Rising Realty JV Sells LA-Area Asset for $73M

9320 Telstar Ave. Photo courtesy of CBRE

A mixed-use property fully leased to the local government has traded in Los Angeles’ San Gabriel Valley submarket. Local investor Majestic Asset Management acquired the Telstar Building in El Monte, Calif., for $73 million from Rising Realty Partners and Brasa Capital Management.

A CBRE team of brokers represented the seller in the transaction. According to CommercialEdge, the building previously changed hands last year, when the current seller acquired the asset for $41 million. That sale was subject to a $41.5 million acquisition and development loan, held by Citizens Bank National Association.

The 248,961-square-foot property is situated on a 7.95-acre parcel at 9320 Telstar Ave. It offers a mix of 67 percent office and 33 percent industrial space. CommercialEdge data shows the building was originally constructed between 1975 and 1989, and received cosmetic renovations in 2006. Floorplates range between 108,600 to 150,000 square feet. It also features 627 parking spaces. The Telstar Building is within proximity of major thoroughfares such as Interstates 10 and 605, State Route 60, as well as shopping and dining destinations. Downtown Los Angeles is roughly 12 miles away.

The two-story property is fully leased to the County of Los Angeles’ Public Health, Public Social Services and Children and Family Services departments. The County renewed a long-term lease at the building last year, with the same agreement also including plans for an 86,961-square-foot expansion of the industrial space.

According to CBRE Senior Vice President Mike Longo, the buyer was attracted to the tenant’s long-term commitment to the space, as well as the building’s location on an infill site.

Majestic Asset Management focuses on middle-market transactions with good fundamentals. It currently has a Los Angeles portfolio of 3.2 million square feet of office, industrial and retail space, along with 240 apartments.

Sales for office properties within Los Angeles metro stayed solid in the second quarter, according to CommercialEdge. The metro recorded more than $1 billion in volume during this period, with over 2 million square feet of office space trading. In August, office vacancy within the San Gabriel Valley submarket was 8 percent, significantly below the metro’s average of 12.6 percent.