The LA Deal Sheet
L.A. Care Health Plan has signed a lease with Rising Realty Partners to occupy 370K SF of office space at 1200 West Seventh St. in downtown Los Angeles.
It is the largest office lease signed in downtown Los Angeles this year and one of the largest office leases in Los Angeles so far in 2019, according to Rising Realty officials.
"We recently renovated 1200 W. 7th Street to make it more attractive as a headquarters building," Rising Realty CEO Christopher Rising said in an email to Bisnow. "This lease not only validates that effort but also signifies an expansion of the DTLA submarket's western boundaries."
Rising said L.A. Care Health Plan was attracted to the building's prime location being walking distance to the Seventh Street/Metro Center station and recent building improvements that include advanced technology and connectivity.
L.A. Care Health Plan currently leases space inside the 1200 West Seventh St. building. However, most of the company's employees are in other offices blocks away.
The goal with the lease is to consolidate all of the company's more than 2,000 employees into one headquarters and save money, L.A. Care CEO John Baackes said in a statement.
“By consolidating all of our employees under one roof, we will see significant cost savings and improve collaboration,” Baackes said. “The 1200 building has a much more user-friendly floor plan that will let us operate in 63K fewer square feet and that will result in millions of dollars in savings each year.”
The company will move into its new headquarters in 2024.
CBRE's Clay Hammerstein represented L.A. Care. JLL's John McAniff represented Rising Realty.
SALES
Sargossa LLC, an affiliate of Fortress Investment Group, has acquired the leasehold interest of a 104K SF Class-A office building in Brentwood from Brentwood Gateway, an affiliate of Vintage Capital Group, for $58M. Built in 1977, the 10-story Brentwood Gateway building at 11611 San Vicente Blvd. is 99% occupied. The office is the headquarters of Vintage Capital Group. Newmark Knight Frank's Kevin Shannon, Ken White, Rob Hannan, Laura Stumm and Michael Moll represented the seller. The undisclosed buyer was self-represented. Crosbie Gliner Schiffman Southard & Swanson's David Alvarado and Eoin Gubbins were the lawyers who helped the seller arrange the sale.
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A private real estate investment company has acquired a 172-unit mixed-use property at 5533 Hollywood Blvd. in Hollywood from Gershwin Ventures for $46M. The Gershwin Apartments is a five-story, red-brick building featuring 163 residential units, nine neighboring bungalows, a 17K SF parking lot and 10,565 SF of ground-floor retail. Colliers International's Kitty Wallace represented the buyer and seller.
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A private investor has purchased a 5,200 SF retail property in Cerritos from an undisclosed seller for $6.5M. Built in 1974, the property at 11355 South St. is occupied by Comerica Bank. Avison Young's Brian Hennessey and Armand Aghadjanians represented the seller, a private investor from Southern California. Kinnery's Brokerage House's Brian C. Russell represented the buyer.
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Kingsbarn Realty Capital has purchased a two-story, 83K SF Class-A office building in Foothill Ranch from an affiliate of Menlo Equities for an undisclosed amount. Built in 1998, the office building at 27042 Towne Center Drive is 90% occupied to eight tenants. The building underwent a $2.2M renovation in 2015. Newmark Knight Frank's Kevin Shannon, Paul Jones, Sean Fulp, Blake Bokosky and Brandon White represented the seller. Kingsbarn Realty was self-represented.
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A private investor has acquired a four-unit apartment building in Van Nuys from an undisclosed seller for $1.05M. The property at 14154 Sylvan St. sold at a 4.84% cap rate. Marcus & Millichap's Filip Niculete, Glen Scher, Jason Tuvia and Herschel Weintraub represented the seller.
LEASES
Illumination Dynamics has signed a lease with a JV of Trammell Crow and Clarion Partners to occupy a 67,639 SF industrial space at Building 1 at The Center at Needham Ranch in Santa Clarita. Illumination Dynamics provides lighting, grip, generators and power distribution services to the motion picture, live entertainment, sports broadcast and special events industries. Illumination Dynamics is the first tenant in Trammell Crow and Clarion's Needham Ranch, a 135-acre master-planned industrial development. The JV acquired 54 acres in 2017. The JV is currently under construction with six industrial buildings ranging from 67,639 SF to 212,236 SF. CBRE’s Craig Peters and Doug Sonderegger represented the JV. CBRE’s Greg Geraci represented the tenant.
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Moulton Logistics Management has renewed leases with Prologis to remain at two industrial buildings totaling 255K SF in Van Nuys. Terms of the leases were not disclosed. Moulton has renewed its lease at a 175K SF building at 7855 Hayvenhurst Ave. and at a 79K SF building at 16620 Stagg St. CBRE's Bennett Robinson represented both parties.
EXECUTIVE NEWS
Christie Kong has been named West Coast asset manager for Gemini Rosemont Commercial Real Estate. Kong will serve as the asset manager responsible for Gemini's West Coast portfolio that totals 1.2M SF of Class-A office space from San Diego to Washington. She is based in Los Angeles. Prior to joining Gemini, Kong served as general manager of business development at Meissner Jacquet Commercial Real Estate Services.
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Industrial real estate development and investment firm Dedeaux Properties has named Alon Kraft as chief operating officer. Kraft will be responsible for growing the firm's industrial real estate portfolio. Prior to Dedeaux, Kraft served as a senior vice president at Lowe Enterprises Investors.
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Duerk Brewer has joined Matthews Real Estate Investment Services as chief operating officer. Brewer will be responsible for handling the company's client-focused platform strategies, managing marketing initiatives and maximizing operating capabilities. Prior to joining Matthews, Duerk served as chief operating officer at Greysteel.
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Trammell Crow has promoted Thomas Dirks from vice president to senior vice president. Dirks will expand his responsibility in sourcing, shaping and executing real estate development projects throughout Southern California and Southern Nevada. Dirks joined the company in 2015 and has helped develop more than 4.5M SF of industrial projects in the Inland Empire.
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Colliers International has recruited veteran real estate investment professional El Warner as an executive vice president in the firm’s Capital Markets group. Warner will focus on major retail investment properties. Warner returns to Colliers after serving as an executive vice president at Matthews Retail Advisors. He was previously a vice president at Colliers from 2010 to 2016.
