This Week's LA Deal Sheet
Leasing will kick off this month for the new Hollywood Proper Residences. Bisnow recently caught up with Proper Hospitality president and co-founder Brian DeLowe to get the scoop on what's available.
The 200 residences are in Hollywood's Columbia Square on the site of the historic CBS site. The overall cost of the project, which includes a shared infrastructure, is $390M.
Kilroy Realty Corp is developing The Hollywood Proper Residences with interior design by Kelly Wearstler Interior Design. The units offer a five-star experience, and Kilroy has brought brands, including Viacom and Neuehouse, to the neighborhood, according to Brian.
He tells us a valet, a rooftop bar and a fitness center are part of the package as well. The project's location is a huge advantage and will provide "an unrivaled, design-driven lifestyle experience in a collaborative work, live and play environment," Brian says.
Residents can take advantage of a “Proper Concierge,” which is available through the Proper app, Brian says.
Offerings include furnished and unfurnished one-bedroom units ranging from 753 SF to 1,053 SF; two-bedroom units from 1,204 SF to 1,402 SF with private balconies and terraces; and four penthouses from 2,172 to 2,582 SF.
Monthly rates will start at $3,500 for unfurnished units or $7k for furnished residences. Penthouses start at $22,500 per month.
Residents will be able to move in this June.
SALES
Marcus & Millichap affiliate Azzi Advisors sold a 19-unit rent-controlled apartment building (1216 North Crescent Heights) in West Hollywood for $6.5M. It has seven one-bedroom, one-bathroom units; eight two-bedroom, one-bathroom units; and four two-bedroom, one and a half bathroom units with dens.
This marks the first time the property has been put on the market. There were multiple offers. Christina Development Corp bought the family-owned property, closing at more than $340k/unit and $400/SF.
Azzi Advisors' Tony Azzi and Jordan Asheghian repped the buyer and the seller.
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Azzi Advisors also sold a nine-unit apartment (1326 South Saltair) for $2.87M at $25k over the asking price.
Azzi Advisors' Tony Azzi and Rabbie Banafsheha repped Casa Twenty Fifth LLC, an exchange buyer, and the seller.
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CBRE Group sold the Aaron Brothers building in downtown Santa Monica (1641 Lincoln Blvd) to a private real estate investor for $9.2M. There were more than a dozen offers for the property. The sales price reflected a cap rate below 3.65%.
The 9,940 SF building is on approximately 20,866 SF of land. Aaron Brothers has occupied the building since 1988. About four years remain on the lease.
CBRE’S Alex Kozakov and Patrick Wade repped the seller, USAA Real Estate, and the buyer, a private investor based in West LA.
Bridge Development Partners acquired 10 acres in Santa Fe Springs and is developing three spec buildings. Bridge Point Santa Fe Springs I, II and III are at the corner of Rosecrans and Maryton avenues. The buildings will feature 30-foot clear ceiling heights, 140-foot secured truck courts, 5k SF of mezzanine space and more than 120 parking stalls for each building.
Bridge Point Santa Fe Springs I totals 82,362 SF. Bridge Point Santa Fe Springs II totals 75,331 SF, and Bridge Point Santa Fe Springs III totals 74,038 SF. Herdman Rierson Architecture & Design is the architect. The structural engineer is Kramer Engineering, and the civil engineer is Thienes Engineering.
Colliers International's Chris Sheehan and Scott Heaton are repping the buildings, available for sale or lease.
LEASING
The founder and owner of The Original Farmers Market, the A.F. Gilmore Co, finalized a lease valued at approximately $15M with SPACES (145 S Fairfax Ave). The A.F. Gilmore Co bought the property in 2013 and recently renovated it.
FINANCING
Mesa West Capital funded $73.3M in floating-rate non-recourse loans secured by multifamily communities in Phoenix as part of two separate deals.
Mesa West provided a JV between Optima and DeBartolo Development with $49.8M in first mortgage debt to refinance Optima Sonoran Village in Old Town Scottsdale (above). The loan is secured by the 206-unit first phase of a planned three-phase, high-rise multifamily development.
The Class-A apartment community (6895 East Camelback Rd) includes granite countertops, stainless steel appliances, and in-unit washer and dryer. The property shares a 19k SF club with indoor basketball and racquetball courts, a fitness center, an indoor pool and a spa. There are two outdoor pools, putting greens, a picnic area and a dog park.
CBRE VP Jason Bressler originated the loan out of the firm’s LA office. CBRE's Rocco Mandala arranged the financing.
Mesa West also provided a JV led by Sunroad Enterprises with $23.5M in first mortgage debt to finance the acquisition of Sonoma Ridge Apartments (8201 W Beardsley Rd), a 240-unit community in Peoria, a Phoenix suburb. Mesa West’s five-year, floating-rate loan allowed Sunroad in San Diego, along with partners Security Properties and Loma Linda University, to acquire it.
EXECUTIVE NEWS
Houman Mahboubi has been named SVP at JLL. In his role, he will expand JLL's LA retail practice. Mahboubi has closed more than $100M of deals in the last five years as well as 5M SF of transactions.
He will be joined by associates Devin Klein, Greg Briest and Montrese Chandler, all based in the firm's Century City office.
Brian Niven has joined Bridge Development Partners as principal for cold storage. Brian will be responsible for the growth of the Bridge Cold Storage group across the nation. Brian was previously at J-Power USA Development Co, where he was responsible for project origination and development.
He also served as an active duty US Army Infantry officer and did tours in both Iraq and Afghanistan and was an intelligence analyst in the Reserves.
