Newmark Knight Frank (NKF) has completed the $21.56 million sale of a 158,885-square-foot office campus located at 225 W. Hillcrest Drive in Thousand Oaks. The asset, which is 74 percent leased to Bank of America until December 2020, will soon be vacant.
NKF’s Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Directors Ken White and Rob Hannan, and Senior Managing Director Laura Stumm, along with NKF Private Capital Group’s Executive Managing Director Sean Fulp, Managing Director Ryan Plummer and Director Mark Schuessler, represented the seller, a venture between Colony Capital, Inc. and SteelWave. The buyer, TriStar Realty Group, was represented by CBRE’s First Vice President, John LaSpada.
“This asset presents value-add capital and the unique opportunity to reposition the entire building,” said Stumm. “225 W. Hillcrest Drive’s underutilized 14.7-acre site provides the investor with significant optionality to enhance parking and the site overall, at a relatively attractive price per square foot.”
Built in 1983 and renovated in 2007, the Class A, five-story property was originally built for Exxon’s regional corporate headquarters. The building features flexible floorplates ranging in size from 20,000 to 48,000 square feet, a courtyard and ample parking. It is less than a mile from three primary retail centers-The Oaks Mall, Janss Marketplace and The Lakes at Thousand Oaks.
The new ownership, which has over 30 years of experience in ground-up medical, build-to-suit and retail development, is planning to extensively renovate the campus to appeal to medical office users.
“What makes this project so appealing is its ability to accommodate large medical occupiers which are continuing to seek bigger blocks of contiguous space in this market,” said Daniel Kashani, CEO of TriStar Realty Group. “We plan to invest significant capital into creating a modern medical campus that will elevate the level of services for the entire Conejo Valley.”
According to NKF’s 2019 4Q Greater Los Angeles Office Market report, the Conejo Valley office market ended the year with a vacancy rate of 10.7 percent and no new construction projects. Additionally, since 2012, the Conejo Valley has absorbed more than 2.5 million square feet of inventory.
About Newmark Knight Frank
Newmark Knight Frank (“NKF”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, NKF’s 18,000 professionals operate from approximately 480 offices on six continents. NKF’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
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