Newcastle Partners and Westport Capital Partners Pick Up 40k sf Building

Newcastle Partners and Westport Capital Partners have teamed up in the formation of a new joint venture for the acquisition of a two-story, 40k sf creative office building in Los Angeles. The asset, located at 5830 Rodeo Rd, just west of La Cienega Blvd at the edge of Culver City, was acquired from a commercial property user who has owned the building for approximately 30 years.

Although the deal price was not given out, pros we spoke with suggest the property traded for around $15 mil ($375/sf). From what we hear, the new ownership is planning a full-scale renovation of the property to the tune of around $5 mil.

After operating as an antique showroom and warehouse, the property is now vacant, allowing for an immediate value-add renovation to reposition it into creative office space. The asset is located just east of Culver City’s Hayden Tract, a submarket considered one of the hottest submarkets on Los Angeles’ Westside.

Josh Bernstein and Mike Geller with First Property Realty Corporation represented the seller in the transaction. The buyer handled its own negotiations. Bernstein and Geller have also been given the leasing assignment by the new ownership, with Shubin Donaldson and Del Amo Construction executing the property repositioning.

“Culver City has emerged as a transit-oriented, core submarket for tech, media, and entertainment users in West LA. 5830 Rodeo is within walking distance of the La Cienega Expo stop, which is significant for millennials as they become the dominant part of our professional workforce. This building has great bones for a creative office conversion and the large 20k sf, rectangular floor plates are right in the sweet spot for user demand,” said Brad Cummings, partner, Newcastle Partners.