The LA Deal Sheet
Hackman Capital Partners has broken ground on the second phase of the much-anticipated redevelopment of The Culver Studios, a 720,850 SF creative office campus in Culver City.
Hackman Capital also announced Amazon Studios will anchor the campus. Amazon has signed another lease to occupy two additional buildings, expanding its total occupancy to 530K SF. Currently, 100 Amazon Studios employees work in the studio mansion and bungalows.
“We’re thrilled with Amazon Studios’ commitment to The Culver Studios as its anchor tenant — it’s the ultimate validation of all the hard work our company and the City have put into the campus’ redesign,” Hackman Capital CEO Michael Hackman said in a statement. “The Innovation Plan will usher in a new century for the entertainment industry with world-class space, technology and studio support systems, all while preserving our legacy.”
The redevelopment of The Culver Studios, dubbed the Innovation Plan, will transform the 100-year-old studio, originally built in 1918. The studio has a long history of films being produced on the lot, including Orson Wells' "Citizen Kane" and Alfred Hitchcock’s "Spellbound." Owners of the lot once included Howard Hughes and Desilu Productions, the production company operated by the husband-and-wife team of Desi Arnaz and Lucille Ball.
The modernization plan will double its current size for a new generation of creative workers and productions. Phase 1 broke ground earlier this year and was recently completed.
Once complete, the campus will feature five new buildings, totaling 575K SF and two parking structures with 1,930 spaces.
The campus will offer 619,850 SF of creative office and state-of-the-art production support space, 96,263 SF of stages and 4,736 SF of stage support space.
Construction is expected to take 30 months, with final completion anticipated in early 2021.
SALES
Bolour Associates has acquired a 50K SF single-story flex commercial building in Woodland Hills from a biotech company for an undisclosed price. The 3-acre property at 21200 Oxnard St. is part of the Warner Center 2035 Specific Plan, which promotes high-density development in the Warner Center neighborhood of the San Fernando Valley. CBRE’s David Harding, Billy Walk and David Josker will oversee leasing of the building, which can be used for industrial or office use. JLL’s Nigel Stout and Jim Lindvall represented the buyer and seller.
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In an off-market deal, Advanced Properties LLC has purchased an eight-unit apartment building in Beverly Hills from an undisclosed seller for $2.7M. Advanced Properties plans to upgrade the property at 163 North Clark Drive. Compass Commercial’s Shaya Braverman represented the buyer.
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Welltower has purchased two medical office buildings totaling 50K SF in Westlake Village from Nadler Cypress Holdings2 LLC and La Venta LLC for $29.95M. The medical buildings, dubbed Westlake Village at 1220 and 1250 La Venta Drive, are fully leased and anchored by UCLA Health and Providence St. Joseph Health. Health Properties will be providing property management services for the buildings. HFF’s Evan Kovac, Andrew Milne and Trent Jemmett represented the seller.
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A private investor has acquired a 7,800 SF industrial building in North Hollywood from NoHo Partners LLC for $3.25M. The free-standing building at 7359 Fulton Ave. recently underwent a $600K renovation. Lee & Associates’ Clay Stevens and Randy Kobata represented the seller.
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A JV of Canyon Partners Real Estate and CIT Bank has purchased the Fountain View Apartments, a 153-unit apartment community in Long Beach, from an undisclosed seller for $36.5M. CIT provided a $26M senior loan to fund the acquisition and capital improvements for the two- and three-story multifamily community at 2301 East Market St. Jim Fisher and Mike Smith of Berkadia’s Los Angeles office completed the sale of Fountain View Apartments on behalf of the seller.
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Manchester Square 2 LLC has acquired a 60-unit multifamily community in San Pedro from TruAmerica Multifamily for $20.5M. The Bayridge Apartment Homes is a garden-style condo-mapped multifamily community with studio, one- and two-bedroom floor plans at 1099 West Capital Drive. Berkadia’s Jim Fisher and Mike Smith represented the seller.
FINANCING
Bellwether Enterprise Real Estate Capital has closed $121M in loans for two deals: a retail shopping center in Las Vegas and a multi-state industrial portfolio with properties in Los Angeles and Pennsylvania. On behalf of Durango Warm Springs III, Bellwether arranged a $36M permanent loan for the Desert Marketplace, a 200K SF shopping center at the intersection of Warm Springs Road and Durango Drive in Las Vegas. Bellwether’s Shelley Magoffin and Max Sauerman, both based in the Los Angeles office, arranged the loan. Grass River Real Estate Credit Partners REIT was the lender. In the second deal, Bellwether arranged an $85M permanent loan to an undisclosed borrower for the acquisition of five warehouse buildings totaling 1.1M SF. Three of the buildings are in Los Angeles County, one is in the Inland Empire and another is in Lehigh Valley, Pennsylvania. Bellwether’s Magoffin and Sauerman arranged the loan with a life insurance company and Thrivent Financial.
LEASES
Smurfit Kappa has signed a $5.7M, 61-month lease with Majestic Realty to occupy a 120K SF industrial building at 505 South Seventh Ave. in the City of Industry. The Klabin Co.’s Mike Ouellette and Todd Taugner represented Smurfit Kappa, a paper-based packaging company. Majestic Realty’s Terry Baker represented Majestic.
GROUNDBREAKING
Bridge Development has begun construction on the Rialto Fulfillment Center 3, a 505,906 SF Class-A industrial building in Rialto. The property at 12050 Agua Mansa Road will feature a 36-foot clear height, 67 dock-high loading positions, two ground-level doors, 254 parking spaces, a 185-foot concrete truck court and 151 outside-of-dock trailer storage positions. JLL’s Peter McWilliams, Mike McCrary, Ruben Goodsell and Sharon Wortmann will handle leasing for the building.
EXECUTIVE NEWS
CBRE has promoted Robert Peddicord as head of the company’s South Bay operations, including a 130-person office in El Segundo. Peddicord, who will take over Jan. 1, will be responsible for overseeing CBRE’s full spectrum of service offerings, including advisory and transactions, capital markets and asset services across all property types. Peddicord is succeeding Jodie Poirier, who is relocating to Boston to join CBRE’s New England team. Peddicord joined CBRE in 2012 and most recently served as executive managing director of CBRE’s West Division.
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Mitsubishi Electric US has promoted Mike Corbo as executive vice president and chief operating officer and Erik Zommers to senior vice president and general manager of Mitsubishi Electric US Elevator and Escalator Division. Corbo joined the company in 1986 and most recently served as executive vice president and general manager of the division. Zommers joined the elevator and escalator division in 1989 and succeeds Corbo.
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Orion Property Partners has hired Carter Harrington as principal, Josh Samuels as associate and Kelsey McCarthy as senior client coordinator. Harrington previously served as a vice president at Voit Real Estate Services. Samuels and McCarthy also join Orion from Voit. Samuels most recently served as an associate. McCarthy was previously a senior client coordinator.
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Caruso has appointed Josh Weisman as vice president of leasing and promoted Julie Jauregui to senior vice president of retail operations and leasing. Weisman will be responsible for strategic leadership and execution of Caruso’s leasing and merchandising functions across Caruso’s portfolio. He previously served as director of leasing and asset management at J.S. Rosenfield & Co. Jauregui will oversee retail operations and assume the responsibility of head of leasing. Jauregui previously served as general manager at The Americana at Brand.
