The LA Deal Sheet
Meta Housing Corp., in a JV with Western Community Housing, has broken ground on a 72-unit, transit-oriented, affordable multifamily development in Los Angeles.
The $51.4M Vermont Corridor Apartments, a six-story senior and permanent supportive housing community, is at 433 South Vermont Ave. in the Koreatown neighborhood. It is near the Metro Purple Line and neighborhood amenities, such as a grocery store, a medical clinic and public schools.
Seniors living in the community will earn between 25% and 60% of the area median income. Of the 72 units, 36 will include supportive services through Los Angeles County's Measure H, and residents experiencing varying levels of homelessness will have subsidized rents. Those units were built with funding from the city's Proposition HHH and a partnership with the Housing Authority of the City of Los Angeles, the Los Angeles Housing and Community Investment Department and the county.
The 113K SF project includes a 12,500 SF community center on the ground floor dedicated to the YMCA.
“The Vermont Corridor Apartments project is a promise fulfilled,” Los Angeles Supervisor Mark Ridley-Thomas said in a statement. “For Koreatown residents, it provides not only affordable homes to seniors who need it most, but also a long-awaited community center with a wellness center to be operated by the YMCA. Working with Meta Housing and Western Community Housing, as well as the city of Los Angeles and other partners, we have repurposed an aging Los Angeles County facility and transformed it into a beautiful new asset for the community. That’s public-private partnership at its best.”
Meta Housing Corp. and Western Community Housing will serve as co-developers and general partners on the project. Western Community Housing will also coordinate resident services, and The People Concern will coordinate supportive services.
Westport Construction is the general contractor, Y&M Architects is the architect, AMJ Construction Management will manage construction and The John Stewart Co. will manage the property.
The project is expected to be completed in March 2021.
CONSTRUCTION
Construction of the new Soylent corporate headquarters is now complete in the Los Angeles Arts District.
The 27K SF HQ for the food technology company is on the third floor of Building 2 at the At Mateo campus. The company is relocating from its previous LA location.
At Mateo is a mixed-use development from Blatteis & Schnur Inc. with creative office and retail and restaurant space. It opened in early 2018.
The new headquarters has open offices, breakout rooms, a sample room, a game area and lounge spaces with tiered seating for meetings. Private offices are around the perimeter, with 10-foot-high glass walls. There are operational windows, roll-up doors and a rooftop patio for employees.
The headquarters also includes the Soylent Innovation Lab, a coworking space designed to attract other innovative tech companies to the Arts District.
Ware Malcomb provided interior architectural and design services for the project. The general contractor was HBC.
“This new headquarters provides an engaging atmosphere for Soylent employees that truly embodies the company’s innovative and collaborative corporate culture,” said Radwan Madani, principal of Ware Malcomb’s Los Angeles office. “It has been gratifying for our firm to have the opportunity to work on so many exciting projects — like this one for Soylent — in the burgeoning Arts District of downtown Los Angeles.”
SALES
Art Weiss Industrial Properties has sold a 64K SF industrial warehouse in the City of Industry for $11.53M to Max Sales Group, a wholesale manufacturer of a variety of products.
Daum Commercial Real Estate Services directed the sale on behalf of South El Monte-based Art Weiss Industrial Properties.
The property at 15240-15250 Nelson Ave. went up for sale with about a year left on its in-place leases, Daum Executive Vice President Charles Johnson II said. That allowed Daum to find a buyer looking for a well-positioned warehouse to meet its growing needs.
The warehouse has 24-foot interior clearance, nine loading docks, two ground-level doors, 4K SF of office and the option for a two-tenant layout.
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Archway Holdings bought a 40K SF office property in Hollywood from Curo Enterprises for an undisclosed amount.
CBRE's Mike Longo, Todd Tydlaska and Sean Sullivan represented Curo Enterprises. Curo had purchased the two-story post-production facility in 2015. The building at 900 Seward St. is fully leased to Deluxe Entertainment.
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Ryobi Holdings has acquired a 16K SF office building in Santa Monica from Prototype Industries for $16M. Built in 1982, the three-story office building at 1545 26th St. is in the Santa Monica media district. Newmark Knight Frank’s Steven Salas, Daniel Chiprut, AJ Dorn and Britney Kagawa represented the seller.
