This Week's LA Deal Sheet
Entertainment mogul David Geffen has sold the ritzy Malibu Beach Inn along Billionaire's Row for $80M, or $1.7M/room. Madison Partners president Bob Safai repped David and the buyer, and says the trade is the highest per room valuation for a hotel in California, or any hotel outside of Florida, New York or Hawaii.
Bob tells us this off-market transaction involved two clients he's had for 20 years. In fact, he sold the 47-room hotel to David in 2005 for about $29M. The studio exec and philanthropist had no intention of selling, but Bob created a marketplace for the property by bringing an offer from Simon and Daniel Mani, who were in a 1031 exchange. Bob, who does 10 to 15 off-market deals per year, previously repped David in the sale of 407 N Maple Dr, a 160k SF office building in Beverly Hills that he owned with Dr. Bernard Salick.
The hotel is on Malibu's Carbon Beach, home to the likes of David and Oracle's Larry Ellison. After purchasing the Malibu Beach Inn a decade ago, the DreamWorks co-founder made more than $10M in capital improvements. The property doesn't need much in the way of renovations, Bob says. However, he notes, the Mani Brothers always add value, as they did with 9200 Sunset (Luckman Plaza) in West Hollywood, putting BOA Steakhouse on the ground level and Soho House, a private members' club, in the penthouse. "I'm sure they're going to enhance the property and put their own Mani Brothers touch to it."
SALES
A JV of GPI Cos and KBS Strategic Opportunity REIT sold Cahuenga Media Tower, a six-story multi-tenant office building, for $16.4M. The building (1635 N Cahuenga Blvd) contains more than 34k SF feet, including a commercial film screening room, recording studio, and a 7,331 SF penthouse with unobstructed views of Hollywood. CBRE's Kevin Shannon, Scott Schumacher, Michael Longo and Ken White brokered the deal on behalf of the JV.
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Carmen Apartments, a 128-unit, garden-style complex in Santa Maria, traded hands for more than $15.6M or $122k/unit. The property was built in 1976 and consists of seven two-story buildings on five acres.
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CT Realty sold the first of four Class-A industrial buildings in Magnolia Point, a 528k SF redevelopment project in Corona, for $15.3M. Hair products manufacturer Developlus bought the 146k SF building (1575 Magnolia Ave), relocating from elsewhere in Corona. The new building features 8,680 SF of office space along with 32-foot clear height and 18 dock-high doors. Lee & Associates' Jeff Ruscigno and CBRE's Ben Seybold repped CT Realty, which acquired the fully entitled, 26-acre site in April 2013. Walter Frome repped Developlus.
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Prologis bought the 168k SF Sugar Foods building, 9545 San Fernando Rd and 9500 El Dorado Ave in Sun Valley. The building is on 7.7 acres and is 100% leased to Sugar Foods Corp, which has occupied the building for more than 30 years. CBRE's Darla Longo, Barbara Emmons and Rebecca Perlmutter Finkel repped the buyer and the private seller, with local support from colleagues Greg Geraci and David Harding.
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Tony Azzi and Rabbie Banafsheha of Azzi Advisors, an affiliate of Marcus & Millichap, closed the sale of 1944 Whitley Ave in Hollywood for $8.5M. Built in 1964, the 33-unit property in historic Whitley Heights boasts views of the Hollywood sign and was recently updated, including a new rooftop, elevator and copper plumbing.
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Winstar Properties bought 851 S Kenmore Ave, a 33-unit apartment property in LA's Koreatown, for just over $3M or $91.6k/unit. Marcus & Millichap's Ron Harris, Michael DiSimone and Paul Darrow repped the seller, a private investor, as well as the buyer. The property was built in 1939 and consists of 29 studio units, three one-bedroom units and one two-bedroom unit.
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Access Commercial Properties bought a 14.5k SF industrial property at 7660 Gloria Ave in Van Nuys from Mirada Associates LLC. CBRE repped both sides: Billy Walk for the seller and Mike Bogle for the buyer.
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NAI Capital's Rob Zaharia and Tim Steuernol brokered the $3.5M sale of two adjacent apartment buildings totaling 42 units in Lake Elsinore (16459 and 16465 Joy St).
LEASES
Rockwood Capital and Marshall Property & Development signed a pair of leases totaling more than 51k SF at Campus 2100, their newly renovated creative office campus in El Segundo. Online ad firm Wpromote inked a 7.5-year lease for 34k-plus SF in a relocation and expansion of its corporate HQ. JLL's Steve Solomon and Eric Adams repped the tenant. Meanwhile, Cherryman Industries' HQ will occupy over 17k SF in a 10-year lease. Newmark Grubb Knight Frank's Wes Honeycutt and Matt Moore repped the furniture manufacturer. Cushman & Wakefield's Tom Sheets and Chris Sinfield repped the ownership in the deals, which bring occupancy at the 200k SF campus to 50%.
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ADCO Products Inc signed an industrial lease for more than 52k SF in Valencia (27615 Avenue Hopkins). CBRE's Matt Dierckman repped the tenant as well as landlord LLB Valencia LP.
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In a full-floor deal valued at nearly $2.8M, Wasserman Grossman & Sloan signed a five-year renewal with Douglas Emmett at the One Westwood office tower in LA (10990 Wilshire Blvd). The business management and accounting firm will continue to occupy the entire eighth floor, measuring more than 12k SF. Madison Partners' Mitchell Stokes repped the tenant. The landlord was represented in-house by Rob Zaas.
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GBC Spider USA LLC leased nearly 36k SF of industrial space at 12723 Wentworth St in Arleta. CBRE's David Harding, Greg Geraci and Billy Walk repped landlord Golden State Business Parks. JLL's Nigel Stout repped the tenant.
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Hollywood Sound Systems signed a 15k SF industrial lease in Burbank Industrial Park (4209 Vanowen Pl). CBRE's David Harding and Greg Geraci repped the landlord, while Hollywood Commercial Realty's Joseph D'Amore repped the tenant.
CONSTRUCTION/DEVELOPMENT
LA City Councilman Mike Bonin and Mayor Eric Garcetti (second and third from left) helped usher in Cinemark Holdings' new high-tech movie theater complex: the nine-screen, all-digital Cinemark Playa Vista and XD theater. The multiplex (12746 W Jefferson Blvd) is the first element to open at Runway at Playa Vista, a mixed-use center developed by Lincoln Property Co, Phoenix Property Co and Paragon Commercial Group. Features include wall-to-wall and floor-to-ceiling screens, enhanced sound systems with multiple audio formats, and a satellite system for broadcasting movie premieres and events such as product launches—a perk aimed at Silicon Beach's tech firms and ad agencies.
Cinemark's answer to IMAX, the 480-seat XD auditorium boasts a 70-foot-high screen (above, dwarfing Cinemark marketing and communications head James Meredith) and more than 60 speakers. Cinemark Playa Vista also offers the plush Reserve Level that includes premium seating and leather recliners, and a lounge equipped with a full bar, chef-designed food, and an outdoor terrace overlooking Runway.
