1801 K St

The Property, priced well below replacement cost, is in a premier location along Midtown’s K Street corridor, and features two-floors of modern office space, built for the single tenant, the Public Employment Relations Board (PERB), who has occupied the location since 1982, and has lease term through 2030*. Moody’s Investors Service gives the State of California a Aa2 bond rating, and Standard and Poor’s, a AA-, two very consistent and reliable ratings.

The Public Employment Relations Board is a quasi-judicial administrative agency charged with administering the collective bargaining statutes covering employees of California’s public schools, colleges, and universities, employees of the State of California, employees of California local public agencies (cities, counties and special districts), trial court employees, trial court interpreters, supervisory employees of the Los Angeles County Metropolitan Transportation Authority, Judicial Council employees, Orange County Transportation Authority employees, Bay Area Rapid Transit District (BART) employees, Sacramento Regional Transit District employees, Santa Cruz Metropolitan Transit District employees, Santa Clara Valley Transportation Authority employees, and child care providers who participate in a state-funded early care and education program.

The Property is being offered at $3,500,000, or $197 per leasable square foot, with income in place, representing a 7.45% Capitalization Rate (Cap Rate) on year one net operating income of $260,653, inclusive of proforma property taxes. The tenant has rent escalations of 3% every two years.

The Property features approximately 11 secured parking spaces, including an electric vehicle charging station.

At the last lease renewal, PERB spent $200,000 on updates to their space, to accommodate their occupancy, a strong sign they intend to remain at the building for the future.

The Property features a brand new TPO membrane roof, installed in 2023.

The Property is located near dozens of Midtown’s best amenities, including restaurants, cafes, bars and entertainment venues.

The Property presents a unique opportunity to own a long-term, fully-leased investment, in the heart of midtown, with a great location that cannot be replicated.
*Tenant has termination right in their lease, however has occupied the specially built out space for decades and has not expressed interest to move.