This Week's LA Deal Sheet
UBS Realty Investors sold a Beverly Hills medical office property for $74M. The five-story, approximately 50K SF Class-A office building at 9033 Wilshire Blvd. was thoroughly renovated in 2011 and is now anchored by USC's Keck Medical Center. The buyer was LaSalle Investment Management.
The building features a surgery center, a full-service pharmacy, valet parking and a rooftop deck. Direct vacancy in Beverly Hills has remained in the single digits since 2002, according to Newmark.
Newmark’s Co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Directors Rob Hannan and Ken White, and Senior Managing Director Laura Stumm represented the seller. Newmark Senior Managing Director Steven Salas assisted with the sale.
SALES
The Kanner Group of KW Commercial has brokered the sale of The Hollywood Regency Apartments, a 60-unit multifamily building at 1635-1639 North Martel Ave. in West Hollywood, for $21.3M, or $355K per unit.
Matthew Kanner represented the seller, an LA-based private partnership, and the buyer, Xenon Investment Corp. The complex has a mix of one- and two-bedroom units with an average unit size of 11K SF.
PEOPLE
Standard Cos. announced that Joe Ouellette has returned to the company as chief strategy officer, a new position in which he will guide the company’s growth and performance. Ouellette served as Standard’s first regional partner from 2015 to 2019, a period during which the company’s portfolio grew by over 30%.
LEASES
The Klabin Co./CORFAC International negotiated a multiyear lease for Landmark Global Inc. at a 125K SF building located at 14407 Alondra Blvd. in La Mirada. Klabin’s Tyler Rollema and Matt Stringfellow represented Landmark Global in the five-year lease, which is valued at almost $6.5M. The property owner, Link Logistics Real Estate, was represented by JLL’s Cameron Driscoll and Luke McDaniel.
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Activision Blizzard has vacated its 215K SF headquarters in Santa Monica. Activision was leasing space at Boston Properties’ 3100 and 3420 Ocean Park Blvd. in the Santa Monica Business Park but has vacated upon the expiration of its 10-year lease, Commercial Observer reports. The company is reportedly looking to remain in the Santa Monica area but has yet to finalize a new office location.
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DAUM Commercial Real Estate Services negotiated the lease of an 82K SF industrial warehouse and office property at 1100 Colorado Ave. in Santa Monica to an electric vehicle company. The total consideration of the lease is approximately $12M, according to DAUM Commercial Vice Chairman Michael Collins, who represented the lessor alongside DAUM Executive Vice President David Freitag.
CONSTRUCTION AND DEVELOPMENT
Renovations are underway at Larchmont Mercantile, a 14-storefront retail property in Larchmont Village’s shopping district. The overhaul, designed by Gensler, is slated to deliver this summer. Christina Real Estate Investors' second private equity real estate company purchased the 17K SF property at 124½-148 North Larchmont Blvd. in November 2018. CBRE’s Zachary Card and Erik Krasney are leading the leasing and tenant curation.
FINANCING
Thorofare Capital Inc. closed a $21.5M construction loan for the development of a roughly 100K SF self-storage facility to be built on a 1.61-acre site at Woodley Avenue and Vanowen Street that is expected to be complete by May 2022.
