This Week's LA Deal Sheet
Netflix’s new Hollywood home is complete. Construction has wrapped up on the commercial portion of Kilroy Realty’s On Vine, a roughly 600K SF residential and office campus just south of Sunset and Vine in Hollywood where Netflix has leased all available office and production space.
Netflix inked the lease for its space, totaling about 355K SF, in late 2018.
Netflix is still making tenant improvements to its new space and is expected to be finished in the first half of 2021.
The site’s residential units are in a tower on the west end of the campus. Construction is almost complete there and pre-leasing is expected to begin in Q1 2021.
SALES
Rexford Industrial Realty acquired the Van Nuys Airport Industrial Center for $154.6M. The 18-building portfolio traded hands in an off-market deal. Rexford paid for the transaction with cash-on-hand.
The portfolio represents roughly 426.5K SF on 22.6 acres of land. The purchase price includes the cost of both the buildings and the land. Rexford eyed this San Fernando Valley portfolio for its exceptional last-mile and e-commerce uses.
In November, Rexford spent $339.2M on two other LA properties, a four-building industrial complex in Whittier ($296.6M) and a fully leased industrial building in Sylmar ($42.6M).
Denver-based Black Creek Group bought a 601K SF industrial building in San Diego County’s Otay Mesa. The fully leased building,“a state-of-the-art distribution/warehouse facility,” sold for $109M, the San Diego Union-Tribune reported. Cushman & Wakefield’s Jeff Cole, Jeff Chiate, Bryce Aberg, Ed Hernandez, Mike Adey and Zach Harman of the firm’s National Industrial Investment Advisory Group in Southern California represented the seller.
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The Solare Apartments, a 240-unit multifamily complex in Santa Ana, sold for $63.75M, or approximately $266K per unit. Tyler Leeson, senior managing director of investments for Marcus & Millichap, and First Vice President Investments Matthew Kipp represented the buyer, Advanced Real Estate Services.
CONSTRUCTION AND DEVELOPMENT
The Los Angeles City Council approved Unibail-Rodamco-Westfield’s Promenade 2035 project, a $1B overhaul of the existing Warner Center shopping center, into a 34-acre community with housing, open space, retail, a grocery store, an events venue and 10 acres of landscaped open space and public plazas.
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Harbor Associates completed a $4M renovation on a roughly 40K SF garden-style office building in San Diego County’s Del Mar. The Bungalows Del Mar received a full exterior redesign and added new creative office suites with exposed vaulted ceilings and skylights.
FINANCING
The Bendetti Co. announced it acquired the La Crosse Business Park in Colton for $12.3M. The Inland Empire business park is a six-building, 112K SF flex industrial complex and is 85% leased. JLL Capital Markets’ team, led by Managing Director John Chun and Director Peter Thompson, arranged $10.1M in acquisition financing.
