This Week's LA Deal Sheet
BLT Enterprises promoted Robert Solomon to president. Solomon has served as BLT’s chief development and legal officer since 2009. He has 30 years of experience as a commercial real estate and transactional attorney. In his new role, Solomon will spearhead BLT’s real estate investment initiatives.
BLT completed its largest disposition in 2022 with the sale of the former Technicolor headquarters, Television Center in Hollywood, to Bardas for an estimated $135M.
SALES
Publicly traded REIT Essex sold Anavia, a 250-unit apartment complex in the area of Anaheim known locally as the Platinum Triangle, for $160M. The buyer was Chapman University, which will use the property to meet its growing need for student housing. Berkadia Irvine Senior Managing Director Tom Moran completed the off-market sale, which closed in November.
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AdelFi Credit Union sold a four-building office and medical complex in Brea known as Imperial Mariner for $80M. The building at 915-975 West Imperial Highway and 950 Mariner St. is zoned to allow for more medical office at the site or for redevelopment into an industrial property. The buyer was Healthcare Property Advisors.
JLL Senior Director Blake Bokosky, Managing Director John Chun, Senior Managing Director Louis Tomaselli and analyst John Andreasen represented the seller and procured the buyer. JLL also advised HPA on a $44M acquisition loan with Farmers & Merchants Bank.
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Upside Investments sold a three-building portfolio of apartments in Northridge and Granada Hills for $55.5M. The buyer was LAApartments.biz, and Northmarq’s Los Angeles investment sales team of Vince Norris, Jim Fisher, Mike Smith, Mike Hanassab, Elliot Hassan and Steven Goldstein brokered the sale. The deal included the 90-unit Villa Verde Apartments and the 88-unit Zelzah Avenue Apartments in the Granada Hills area, as well as the 63-unit Northridge Pointe apartments. All three buildings were built between 1960 and 1964.
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The Ontario Airport Tower, a 148K SF Class-A office building in Ontario, sold for $39M. The six-story building at 2855 East Guasti Road was 89% leased at the time of sale. The buyer was MGR Real Estate. Newmark co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Directors Ken White, Brunson Howard and Paul Jones, and Senior Managing Director Michael Moore represented the private seller. Newmark Managing Director Brian Bowis secured financing for the buyer.
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A joint venture between a Washington Capital Management client and SSV Properties sold a 127K SF office and industrial property in Burbank for $37M. Montana Avenue Capital was the buyer of the property at 2777 North Ontario St. Newmark co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Directors Ken White and Rob Hannan, Senior Managing Director Laura Stumm and Associate Director Michael Kolcum represented the seller. Newmark Vice Chairman David Milestone and Senior Managing Director Brett Green arranged acquisition financing on behalf of the buyer.
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A Lawndale shopping center anchored by a Smart and Final supermarket sold for more than $14M. Other tenants include Subway, Wingstop, Panda Express, Daily Nails & Spa and Wells Fargo. Beta Agency represented the seller, a private entity based in San Pedro. The buyer was a private 1031 exchange entity based in LA. Beta Agency’s Richard Rizika and Vanessa Zhang represented the seller. The buyer was represented by Beta Agency’s Adam Friedlander and JLL’s Moon Lim.
LEASES
Apparel company Sunrise Brands has signed a lease for a 446K SF industrial building at the Tejon Ranch Commerce Center. The deal was announced by a JV between the Tejon Ranch Co. and Majestic Realty Co., which developed the facility. The building is scheduled to begin construction in the first quarter of 2023, with completion pegged for the first quarter of 2024. JLL’s Mike McCrary, Mac Hewett, Brent Weirick and Peter McWilliams were listing brokers for the transaction. Savills’ Mike Catalano and Joe Dimola represented Sunrise Brands. The terms of the lease weren't disclosed.
FINANCING
Pembrook Capital Management LLC provided a $23.7M construction loan for the development of a 53-unit apartment complex in Koreatown. Gramercy Apartments will bring 53 units to 856 South Gramercy Drive. Six of the units will be for very low-income tenants. The site is more than half an acre and is fully entitled and permitted.
