This Week's LA Deal Sheet
Gantry secured a $91M construction loan for the development of a 386K SF spec industrial building called Gillespie Field iPark, near San Diego. The building will rise at 1756 Weld Blvd. in El Cajon and is slated for completion in Q2 2025.
The project will offer 30-foot to 32-foot clear height, 64 loading docks and land with 115 additional truck trailer stalls. The building is designed to achieve net zero emissions from its rooftop solar array and will offer charging stations for EV trucks.
Gantry principal George Mitsanas, Senior Director Peter Hillakas, Director Drit Shoemaker and Associate Austin Ridge represented the borrower, Chestnut Properties. The construction loan was provided by institutional debt fund 3650 REIT with terms including two extension options and non-recourse covenants.
PEOPLE
Kidder Mathews has hired Sean Sears as a vice president in the San Fernando Valley. Sears brings over 12 years of brokerage experience and specializes in industrial properties in Greater Los Angeles. Prior to joining Kidder Mathews, he was with Peak Commercial in Los Angeles.
Sears has brokered nearly 100 sales and closed deals totaling $337M.
SALES
Harbor Associates, in a joint venture with Taconic Capital Advisors, sold 451 E. Vanderbilt Way, a 116K SF, Class-A office building. It is the third and final transaction in a five-property, $69.9M office portfolio disposition in San Bernardino.
The joint venture acquired the 368K SF portfolio off-market in October 2019 for $41.7M. All five of the assets, ranging in size from 70K SF to 115K SF, are located in the Tri-City Corporate Centre, a 153-acre master-planned mixed-use office park with 1M SF of commercial office and 390K SF of retail space.
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Rockefeller Group sold Heritage Industrial Center, a three-building, 203K SF industrial project in Chula Vista, to EQT Exeter for an undisclosed price. The project sits on just over 11.5 acres. It was Rockefeller Group’s second development in south San Diego and the second transaction between Rockefeller Group and EQT Exeter in the past three months.
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CBRE Executive Vice President Eric Chen and Associate Justino Fa’aola represented both the buyer and seller in the $4.15M sale of 8202 Rosemead Blvd., a 14-unit multifamily property in Pico Rivera. The property was built in 1974 and features one- and two-bedroom floorplans. The transaction closed at a 3.98% cap rate on current rents, Chen said in a statement.
FINANCING
PSRS principal Dave Semmer arranged the $25M cash-out refinance of an industrial property in Paramount. The refinanced property is a 282K SF industrial property built in 1979 with 270 parking spaces. Financed with life insurance company execution, PSRS provided its borrower a non-recourse loan with a sub-6% rate. The term is an eight-year loan with a 25-year amortization.
THIS AND THAT
A new hotel, Sandbourne Santa Monica, will open in the spring of 2024. The hotel at 1740 Ocean Ave. holds 175 guest rooms and suites. The hotel has direct access to Santa Monica Beach and Third Street Promenade. The hotel was previously Le Merigot Beach House. It is unclear if operators and ownership have changed.
