Claus Dieckell, chairman at Milan Capital and the Atrium office building in La Mirada (Credit: CBRE)
Saunders Property Company sold an 84,000-square-foot office building in La Mirada, unloading the property through a 1031 exchange.
The buyer was investment firm Milan Capital Management. Anaheim-based Milan Capital bought the four-story Atrium offices for $13.6 million, according to the Los Angeles Business Journal. The property at 16700 Valley View is 90-percent leased to 24 tenants, according to CBRE, which represented the Newport Beach-based seller. Milan Capital represented itself, the Journal reported.
The deal was part of a 1031-exchange, in which investors can defer capital gains taxes by using funds from a sale to buy new property.
The La Mirada office submarket — known as Mid-Counties — has outperformed the overall region for the past decade, according to CBRE. Strong office demand and low supply in the area kept vacancy rates at 6 percent last year.
CBRE said it expects significant rent increases in that office market, with very little new construction, and growing demand from the surrounding industrial base.
In July, a 6,200- square-foot strip mall in La Mirada sold for $5.1 million; and earlier in the year, Bixby Land Company sold its property in the city for $17.4 million. [LABJ] — Gregory Cornfield