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.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription