S&G Properties Management purchased a 62,000-square-foot office building in Woodland Hills for $10.1 million.
Located at 5550 Topanga Canyon Blvd., the three-story building is in the Warner Center business district – where The Kroenke Organization has proposed a sprawling mixed-use development and the new headquarters for the Los Angeles Rams.
S&G will deploy an owner-user structure for this property with its security company Citiguard taking up part of the building. Under the new ownership, the building will invest in both interior and exterior renovations while also adding new amenities.
Lee & Associates represented S&G in the transaction, which came out to just over $161 per square foot, and will also provide leasing services.
“We are seeing strong demand from owner/users in the Warner Center/Woodland Hills submarket, which continues to be an attractive option for companies seeking growth opportunities in Los Angeles,” said Darren Casamassima, principal of Lee & Associates’ L.A. North and Ventura team.
For the third quarter, Woodland Hills had a 26.3% vacancy rate in its office inventory, according to data from Colliers – the highest of its West San Fernando Valley counterparts. Nevertheless, with The Kroenke Organization’s plans for the area, there could be a change in the tide.
“This is a tremendous opportunity to develop a dynamic destination,” Rams Owner and Chairman Stan Kroenke said of his firm’s project. These plans include developments spanning residential, retail, office, parkland and indoor entertainment venues.
With 7.6 million square feet of office inventory, Woodland Hills vastly outpaces West San Fernando Valley’s five other submarkets which average 575,437 square feet.
“The buyer was attracted to the building’s prominent location, visibility from the 101 Freeway and the upside potential to create a best-in-class office property in this area,” Casamassima added.
