Los Angeles, CA
March 13, 2023
CBRE arranged the sale of a 98,776-sq.-ft. office building in Thousand Oaks, CA., for $17.75 million, along with $42 million in financing for the acquisition and speculative conversion of a life sciences campus.
CBRE’s Mike Longo, Sean Sullivan and Todd Tydlaska represented the seller in the transaction, a Los Angeles-based private equity firm. CBRE’s Greg Grant facilitated financing on behalf of the sponsor and buyer, San Francisco-based Graymark Capital. The 60% LTC, interest-only loan was placed with a life insurance company on a non-recourse basis. Most of the loan will be used for the conversion.
Located at 120 Via Merida and built in 1998, the two-story office building sits on 6.7 acres and was previously the corporate headquarters for Wellpoint Health Networks. The property’s existing infrastructure is well-suited to be redeveloped for life sciences use. It features 50,000-sq.-ft. floor plates, steel frame construction, outdoor balconies, grade-high dock door, and ample power supply.
“Thousand Oaks is the heartbeat of Life Sciences in Los Angeles. The property sits at the entrance to the market and offers an ideal lab conversion due to its high-quality construction and campus layout, in a market with almost zero available space,” said Michael Longo, Senior Vice President with CBRE.
Gray Matter, the life science initiative of Graymark Capital, has engaged architect BAM Creative to develop a phased conversion plan. Upon completion, the property will feature 60% lab-ready space with upgraded mechanical, electrical and plumbing with 40% newly built creative office space to support the lab. The property will also undergo exterior and site improvements to the power system, loading area, indoor/outdoor amenity areas, cosmetics, roof, and parking lot.
“Life sciences assets continue to experience increased demand in Los Angeles, and Graymark’s conversion of this building follows the trend of investors finding creative ways to acquire and repurpose office properties for higher-demand uses,” said Greg Grant, Senior Vice President with CBRE. “When complete, this state-of-the-art facility will benefit from its location in one of the strongest biotech hubs in California.”
Situated in the Conejo Valley along the 101 Freeway, the property provides tenants with high visibility, access to a highly educated labor pool, executive neighborhoods, and ample retail amenities including The Four Seasons, Equinox, and The Shoppes at Westlake Village. The area is home to more than 30 life sciences companies, including Amgen Global Headquarters. Los Angeles has emerged as one of the top life sciences clusters in the U.S. with 28 companies actively seeking space at the end of Q4 2022, according to CBRE Research. The market recorded 950,000 sq. ft. of demand for lab/R&D space with 681,170 sq. ft. under construction in the quarter.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2022 revenue). The company has approximately 115,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
The full content of this article is only available to paid subscribers. If you are an active subscriber, please log in. To subscribe, please click here: SUBSCRIBE