This Week's LA Deal Sheet

Holland Partner Group, North America Sekisui House and Lowe have signed San Diego Association of Governments to a lease for 87K SF of offices at West, a $450M, 37-story mixed-use project under development at 1011 Union St. in downtown San Diego. The deal is the largest new office lease in downtown San Diego in the past seven years. West is the only speculative building in downtown San Diego to do any office pre-leasing in 20 years.

JLL’s Tony Russell and Richard Gonor represented Holland, NASH and Lowe, and they are leading the office leasing efforts at West. The property was designed by Carrier Johnson + Culture. Holland Construction served as the general contractor.

PEOPLE 

Berkadia hired Chris Tresp as director and Kenji Thomas as associate director to the investment sales platform. Tresp and Thomas will both be based out of Los Angeles and will report to Berkadia Senior Vice President and co-Head of Investment Sales and Production Operations Mike Miner.

Prior to joining Berkadia, Tresp was a vice president at CBRE for eight years. He also spent three years as a director at Newmark. At Berkadia, Tresp will specialize in multifamily investment and land sales as well as equity placements for SoCal ground-up development. 

Before joining Berkadia, Thomas held roles at Eastdil Secured, The Dinerstein Cos. and JPI. At Berkadia, Thomas will specialize in multifamily equity and land sales throughout Southern California, as well as portfolio sales and capital structuring for real estate transactions.

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Gantry hired Christine Kim as its chief marketing officer. Kim will be responsible for overseeing all aspects of Gantry’s new and existing client outreach, external communications, advertising and brand identity functions across the full spectrum of traditional and digital media platforms and event programming. Kim’s role is a new one for the company. She is the only C-suite-level woman at the company. Before Gantry, Kim worked as the creative director of marketing and corporate communications at Bellwether Enterprise Real Estate Capital. 

SALES

Colliers announced the sale of two off-market, fully leased single-tenant industrial assets in the Santa Clarita Valley for $38M to Rexford Industrial. 

Colliers represented both Rexford and the seller in the disposition of the two properties. Both properties are adjacent to three sites already in Rexford's portfolio.

Colliers brokers Matt Dierckman, David Harding, Greg Geraci and Billy Walk assisted Rexford in securing the targeted assets. The properties at 27712 and 27756 Avenue Mentry total approximately 221K SF on 9.1 acres.

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Staley Point Capital and Bain Capital Real Estate sold two industrial assets for $54M, or $339 per SF. The JV of Staley Point and Bain Capital acquired the two properties, 331 Cliffwood Park St. and 10907 Painter Ave., in separate transactions in 2021. Cliffwood is a fully leased, single-tenant warehouse in Brea. Painter is a newly renovated multitenant logistics facility in Santa Fe Springs. Together, Cliffwood and Painter total 160K SF.

LEASES

DivcoWest signed Hearst Media Production Group to a more than 10-year lease at 655 North Central, a Class-A building in Glendale. The lease for over 20K SF will allow HMPG to leave behind an older facility in Burbank and expand its West Coast operations. The company is expected to move in sometime in early 2024. 

The company is a business unit of Hearst Television and produces and distributes original programming for TV, broadcast, cable and streaming services. 655 North Central is a 549K SF LEED Platinum office tower renovated in 2018. 

CONSTRUCTION AND DEVELOPMENT

Related California and Weingart Center Association closed escrow on a 1.12-acre site in Downtown LA with plans to build a 302-unit permanent supportive housing project called 600 San Pedro. When complete, it will be the largest 100% permanent supportive housing development in the city of Los Angeles. 

Weingart Center Association secured full entitlements for the site in 2019 and will serve as managing general partner and service provider on the project. Related California will serve as the administrative general partner.

FINANCING

MDH Partners closed a new $80M fund provided by accounts managed by KKR. Called the Hubble Loan, it finances MDH’s recent acquisitions of the Knox Logistics Center and Harvill Logistics Center in the Inland Empire. Both buildings are less than five years old, 100% leased and located in Perris. The new financing also marks the first real estate credit transaction between MDH and KKR. Arun Singh led the process for MDH Partners. The closing of the Hubble Loan follows MDH Partners’ closing of the Discovery Loan Expansion in June and the Gemini Loan in July.