Worst may be over for commercial real estate
June 9, 2010
Prices aren’t exactly soaring, but after three years of declines investors are on the prowl again and prominent properties are sparking bidding wars.
By Roger Vincent | Los Angeles Times
After nearly three years of declines there are signs that Southern California’s beaten-down commercial real estate market has struck bottom — setting up the possibility of a rebound later this year.
In a sign of the easing, heavyweight investors armed with buckets of cash are on the prowl, looking to snap up office buildings, warehouses, shopping centers and apartments at the market’s low, industry observers say. The buyers are choosy, but the most desirable buildings elicit bidding wars when they come up for sale.
The auction earlier this year of Wilshire-Bundy Plaza, a prominent Brentwood office building, drew 40 bidders. The 14-story building will sell for $111 million to Santa Monica landlord Douglas Emmett Inc. if a Bankruptcy Court approves the deal, said real estate broker Bob Safai of Madison Partners.
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