The Location
San Pedro sits at the southern end of Los Angeles, folded between the Port of Los Angeles and the Palos Verdes Peninsula.
What an Operator Sees
At $77/SF, the buyer acquired this building at a big discount of replacement cost. With such a low basis, the new owner can offer aggressive rents, attract tenants from competing buildings and make this work. That puts pressure on every nearby office owner with a much higher cost basis that could start losing tenants.