The LA Deal Sheet

A major hotel in Anaheim has been auctioned off using an online platform.

Using the RealINSIGHT Marketplace, Berkadia’s Hotels and Hospitality team helped sell the Anaheim Sheraton Hotel, a 490-key, full-service hotel that sits a couple of blocks away from the Anaheim Convention Center and the Disneyland Resort. 

The seller, 1855 South Harbor Boulevard Drive, sold the hotel at 1855 South Harbor Blvd. to an undisclosed buyer for $51M. 

“The Sheraton Anaheim is a modern, well-designed property in an unparalleled location,” Berkadia Managing Director Kyle Stevenson, who represented the seller, said in a statement.

“Continued growth and development in the area, including the pending opening of one of Disneyland’s biggest new attractions in years with Star Wars: Galaxy’s Edge, made this an opportune time for disposition and a well-timed acquisition for the buyer as the property is poised to deliver continued value,” he said.

Stevenson said the seller opted to use the online auction process rather than traditional marketing and selling.

Berkadia worked with RealINSIGHT to invite qualified institutional buyers to participate in a two-hour auction event. More than 170 confidentiality agreements were signed with 14 registered bidders. Berkadia officials said the sale price went well over reserve.

The deal closed in December.

SALES

A Los Angeles-based investor, Jack Pakravan, has acquired a 112K SF retail center in Santa Fe Springs from an undisclosed investment group for $31.9M. Built in 1953, the Santa Fe Promenade at 11442 Telegraph Road sits on an 8.1-acre lot and anchored by a Starbucks, AutoZone and Bank of America. WindWater Real Estate represented the private seller.

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H&R Investments has purchased a 20-unit apartment building in Sherman Oaks from The Rubin Trust for $9.1M. Built in 1986, the units on the property at 15323 Weddington St. average 1,350 SF and have in-unit washers and dryers. Marcus & Millichap’s Rick Raymundo represented the buyer. AOA Commercial Brokerage’s Greg Marderian represented the seller.

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BLT Enterprises has sold a two-story office building in Anaheim’s Platinum Triangle area to Hutton Development Co. for an undisclosed price. Built in 1990, the 8,200 SF office building at 2100 South State College Blvd. features skylights, floor-to-ceiling windows, a kitchen and conference rooms. Lee & Associates’ Kurt Bruggeman represented BLT. Lee & Associates’ James Hawkins represented the buyer.

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A private investor has purchased four contiguous parcels totaling 19,572 SF of land in Los Angeles from a private seller for $6.1M. The four pieces of land are at 2600–2616 South Sepulveda Blvd. and are zoned R3 with a Tier 3 bonus using the transit-oriented communities program. The buyer plans to redevelop the property. Marcus & Millichap's Jordan Asheghian and Tony Azzi represented the seller and buyer. 

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A private investor has purchased a 33-unit apartment building in Burbank from Starpoint Properties for $10.9M. The Scott Road Terrace Apartments at 1720 Scott Road sold for $330K a unit. Marcus & Millichap’s Kevin Green, Joe Grabiec and Paul Darrow represented the seller.

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The Center for Advanced Dermatology has purchased a 2,900 SF office building in South Pasadena from 245 ZNE for $2.65M. The office property at 245 Fair Oaks Ave. is situated on a half-acre of land. Avison Young’s Michael Dettling and Major Properties’ Tony Kim represented the seller. Lee & Associates’ Dan Bacani and Elliott Gallahan represented the buyer.

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Arka Van Nuys 1 has acquired a three-building industrial portfolio totaling 91K SF in Van Nuys and Santa Clarita from VAD for $15.25M. The portfolio sale included two single-tenant industrial buildings totaling 41,176 SF at 7658 and 7735 Haskell Ave. in Van Nuys. The third property was a 50K SF multitenant industrial building at 24922 Anza Drive in Santa Clarita. All three buildings were 100% leased at the time of the sale. NAI Capital’s Chris Jackson and Todd Lorber represented the seller.

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A subsidiary of ESRI, ACC BLD, has acquired a 193K SF furniture manufacturing facility in Redlands from La-Z-Boy for $11.5M. La-Z-Boy is moving its operations at 301 Tennessee St. out of the state. Kidder Mathews' Mark Lyon represented the buyer.

LEASING

Redpill VR has signed a lease with an undisclosed landlord to occupy 5,700 SF of retail space at 8000 Sunset Strip Shopping Center at 8000 Sunset Blvd. in Los Angeles. Terms of the deal were not disclosed. Weingarten Realty’s Zach Blatteis and JLL’s Dana Vargas represented the landlord. Hughes Marino’s Cedar Georgevich represented the tenant.

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George’s Greek Grill has signed a lease with Douglas Emmett to occupy 3,100 SF of retail space at the Sherman Oaks Galleria. This will be the restaurant’s fourth location and first in the San Fernando Valley. Terms of the deal were not disclosed. JLL’s Scott Burns, Shauna Mattis, Benjie Baker and Alex Otto represented the landlord. The JLL team will now handle retail leasing at the center.

FINANCES

On behalf of Fontana Hotel Group, CBRE Capital Markets' Debt and Structured Finance group has secured $13.75M in nonrecourse financing for the 115-room Hilton Garden Inn at 10543 Sierra Ave. in Fontana. An undisclosed Wall Street firm provided the fixed-rate permanent financing. CBRE’s John Nelson and David Kaim arranged the financing.

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On behalf of an undisclosed borrower, NorthMarq has secured a $6.4M refinance loan of a 15,100 SF office building at 100 Newport Center Drive in Newport Beach. NorthMarq arranged the permanent-fixed loan for the borrower through its relationship with a bridge/mezzanine lender. The deal is a three-year term with two 12-month extension options for 1% fee per extension and three years of interest-only payments. NorthMarq’s David Blum arranged the refinance.

EXECUTIVE NEWS

Nixon Peabody has appointed Sonia Nayak as partner. Nayak specializes in real estate development and financing, including new markets tax credits, affordable housing and commercial lending. Nayak joined Nixon Peabody in 2004 as an attorney.

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CohnReznick has promoted Marc Wolf as co-leader of its financial services practice. Wolf, who will be based in Los Angeles, will team up with Bill Pidgeon, based in New York, to lead the growing financial services practice. The two succeed Jay Levy, who took over as the office managing partner in New York. Wolf joined CohnReznick in 2017 as an audit partner. 

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Charles Pankow Builders has announced several executive moves:

Pankow has appointed Scott M. Anderson as CEO. Anderson will be responsible for developing, communicating and implementing Pankow’s vision, mission, and overall strategic and cultural direction. Anderson will also oversee the company’s sales and marketing efforts. Anderson previously served as president of Pankow. 

Pankow has also appointed Dave Eichten as president and chairman of the board. As president, Eichten will be responsible for the company’s planning and building operations including safety, quality, production, estimating, scheduling, virtual design/construction and direct work. Prior to his appointment as president, Eichten served as chief operating officer.

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HGA has promoted Bob Cull and John Frane to vice presidents and Michael Hendron and Tiera Robinson as associate vice presidents in its Los Angeles office. Cull is a healthcare principal and leads the healthcare practice group. Cull joined HGA in 2017. Frane is a design principal focused on arts, cultural and education projects. Hendron is a senior project architect. Robinson is a senior interior designer experienced in workplace, healthcare and higher education projects. Hendron and Robinson joined HGA in 2016.