CGS3 Negotiates Complex Leasehold Interest Sales of Brentwood Office Tower
FOR IMMEDIATE RELEASE
CGS3 NEGOTIATES COMPLEX LEASEHOLD INTEREST SALE
OF BRENTWOOD OFFICE TOWER
Brentwood Gateway Sells for $58 Million
LOS ANGELES (May 16, 2019) – Crosbie Gliner Schiffman Southard & Swanson LLP (CGS3) – representing the seller, Brentwood Gateway LLC, an affiliate of Vintage Capital Group – has negotiated the $58-million sale of a ground lease interest in Brentwood Gateway, a 10-story, 104,716 square-foot office tower located at 11611 San Vicente Blvd., in the Brentwood neighborhood of Los Angeles. The Class A tower – built in 1977 and located on a .88-acre site – was acquired by Sargossa LLC, an affiliate of Fortress Investment Group.
According to CGS3 partner David Alvarado, who handled the deal with CGS3 partner Eoin Gubbins, the transaction entailed a complex ground lease transfer, which involves the transfer of a lesser interest than a traditional fee transfer, a more permanent and absolute estate in land and the main type of land ownership. “This transaction involved a ground lease which provides a temporary estate in land that is defined and subject to the terms of the lease between the ground lessee – in this case our client – and fee owner. In this transaction, the seller held a ground lease interest with a substantial remaining lease term and very valuable leasehold rights,” he said.
Because there are strong remaining terms on the ground lease and it is located in one of Los Angeles’ most attractive submarkets, Brentwood Gateway was an appealing buy on many levels, Alvarado said. Additionally, he said, “this is a trophy property – and approximately 99% occupied by a diverse mix of tenants, including Buter, Buzard, Fishbien & Royce; Allison & Partners LLC; and Oaktree Capital Management.” Prior to the sale, Brentwood Gateway was the long-time headquarters of Vintage Capital Group, a real estate and private equity firm.
Newmark Knight Frank was the broker for the seller, the buyer was self-represented.
About Crosbie Gliner Schiffman Southard & Swanson LLP (CGS3)
Since its inception in 2013, CGS3 has quickly established a reputation as one of the leading real estate law firms in California, attracting some of the state’s finest real estate attorneys from both large corporate firms and senior in-house positions.
With practice areas including land use, finance, acquisition/disposition, entity formation, tax, development, land use, leasing, distressed assets and litigation/disputes, CGS3 is located at 12750 High Bluff Drive, Suite 250, San Diego, California 92130 and 10940 Wilshire Blvd., Suite 2200, Los Angeles, California 90024. For more information, visit http://www.cgs3.com.
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