In Beverly Hills, where owner-users have driven office property sales for years, institutional capital is coming off the sidelines to close one of the priciest property deals in Los Angeles this year.
Kilroy Realty, one of the largest publicly traded real estate investment trusts in California, shelled out $205.3 million for a 290,000-square-foot office property at 345 N. Maple Drive in the upscale enclave known for gated communities and luxury retail. That works out to $707 per square foot and is double what the seller, Tishman Speyer, paid in 2005. Tenants at the half-empty building include the team behind the hit films “The Lincoln Lawyer” and “Crazy Rich Asians.”
The deal is the third major sale for New York City-based investment firm Tishman Speyer in Beverly Hills since last summer. In August 2024, the firm sold 407 N. Maple Drive to owner-user Fashion Nova for $119.7 million. That was followed by the $90 million sale of 9242 Beverly Blvd. in December to locally based hotel group Envision and investment firm Faring.
The big-ticket deals add to signs of an office market rebound for Beverly Hills. The neighborhood's office vacancy rate is down to nearly 15.5% from 18.5% a year ago; asking rents are up 1.3%; and sales volume has surged 50% in the past year.
The area is outperforming Los Angeles County, where the office vacancy rate is at a historic high of 16% and sales volume is up 38% in the past year, as tenants and investors target the nicest and newest offices across the nation when making deals.
“Our successful exit from this trio of Beverly Hills properties after two decades of stewardship is a testament ... to the market’s continued appetite for top-quality office environments in premier markets," said a statement from Tishman Speyer Senior Managing Director Ryan Botpajer.
The deal comes after years of private equity firms and owner-users driving dealmaking in the neighborhood, with private equity accounting for 60% of all Beverly Hills office deals in the past three years, owner-users accounting for 38% and institutional investors making up a meager 2%, according to CoStar data.
Boutique offices
Maple Plaza is the largest office property in Beverly Hills, a market in which buildings with small floor plates cater to boutique firms. The property offers flexible floor plates and a mix of amenities including a fitness center with yoga studio, electric vehicle charging stations and views of the Hollywood Hills. Its location near Santa Monica Boulevard and Rodeo Drive puts it within walking distance of dining and retail destinations.
The sale follows Tishman Speyer’s long-running strategy of buying, repositioning and selectively disposing of office buildings in supply-constrained submarkets. Each of the firm’s Beverly Hills exits delivered significant appreciation from their 2005 acquisition prices, Botjer said.
Tishman Speyer's remaining holdings in Southern California include such office campuses as The Brickyard and The Collective in Los Angeles. The company is also developing the Santa Monica Collection, a 600-unit residential project, and Bake Freeway Business Park, an industrial complex.
Kilroy Realty has been expanding its portfolio of West Coast office properties with a focus on creative and technology tenants. The Maple Plaza acquisition adds another trophy asset in a location with strong long-term fundamentals, Botjer said.
The firm believes that more employers will call workers back to the office in coming years and that its portfolio of 17 million square feet of offices is "uniquely positioned to capitalize on the West Coast office recovery that is well underway," said a statement from Kilroy Realty CEO Angela Aman.