This Week's LA Deal Sheet
The Mogharebi Group arranged the $31.3M sale of Citrus Court, a 138-unit apartment community at 8121 Broadway Ave. in Whittier.
The garden-style apartment complex has a 99-year ground lease with 41 years remaining, adding a challenge to the transaction, according to The Mogharebi Group Executive Vice President Otto Ozen, who advised the seller. Built in 1967, Citrus Court offers a mix of studio and one-, two- and three-bedroom units with an average size of 843 SF. Of the 138 units, 120 have been renovated.
SALES
JPMorgan Asset Management is closing in on the purchase of a Santa Monica office building that’s home to Activision Blizzard and healthcare company GoodRx, Commercial Observer reported. The sale price is reportedly $165.5M, or approximately $745 per SF. The seller is the California State Teachers’ Retirement System.
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Gelt Ventures has purchased Union Place, a 125-unit garden-style multifamily property at 1500 Cherry St. in Placentia for approximately $63.2M.
Berkadia Institutional Solutions Senior Director Mike Murphy and Senior Managing Director Rachel Parsons of Berkadia Irvine completed the sale on behalf of the seller. Senior Director Ben Harris of Berkadia Los Angeles secured roughly $38M in permanent acquisition financing on behalf of the buyer. The seven-year bridge loan was financed through Freddie Mac.
Built in 2012, the property has a mix of two- and three-bedroom units. The deal closed on Sept. 1, but public records do not yet reflect the sale.
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Pacific Industrial purchased 10 acres at 17969 Railroad St. in the City of Industry, adjacent to the 60 Freeway. The company plans to build a 215K SF speculative industrial facility it will call the Pacific Railroad Center. Pacific Industrial plans to break ground in 2024 and complete the project in 2025. Chris Bonney and Brad Gilmer with Lee & Associates will be the exclusive leasing agents for the project. Public records indicate the property traded hands for $44M. The seller was Reuland Electric Co.
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StarPoint Properties sold 6th Street Point, a new 179K SF industrial property on a 9.8-acre site at 24712 Sixth St. in San Bernardino. The buyer for the opportunity zone project was an undisclosed global institutional real estate firm. StarPoint bought the site in 2020 for $6.5M and sold it for $49.5M, so this sale represents a 242% return on investment. It is the firm's first OZ sale.
CONSTRUCTION AND DEVELOPMENT
Alloy Properties has completed the office-to-life sciences conversion of Elements, a three-building, 290K SF life science campus on 7.9 acres at 10201-10241 Wateridge Circle in San Diego’s Sorrento Mesa. JLL’s Tony Russell, Tim Olson and Chad Urie are overseeing leasing at Elements.
The property offers spec lab suites ranging from about 19K SF to about 63K SF. Elements can also accommodate an additional 170K SF build-to-suit opportunity.
CORRECTION, SEPT. 11, 4:19 P.M. PT: A previous version of this story incorrectly identified Gelt Ventures as the seller of 1500 Cherry St. and did not include the sale price. The story has been updated.
