This Week's LA Deal Sheet
Long Beach seems to be hot these days. Patio Gardens, a 127-unit apartment community in Long Beach's Traffic Circle neighborhood, just sold for $35.3M. Bisnow caught up with Stepp Commercial principal Robert Stepp to find out more about Patio Gardens (and next week's Future of Long Beach event promises to bring you the latest on development in the area).
Robert (pictured above with his wife, Kimberly, on a recent trip to Venice) repped the buyer, Long Beach's Jaison Robinson, in a complicated 1031 exchange.
There were 13 offers to buy Patio Gardens. Robert tells Bisnow his client had eyed the property for years.
He says he's not surprised there was so much interest given that it's "an institutional-quality asset in the non-rent-controlled" Long Beach market that is "well-maintained, stabilized and a popular rental property."
The community, built 58 years ago, consists of 19 two-story buildings and is on nearly six acres on the Los Coyotes Diagonal.
Patio Gardens has two-bedroom apartments averaging 1k SF. About 80% of the units include outdoor patios or backyards.
Forty-eight units have one bathroom, while 79 have 1.5 bathrooms. The community has gardens, laundry facilities, a fitness center and parking garages.
Stepp Commercial also repped Jaison Robinson in the downleg of his 1031 exchange sale that consisted of the sale of 10 Long Beach apartment properties totaling 196 units, valued at approximately $34.7M.
Seller Patio Gardens LLC was repped by Marcus & Millichap's Gregory Harris.
To find out about other deals in Long Beach, come to Bisnow's Future of Long Beach event at 7:30am June 28 at Catalina Landing. Sign up here.
SALES
A 52-unit apartment building at 14639 Burbank Blvd in Sherman Oaks, known as Premier on Burbank, was sold to Venice's Wilco Holdings for $16.6M, or more than $319k/unit.
While 40 units have been recently renovated, the buyer plans to continue making upgrades to the remaining apartments.
Berkadia’s LA brokerage team of Vince Norris and Dean Zander repped the seller, an LA-based private investment firm to whom the brokers sold the building in 2012.
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Azzi Advisors of Marcus & Millichap sold 1233 North Orange Grove Ave in West Hollywood.
Orange Grove Lakers LLC bought the 10-unit multifamily building for $2,662,750.
Tony Azzi and Jordan Asheghian of Azzi Advisors repped the seller, S&F Property Investments. Jordan Goforth repped the buyer.
Charles Dunn Co sold a state-of-the-art production and entertainment facility and Class-A office complex at 101 West Cochran St in Simi Valley for $11M.
The property, on more than seven acres, consists of two floors of office, two studio production stages, post-production editing suites and warehouse space.
Charles Dunn Co executive managing director Dennis Slattery and senior managing director Stacy Vierheilig-Fraser repped the seller and previous user, the Adventist Media Center, which was owned and operated by the North American Division of Seventh-day Adventists.
The buyer, Kids from the Valley XIV, was repped by Keller Williams Realty Calabasas.
The buyer has formed Anjac Studios West to operate the new facility, which will continue to be used for production.
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CBRE Group sold a 153,080 SF industrial building at 12910 Mulberry Drive in Whittier to Indio Products for approximately $15M.
CBRE’s SVP Rick McGeagh and First VPs Josh Bonwell and Steve Young repped seller Rexford Industrial, a REIT focused on owning and operating industrial properties in Southern California infill markets.
Tony Naples from Lee & Associates repped the buyer, Indio Products, a manufacturer in Commerce.
The building, on about 7.6 acres, will serve as the company’s headquarters.
Westlake Village’s North Ranch Shopping Center, a 146,625 SF neighborhood shopping center in Westlake Village just sold for $122.8M to ROIC California LLC, part of the Retail Opportunity Investment Corp, a publicly traded REIT.
The center at 3815-3963 Thousand Oaks Blvd is anchored by Ralphs Fresh Fare, Rite Aid, Trader Joe’s and Petco.
Savills Studley’s National Retail Services Group EVP Bill Bauman and senior managing director Kyle Miller repped the seller.
Gelt bought Monterra Ridge, a 232-unit apartment community at 28085 Whites Canyon Road in Santa Clarita, for $45.5M.
Gelt partner Keith Wasserman tells Bisnow Gelt wants to expand its California portfolio, and the property is an asset of "substantial size and building quality that provides yields in place that meet our investment criteria."
It also offers "continued upside through renovations of interiors and common area amenities," Keith says.
Gelt plans to eventually renovate the majority of the interiors of the apartments by adding vinyl plank flooring, new cabinets and stainless steel appliances.
The leasing office and fitness center will go through an extensive remodel and a second dog park will be added.
The seller was FPA Multifamily, a private equity real estate firm.
LEASING
CBRE Group completed a five-year lease for Barrister Executive Suites, at 100 Wilshire in Santa Monica.
The deal marks the only executive-suite operator allowed on the property. The fully occupied building is reportedly among the most expensive in LA.
Guggenheim, Buckley Sandler, Eastdil Secured and Greene Broillet & Wheeler are some of the building's tenants.
CBRE VP Matt Perlmutter arranged the nearly 6,500 SF lease.
Cushman & Wakefield’s Scott Menkus and Eric Olofson repped the landlord, Douglas Emmett.
GRAND OPENING
Century West Partners has completed K2LA, transit-oriented apartments at the corner of Berendo Street and New Hampshire Avenue in Koreatown.
The community has three buildings totaling 476 units.
The units, which include micro-studios, studios, junior one-bedroom, one-bedroom and two-bedroom, are smart units and include electronic keyless entrances, Nuvo Streaming devices and Harman Kardon Revel in-wall or in-ceiling speakers.
The development has a bike-sharing program for residents, 24-hour concierge service, free WiFi, swimming pools, fitness centers and conference rooms.
EXECUTIVE NEWS
Paragon Commercial Group hired Brad Rable as its director of investments. He'll manage Paragon’s transaction velocity in Southern California and execute its value-add strategy across existing portfolio assets.
Previously, Brad was at CBRE, where he served as VP of its National Retail Investment Group-West.
