StarPoint Properties, a real estate investment and operating company known for delivering above-market returns by acquiring and repositioning undervalued properties, has purchased a 12-story Beverly Hills office building from its original owner for $193 million.
Bob Safai of Madison Partners handled the sale as the listing broker.
The purchase of 433 N. Camden Drive is a rarity for the Beverly Hills submarket, where extremely low vacancy rates and high average rents among only 16 Class A office properties produce few ownership changes in “The Golden Triangle.”
Built in 1972, the building has been a long-time focal point – literally – for StarPoint Properties CEO Paul Daneshrad.
Often referred to as the “Wells Fargo Building,” a result of the banking tenant’s rooftop signage, the building is a prominent part of the view from Daneshrad’s office at StarPoint’s nearby headquarters. It served as his daily reminder that the property meets every aspect of StarPoint’s stringent investment philosophy.
“To say I’ve had my eye on this property is more than a figure of speech,” said Daneshrad, who takes an economist-like approach to assessing every potential deal. “For years, I’ve had a visual reminder of the enormous potential value of the building’s size and high-demand luxury location. I’ve also understood the long-term investment needed to reach that potential. Our plans will truly transform the property and create a fresh experience for both tenants and the public.”
Founded in 1995, StarPoint applies a proprietary vetting process to the identification and evaluation of every potential acquisition. As a result, the company’s current $800-million portfolio comprises properties that were acquired and repositioned to produce an average annualized return of about 39 percent.
It was StarPoint’s careful evaluation of key property and economic indicators – not the view from Daneshrad’s window – that drove StarPoint’s efforts to purchase and reposition the property. The 207,432-square-foot building hasn’t been renovated in 15 years and falls 25-percent below the market’s average rent of $48.24 per square foot – presenting a once-in-a-lifetime opportunity for StarPoint.
“StarPoint will modernize indoor and outdoor spaces, update existing office spaces and provide amenities that match its premiere location at the western edge of Rodeo Drive’s legendary shopping experience,” said Daneshrad. “The property will become a profit engine the helps StarPoint and our tenants achieve a bottom line that is commensurate with the world-class location.”
Though specific redesign plans are not yet finalized, StarPoint’s initial plans include transforming a 6,500-square-foot deck on the fourth floor to a world-class, open-air lobby that emphasizes natural light and features sculpture gardens and an improved façade.
Tenant profits and customer convenience will continue to be supported by heavy pedestrian traffic and nearly 500 parking spaces on the third floor and three underground levels. The upgrades will also support tenants’ business and hiring goals while transforming the property into a full-service retail and office destination that brings average rents in line with its location.
It will also bring a more satisfying view to Daneshrad’s office window.
About StarPoint Properties:
StarPoint Properties is a real estate investment and operating company focused on the acquisition, development and redevelopment of undervalued commercial properties in high-growth sub-markets throughout the United States. Since its inception in 1995, StarPoint has acquired more than $1 billion in commercial and multifamily real estate. It operates a portfolio valued at more than $800 million. For more information, visit www.starpointproperties.com.