Newmark Executes $30.6 Million Sale of Office-to-Multifamily Conversion Project in South Bay’s Torrance Submarket

July 10, 2024 9:00 AM

Newmark[1] announces the sale of a 5.5-acre, multifamily redevelopment project located at 2325 Crenshaw Boulevard in Torrance, California. The property sold for $30.6 million in an off-market transaction.

Newmark Managing Director Anthony Muhlstein, Senior Managing Directors Chris Benton, Co-Head, U.S. Capital Markets Kevin Shannon, Vice Chairman Ken White and Senior Financial Analyst Gabe Munson represented the seller, Optimus Properties. The buyer was Rose Equities.

“The sale reflects an on-going trend of redeveloping antiquated office properties in target multifamily markets as demand shifts in the office sector,” said Muhlstein. “Underutilized and underimproved office buildings on large land parcels will continue to be evaluated for multifamily and retail redevelopment, with existing floor area ratio in comparison to the land, construction costs, political climate, retrofit requirements and government subsidies among key factors driving decisions.”

The property is currently operated as a single-tenant, 60,804-square-foot office building, which the buyer plans to convert to a 272-unit multifamily project with a 467-car parking garage.

“As urban areas like the South Bay become more densely populated and the demand for housing continues to rise, developers are seeking innovative solutions to meet the needs of city dwellers,” added Benton. “Converting underutilized office buildings into residential spaces is a viable strategy and is driven by a combination of factors, including shifts in work patterns due to remote and hybrid work, changing tenant preferences and the economic benefits of repurposing existing structures.”

About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the year ended December 31, 2023, Newmark generated revenues of approximately $2.5 billion. As of March 31, 2024, Newmark’s company-owned offices, together with its business partners, operate from approximately 170 offices with 7,600 professionals around the world. To learn more, visit nmrk.com or follow @newmark.

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[1] Dba Newmark Knight Frank in California