/off ramp, providing immediate accessibility to the Greater Los Angeles Metro, San Fernando Valley and Orange County. Additionally, the property is immediately adjacent to the affluent communities of Bel Air and Brentwood, and just a 15-minute drive from Beverly Hills, Century City, Westwood, Santa Monica, Culver City, and Sherman Oaks. The property is also within 12 miles of both Los Angeles International and Van Nuys Airports, and within 2 miles of the planned Metro Purple Line Extension’s Westwood/VA Hospital and Westwood/UCLA stations.
According to Newmark Research, net absorption in the Los Angeles office market registered 452,549 square feet during the first quarter of 2022, the second consecutive quarter of positive absorption for the market. The pandemic has had multiple impacts on commercial real estate, with the growing popularity of low-rise campus style product being one of the principal narratives. Creative, collaborative space continues to be in demand, and many occupiers are eyeing high-end spaces to attract employees back to the office.