This Week's LA Deal Sheet
Pacific Equity Properties Inc. has secured $130M of construction financing for its Cross Creek Ranch Malibu mixed-use development from Related Fund Management. The loan was sourced by LA-based investment and advisory firm Integrated Capital Management LLC. ICM also made “a sizable equity investment” in the project, according to a release announcing the deal.
The project is planned for a nearly 13-acre site near the retail hub of the wealthy coastal enclave. Nearby are the Malibu Country Mart and The Park at Cross Creek, a Whole Foods-anchored shopping center.
The 122K SF, Marmol Radziner-designed project will hold 70K SF of retail and restaurants and 42K SF of Class-A office space. The project site is located among the Malibu Country Mart and Malibu Village, and it will feature underground parking and an abundance of outdoor space — more than 80% of the property will be open space, including water features and “gathering places” for shoppers.
LEASES
The county of Los Angeles has renewed its leases for just under 118K SF of office space at the mixed-use The Alhambra, in the city of Alhambra, The Ratkovich Co. announced. Tenants whose leases were renewed include the Department of Public Works, the District Attorney and the Department of Public Health. The county has been a tenant at Ratkovich’s The Alhambra since 1999. CBRE Senior Vice President Damon Feldmeth represented The Alhambra in the deal.
SALES
Stepp Commercial announced the sale of The Flynn, a 37-unit apartment property in MacArthur Park. Stepp Commercial Executive Vice President Darin Beebower and Senior Vice President Mark Ventre represented the seller, a Los Angeles-based private investment firm, and the buyer, a Los Angeles-based investor. The sale price was $7.7M, or approximately $207K per unit.
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A 46.9K SF Class-A office building in Calabasas has sold for $12.7M, or $271 per SF. Built in 1997, the property sits within an office campus and has 157 parking spaces. The Lee & Associates-LA North/Ventura brokerage team, led by principal Jay Rubin and associate Eugene Kim, represented the seller, Crusader Insurance Co.
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CBRE announced the sale of a 32-unit multifamily property in Riverside to REF Investment for $5.44M, or $170K per unit. CBRE Senior Vice President Eric Chen and Senior Associate Blake Torgerson represented the sellers in the off-market transaction. As part of the transaction, the buyer sold two apartment buildings, one in San Gabriel and one in Ontario, to exchange into this property.
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The Torrance Technology Center in Torrance has sold to Frontline Holdings, a real estate operating company, for $10.65M. The roughly 38K SF industrial building at 2335 West 208th St. sits on more than 1.5 acres. The Klabin Co.’s Todd Taugner, Frank Schulz III, Mike Ouellette and Nick Buss represented the seller. Frontline Holdings has already secured a tenant for the property, according to The Klabin Co.
FINANCING
JLL arranged $81M in construction financing for Adams & Grand, a mid-rise multifamily building near USC, for the developer, Cityview. The structured loan was secured through commercial real estate finance company and debt fund manager ACORE Capital. Construction on the project, which is in an opportunity zone, is expected to begin immediately and wrap up in mid-2023.
CONSTRUCTION AND DEVELOPMENT
CT Realty and Clarion Partners broke ground on South Bay Logistics Center, a Class-A industrial facility, in Carson. The single-tenant, roughly 146K SF building at 333 West Gardena Blvd. will include 5.5K SF of office space. Construction is set to be complete in the fall. Newmark Managing Director Danny Williams, Executive Managing Director Barry Hill and Vice Chairman John McMillan are the listing agents for the project.