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The Mogharebi Group has completed the sale of the 32-unit The Groves Townhouse Apartments in Riverside for $5.9M, or $184,375/unit. There were multiple offers for the property, which is a two-story building of all two-bedroom townhomes on Magnolia Avenue and totals 33K SF.
TMG's Alex Mogharebi and Otto Ozen represented the seller, a private investor based in Orange County, and the Riverside-based buyer.
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The Mogharebi Group sold the Bernadine Senior Independent Living property in Ontario, a 71-unit community at 363 East Gilbert St. The property sold for roughly $6.76M, or $95,423/unit, to a private investment group based in Los Angeles.
TMG's Alex Mogharebi, Otto Ozen and Bryan LaBar represented the seller, an Inland Empire acquisition group, and the buyer.
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A West Hollywood apartment building with four units sold for $1.95M, or $561/SF, which was above the market average. Los Angeles-based investor Rangely Partners LLC purchased the property at 8904 Rangely Ave. Kidder Mathews broker Michael Monempour represented both Rangely Partners and the seller, a private investor. The building is in the Norma Triangle neighborhood.
FINANCING
Quantum Capital Partners secured a $16M cash-out loan for Duns Capital, an affiliate of South Park Group. The permanent debt refinanced an existing floating rate loan on the Grether & Grether building, a recently converted, seven-story mixed-use property in the Fashion District in DTLA.
The property at 732 South Los Angeles St. was built in 1924 for dry goods manufacturing. Duns Capital acquired the building in 2013 and converted it to a residential building with 72 loft-style apartments and nearly 15K SF of retail and office space.
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Marcus & Millichap Capital Corp. has arranged $50.5M in capital to refinance two multifamily properties in Southern California. A $27.5M low-leverage loan of 55% loan-to-value was used to refinance a 136-unit property in Orange County. The loan was structured with five years of interest-only payments. The second loan, for $23M, refinanced a 69-unit property in Los Angeles. That loan was leveraged at 65% and structured with a five-year fixed interest rate.
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Continental Partners has secured $15.8M in financing across two transactions for three multifamily properties in South Los Angeles and one industrial property in Moorpark. Continental Partners Executive Vice President Zalmi Klyne arranged the financing.
The deals involved properties Continental Partners had previously arranged acquisition bridge loans for on behalf of the same two borrowers, both private investors.
For the three-property multifamily portfolio, Continental Partners secured about $9M in refinancing. The portfolio contains 41 units in South Los Angeles. The refinancing for the 105K SF industrial building in Moorpark was for $6.8M. Both were cash-out refinancings.
LEASES
The American Industrial Real Estate Association has signed a 6,594 SF lease at the Pacific Financial Center in downtown Los Angeles with owner Pacific Financial Equities LLC. NAI Capital's Tenant Consulting Group's Joseph Faulkner and Tamarack RES' Corey Spound negotiated the long-term lease, which is valued at around $4M. Pacific Financial Center is at 800 West Sixth St. in the Financial District.
EXECUTIVE NEWS
Carey P. Levy has rejoined Irvine-based Passco Companies Development as president. Levy was previously president of Passco Cos.' development arm from 2007 to 2013. He will be responsible for overseeing development and value-add repositioning acquisitions, entitlements, construction and financing on a national scale across multiple real estate asset types. Levy has more than 30 years of experience in the commercial real estate investment and development industry. He will be based out of the company's Irvine headquarters.
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Greysteel has promoted Everett Wong to director. Wong was previously senior investment associate with the national commercial real estate investment services firm. He co-leads the Los Angeles investment sales and structured finance practice, providing services to clients throughout Southern California. He is responsible for deal execution and arranging institutional, middle market and private client multifamily transactions.
OTHER NEWS
Gardiner & Theobald, a global independent construction and property consultancy, has moved into its 7,100 SF creative office space at Row DTLA.
The firm moved from its Beverly Hills offices into downtown LA, where it is consulting on more than 30 acres of development projects in the Arts District and central core.
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Clean energy services company Carbon Lighthouse has opened a regional office in Los Angeles. The office includes engineering, sales and marketing staff. This is the fourth Carbon Lighthouse office after San Francisco, New York and Honolulu, and will focus on bringing the company's Efficiency Production, a data-driven approach to identify energy usage, inefficiencies and potential solutions, to Southern California building owners.
