Avison Young announced it has completed the $25 million sale of a 122,000-square-foot (sf) office/flex building located at 222 E. Huntington Drive in Monrovia, CA. The property sale marks two transaction records for the City of Monrovia – it is both the largest office building ever sold there, and the highest price paid for an office asset in the city (per CoStar).
Avison Young Principal Andrew Berk who is based in the firm’s north Los Angeles office represented the seller, Positive Investments. The undisclosed buyer will occupy a portion of the asset.
“Our Avison Young team has been responsible for leasing this high-quality asset for more than ten years and it has had a strong historical occupancy,” said Berk in a statement. “The ownership was ready to sell and despite the high interest rate environment and overall post-Covid office market struggles, we were able to secure a record-breaking sale price for 222 E. Huntington Drive. We successfully identified a strong owner-user that understood the long-term value of the asset and its ideal commuter-friendly location.”
Berk added, “Our client was elated with the successful transaction outcome as they understood that office assets are a challenge to market in most U.S. submarkets right now. In particular, the Los Angeles office market has struggled to recover to pre-pandemic levels as occupiers continue to re-evaluate office utilization, consolidate, or right size their footprints. Most owners/landlords here have had difficulties leasing up office space which has caused many to try and sell their asset in a tough capital markets and rising interest rate environment.”
According to Avison Young data, leasing across the Los Angeles market is down 35% from 2019 and as a result has significantly affected asset valuations. The average price per square foot is nearly 57% from its peak in 2019 at $237. This has made it a good time for well capitalized owner-user buyers to enter the market that are in search of a long-term investment as the office market and other asset classes continue to recover.
Built in 1988, the two-story multi-tenant building is situated on 5.7 acres. The asset offers a two-story glass atrium entryway, newly remodeled lobby, beautifully landscaped grounds, electric car charging stations, ample parking, and three roll-up loading doors. It also provides immediate access to the 210 freeway and is one-half mile to the Metro Gold Line.