CBRE Negotiates Sale of Two Office Building in Southern California

CBRE recently facilitated the sale of two office buildings in Southern California. They include:

• 3536 Concours Street, an 80,160-sq.-ft.-office building north of Ontario International Airport in Ontario, Calif.
• 21680 Gateway Center Drive, an 80,753-sq.-ft. Class A, fully renovated corporate center in Diamond Bar, Calif.

Both buildings were acquired by private investors for an undisclosed price.

Michael Longo, Sean Sullivan, Todd Tydlaska, Grant Goldman, Sammy Cemo, Anthony DeLorenzo, Philip Woodford and Austin Reuland of CBRE, represented the seller 3536 Concours LLC—a partnership with Buchanan Street Partners—in the 1031 exchange transaction. This same team with the additional support from Mark Shaffer and Steven Saunders once again represented Buchanan Street Partners and facilitated the sale of Gateway Center Drive.

3536 Concours Street:

This three-story, multi-tenant office building was built in 2002 and sits on approximately 3.87 acres of land with 308 parking spaces. The office is located near two main roads, Haven and Concours, as well as easy access to Interstates 10 and 15. With the opening of the new retail center across the street, Concours Corporate Center has a walkability component that is rare of most Inland Empire office buildings.

According to CBRE Research in Q1 of 2024, Inland Empire boasts an office vacancy rate of 8.8%, the lowest of any major metro office markets in the nation.

“With all the negativity around office, this sale proves that there is still 1031 exchange money interested in buying office, and that capital is finding not only value in the Inland Empire, but buying into the security the IE has with the lowest office vacancy in the nation,” said Mr. Cemo, First Vice President at CBRE.


21680 Gateway Center Drive:

The building sits on a 13.35-acre campus with above-market surface parking and scenic valley views. Since its completion in 2000, the property has retained over 90% average historical occupancy. CBRE’s Mr. Woodford and Mr. Saunders handle the leasing for the building. The center is between two regional freeways, offering convenient access to business, residential and recreational opportunities throughout the San Gabriel Valley. The location benefits from a growing trend in tenants wanting to maintain a high corporate image with reduced commute times to the neighboring executive housing communities.

The San Gabriel Valley has markedly outperformed other Los Angeles County submarkets with strong absorption numbers and tightening vacancy rates.

“21680 Gateway Center stands out as maybe the best-in-class building for the entire San Gabriel Valley,” added Mr. Longo. “The building has continued outperforming the greater market, with current occupancy and a name brand tenant roster. The building received strong interest from investors during our marketing, which is not the case for most offices these days, demonstrating that the best of the best office has a strong future for both tenants and capital.”