RENTV: Investment Venture Spends $12.5 Mil on LAX Office Building
An investment partnership consisting of Roxborough Fund I and The Ruth Group LLC has purchased a 15-story, 304.8k sf office building in Los Angeles for $12.5 mil ($41/sf). The building, located at 9841 Century Blvd in the Los Angeles International Airport (LAX) submarket, was 62% leased at the time of sale.
Century Boulevard has recently undergone a dramatic transformation as several competitive office buildings in the area have been converted into hotels, which has reduced office supply and improved the amenity base. In addition, an extension of the Metro Green Line is under construction, and the new station at the intersection of Century and Aviation boulevards, scheduled to open in 2019, is a short walk from the property. The completion of this station will be the first among many new public infrastructure projects in and around LAX, including a new rental car facility, an automated people mover connecting the airport with the metro line and a second green line station at 96th and Aviation.
The buyer intends to reposition the property. Plans include a complete rebranding, cosmetic upgrades to the exterior, a full renovation of the office lobby and entrance as well as improvements to the signage and landscaping. The repositioning is designed to transform the asset and take advantage of the lack of quality office space available in the submarket while offering rents at a discount to the neighboring submarkets.
9841 Airport marks the first acquisition for the partnership. Roxborough Fund I is an affiliate of San Francisco-based real estate investment firm The Roxborough Group LLC. The Ruth Group is a Los Angeles-based investment and management firm.