This Week's LA Deal Sheet
WeWork is walking away from nearly 152K SF at three locations in Hollywood, Santa Monica and West Hollywood.
The coworking giant is giving up its space at 7083 Hollywood Blvd. in Hollywood, 520 Broadway in Santa Monica and 925 North La Brea Ave. in West Hollywood, CoStar reported.
In July, WeWork also reversed course at the Wilshire Courtyard, giving up roughly half of the 335K SF it had leased in the summer of 2019.
Early in the coronavirus pandemic, WeWork acknowledged withholding April and May rent payments from some of its landlords. Some of its tenants were doing the same to WeWork in response to what they characterized as little flexibility on rent deferrals and other concessions during a time of widespread economic distress.
WeWork CEO Sandeep Mathrani said this month that the company was “completely on track” to be profitable by the end of 2021.
FINANCING
George Smith Partners principal and Managing Director Malcolm Davies and his team at GSP secured an $83M senior bridge loan for a mixed-use community with 250 multifamily units and 6.6K SF of ground-floor retail in the San Fernando Valley. The loan provides funds for construction completion, which is anticipated in early 2021, and allows for an extended pre-stabilization lease-up period.
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Private investment firm Tri-Freeway Business secured a $21M recapitalization for its Tri-Freeway Business Park, a roughly 209K SF industrial park in Anaheim. CBRE Capital Markets’ Shaun Moothart, Bruce Francis, Dana Summers, Bob Ybarra and Doug Birrell arranged the seven-year loan on behalf of Tri-Freeway Business. The financing provided cash-out at excellent pricing with a forward rate lock commitment, CBRE said.
SALES
Hackman Capital Partners and Square Mile Capital Management acquired the Sony Pictures Animation campus in Culver City. The property at 9050 Washington Blvd. is right across the street from media hubs The Culver Steps and Culver Studios, which both companies also own. The price tag was $160M, Bloomberg reported.
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Park Plaza, a three-building medical office property in Redlands, has sold for $18.3M. The seller, Rancho Santa Margarita-based Cypress West Partners, was represented by CBRE U.S. Healthcare and Life Sciences Capital Markets’ Chris Bodnar, Lee Asher, Ryan Lindsley and Jordan Selbiger, as well as CBRE’s Anthony DeLorenzo, Gary Stache, Sammy Cemo and Doug Mack. The property was 99% leased to Loma Linda University Health at the time of sale.
PEOPLE
Construction company Suffolk has hired Karri Novak as vice president of project development in the West. Novak’s hiring was a move by Suffolk to strengthen the firm’s position in the rising higher-education sector. Novak will be responsible for leading growth strategies, business acquisition, project design development, project oversight and client relationship management.
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Global architecture, planning and engineering firm Stantec has hired Adam Maleitzke as an urban design and planning lead. Maleitzke will work from the firm’s Downtown LA office and lead the expansion of Urban Places, the firm’s interdisciplinary team of urban planning, design, mobility and resilience experts, in the LA region and on the West Coast.
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NewMark Merrill Cos. promoted Brent Sherman to regional property manager. Sherman will oversee 2M SF of shopping centers in LA County, including Crenshaw Imperial Plaza, SouthBay Pavilion Mall, Devonshire Reseda Shopping Center and Norwalk Town Square. Sherman has been involved with many of the company’s large redevelopments, including shopping centers in Thousand Oaks, Baldwin Park and Inglewood.
CORRECTION, FEB. 1, 11:45 A.M. PT: A previous version of this story used an incorrect image of the project GSP arranged financing for. The image has been updated.
