ValueRock Realty Sells a STNL Bank of America in Hawthorne, CA for $11.125 million
IRVINE, Calif., December, 2022 –ValueRock Realty, one of the nation's leading real estate investment and operating companies has sold a 12,919-square-foot single tenant absolute triple net leased to Bank of America located on Hawthorne Blvd. in Hawthorne, CA.
Faris Lee Investments, represented ValueRock in the transaction. The buyer, the City of Hawthorne, was represented by Chris Beck with Newmark Knight Frank.
This investment presented a rare opportunity for the city to purchase a large parcel of 1.12 acres fronting City Hall for future use. With current rent at $0.51 per square foot per month, and renewals averaging at $5.15 per square foot per month, the potential FMV rent enables the City to achieve above-market returns until the city decides what to do with the property after the lease expires with Bank of America.
The city was an ideal buyer for the property as they saw the value in the underlying real estate and have a long-term investment time horizon and approval rights on the future use of the property.
Bank of America is located at 12547 Hawthorne Blvd. fronting City Hall and to the center of the town intersection of Hawthorne Blvd. and El Segundo Blvd. It is near large employers including SpaceX and Tesla design center. Bank of America has been at the location for over 70 years and proved its success as one of the highest deposits, $282 Million, of any Los Angeles County bank branch.
In addition, if the City doesn’t occupy the property in the future, then the large 1.12-acre parcel may be able to accommodate various uses such as drive-thru restaurants and high-density residential developments. The shortage of developable land for future housing needs in the trade area and the demand for such housing, especially affordable living units, added significant value to the underlying real estate.
About ValueRock Realty: ValueRock is one of the nation's leading real estate investment and operating companies. We seek to bring a strong, innovative entrepreneurial mindset to generate a positive impact and long-term value for our investors, assets, and communities. In operation for over 30 years, ValueRock brings a track record of over $30B in transactions in investment management, asset management, financing, development, leasing, and operations.