December 31, 2020 2:00 PM
Newmark announces it has arranged the $92 million sale of an 156,380-square-foot (±3.59 acre) opportunity zone and development site located at 3401 South La Cienega Boulevard in Los Angeles’ Culver City submarket.
Newmark’s Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Directors Ken White and Rob Hannan and Senior Managing Director Laura Stumm represented the seller, La Cienega Properties, Ltd., Lendlease Development acquired the asset.
“Culver City and Hollywood are two submarkets at the 50 yard line of content creation, which will be the economic engine that leads Los Angeles out of this COVID-19 induced downturn,” said Shannon. “This is an exceptional transit oriented site, in an opportunity zone, with short-term income that checked every box for capital, which is why buyer interest was so deep.”
Arden Hearing, Lendlease Americas Executive General Manager of West Coast Development, stated, “Lendlease has been a general contractor in LA for many years and we are now eager to expand our investment and development operations in this critical market”.
The site currently houses 1,144 self-storage units across approximately 86,897 rentable square feet, providing a steady in-place income stream to the buyer during development planning. The site’s existing zoning allows for a max floor to area ratio of 2:1 for a commercial development or 3:1 for a mixed use commercial and residential development, providing options for a flexible, multi-pronged development strategy.
Stumm added, “The site’s opportunity zone designation provides significant tax benefits in a location that is surrounded by game-changing new developments. We expect absorption to remain strong for both residential and office as the content creation behemoths continue to expand in this dynamic tech and media submarket.”
Premier tech and media tenants have flocked to Culver City in recent years due to its walkable amenities, new creative office supply and central westside location with nearby residential and additional office developments underway.
About Newmark Group, Inc. (NASDAQ: NMRK)
Newmark Group, Inc. is a world leader in commercial real estate services, with a comprehensive suite of investor/owner and occupier services and products. Our integrated platform seamlessly powers every phase of owning or occupying a property. Our services are tailored to every type of client, from owners to occupiers, investors to founders, growing startups to leading companies. Harnessing the power of data, technology and industry expertise, Newmark brings ingenuity to every exchange, and imagination to every space. Together with London-based partner Knight Frank and independently owned offices, our 18,800 professionals operate from approximately 500 offices around the world, delivering a global perspective and a nimble approach. In 2019, Newmark Group, Inc. generated revenues in excess of $2.2 billion. To learn more, visit nmrk.com or follow @newmark.
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Statements in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the effects of the COVID-19 pandemic on the Company’s business, results, financial position, liquidity and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark’s Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.