Shubin Nadal Realty Investors and DRA Advisors have sold an office campus in Northridge for $171 million — a roughly 30 percent discount from its listing price, The Real Deal has learned.
Pendulum Property Partners, an investment firm based in Orange County, bought the 761,000-square-foot The Mix at Harman campus at 8500 Balboa Boulevard for about $224 per square foot, according to a source familiar with the matter. Newmark, which brokered the deal, declined to comment.
Neither Pendulum nor Shubin Nadal responded to a request for comment.
Shubin Nadal and New York-based DRA bought the complex for $130 million in 2014, records show, and spent a further $30 million renovating the property, meaning the property sold at a roughly breakeven price for the investors.
The firms originally listed the property last year with a price tag of $250 million, or about $328 per square foot. But that was before interest rates soared and the City of L.A. enacted its new transfer tax — both of which have crushed office values in the city.
The deal closed before the transfer taxes — which will add 5.5 percent on sales over $10 million — went into effect on April 1, meaning the sellers saved about $9.4 million.
Facebook, now known as Meta, leased about 80,000 square feet at the office campus in 2017. The office campus is named after Samsung’s Harman International, the parent company of speaker manufacturers JBL and Harman Kardon, which is also a tenant at the property. Online listings for neighboring properties also say Amazon.com is a tenant at The Mix at Harman.
As of May, the property was about 26 percent vacant, online listings show. In the second quarter of last year, about 21 percent of all office space was vacant across the central San Fernando Valley market, according to Savills.
Source: The Real Deal