This Week's LA Deal Sheet
Wilshire Construction just sealed the deal on two multifamily construction projects. Bisnow caught up with Wilshire Construction CEO Joe Wathen to talk about the deals, which have been in the works for more than a year.
Wilshire Construction was awarded the construction contracts on the two mid-rise projects developed by Jamison Services.
Wilshire Construction will be the general contractor on the conversion of a 12-story, 195k SF office building (3350 Wilshire) into a 216-unit market-rate apartment complex under Los Angeles’ Adaptive Reuse Ordinance.
Joe says winning the contracts speaks volumes about Jamison’s confidence in Wilshire Construction to deliver the projects as promised.
The second contract is for a new 226-unit ground-up development (3060 Olympic Blvd) that will include 16,317 SF of ground-floor retail.
Wilshire Construction has a golden opportunity to demonstrate its abilities as a builder, Joe says. He is confident the contracts mark the beginning of a "long series of successful projects" between Wilshire Construction and Jamison Services.
The two developments are scheduled to be completed in Q1 2017.
SALES
Avison Young completed the $15.3M sale of Victory Studios, a TV production and broadcast center in Glendale. The 56,547 SF building is on 3.3 acres and has been occupied since 1994 by Telepictures Productions, a division of Warner Bros Entertainment Inc. Telepictures is best known for the production of The Ellen DeGeneres Show, Extra and TMZ.
Avison Young VP Andrew Berk and Avison Young principal Mark Evanoff repped the sellers, Victory Partners and Mason Trust. The buyer, Hileman Cowley Partners along with JV partner, San Diego's LLJ Ventures based, secured financing through Highland Realty Capital's Mike Guterman and Brad Sevier.
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The Garfield Apartments, a vintage 1920s apartment property consisting of 24 units in Hollywood (1722 Garfield Place) has traded for $5.45M, reflecting a cap rate of 3.8%, according to Warren Berzack, president of Berzack Investment Property Advisors, the multifamily specialty group of Lee & Associates-LA North/Ventura.
The seller renovated about half of the units. The old configuration had nine studio units, 11 one-bedroom, one-bath units, and four two-bedroom, one-bath units. The new configuration will have 15 one-bedroom, one-bath juniors and nine two-bedroom, one-bath units (including two with washers and dryers in them).
The renovation offered the opportunity to increase rental income by about 75% once all renovations were complete and the apartments turned over.
Warren and Lee principal Stephen Geiger repped the buyer and seller. Both the buyer and seller, a multifamily property owner who focuses on value-add opportunities, are private investors.
LEASING
The WME-The Wall Group signed a lease for 6,500 SF of office space at the Pacific Design Center’s Green Building. The Wall Group is a stylist agency business acquired by WME, or William Morris Endeavor, in July.
The WME-The Wall Group plans to move into the Green Building in Q2 of this year. Other new tenants also are moving in.
Dan Klores Communications is moving from Beverly Hills to a 4,705 SF space in the Green Building. Pro Tour Memorabilia, which markets sports gift and collector’s memorabilia, is moving from Chatsworth to a 7,250 SF space.
The Green Building has now leased more than 20k SF since the beginning of 2016.
JLL managing director Tony Morales repped the WME-The Wall Group. Cushman & Wakefield associate director Ryan Phillips repped Dan Klores Communications.
JLL managing director Josh Wroble repped Pro Tour Memorabilia. Marc Horowitz, Cohen Brothers Realty’s senior vice president/national director of leasing, and JLL managing director Josh Wroble repped Cohen Brothers Realty Corp.
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Insurance Auto Auctions (IAA) signed a 10-year lease renewal for more than $35M for a 35-acre parcel of land in Gardena (18300 Vermont Ave).
The Klabin Co senior managing principal David Prior, along with Klabin Co partners Todd Taugner and Frank Schulz, repped the landlord, Vermont Holding Co.
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SRS Real Estate Partners has launched the SRS National Net Lease Group, a new platform offering advisory services for investors of single-tenant and net lease retail properties nationwide.
Managing principals and co-founders Matthew Mousavi and Patrick Luther, formerly of Faris Lee Investments, will head a collaborative net lease platform with SRS’ investment sales professionals across the US. They will manage all of the marketing and transactions from the Newport Beach office.
Mousavi and Luther will also lead investment sales of all other retail property types in the Southern California market, including multi-tenant and portfolio sales.
NEW CONSTRUCTION
Bernards was awarded the construction contract for UDR Inc’s Pacific City multifamily residential complex, a 516-unit development (21002 Pacific Coast Hwy) in Huntington Beach. The project is under construction in the heart of the Pacific City area.
Each of the six buildings will have four stories with below-grade parking. There will be a 12k SF amenities center with a swimming pool, fitness center, entertainment room and meeting area. The custom roof system of metal panels on top of the amenities’ building will depict an ocean wave. A public park will be built as part of the project.
EXECUTIVE NEWS
Todd Tydlaska (pictured with his wife, Noelle, and their children) has rejoined CBRE Capital Markets as an EVP in the firm's El Segundo office. He will handle institutional office investment sales throughout the West Coast, focusing on the LA and Seattle markets.
Todd is expected to serve as co-leader of office sales in the LA area for CBRE with Sean Sullivan, who was previously a part of CBRE’s San Francisco investment sales team.
Michael J. Roberts joined Colliers International’s Institutional Investment Services Group, Western Region, as a managing director. Michael will represent institutional owners of office and R&D properties throughout the Western US.
Previously, he was a senior broker and director with Cushman & Wakefield’s Southern California Capital Markets Group, based in San Diego.
