Pendulum Property Partners and Chicago-based Landrock snapped up a discounted 15-story office building in Glendale, The Real Deal has learned.

The partners paid about $56 million, or roughly $170 per square foot, to buy 505 North Brand Boulevard from Cruzan and Goldman Sachs Private Real Estate, according to sources with knowledge of the deal and a spokesperson for Newmark, which represented the sellers.

Cruzan and Goldman Sachs teamed up to purchase the 329,431-square-foot property through a joint venture for $93.5 million in 2018, according to property records filed in Los Angeles County. The partners secured a $82.1 million loan from Deutsche Bank the same day, county records show.

The joint venture then poured $14 million into renovating the building and adding amenities, according to the Newmark spokesperson. The building is 54 percent leased. 

It’s unclear why Cruzan and Goldman Sachs opted to let go of the property for a mere 60 percent of the price they paid for it six years ago. Deutsche was involved in the transfer, according to one of the sources with knowledge of the deal, who declined to comment further.

Spokespeople for Deutsche and Cruzan did not immediately respond to requests for comment. Goldman Sachs declined to comment.

Newmark’s Kevin Shannon arranged the deal for the seller, along with Ken White, Rob Hannan, Michael Moll, Laura Stumm, Kevin Donner, Ben Lushing and Alex Beaton, while Jonathan Firestone, Blake Thompson and Henry Cassiday handled alternative financing in the sale. Shannon and a spokesperson for Newmark declined to comment further.

Pendulum’s Daniel Wagman handled the deal for the Irvine-based office developer, and declined to comment. A spokesperson for Landrock did not immediately respond to a request for comment.

It wasn’t immediately clear how the partners financed the acquisition. 

Read more

• Pendulum swings Culver City office deal at $500 psf
• Cruzan sells Laguna Hills office complex for a loss
• Related, Cruzan refi Torrance office building

This article originally appeared on The Real Deal. Click here to read the full story.