This Week's LA Deal Sheet
Sonnenblick-Eichner Co just arranged $38M of first mortgage leasehold financing for Marina del Rey Hotel. Bisnow caught up with Sonnenblick-Eichner Co principal Elliot Eichner to find out more.
The Marina del Rey Hotel is a 164-room, full-service boutique hotel on the water in Marina del Rey. It underwent a $28M renovation before reopening in January 2015.
Elliot (above) tells Bisnow while hotels have their challenges "we are seeing more conservative underwriting."
He says "there are are a lot of hotel loans coming due the balance of this year and 2017."
The three-story property has 6,291 SF of meeting space, SALT Restaurant & Bar, a heated infinity pool and spa, a sundeck on the marina, a business center and a 24-hour fitness center.
SALES
Arbor Realty Capital Advisors completed the sale of 888 Devon Ave in Westwood (Devon Avenue and Wilshire Boulevard) to a partnership led by Galvic Construction.
The partnership plans to develop the site to include 26 residential units in one mid-rise building while incorporating outdoor living space with green building techniques.
Construction is expected to begin early next year.
Arbor Realty Capital's managing partners Joshua Levy and Matthew Dobson repped the sellers, Hill Street Realty and Salem Partners, along with securing the buyer.
Stepp Commercial sold a 19-unit apartment property in Inglewood (816 Victor Ave) in an off-market deal for $3.08M.
The property was built in 1960 and has nine one-bedroom units, seven two-bedroom units, one three-bedroom unit and two studio units. The deal closed at a 4.08% cap rate.
Stepp Commercial principal Robert Stepp and VP Mark Witsken repped the buyer, a private investor from Inglewood.
NW Real Estate Brokers real estate agent Matt Pernice repped the seller, Lunar Bear Victor LLC.
LEASING
Weiss-Rohlig Logistics leased a 48k SF industrial building at Storm Business Park (1355 W Storm Pkwy) in Torrance, bringing the 40-acre development to full occupancy.
Consideration for the five-year lease is $2.3M.
The Klabin Co SVP Matt Stringfellow and SVP Courtney Bell repped Storm Properties, the landlord. Cushman & Wakefield’s Patrick Morgan and Jeff Morgan repped the tenant.
Storm Business Park has 500k SF in 12 buildings. It is owned by Storm Properties and L&B Realty Advisors. Murad also owns and occupies a 57k SF building on the property.
mOcean renewed its lease in West LA (2440 S Sepulveda Blvd). The agency occupies 28,312 SF in the two-story, 200k SF creative office building. The renewal will take effect in January.
The building was converted from a manufacturing facility to creative office space in the 1990s.
mOcean’s staff includes more than 140 editors, producers, writers, animators, graphic designers and support staff in its West LA and Burbank offices.
Savills Studley executive managing director John Bertram and SVP and branch manager Josh Gorin repped mOcean.
Harvey Capital Corp is the building's landlord and was repped in-house.
***
CBRE Group completed a 137k SF lease in North Hills (16689 Schoenborn St) to UPS.
The property is one of three buildings in the North Hills Industrial Park. The building is a mile from UPS’s main Van Nuys facility. The company plans to use the new space for overflow delivery traffic during its busiest months.
CBRE’s Greg Geraci, Dave Harding, Billy Walk and Matt Dierckman repped the landlord, Geringer Capital. The tenant was repped by JLL’s Mike Fowler.
***
Total Renal Care, the operators of DaVita Dialysis Centers, leased a full, 11,238 SF office building at Hillside Business Center (970 Enchanted Way) in Simi Valley for 120 months.
Total consideration for the deal is in excess of $3M.
Lee & Associates-LA North/Ventura principals Cory Richmond and Joe Jusko repped the landlord, Mid Valley Properties.
FINANCING
Love Funding announced the closing of a $6.17M refi for Imani Fe Apartments, a 92-unit low-income housing community.
Imani Fe was built in 2009 with federal low-income housing tax credits and financial support from the City of Los Angeles.
Love Funding senior director James Vanar secured the financing through the US Department of Housing and Urban Development’s Section 223(f) loan insurance program.
The loan proceeds will be used to pay off the existing debt, fund a replacement reserve and provide a permanent financing solution for the borrower. The term of the non-recourse, fixed-rate loan is 35 years.
EXECUTIVE NEWS
Nick Rittenhouse has joined CBRE Global Investors as a director in Investor Services. He will be responsible for raising capital, investor relationship management and development and investment program recommendations in the US and work out of the LA office.
Previously, Nick worked as a consultant for The Townsend Group, where he served for eight years. Nick attended the US Naval Academy and graduated cum laude from Bentley College.
