This Week's LA Deal Sheet
NewMark Merrill Cos. has purchased an approximately 172K SF retail center, The Collection at Janss Marketplace, from Seritage Retail Group. The Collection was originally built as a multistory Sears department store. It was over 60% leased to Dave & Buster’s, DSW and Nordstrom Rack at the time of sale to NewMark Merrill.
The Collection is adjacent to the Janss Marketplace, a 458K SF shopping center that NewMark Merrill has managed and leased for more than 20 years.
The sale was overseen by Sandy Sigal, Jim Patton, Brad Pearl, Sandra Kist and Susan Rorison of NewMark Merrill. Seritage was represented by CBRE’s Phil Voorhees and Jimmy Slusher. Bryan Gortikov of Gortikov Capital secured financing for the deal with lender Prime Finance.
NewMark Merrill announced the sale but didn't disclose the sale price or a financing amount. Public records show NewMark Merrill paid $27.5M and received $17.3M in financing from Prime Finance for the transaction.
SALES
CBRE's Anthony DeLorenzo, Sammy Cemo, Bryan Johnson, Matt Pourcho and Nick Williams arranged the sale of 3 Hutton Centre Drive, a 10-story office building in Santa Ana, at an undisclosed price to an all-cash high net worth investor. The property was about 62% occupied by seven tenants at the time of sale. The tower was built in 1985 and underwent $3.5M in capital and tenant improvements in 2018, according to a release from CBRE.
Public records don't yet reflect the transaction, but neighboring properties were sold this year at a loss for their respective sellers.
***
Harbor Associates and joint venture partner Evergen Equity acquired a 126K SF off-market industrial real estate portfolio in Gardena from a local investor for $55M. The portfolio consists of four adjacent properties ranging from 17K SF to 45K SF at 690-760 West 190th St. The Gardena/Harbor industrial submarket has a vacancy rate of less than 1%, according to a release from Harbor Associates announcing the sale.
***
A joint venture between Clarion Partners and Dallas-based Baranof Holdings purchased South Pasadena Storage, a 677-unit self-storage facility in South Pasadena from Gelt Ventures. The six-building South Pasadena Storage is adjacent to the South Pasadena Metro Station. The sale price wasn't disclosed.
***
Harold’s House, a 20-unit multifamily property at 5525 Harold Way in Hollywood, sold for $4.2M. Kidder Mathews Executive Vice President Darin Beebower and First Vice President Mark Ventre represented the seller, Dunleer Group. The buyer was SPU Investment. The sale marked the highest price per SF in Hollywood in the last 12 months for multifamily properties at $611.
***
Progressive Real Estate Partners brokered the sale of a triple-net-leased Dollar Tree at 9008 Foothill Blvd. in Rancho Cucamonga. The nearly 17K SF building sold for just under $4.9M in an all-cash transaction. The property is part of a Chuze Fitness-anchored center.
Progressive Real Estate Partners President Brad Umansky, Senior Vice President of Investment Sales Greg Bedell and investment sales advisor Lance Mordachini exclusively marketed the property and represented the seller, Red Mountain Group. Katherine Quach and Wendy Wong of Treelane Realty Group represented the buyer, a private San Gabriel Valley-based investor.
***
CBRE negotiated the $3.85M sale of 148 North Mar Vista Ave., a five-unit multifamily community in Pasadena. CBRE Executive Vice President Eric Chen represented both the seller, a private investor, and the 1031 exchange buyer, an overseas investor, in the transaction. The two-story residences are three-bedroom, townhouse-style units averaging nearly 1,500 SF.
CONSTRUCTION AND DEVELOPMENT
Bridge Housing broke ground on a new phase of the Jordan Downs redevelopment in South LA. Phase 3B of this project will create 119 new apartments, 107 of which will be available to households making between 30% and 80% of the area median income. It will also consist of landscaped open spaces. KTGY Architects is designing the apartments.
FINANCING
Bandon Capital Advisors secured $20M for the refinancing of a 7-acre site with industrial outdoor storage and an approximately 27K SF industrial building in El Monte. Bandon Capital arranged the loan with a life company lender on behalf of a private investor.
CORRECTION, DEC. 6, 9:36 A.M. PT: A previous version of this story misstated the name of Bryan Gortikov's firm. The story has been updated.
