This Week's LA Deal Sheet
Dedeaux Properties and its JV partner Basis Investment Group sold a roughly 233K SF Tejon Ranch warehouse off-market for $37.1M.
The buyer, an undisclosed clothing and textile distribution, is an owner-user that will relocate its operations from the Inland Empire to the property in Lebec, in the Tejon Ranch Commerce Center. The purchase price, $159 per SF, set a new high-water mark for the Tejon market. The building at 5665 Dennis McCarthy Drive has 36-foot clear height, 29 dock-high doors and parking for 90 trailers.
The project was Dedeaux’s first in Tejon Ranch.
PEOPLE
Kidder Mathews hired Calvin Lee as a senior vice president in Downtown LA. Prior to joining KM, Lee was with Marcus & Millichap, where he started his career in 1995. Since then, he has closed over $1B in transactions for multifamily, single-net retail and shopping centers.
***
Newmark promoted Nick DiPaolo to executive vice president and regional managing director for the Southwest market. In his new role, DiPaolo will oversee strategic operations and performance for the 11 offices and nearly 500 professionals across Southern California, Arizona and Nevada.
DiPaolo has spent 17 years in the industry. He was previously Newmark's market leader for Los Angeles, where he is based.
SALES
RealSource Group completed the sale of a single-tenant property occupied by Pilot Flying J Travel Center in Jurupa Valley for $14M. The transaction “set new records nationwide for both the highest sales price and price per SF for a Pilot ground lease,” according to a release from RealSource.
Pilot Flying J operated a nearly 16K SF truck stop and travel center including a fuel station on the 11-acre parcel at 11053 Riverside Drive in Jurupa Valley.
RealSource Group’s Senior Vice President of Investment Sales Austin Blodgett and Associate Jonathan Schiffer represented the Irvine-based seller, Greens Group. Blodgett and Schiffer also represented the buyer, a private investor from Irvine.
***
JLL Capital Markets arranged the $30.8M sale of a research and development and lab portfolio in San Diego’s Rancho Bernardo. The portfolio is two fully leased buildings at 16981 Via Tazon and 11501 Rancho Bernardo Blvd., which together contain about 90K SF of rentable space.
JLL worked on behalf of the seller, Montana Avenue Capital Partners, and procured the buyer, Dollinger Properties. The JLL Capital Markets team was led by Bob Prendergast and Lynn LaChapelle along with Tim Olson and Greg Moore.
***
Los Angeles Beautification Team sold its roughly 7K SF office building on an 18K SF lot in Hollywood for approximately $5.4M. The buyer was the nonprofit Big Sunday, which will use the building as its headquarters with a move-in scheduled for April.
JLL’s Nicole Mihalka and Cal Ross, along with the Kenny Stevens team at Compass, represented LABT.
Even though the price of the property exceeded $5M, the sale of 1741 N. Cherokee Ave. was not subject to the Measure ULA tax because of the seller’s nonprofit status, according to JLL, which announced the sale.
The building was designed by architects Gruen Associates. Ceiling heights reach 18 feet and it includes a 7K SF landscaped outdoor space.
***
Marcus & Millichap sold a 13-unit multifamily property in Tustin for just under $5.7M. The property at 15642 Pasadena Ave. featured mostly three-bedroom townhome units and had the potential for two ADUs.
The undisclosed seller is an LLC. The buyer, also an undisclosed LLC, was procured by Izzy Sanchez, first vice president of investments in Marcus & Millichap’s South Bay office.
FINANCING
A fund sponsored by CBRE Investment Management and its joint partner Hillwood Investment Properties secured an approximately $756M financing package for the first phase of construction on the Speedway Commerce Center in Fontana.
The Speedway Commerce Center is a planned multibuilding logistics project at 9300 Cherry Ave. It will contain buildings with 40-foot clear heights, cross-dock loading and more than 100 acres for excess trailer parking. The site is entitled for up to 6.6M SF.
Construction of the project is already underway, with the first two buildings expected to be complete in early 2025.
***
PGIM Real Estate provided $51M in floating-rate acquisition financing to BKM Capital Partners for the acquisition, renovation and lease-up costs of Canyon Industrial Center, an industrial park in central San Diego County. The financing came on behalf of PGIM’s core plus debt strategy.
Canyon Industrial Center is a nearly 200K SF, multitenant property across 13 buildings in Kearny Mesa. The property offers flexible warehouse and office space as well as ample parking.
***
The owner of the El Paseo Shopping Center in South Gate has locked in a $43M refinance of the retail center. CBRE's Bob Ybarra, Shaun Moothart, Bruce Francis, Doug Birrell, Nick Santangelo and Jim Korinek secured the five-year, full-term, interest-only, nonrecourse loan.
The borrower will use the loan to pay off an existing lender and fund tenant improvements.
The nearly 300K SF shopping center at 8634 Garfield Ave. counts Regal Edwards Theatres, Curacao, Planet Fitness, Starbucks, Union Bank, GNC, Panda Express, T-Mobile and Hooters among its tenants.
Sperry Equities advised and will manage the Property.
