The Deal Sheet
SALES
Granite Properties bought 2600 W Olive, a 150k SF, 10-story office building in the Burbank Media District, from Legacy Partners Realty Fund I for $49M. The building is 87% leased. The deal reflects institutional capital's increasing desire to buy assets in markets driven by media and tech, according to CBRE's Kevin Shannon, who repped the seller with Tom Bohlinger, Ken White, and Mike Longo. This marks the team's second office sale in Burbank this year, following the close of 250 E Olive in April.
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Canyon Catalyst Fund, Canyon Capital Realty Advisors' emerging manager program, and its Bay Area-based partner Sack Properties bought two SoCal apartment properties: South Hills Apartments, an 85-unit townhome-style community in West Covina, and Parc Claremont, a 136-unit community in Upland. Both properties, which represent the partners' third and fourth investments together, will undergo significant renovations.
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Chambers Street Properties, a New Jersey-based REIT, bought 1 Rocket Rd in Hawthorne, the HQ of Elon Musk's Space Exploration Technologies Corp, from a Westport Properties affiliate for $47M. The purchase included an assumption of an existing loan. CBRE’s Barbara Emmons, Ken White, Scott Schumacher, Darla Longo, and Kevin Shannon represented the seller. The 461k SF industrial building includes 140k SF of three-story creative office and a high-bay 48’ clear area where SpaceX manufactures its signature Falcon-9 rockets and Dragon space capsules. The property is fully leased on a net lease basis through January 2023.
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Primestor bought a three-building, mixed-use redevelopment property in East LA from JB Realty and Barsky, Barsky, & Rickey LLC for $5.5M. The buildings are located at 4571-4591 Whittier Blvd, 760 S McBride Ave, and 755 S McDonnell, and were previously occupied by FAMSA. Wilson Commercial's Scott Burns, Jason Gribin, Shauna Mattis and Geoff Tranchina repped the seller. Primestor plans to invest significant capital to redevelop the property. The buildings include a 12k SF warehouse, a two-story industrial/apartment building, and a two-story, 26k SF retail building.
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Overton Moore Properties sold two new, state-of-the-art buildings at Don Julian Business Center in the City of Industry to private owner-users. A 40.5k SF warehouse/distribution building sold for $6M, and a 39k SF warehouse/manufacturing building sold for just under $6.2M. Both were built on spec and were in escrow before completion. Cushman & Wakefield's Erik Larson, Robin Dodson, Chris Tolles, and John Minervini repped OMP. Chris also repped one of the buyers.
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Venture One LLC, a 1031 exchange buyer, purchased a 12-unit apartment property in Valley Village (5056 Laurel Canyon Blvd) for just under $6.9M. Charles Dunn's Roger Beck and Gelena Skya-Wasserman repped the buyer, while KW Commercial's Peter Miller repped the seller, Laurel Heights LLC.
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Marcus & Millichap's Michael DiSimone, Ron Harris, and Paul Darrow sold 1719 N Wilton Pl, a 24-unit apartment building in Hollywood, for $3.4M or $353/SF. The property was built in 1960, and 25% of the units have been remodeled over the past year.
FINANCINGS
Meridian Capital Group arranged a $210M mortgage for the purchase of the Beverly Connection retail center on behalf of Ashkenazy Acquisition Corp. The 10-year CMBS loan features a fixed-rate and IO payments for the full-term. Ronnie Levine and Jeffrey Berkes in Meridian's NYC office negotiated the financing. The 335k SF center houses CityTarget, Nordstrom Rack, Marshalls, TJ Maxx, Ross and Old Navy, and Saks Off-Fifth is expected to open in summer 2015.
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Streit Lending closed two multifamily bridge loans totaling just under $1.7M. The first was a $1.2M second position cash-out loan against two cross-collateralized properties in Alhambra and Arcadia with a CLTV of about 65%. The second was a $480k first position purchase money loan against a property in the Baldwin Hills area. The buyer needed a quick close to facilitate a 1031 exchange.
DEVELOPMENT
Afton Property Investments bought a 10.4k SF parcel in Pasadena (170 N Halstead St) for $925k cash, with plans to develop a 24-unit apartment complex called Reposado. The TOD site is adjacent to a Gold Line stop and boasts a walk score of 75 (Very Walkable) from Walkscore.com. The units—a mix of studios plus one- and two-bedrooms—will be oversized with open floor plans. Designed by Onyx Architects, the project will include a landscaped rooftop lounge with views of the Sierra Madre Mountains, and incorporate solar power. Construction: Q1 2015.
EXECUTIVE NEWS
Oakwood Worldwide formed a new real estate investments team to acquire and develop Oakwood-branded and Oakwood Worldwide-managed multifamily properties throughout the US. The team includes VP of real estate investments Kristen Zimmerman, who rejoins the corporate housing company. During a previous stint beginning in 1996, she closed over $3B in transactions for Oakwood, including a $1.6B deal with Archstone-Smith in 2005. Also joining Oakwood: VP of acquisitions-East Coast John Hinkle, and West Coast acquisitions consultant Mike Jara, founder of Silverado Canyon Partners. Oakwood Worldwide recently formed a $4B JV with Singapore's Mapletree Group to expand Oakwood-branded serviced apartments both domestically and abroad.
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Former LA assistant city attorney Joseph Brajevich joined Glaser Weil as a partner in the Government & Regulatory Group, bringing expertise in the firm's growth areas of water, alternative energies and land development.
His public sector work includes serving as assistant general counsel for the DWP and counsel to the Port of LA. His private practice included representing the Alameda Corridor Transportation Authority.
