Office project sells, landlord concessions helping

Holualoa Realty Advisors sold a 61,000-square-foot office building at 28720 Roadside Drive in Agoura Hills to Shamrock Plaza LP, according to a report.

The two-acre development cost $12 million.

Bruce Frasco, executive vice president with NAI Capital's Westlake Village office represented Holualoa along with Tom Specker of the commercial broker Lee & Associates.

Frasco, who also represented the buyer, Shamrock, said the building's tenants include legal, financial services and investment professionals.

Frasco said the sale was difficult to close due to problems obtaining financing on a $7million loan.

"It took several months to locate suitable and attractive financing in today's very difficult capital markets, however, in the end, favorable financing was placed on this project which should insure its longterm success," Frasco said.

"Banks that have been burned in the residential market are recognizing the stability of commercial real estate and offering buyers phenomenal deals," said Paul Farry, a broker for CB Richard Ellis.

Still, the local office picture remains in flux.

According to a CBRE midyear report, the vacancy rates for Ventura County office properties stood at 14.4 percent compared to 10.6 percent last year, an increase of 36 percent.

In recent years, rising construction costs and a shrinking amount of undeveloped land encouraged landlords to consistently raise rents without offering much in return.

But for the trend is changing as the office market slows.

Concessions now include rent reductions, large tenant improvement allowances and broker bonuses.