This Week's LA Deal Sheet
Sterling Bay and development partner Harrison Street closed on a $265M construction loan from Bank OZK for Pacific Center, a new multiphase life sciences campus in San Diego’s Sorrento Mesa. Securing the construction loan allowed Sterling Bay and Harrison Street to begin development and break ground on the first phase of Pacific Center, which will be built out over the next four years.
In all, Pacific Center will include five buildings and 500K SF of research space, a 28K SF amenity center and parking for 1,700 cars. Gensler is designing the project.
SALES
NAI Capital Commercial Executive Vice President Sheri Messerlian, along with Vice President David Shaby from the retail services group in the South Bay office, completed the $6.7M investment and owner-user sale of a 15K SF strip mall at 23811-23831 Hawthorne Blvd. in Torrance. NAI Capital represented both the seller, Sylvia Square Properties LLC, and the buyer, Benecia Avenue LLC, in the transaction. The sale price worked out to about $436 per SF for the 1970s-era strip center.
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Turnbridge Equities purchased 3.6 acres of covered industrial-zoned land in Rancho Dominguez. CBRE’s Mark Shaffer, Anthony DeLorenzo, Gerard Poutier, Bryan Johnson and Mike Longo represented the seller, T&S Properties. The property at 19500 and 19520 South Rancho Way holds two buildings totaling about 53K SF. It is leased to eight tenants at below-market rents. The site supports the potential development of a roughly 73K SF industrial warehouse, according to a release from CBRE. The sale price was not disclosed.
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EverWest Real Estate Investors bought a 101K SF warehouse facility in Carson. The building on 4 acres at 2848 East 208th St. has up to 22-foot clear height, 12 dock-high and three grade-level doors, a separate truck court and a secured fenced storage yard. It is fully leased to FLS Warehouse and Distribution. The Carson site offers acreage deployable for a variety of uses, including industrial outdoor storage, according to a release from EverWest.
LEASES
Rexford Industrial Realty leased about 87K SF of warehouse and distribution space in Gardena. NAI Capital Commercial Vice President Edward Michino with the industrial services group based in the South Bay office represented the tenant, Puratos Corp., in leasing the space. The property at 15601 South Avalon Blvd. was just completed this year.
CONSTRUCTION AND DEVELOPMENT
Jamul Indian Village Development Corp., a subsidiary of the Jamul Indian Village Tribe, announced the expansion of the Jamul Casino with a luxury hotel with 200 rooms, including 52 suites, and a six-story parking structure with 350 parking spaces. The hotel is under construction now.
FINANCING
JLL Capital Markets arranged $36.8M in construction financing for 550-566 East Colorado Blvd. in Pasadena, where a 194-key, six-story hotel development is planned. The project is in the Playhouse District. JLL represented the developer, Welcome Group Inc., to secure the three-year loan with two one-year extension options. When it’s complete in 2025, the hotel will operate as an AC Hotel by Marriott.
