Beverly Hills Office Trades at Over $1,000 PSF

130 north crescent drive

Cain Hoy Enterprises, a Greenwich, Connecticut private investment firm, shelled out $130 million for the 118,400 square-foot Class A office building at 100 N. Crescent Drive.  This price equals a whopping $1,101 per square foot.  The seller, New York’s Clarion Partners, purchased the building in 2012 from another private equity firm, Clarity Partners for $80 million, a 63 percent return in three years.

In April of 2000, Clarity Partners purchased the building from JP Morgan for  a measly $37 million or $313 per square foot.  Most forget that real estate values flat lined during the dot com boom.  Everyone wanted to buy internet stocks, not real estate.

JP Morgan, in turn, purchased the property in October 1995 from the original developer: Tracinda Corporation. Now deceased billionaire Kirk Kerkorian owned Tracinda  Corp and built the building in 1990 for his corporate headquarters at a cost of around $400 per square foot.  The selling price in 1995 was $21.6 Million or $183 per square foot Unfortunately, office prices plummeted during the early 1990 recession.

Prime Beverly Hills properties continue to appreciate, just not always in a straight line.

Source: Beverly Hills Office Trades at Premium Price | Los Angeles Business Journal

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