This Week's LA Deal Sheet
Goldrich Kest is set to break ground later this year on a 129-unit apartment building along the Los Angeles River in Studio City. The five-story multifamily building will feature studios and one-, two- and three-bedroom apartments, 17 of which will be income-restricted, as well as a 145-car underground parking garage. Called The Crescent, the new building is designed by Lahmon Architects and expected to be complete in 2025.
PEOPLE
Kidder Mathews' Orange County office has added Carson Vo as a vice president. Vo brings over 20 years of experience in commercial real estate, specializing in investment sales, and he has served national businesses as well as local and international investors. Before his career in commercial real estate, Vo held Series 7 and Series 63 financial licenses as a proprietary trader managing hedge funds.
SALES
Newcastle Partners sold a roughly 97K SF industrial building on 4.7 acres at 16355-16381 Slover Ave. in Fontana. The industrial logistics center was sold for $37M to LBA Realty. CBRE and Colliers represented the sellers. Newcastle completed construction of the building in June 2023.
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Stos Partners sold a roughly 72K SF manufacturing property at 1311 Valencia Ave. in Tustin to KTI Hydraulics Inc. for $26.5M.
Stos Partners bought the property in December 2021 for $19.2M. Stos added a new roof, a parking lot, exterior painting, landscaping and interior improvements during its ownership period. Stos was represented by Nick Valasquez and Michael Hartel with Colliers along with CBRE’s Ross Bourne. Xavier Nolasco and Steve Wagner with JLL represented the buyer.
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DMI Real Estate sold a pair of newly renovated, stabilized retail shopping center assets in Orange County, with Cushman & Wakefield representing them on both sales. The sale of the La Palma Collection, a 24K SF retail center at 7811-7971 Valley View St. in La Palma closed this month. The sale of the 23K SF shopping center The Row on Harbor at 1450-1478 South Harbor Blvd. closed in April.
The properties sold to separate buyers for a combined value of approximately $25.5M. According to Cushman & Wakefield, the sale of the combined portfolio is the highest-priced portfolio for an unanchored retail shopping center in Orange County to trade this year so far.
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Providence Real Estate Group, a California-based commercial real estate company, sold three buildings in the Highland Business Center in Temecula to an undisclosed private buyer from Beverly Hills in a 1031 exchange for $13.55M. The buildings at 40880, 40935 and 40945 Country Center Drive together total about 68K SF and are fully leased to 24 tenants. CBRE Investment Properties’ Matt Pourcho and Matt Harris represented the seller in the transaction.
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CBRE arranged the $6.8M sale of a 17K SF retail building in Riverside County’s Banning, California. The buyer and seller were each local private investors, with the buyer completing a 1031 exchange. Built in 2009, the single-tenant property at 806 West Ramsey St. is home to a Rite Aid, which has a double-net lease. David McNevin, Melissa Ley Marshall and Ian Schroeder of CBRE’s net lease property group in Newport Beach represented the seller.
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CBRE closed the sale of a 12-unit, mixed-use property and a street-facing retail building in Costa Mesa to a local private investor for $3.2M. The sale price translates to $425 per SF. CBRE Executive Vice President Dan Blackwell and First Vice President Mike O’Neill represented the seller, a private Orange County-based partnership. Blackwell and O’Neill also represented the buyer, an Orange County-based private investor.
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Stepp Commercial Group completed the $2.65M sale of an eight-unit multifamily property at 1206 Gladys Ave. in Long Beach. The building was constructed in 1986.
Robert Stepp, John Alden and Mark Witsken of Stepp Commercial Group represented the Los Angeles-based seller, a private investor. Larry Bustamonte of Stepp Commercial Group represented the buyer, a Long Beach-based private investor. The per-unit price was $331,250.
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CBRE represented the seller in the sale of a four-unit multifamily property at 224 South Oak St. in Orange for approximately $1.6M, or 99% of the list price, and $462 per SF. CBRE Executive Vice President Dan Blackwell, Vice President Sean Farag and associate Amanda Fielder represented the Orange County-based 1031 exchange seller. The buyer was undisclosed.
LEASES
Verve Talent & Literary Agency will relocate its global headquarters to 53K SF in Lincoln Property Co.’s BA/SE, a Class-A office campus in the Hollywood Media District. Verve anticipates moving into its office next month. Verve was represented by Jeff Pion of CBRE. Lincoln Property’s Kent Handleman and Douglas Brown represented the landlord.
FINANCING
Capital One provided Fannie Mae loans totaling $43M to refinance two multifamily properties owned by Southern California-based SC Development. The portfolio’s two properties are the 271-unit Streams and the 222-unit La Villita-La Costa, both in Fullerton.
Senior Vice Presidents of Agency Finance Greg Reed, Kristen Croxton and Tina Quirin originated the transactions, which closed in June. The separate 10-year, fixed-rate loans feature interest-only payments for their entire term. The new loans will replace two Capital One loans set to mature this year.
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JLL Capital Markets arranged the $16.7M construction take-out financing for The Hobart, a 39-unit, Class-A apartment building in Koreatown. JLL represented the borrower, Jannone Development, to secure the two-year, floating-rate loan.
Completed this year, the Hobart is a six-story rental building with one-, two- and three-bedroom floor plans ranging from 877 to 1,424 SF.
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BWE originated a $10M construction loan for the ground-up development of a 733-unit self-storage facility in Lancaster. The 80K SF facility will have both drive-up and climate-controlled units.
Arash Kouhi, vice president in BWE's Phoenix office, originated the loan from a credit union on behalf of Frontera Real Estate Investments. The loan has a 15-year term with three years of interest-only payments.
