This Week's LA Deal Sheet
Forest City Realty Trust has begun the second phase of its redevelopment project at the Subway Terminal Building in Bunker Hill (417 South Hill St) downtown. We caught up with JLL’s Danielle Cornwell, left, who, along with JLL’s Lorena Tomb, is marketing the leasing of the retail space on Forest City’s behalf.
Danielle tells us the project is an example of how the now booming downtown is attracting residents and retailers. The reuse development will create 133k SF of retail space.
As part of the first phase of the project, which has been renamed Metro 417, 277 loft-style apartments were built.
"We are also seeing new restaurants and soft goods opening, which is driving other types of retailers to desire downtown LA,” Danielle says.
Forest City Realty Trust is committed to helping work toward the future growth of downtown LA, says James Cory, Forest City's SVP of West Coast retail leasing. In light of the new developments being built downtown, "preserving much of the amazing historic architecture is vital to this re-emergence," James tells us.
The property also has on-site parking, in-unit laundry facilities, a gym and a rooftop garden.
Colliers International has negotiated Meridian's purchase of the Cotton Medical Center, a 115k SF medical office complex in Pasadena near Huntington Memorial Hospital for $37.5M.
The 2.8-acre office complex consists of a four-story, 52k SF building (50 Bellefontaine St) and a five-story, 63k SF building plus an adjacent parking garage (50 Alessandro Place).
Colliers International Group SVP John Erickson (above with his family at Zuma Beach) and EVP Brent Weirick (below with his family in Cuba) repped Meridian. John tells us Meridian is bringing a fresh vision and the "financial capital to back up that vision to reposition this asset and make it competitive in today’s marketplace."
Kennedy Wilson’s Fred Cordova, Ryan Eddy and Michael Puleo along with Charles Dunn Co’s William Boyd, Linda Lee and Scott Unger repped the seller, which consisted of a group of doctors.
SALES
Bixby Land Co, in a JV with Cornerstone Real Estate Advisers, sold 2101, which is a 113.6k SF creative office building (2101 El Segundo Blvd) in El Segundo, for $49M ($431/SF) to Bolour Associates. Bixby invested $25M in acquiring and redeveloping the building in 2013. Sanrio, the Japanese company behind Hello Kitty, is one of the building’s tenants.
Charles Dunn Co completed the $3.9M sale of a 6k SF single-tenant, triple net leased property (10207 Balboa Blvd) occupied by Chase Bank in Northridge.
Kyle Gulock and Jason Cope repped the seller, Balboa Plaza Investments. The buyer was RBS Investments. The transaction closed at a cap rate of 4.7%.
Charles Dunn Co completed the $2.1M all-cash sale of a single-tenant, 9.3k SF property (5400 Sepulveda Blvd) occupied by Jack in the Box in Culver City. Escrow closed in 10 days. The restaurant has occupied the location for more than 50 years and was one of the first Jack in the Box franchises to open in the state.
Charles Dunn Co’s Justin Mendelson and Ashley Saye repped the seller, which was a partnership of two family trusts and two charitable organizations. Jack in the Box Inc exercised its right of first refusal after Charles Dunn sourced the original buyer.
Institutional Property Advisors, a division of Marcus & Millichap, sold the 391-unit Los Robles Apartments and Marlowe Apartments in Thousand Oaks for $126.5M. The cost added up to approximately $324k/unit.
Los Robles Apartments has around 220k net rentable SF in 32 buildings on 11.6 acres. There's also a clubhouse, a children’s play area, a spa and a heated swimming pool. The apartments are one- and two-bedrooms with finishes that include granite and marble countertops.
The Marlowe Apartments feature 28 buildings with 181.1k net rentable SF. It consists of one-, two-, three- and four-bedroom apartments, a clubhouse, a fitness center, two swimming pools and a children’s playground. IPA executive directors Greg Harris, Stan Jones and IPA senior directors Philip Saglimbeni and Salvatore Saglimbeni, along with IPA directors Kevin Green and Joseph Grabiec, repped the seller. The buyer is Decron Properties.
EXECUTIVE NEWS
David Mashian joined Coldwell Banker Commercial Alliance as a SVP specializing in Southern California Retail Investment Sales in Southern California. He is creating a team to work on the shopping center product line for private clients. He has more than 16 years of experience working in commercial real estate in brokerage as well as in the management and franchising of commercial real estate brokerage companies. David also teaches real estate principles at UC Irvine Extension and regularly gives speeches at events hosted by USC, CCIM, the Board of Realtors and other local organizations.
Richard Herschenfeld was named RKF’s Senior Managing Director of Investment Sales in the Southern California office. His responsibilities will include advancing the firm’s investment sales and advisory services in Southern California. He was previously the principal of his own real estate investment, development and construction company and was director at RBZ Real Estate Services. Richard is a licensed attorney as well as a licensed general contractor.
