This Week's LA Deal Sheet
Hollywood is hot these days, and a recent sale on Melrose Avenue is further proof of the area's popularity. We chatted with CBRE VP Patrick Amos and associate Andrew Riley about the trade.
The two, along with CB's Rob Waller, repped seller DCP Management in trading a creative office building (5707 Melrose Ave) to Langdon Street Capital for about $674/SF, one of the highest prices for an office property in the area. The 10,300 SF property has been upgraded for post-production and creative office use. Langdon bought the single-story building for $7M in an all cash deal. CBRE’s Matthew Perlmutter repped the buyer.
The property never formally went on the market, according to Andrew, but the team hand-picked likely buyers, which led to a competitive bid process from the get-go, he tells Bisnow.
It also helped that there’s a shortage of stand-alone, bow truss, red brick, highly improved space available for purchase in Hollywood, Andrew says. The location also made the deal more attractive to the buyer since Hollywood is centrally located and is the live/work/play area for Millennials, Patrick tells us.
The building was formerly a production facility. Andrew says it will probably be leased by a similar operation, but the building could appeal to a broad array of users that want to be in Hollywood given the upgrades the buyer plans to make.
SALES
Shahalahi Family Trust sold a 6k SF building downtown (1137 West Sixth St) for $2.45M or $408/SF to Gomez & Associates. The building is across from the under-construction Sixth and Bixel project, which includes 25k SF of ground-floor retail. Colliers International associate VP Tim Dwight repped the buyer.
***
After receiving 16 cash offers, CBRE sold the Bank of America building in West LA for an undisclosed amount to a private real estate investor. The 13,296 SF building (11501 Santa Monica Blvd) is on nearly an acre of land. The transaction closed in less than 30 days at a cap rate below 2%. According to the brokers, it was the lowest cap rate recorded for a long-term, single-tenant lease in the county. CBRE’S Alex Kozakov, Patrick Wade and Fred Aframian repped the seller, Gramercy Property Trust, as well as the buyer.
Marcus & Millichap sold the Biarritz, a 22-unit, multifamily building (316 San Vicente Blvd) in Santa Monica for $13M, nearly $600k per unit. EVP of investments Ron Harris, VP of investments Paul Darrow and senior associate Michael DiSimone repped the seller, Coastline Capital Partners. They also sourced the buyer, who is a private investor. The Biarritz has one-, two- and three-bedroom units, a courtyard and an on-site laundry facility.
***
Sands Investment Group completed a net lease sale of two medical office buildings in Whitehall and Bethlehem, PA. One is the $4.4M sale of a 22,742 SF medical office in Bethlehem (2014 County Line Rd). The other building, a 10,170 SF medical office building anchored by Fresenius Medical Care (1320 Mickley Rd) is in Whitehall and was sold for $3.1M. Bryant Hoover of Sands Investment Group’s Santa Monica office repped the seller, a doctor. An East Coast institutional investment firm bought both buildings.
CONSTRUCTION
Terroir Capital and Mesa Lane Partners are developing the Inn at Mattei’s Tavern, a historic landmark, in Los Olivos in Santa Barbara County. The nearly seven-acre resort will have 64 bungalow-style suites and include a restaurant, a spa, an outdoor pool with a bar, a gym, 3k SF of indoor and outdoor special event space, and a boutique selling local food and artisan wares. The historic buildings currently on the property will be renovated, and Mattei’s Tavern Restaurant will be temporarily closed. Construction is expected to begin within a year.
LEASES
NRI USA signed a lease for a 70k SF building (1350 Brown Ave) in Riverside that's part of the Agua Mansa Business Center. Cushman & Wakefield brokers Tim Pimentel and Rusty Smith repped NRI Distribution. JLL’s Patrick Wood served as landlord representative for Brown Avenue Investors.
Transportation Insurance Brokers signed a 16k SF office lease renewal (425 W Broadway) for 5.5 years in Glendale for nearly $5.25M. It's relocating from the fourth floor to take up the majority of the third floor later this year. Charles Dunn Co’s Bill Boyd, Linda Lee and Scott Unger repped the landlord, 425 West Broadway LLC. NGKF's David Kluth repped the tenant. The building is a Class-A, four-story office building, totaling 72.6k SF.
EXECUTIVE NEWS
Rising Realty Partners SVP Marc Gittleman has been elected to the Board of Directors of BOMA International Greater Los Angeles Chapter. Marc leads Rising's Third Party Services, including property, construction and telecom. He regularly gives speeches about real estate innovation and is an active investor in commercial real estate. He's also CEO of 5x5 Telecom, co-chair of NAIOP's Trends in Real Estate Development Forum and on the IP Infrastructure Committee of Innovate Pasadena.
Sarah Schneider has been upped to national director of operations at Marcus & Millichap. She previously served as a human resources compliance/program manager. In her new position, she will work with the human resources, accounting, communications, information services and legal departments.
***
Stephen Passy was named VP at Stepp Commercial. He will oversee apartment sales transactions in Venice, Marina Del Rey, Playa Del Rey, Palms, Mar Vista and Culver City. Previously, Passy worked in the industrial auctioneering industry and was founder and CEO of Stephen Passy & Associates.
***
Newcastle Partners named Brad Cummings as a partner in its Santa Monica office. Cummings will be responsible for office, industrial and retail acquisitions and securing JV ground-up development investment opportunities. Cummings was senior director of acquisitions, developments and JVs for the West Coast in CBRE Global Investors’ Managed Accounts Group, where he closed investments totaling $2.5B.
Elkins Kalt Weintraub Reuben Gartside promoted Shai N. Halbe, Michael D. Schmitt and Matthew J. Mahan to partner. Shai handles purchase, sale and financing transactions involving leisure and hospitality properties, medical and senior living facilities, office complexes, retail centers and industrial buildings.
Michael practices in the area of commercial real estate transactions, including the leasing, acquisition, financing, development and disposition of various types of assets.
Matt oversees commercial real estate transactions, including lease, finance, acquisition and disposition, and construction-related matters.
