Auction Sale: A 292,540 SF Office Tower Sold for $77/SF
77.6% vacant at $22.48M at auction.
At a glance
recorded Aug 5, 2026
gross building SF
11 stories, steel frame
0.71 acres
built FAR
Class A, 4-star
What matters
- Auction sale, $22.48M, $76.84/SF.An 11-story, 292,540 SF office tower in San Pedro traded on August 5, 2026. The seller was Urban Stearns and Forbix Financial (recorded as Tower 222 SP LLC). The buyer is Sandalwood Management, Inc., a national private developer out of Texas.
- 77.6% vacant at close. The submarket vacancy runs 11.5% and the Beach Cities/Palos Verdes market sits at 16.6%.
- It traded far below replacement cost. This would cost over $500/SF to build today.
- The buyer used heavy leverage. A $19 million loan funded roughly 85% of the $22.48 million purchase price.
Deal stats
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.
I research these transactions to sharpen my own investment strategy and share what I find so Los Angeles owners, brokers and investors can debate the market with better information.
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Property and transaction data: CoStar Research.
Write to David Safai at David@AtlasBrief.La
Appeared in the Sept. 6, 2026 edition of The Tape.