The LA Deal Sheet
The Jerde Partnership, an architecture and urban planning studio, is moving its global headquarters to The CalEdison DTLA, a historic Art Deco office building in Downtown LA.
The firm signed a full-floor lease with landlord Rising Realty Partners. The Jerde Partnership plans to move into the new headquarters in Q1, moving out of Venice Beach, where it has maintained its global headquarters for nearly 30 years.
“Jerde has designed some of the world’s most iconic and recognizable buildings and we are thrilled that they will make their new home in The CalEdison,” Rising Realty Partners President Christopher Rising said. “Their move from a beachside office to Downtown is emblematic of the creative community’s geographic shift eastward and the demand for creative space within historic office buildings."
The 14-story, 277K SF The CalEdison is at the corner of Fifth Street and Grand Avenue and recently underwent renovations to turn it into creative office space. A JV of Rising and Lionstone Investments acquired the building in 2015. Since the acquisition, it has added more than 90K SF of new tenants, including Akerman LLP, General Growth Properties, Narrative Capital, Practice Aligned Resources and Breather.
Industry Partners' Carle Pierose and Rob Erickson represented the landlord and Newmark Knight Frank's Jennifer Frisk and David Kluth represented The Jerde Partnership.
LEASES
The first phase of the nine-building 1.3M SF IAC Commerce Center in Valencia is complete and has signed two tenants. Developed by IAC Properties, the master planned 116-acre business park is one of the largest commercial projects in the region.
Two tenants have signed leases in Phase 1's three buildings — Accurate Freight, a transportation company, and Covercraft, a manufacturer of automotive protection products. Covercraft leased nearly 65K SF to manufacture and distributed vehicle covers and other products. Accurate Freight leased just over 52K SF.
CBRE's Matt Dierckman represented Covercraft, and NAI Capital's Yair Haimoff represented Accurate Freight. CBRE’s Craig Peters and Doug Sonderegger are the leasing agents for the project.
SALES
The Knox, a two-building, 108K SF office park in Torrance, sold for $21.6M to Wilshire Capital Investments.
On 4.9 acres at 680 and 690 Knox St., The Knox is 98% occupied by Midmark, City of Los Angeles, CH Robinson and Allied Digital. The property was built in 1984 and renovated into creative office in 2016.
Newmark Knight Frank Capital Markets President, West Coast Kevin Shannon, Executive Managing Director Ken White and Managing Director Michael Moore represented the seller, Ruth Group. The buyer was self-represented.
The Knox is part of Harbor Technology Center Business Park, a 70-acre master planned office project.
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Luxe, a 131-unit luxury multifamily property in Pasadena, sold for $57.2M, or nearly $437K/unit at a 3.7% cap rate. Developer and seller Amcal Equities LLC was represented by Executive Managing Director Greg Harris and Senior Directors Kevin Green and Joseph Grabiec, all of Institutional Property Advisors, a division of Marcus & Millichap. Harris, Green and Grabiec also found the buyer, a private investor from China. Built in 2016, Luxe has studio, one- and two-bedroom apartments that average 731 SF. It is at the corner of East Walnut Street and Allen Avenue.
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An off-market portfolio of five apartment buildings in Lake Balboa/Sherman Oaks has sold for $51M. Michael Koshet of KW Commercial in Encino represented both the buyer and seller.
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Lion Real Estate Group has acquired a three-property apartment portfolio in the San Fernando Valley for $41.6M. The real estate investment and development firm focuses on value-add and opportunistic multifamily and creative office properties.
The portfolio, totaling 207 units, was purchased in an off-market transaction from an LA-based private investor who developed the properties 40 years ago. The properties are 4355 Sepulveda Blvd. in Sherman Oaks and 7317 Haskell Ave. and 6525 Haskell Ave. in Van Nuys.
LA Commercial Agency's Michael Koshet represented Lion Real Estate Group. Marc Schillinger in HFF's Los Angeles office arranged the financing of $28.76M in first mortgage debt originated by Mesa West Capital. Lion Real Estate Group plans to renovate the properties with exterior upgrades, improvements to common area amenities and unit renovations as they become vacant.
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Bridge Development Partners has sold industrial buildings totaling nearly 874K SF in Fontana and the City of Industry to Duke Realty Corp. The buildings are part of a larger 12-property industrial portfolio Duke purchased from Bridge Development Partners for $700M.
The 430K SF South Ajax Avenue building in the City of Industry was completed in 2017 and delivered on a shell basis. The 444K SF facility at 11250 Poplar Ave. in Fontana was completed and leased in 2016. The HFF investment sales team, including Managing Directors Anthony Brent and Ryan Martin, represented the seller.
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Hong Holdings, an asset management company, has purchased a building at The Campus @ Westlake for $5.2M. The 15,527 SF building at 4353 Park Terrace Drive is one of five at The Campus @ Westlake. Majestic Asset Management purchased the campus less than a year ago. The sale was part of Majestic's original plan to sell the two smaller buildings on the office campus to owner-users. CBRE’s Troy Pollet, David Solomon, Mark Perry and Carlene O’Neil represented Majestic Asset Management, a real estate investment company based in Agoura Hills.
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Tourmaline Capital sold Plaza Del Sol, a 165,528 SF fully leased grocery-anchored shopping center in Burbank, for an undisclosed price. Completed in 1984 at 10950 Sherman Way, Plaza Del Sol was a Costco store until a retrofit in 2005 and 2006. The mixed-use center now has street-facing retail and last-mile industrial space for distribution in the back. It has 23 tenants and a grocery store. HFF's retail investment team, including Gleb Lvovich and Bryan Ley, marketed the property for the seller. An undisclosed investor bought the center.
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Pagani of Beverly Hills has purchased a 3,727 SF retail property at 207-209 South Robertson Blvd. in Beverly Hills for $3.9M, or about $1,046/SF. The new owners plan a major renovation for the building to showcase and sell its high-end "supercars." Each Pagani car can cost more than $2.5M. Charles Dunn Co. Managing Director Justin Mendelson and Associate Joshua Berger represented the buyer and advised the seller, a private Los Angeles LLC.
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The Livingston Oasis Apartments, a 26-unit property in Long Beach, sold for $8.4M, or $323K/unit. Stepp Commercial principal Robert Stepp represented the seller, Sherry Trust, and the buyer, Waterford Residential. The property at 5120 East Livingston Drive closed at a 2.3% cap rate.
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Marcus & Millichap arranged the sale of a 15K SF Rite Aid at 1356 West Ave. J in Lancaster for $7.15M. Marcus & Millichap Senior Managing Director, Investments Lior Regenstreif had the exclusive listing to market the property on behalf of the seller, a partnership.
EXECUTIVE NEWS
Allen Matkins has hired Marc Young in its Los Angeles office. Young joins the firm's Corporate and Finance Department and Commercial Real Estate Practice Group. He joins Allen Matkins after more than 10 years as the chairman for Morrison & Foerster's global real estate group.
