Southern California office and apartment values are still weaker than… (Lawrence K. Ho, Los Angeles…)
U.S. commercial real estate values are drifting sideways after a two-year rally, analysts said.
Prices for offices, warehouses, shopping centers and apartment buildings in major cities rebounded to within 10% of their historic highs before leveling out six months ago, according to Green Street Advisors Inc. of Newport Beach.
"I think people are used to values going up or down," analyst Peter Rothemund said, adding that it's not abnormal for prices to be flat.
Rothemund blames the stall on a tug of war between investors' desire to take advantage of low interest rates for buying real estate and their fear that the economy might falter and prevent them from making money on property.
With Europe's financial instability, "the world is perceived to be riskier," he said. "An economic outlook that is far more unsettled than usual is serving as an anchor."
The Green Street property price index peaked in 2007 and hit bottom in 2008. Its latest report includes December sales figures.
Southern California office and apartment values are still weaker than most other major markets, Rothemund said. San Francisco and other cities that are home to strong business sectors such as technology are doing better at leasing up offices and driving up rents.
Apartments in general are the strongest real estate sector, with values in most markets back to peak levels.
Firm buys Mattel design center
An El Segundo office building occupied by Mattel Inc.'s Global Design Center was sold to New York investment firm Angelo, Gordon & Co. for $45 million.
Angelo, Gordon bought the 192,053-square-foot building at 2031 E. Mariposa Ave. from Los Angeles real estate investment trust Kilroy Realty Corp., property brokerage Jones Lang LaSalle said.
The site near Sepulveda Boulevard and the Century Freeway consists of nearly 10 acres. It was constructed in the 1950s as a distribution building and includes a sizable loading area and space for parking and trailer storage, the brokerage said.
Mattel has occupied the property for more than 21 years and has a lease extending through 2026. Mattel's headquarters is in El Segundo, and the toy company occupies nearly 720,000 square feet in the area.
Angelo, Gordon outbid several other prospective buyers, according to broker Bob Prendergast of Jones Lang LaSalle.
Beauty 21 moves to Ontario
Beauty 21 Cosmetics Inc. will move its headquarters to Ontario with the $15-million purchase of a warehouse and office facility.
The company founded in 1985 in Rancho Cucamonga makes the L.A. Girl line of cosmetics that are sold in retail stores and online. Products include liquid makeup, blushes, eye shadow, nail polish and body glitters.
Beauty 21 Cosmetics bought the 231,000-square-foot distribution center at 2021 S. Archibald Ave. from a partnership between CT Realty Investors and Behringer Harvard, brokerage Jones Lang LaSalle said.
The property was formerly occupied by shoe manufacturer Skechers USA Inc., which has relocated to Moreno Valley. Beauty 21 has started moving its distribution operations into the facility and is expected to move its offices within a few months.
Archibald Business Center is near the junction of Interstate 15 and the 60 Freeway, about 35 miles east of Los Angeles, said James "Watty" Watson, chief executive of CT Realty Investors.