Younan Properties announced it has sold all of its California assets with the latest disposition of a 260,000-square-foot office building in Gardena, near Los Angeles.
The value of the transaction was $58 million.
Transwestern Commercial Services purchased the property, Pacific Pointe, located at 879 West 190th St. Built in 1988, Pacific Pointe is a 12-story building occupied at the time of sale by major tenants that included Bowman and Brooke LLP, CBeyond Communications Inc., IBM, Northrop Grumman Corp., Kintetsu International Express and Hyundai.
Younan Properties has owned the class A building since February 2004, when it acquired it for $34 million in a joint venture partnership with Philadelphia-based institutional investment management firm URDANG Capital Management.
“We entered the Southern California office market at a very good time and we were able to purchase a significant portfolio of asset in a short period of time. The significant compression of the cap rate in Southern California has created negative leverage on most transactions. We have enough experience in this market to know this is an alarming trend and a great indicator of an overvalued market,” said Zaya S. Younan, chairman and CEO of Younan Properties. “In high-growth areas in Chicago, Dallas and Houston, we’re confident we can achieve positive leverage in rising appreciation that we feel will mirror what has been happening in Southern California in recent years.”
Los Angeles-based Younan Properties Inc. is a real estate investment group focusing on class A office properties in high-growth markets nationwide.