22 Aug 2019
Los Angeles, CA – Matthews Real Estate Investment Services™ has successfully executed the $70-million sale of Beverly Hills BMW, a 339,000 square-foot dealership located at 5070 & 5071 Wilshire Blvd in Los Angeles, CA. According to CoStar, the trophy asset broke records as the highest price ever reported for auto dealerships in Los Angeles. The Matthews™ deal team consisting of Market Leader Bill Pedersen, Executive Vice President and National Director of Multifamily David Harrington, and Chairman and CEO Kyle Matthews worked in tandem to represent the seller of this record-breaking deal.
Positioned in the heart of West Los Angeles on nearly four acres, the property features a 93,000 square-foot state-of-the-art car dealership with rooftop parking and a 246,000 square-foot used auto and repair facility. The tenant, Sonic Automotive, currently operates the dealership, has over 100 dealerships across 14 states and 25 major metropolitan areas and is an industry leader in automotive retail.
Both a net leased asset and a future development site, Beverly Hills BMW was a generational piece of real estate sold by a private family office that had owned the site for over half a century. The buyer of the Mid-Wilshire property is also a family office in Los Angeles who came in with an institutional capital partner. “Four acres on Wilshire Blvd with this much long-term opportunity is a unique find in today’s market. Therefore, it took a unique buyer who was able to afford the record setting pricing yet had capital that was patient enough to wait for the current lease to expire given there still is a material amount of term left on the lease. With our first-class marketing services, we received over two dozen qualified offers” said Market Leader Bill Pedersen. “Interested buyers included developers, family offices, hedge funds, high-net-worth individuals, public REITS and several foreign investor groups.”
A new transit line, the Purple Line, is in the process of being built and projected to be completed by 2027. A large portion of the $9-billion Purple Line will run beneath Wilshire Boulevard. The Purple Line extension will extend westward for nine miles adding seven new stations. The City is preparing the TNP, which proposes a variety of land use and zoning changes for areas surrounding the stations. The property’s parcels are forecast to be re-zoned to allow greater development. “This asset has significant redevelopment potential,” said National Director of Multifamily David Harrington. “The proposed up-zoning, due to the Purple Line extension, will provide a high-capacity, high-speed method of travel between downtown Los Angeles, the Miracle Mile, Beverly Hills, and Westwood.” In addition, both parcels already benefit from increased density allowance through the Transit Oriented Communities program currently in place.
The Matthews™ team was able to generate a massive amount of interest in the property for the seller with several interested groups separating themselves throughout the bid process. “We are proud to have executed on our assignment in creating a favorable situation for the seller by bringing a significant amount of offers from all different types of prospective buyers,” said Chairman and CEO Kyle Matthews. “Our goal was to provide the highest level of service to our client through our industry knowledge, real-time marketing execution and negotiation expertise. We were pleased to present this ownership opportunity to the local and national buyer communities and let them bid in a competitive environment that created a winning result for our seller.”
Matthews Real Estate Investment Services™ is recognized as an industry leader in Shopping Centers, STNL, Multifamily, Leasing, Management, Portfolio Disposition and 1031 Exchange programs. The firm is headquartered in El Segundo, CA and serves clients throughout the United States and Canada. For more information, please visit www.matthews.com