The LA Deal Sheet
A 15-property apartment portfolio across the West San Gabriel Valley has sold for a total of $51.7M to multiple buyers.
The portfolio, totaling 169 units, had 10 Arcadia properties, two complexes in San Gabriel and buildings in Pasadena, Sierra Madre and Monrovia.
CBRE's Priscilla Nee represented the seller, the Louise C. Gelber Trust, in the disposition of all 15 properties. Nearly all of the sales came in above asking price with a cap rate just under 2%, according to Nee. Many closed within a seven-day escrow period with no contingencies and nearly all of the buyers provided a 10% pass-through deposit.
“Most of the residents at these properties are long term, providing a consistent and proven income stream to new investors,” Nee said. “More importantly, there is substantial immediate upside in rents, ranging from 12% to 47%. A new investor will also be able to realize further rent growth through complete unit renovations.”
Nee represented 10 of the buyers. CBRE's Eric Chen represented four other buyers.
The vacancy rate for apartment properties in the Greater Los Angeles area was 3.9% in the second quarter, CBRE reports. High-end multifamily projects coming online and more residents who opt to rent over buying homes have driven strong rental rate growth.
SALES
Gerrity Group has purchased Buena Vista Marketplace in Duarte for $38.1M from Weingarten Realty. The 98.5% occupied, 92K SF grocery-anchored retail center was built in 1990. Tenants include Smart & Final Extra grocery store, Dollar Tree, Wells Fargo, UPS, AT&T and Subway. Newmark Knight Frank's Capital Markets retail division Executive Managing Director Pete Bethea and Senior Managing Directors Rob Ippolito and Glenn Rudy represented the seller. The buyer was self-represented.
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RREEF America has purchased Fortune Business Park, a 158K SF multi-tenant industrial park in the City of Industry, for $27.15M. JLL Managing Directors Bo Mills and Mark Detmer and Vice President Ryan Sitov led the JLL Capital Markets team that represented seller Columbia California Valley Industrial. The business park is made up of seven buildings on more than seven acres and is fully leased to 12 tenants.
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Westcore Properties has purchased a 74K SF, Class-A warehouse building at 13915 Maryton Ave. in Santa Fe Springs for an undisclosed amount. Chicago-based Bridge Development sold the property to Westcore, which plans to immediately add about 5K SF of speculative office to the vacant industrial building and make limited upgrades to the existing structure. Colliers International's Scott Heaton and Chris Sheehan represented the buyer and seller.
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SVN | Rich Investment Real Estate Partners handled the sale of a nearly 30K SF medical building at 3180 Willow Lane in Westlake Village for $8.9M, or $298.90/SF. The property sold in an off-market transaction. SVN | Rich Investment Real Estate Partners' Pacific Bridge Team of Jeff Albee, Travis Albee and Tilden Moschetti represented both sides. The new owners plan to remodel the common areas, upgrade tenant improvements in vacant spaces and upgrade the building facade.
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Marcus & Millichap arranged the sale of 2108 North Verdugo Road, a six-unit apartment property in Glendale, for $1.73M. Brett Sanson, first vice president of investments in Marcus & Millichap's Encino office, had the exclusive listing to market the property and represented the seller, a private investor, and the buyer, S&I V LLC.
LEASES
Jamison has signed entertainment advertising agency Concept Arts to a long-term lease for 31,500 SF at the historic Harbor Building at 4201 Wilshire Blvd. in LA.
Concept Arts, the firm behind the campaigns for films including "La La Land," "Fences," "Dunkirk" and "Wonder Woman," will move its headquarters from the Hollywood building the company has owned since 1989. It will move to the Harbor Building in Q1. Jamison will build out the majority of the fifth floor for Concept Arts, including private offices, meeting rooms, a photo studio, collaborative workspaces and soundproofed editing rooms.
The 258K SF Harbor Building was built in 1958 for Paul Getty's Tidewater Oil Co. The six-story building is undergoing a capital improvement program. Last year, global entertainment company Entertainment One signed a long-term lease for about 26K SF at the Harbor Building for its reality TV and music divisions.
First Property Realty Corp. broker Ben Silver and President Jeffrey Resnick represented Jamison. Cresa LA office principal Marc Bretter represented Concept Arts.
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Avison Young has negotiated a new seven-year, 9,790 SF office lease for law firm Wesiersky & Zurek LLP in Pasadena. The firm will move Nov. 1 from its existing offices at 1000 Wilshire Blvd. in downtown LA to 100 East Corson St. in Pasadena. Avison Young principal and Managing Director Jonathan Larsen, along with Senior Associate Chandler Larsen, represented Wesierski & Zurek. The landlord, 100 Corson LLC, was represented by NAI Capital.
CONSTRUCTION & DESIGN
Essex Hollywood, a $54M mixed-use, urban infill development at 6240 Sunset Blvd., has broken ground.
The 352K SF, seven-story project, developed by Essex Property Trust, will have 170K SF of residential space with 200 units, two levels of subterranean parking and nearly 5K SF of ground-floor retail along Sunset Boulevard. It will have a dog park, a clubhouse, fitness rooms, a pool and spa and a skydeck.
McCormick Construction is the general contractor for the ground-up construction, full interior build-out of the apartments and incorporating the paseo, or walkway, through the project that will link the development to the historic Earl Carroll Theatre. The project team also includes TCA Architects and Englekirk Structural Engineering.
Essex Hollywood will target LEED Silver certification and is scheduled for completion in December 2019.
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Skidmore, Owings & Merrill and James Corner Field Operations have been selected as the design team for 1111 West Sunset Blvd., a mixed-use project at the long-vacant former Metropolitan Water District headquarters in DTLA.
LA-based Palisades is developing the 5.5-acre site, which has previously been a park, a hospital, a church and the MWD HQ. Future plans include residential and retail spaces in a designated transportation corridor. Palisades has asked the designers to create a master plan for the site that honors its history while emphasizing meaningful connections to the downtown skyline and surrounding neighborhoods.
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Burbank's first multifamily transit-oriented development, Olive Stations, will add 327 units within walking distance of the train stop and San Fernando Boulevard's shopping and dining. Cusumano Real Estate Group is behind the project at Olive Boulevard and Lake Avenue. Newman Garrison + Partners is designing the project.
Olive Stations will have units ranging from studio to four bedrooms to create affordable shared-housing options. The project will include market rate and affordable units, Urbanize LA reports. Common spaces will include retail stores, an organic grocer, an outdoor movie theater, a fitness center, a private wine room, and a pool and spa with cabanas.
EXECUTIVE NEWS
HGA Architects and Engineers has hired Peter Erni as associate vice president and principal in the company's Los Angeles office. Erni will direct strategic growth of the office's arts, community and education practice group.
Erni has more than 20 years of architectural design and management experience with a focus on academic, cultural and mixed-use development. Before joining HGA, he was associate partner with ZGF Architects in LA and prior to that he was senior associate and project director for Michael Maltzan Architecture.
