DivcoWest Expands LA Footprint With $92M Buy

5250 Lankershim Blvd.

DivcoWest has completed its acquisition of a Class A office property in North Hollywood for $92 million, documents filed with the Los Angeles County Recorder’s Office show. According to CommercialEdge, the 180,000-square-foot building was owned by J.H. Snyder Co., while JLL acts as leasing manager and broker.

The property traded at roughly $511 per square foot, 49 percent higher than the metro’s average, recorded in year-to-date office sales through July ($343 per square foot), the latest CommercialEdge report shows.

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The nine-story building is situated at 5250 Lankershim Blvd. in North Hollywood’s Arts District. Originally constructed in 2009, it offers floorplates of 20,000 square feet and includes a 1,000-square-foot retail component. Tenants include Kaiser Permanente, which operates a pharmacy in the building, and flexible office provider Regus. The latter offers 62 private offices, seven coworking desks and two meeting rooms in the building. The property is LEED Gold certified.

Lankershim Plaza is part of the larger mixed-use NoHo Commons development. The project is the result of a public-private partnership between GPI Cos. and the Community Redevelopment Agency of the City of Los Angeles. NoHo Commons also includes 60,000 square feet of retail, 278 loft apartments and 14 live/work units.

Growing footprint

With this latest acquisition, DivcoWest now owns more than 1 million square feet of office space across metro Los Angeles. The largest property under its ownership is the 592,000-square-foot Glendale Plaza in Glendale, Calif. According to CommercialEdge, DivcoWest acquired the property for $179 million from PGIM Real Estate in 2017.

Recently, the company invested in its Austin footprint, acquiring a 170,000-square-foot Class A property for an undisclosed amount. In May, DivcoWest also expanded in Manhattan with the $135 million purchase of 325 Hudson, a 220,000-square-foot office in Lower Manhattan’s Hudson Square neighborhood.