This Week's LA Deal Sheet
The Olive Hill Group sold the 13-story Foreman & Clark Building at 404 W 7th St in DTLA to a Canadian investor, Bonnis Properties, for $52.5M. We caught up with some of the brokers involved to get details on the deal.
Sklar Kirsh was the legal counsel for the seller. Given the revival of DTLA and the general real estate market, the seller felt it was a good time to sell, says founding partner Andrew Kirsh (pictured with his daughter, Clementine, at Dodger Stadium).
There was domestic and international interest in the building, Andrew tells us.
"It’s just emblematic of the market that we’re in, particularly in the micro-market of downtown in the historic area of Hill Street," Andrew says.
CBRE’s Phillip Sample, Chris Caras and Michael Shustak repped the seller.
Phillip tells Bisnow there were more than 100 parties interested in buying the building, which the seller had owned since 2008.
Avison Young principal Derrick Moore (above) repped the buyer, Bonnis Properties. He says the buyer saw a great opportunity to be a part of a healthy market poised for future expansion in the next few years.
The building had sat vacant for a few years after Dr. Kyung Ku Cho, who originally owned it, planned to renovate the first couple of levels and make it into a jewelry showroom. Those plans did not come to fruition due to the shrinking market, according to Philip.
While the buyer has not yet announced its exact plans for the building, it will likely become a residential property, according to Derrick.
SALES
California Landmark Group bought two mid-century apartment buildings in Highland Park for $7.5M.
Highland Cove (200 S Avenue 59) is a 28-unit apartment complex that includes one- and two-bedroom units with on-site laundry facilities and a swimming pool. The Eagle Rock property (4319 Toland Way) has 17 units, which each have washer/dryer hookups. The buyer plans to reposition the properties to cater to young professionals.
The two buildings are three miles from each other in the Arroyo Seco neighborhoods of Eagle Rock and Highland Park. They were acquired from a private investor who owned the properties for decades.
Marcus and Millichap’s Barry Gordon and Justin Forman repped both the buyer and seller.
Sperry Van Ness sold Echo Park Villas (1416 Echo Park Ave) to Echo Park TPIII LLC for $7.2M.
The 10 Mediterranean-inspired buildings have 32 units totaling 17,740 SF on a 16,418 SF corner lot.
Sperry Van Ness' Brian Heller, Dan Baird and Michael Chang repped the buyer. Coldwell Banker Commercial's Vince and Melina Kalachian repped the seller.
Avison Young sold a vacant 26k SF auto dealership in the Palmdale Auto Center for $2.23M. The buyer plans to use the site for a new dealership, Rally Hyundai. It is scheduled to open in Q3 of this year.
Avison Young principal Jodi V. Meade repped the seller, Charman 25 LLC, and the buyer, Rally Auto Group.
FINANCING
The Northridge Business Park II, a 150,972 SF industrial property at 19737-19755 Nordhoff Place, 19734-19747 Dearborn St and 9255 Corbin Ave in Chatsworth, was refinanced for $8.5M.
The deal was structured with a 15-year term and 25-year amortization schedule.
NorthMarq Capital managing directors Michael Elmore and Ory Schwartz arranged the financing for the borrower, Watt Cos, through its correspondent relationship with Voya Investment Management.
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Mansfield Equities closed several bridge loans and a construction loan for its clients on the West Coast. The first was a $13M bridge loan to GDA Real Estate to buy a 110k SF shopping center in Cincinnati. The loan was 75% of the purchase price.
A $7.5M construction loan was provided to Tahiti Partners to build a 32k SF office building in Desert Hot Springs. The loan was 72% of the cost.
Mansfield Equities also provided a $14.5M loan to Royal Spring LLC to refinance a 225-bed nursing home in Las Vegas.
LEASING
The Ratkovich Co announced a new slate of leases that added up to nearly 200k SF at The Alhambra, a 45-acre mixed-use campus in Alhambra (1000 S Fremont Ave).
Eastern Los Angeles Regional Center for the Developmentally Disabled (ELARC), an existing tenant, is increasing its total lease space from just under 32k SF to just over 100k SF, making ELARC the second-largest tenant at The Alhambra.
The Alhambra’s largest tenant, the County of Los Angeles, extended its 148,447 SF lease through 2020 and will continue to house the Department of Public Health, Health Services, Auditor/Controller, Internal Services and the Department of Public Works.
AHMC Healthcare also renewed its 16,676 SF through 2020. The hospital will continue to serve more than 200,000 patients annually.
The American College of Commerce & Technology is now in 6,630 SF to house its faculty, students and classrooms.
