This Week's LA Deal Sheet
Grubb Properties has plans to bring five new Link Apartments projects to LA, all in opportunity zones, that together will create more than 650 units of housing.
The projects are a 246-unit project at 1000 South Vermont Ave. in Koreatown, a 77-unit project at 950 South Berendo St., 70 units at 1353 Western Ave. in East Hollywood, 128 units and 5K SF of retail at 5240 Lankershim Blvd. in North Hollywood, and 151 apartments at 1200 Vine St.
Saiko Investments’ Fred Shaffer, Blackridge Ventures’ Matthew Stroyman and Randall Reel of Allied Urban are Grubb’s local development partners.
SALES
Airport Plaza, a 126K SF, multitenant office complex in Long Beach, has sold for $29M to LB5000 LLC. The two-building property at 5000 and 5001 Airport Plaza Drive is 100% leased to 19 tenants, including the Federal Aviation Administration, Advanced Medical Management and NACA Logistics.
Newmark co-head of U.S. Capital Markets Kevin Shanon, Executive Managing Director Ken White and Senior Managing Director Scott Schumacher represented the seller, WCCP Airport Plaza LB LLC.
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SRS Real Estate Partners' National Net Lease Group completed the $8.2M ground lease sale of a 4K SF single-tenant property occupied by Raising Cane’s Chicken Fingers at 1300 East Valley Blvd. in Alhambra. At a 3.75% cap rate, the sale broke a record for the lowest cap rate for a Raising Cane’s-occupied property sold in California this year. SRS NNLG’s Managing Principals Matthew Mousavi and Patrick Luther represented the seller, Los Angeles-based SBH Real Estate Group.
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A 48-unit apartment complex in Costa Mesa sold to an undisclosed private investor for $18.5M. CBRE’s Dan Blackwell, Mike O’Neill and Priscilla Nee represented the seller, an undisclosed local private investor. Blackwell and O’Neill represented the all-cash 1031 exchange buyer, also based in Orange County.
THIS AND THAT
Developer Gallery Homes is opening a 50-home neighborhood, Gallery at Miralon, in the Miralon master-planned development in Palm Springs. The houses at Gallery at Miralon measure up to 3.2K SF, each with a private courtyard entrance and a private pool. Sustainability features like solar panels are standard. The homes start in the $900K range.
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The Trust Building in Downtown LA locked in a new tenant: the José Andrés Group. The Trust Building will house offices for the group’s new media division and a new rooftop restaurant and bar by José Andrés in late 2023. The chef opened five new concepts in the Frank Gehry-designed The Grand nearby on Bunker Hill.
CONSTRUCTION AND DEVELOPMENT
Meta Housing broke ground on a 46-unit affordable housing development featuring a learning center, manager and social service offices, and street-level community center managed by a local nonprofit, Search to Involve Pilipino Americans. Units in the complex will serve households making 30% to 60% of the area median income.
FINANCING
Capital One provided two variable-rate Freddie Mac loans to Raintree Partners totaling $91M. The loans will be used to support investments in multifamily properties in Southern California, specifically, a $77.3M loan to refinance Colony Parc, a 272-unit community in Ventura and a $13.7M four-year coterminous supplemental loan for Hensley at Corona Pointe, a 628-unit complex in Corona, California.
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Gortikov Capital arranged a $141.4M recapitalization of the Samo Apartments Portfolio, an 11-property, 399-unit affordable multifamily portfolio in Santa Monica for WS Communities. The financing included a $127.6M senior loan and a $13.8M preferred equity investment.
CORRECTION, OCT. 17, 3 P.M. PT: A previous version of this story misstated the name of the brokerage involved in the Raising Cane's transaction. It is SRS Real Estate Partners' National Net Lease Group, not National Net Lease Group. The story has been updated. The story has also been updated with the names of the brokers from SRS on that deal.
