This Week's LA Deal Sheet
Beating out multiple offers, Macland Investments purchased a 10,300 SF office building (5947-5951 Variel Ave) in the Warner Center/Woodland Hills area for nearly $4.7M or $470/SF. We caught up with Lee & Associates-LA North/Ventura managing director and principal Scott Romick, who repped the seller.
Scott (shown above with his daughter, Jordan, at the University of Colorado, Boulder) tells us only five office properties in the range of 6k to 12k SF have been sold in Warner Center over the past decade.
As a result, there was a great deal of interest in the property. “We had four offers in just the first few weeks of marketing,” Scott says. After Macland Investments, which operates gas stations, was chosen as the buyer, there was an “expedited close,” but other buyers continued to express an interest even during escrow, he says.
The interested parties were from a wide range of uses, including general office, entertainment production and medical, Scott tells us.
Macland Investments plans to use the building for administrative offices.
SALES
A multifamily building (467 S Bonnie Brae St) in Westlake sold for $3.77M. The non-rent-controlled, 18-unit apartment building was sold at $209,444/unit, reportedly the highest on record for the immediate neighborhood.
Transwestern’s SVPs Josh Kaplan and SVP John Swartz repped the buyer and seller in the transaction.
Stepp Commercial completed the $7.9M sale of a 55-unit apartment property (3627 West 104th St) in Inglewood in an off-market transaction. The building has 43 one-bedroom units and 12 two-bedroom units. The seller made improvements to the property. The buyer plans to hold the asset long-term.
Robert Stepp and Mark Witsken of Stepp Commercial repped the buyer, who is a private investor from Inglewood. NW Real Estate Brokers’ Matthew Pernice repped the seller, Ellis Brutman Jersey Properties.
The transaction closed at a 4.92% cap rate.
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NAI Capital sold Gloria Densmore Park, a 54,597 SF multi-tenant industrial business park in Van Nuys, for $8.78M or $160.87/SF. The property has four buildings (7730-7750 Gloria Ave and 7739-7751 Densmore Ave) with each unit ranging in size from 1k to nearly 4k SF, and was 100% leased at the time of the transaction. The property has three separate parcels, totaling around two acres.
NAI Capital repped the buyer, REX Investment. Camillus T. and Phyllis V. Decinces were the sellers. NAI Capital EVP and branch manager Yair Haimoff, who completed the sale, says the buyer paid more than the asking price.
Universe Holdings paid $5.82M for two apartment buildings (617 E 97th St and 822 Myrtle Ave, pictured above) near the future Inglewood NFL stadium and Hollywood Park.
The buildings have 27 units total with two- and three-bedroom floor plans.
Around $750k of interior and property improvements are planned.
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CBRE sold the Citibank building in Santa Monica for $6.25M to an affiliate of KLM Equities, a private real estate investor out of New York.
The 2,200 SF building (2301 Wilshire Blvd) was sold for more than $2,800/SF, making it one of the highest price-per-foot sales for a single-tenant bank branch in LA, according to the brokers.
CBRE’S Alex Kozakov and Patrick Wade repped both the seller, an undisclosed private developer based in West LA, and the buyer.
There were nearly a dozen all-cash offers for the property.
Stockdale Capital Partners bought medical office buildings in Beverly Hills (9090 Wilshire Blvd), pictured above, and Santa Monica (2825 Santa Monica Blvd). The Beverly Hills building is a Class-A 51,570 SF medical office.
The Santa Monica building (pictured above) is 54,930 SF and anchored by UCLA Health. The acquisitions were made as part of a $100M JV with a global alternative asset manager.
Eastdil Secured repped the seller of 9090 Wilshire Blvd. Madison Partners repped the seller of 2825 Santa Monica Blvd. Union Bank’s Nicholas Nouvel and Craig Dowd arranged the financing.
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LEASING
Digital Domain arranged a long-term lease extension for its 51,320 SF corporate headquarters (12641 Beatrice St) in Playa Vista. The visual effects studio has been there for nine years.
The property was converted from a warehouse to creative space and includes a performance capture studio.
Savills Studley’s SVP and branch manager Josh Gorin and associate director Marcus Arredondo repped Digital Domain.
GROUNDBREAKING
Meta Housing Corp broke ground on the Downtown Hayward Senior Apartments (808 A St), a new, mixed-use, 60-unit affordable housing development for seniors in Hayward.
The development will include around 6k SF of retail space. The one- and two-bedroom apartments are being developed in partnership with Community Home Builders and Associates.
Financing the project are Redstone Equity Partners; Enterprise Community Partners; Citibank; CalHFA; Federal Home Loan Bank of San Francisco; the State of California Department of Housing and Community Development; the Alameda County Housing and Community Development Department; the California Community Reinvestment Corp; and the California Tax Credit Allocation Committee.
Eugene Lee, California Department of Housing and Community Development; Hayward City Council Member Marvin Peixoto; Hayward Mayor Barbara Halliday; Richard Valley, Supervisor, Second District of Alameda County; Hayward City Council Member Al Mendall; Hayward City Council Member Sara Lamnin and Meta Housing SVP Aaron Mandel are pictured from left to right.
The property’s amenities will include a courtyard, a computer and multimedia room, a kitchen, a library and a fitness center.
EXECUTIVE NEWS
Jeanne Lazar has joined Westwood Financial Corp as CFO. Jeanne has more than 20 years in commercial real estate finance. She'll oversee all of the finance and accounting for the company.
She was previously VP and CFO at Topa Management and was MPG Office Trust's chief accounting officer.
