This Week's LA Deal Sheet
Mercury Insurance sold a roughly 165K SF office building and adjacent three-story parking garage for $31.5M to The Greenbriar Lane, an LLC registered to Orange County-based real estate developer Dwight Manley. The LLC has submitted plans to the city of Brea to redevelop the 9.7-acre site at 1698-1700 Greenbriar Lane into 180 housing units.
Manley has undertaken other redevelopment projects in Brea, including a new restaurant, bank and retail space in the city’s Gaslight Square area.
Kennedy Wilson Senior Vice President Gary Goodgame and Associate Max Browne of Kennedy Wilson Brokerage, along with Corporate Realty Associates President Jeremy Dee, represented Mercury in the sale. The $31.5M transaction is the largest commercial real estate sale in the Brea-La Habra submarket in the last year, KW said in a release, citing data from CoStar.
PEOPLE
Nicholas Chang, Richard Lee, Justin Kuehn and Sione Fua have joined CBRE’s Inland Empire office from NAI Capital. Chang and Lee join CBRE as senior vice presidents.
The four have developed an industrial advisory business over the past two decades. It specializes in connecting buyers, sellers, tenants and landlords and serving small business occupiers and private owners as well as national tenants and institutional investors.
SALES
Gortikov Capital acquired Samo Collection, a portfolio of 399 income and rent- restricted affordable housing units across 11 buildings in Santa Monica for $120M.The portfolio’s apartments feature studio and one-, two- and three-bedroom units.
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An ownership group of Hollywood veterans acquired the Dolby Theatre. The acquisition also included two surface parking lots totaling 1.45 acres. The sales price was not disclosed but was thought to be approximately $50M, Commercial Observer reported.
Avison Young principal and Managing Director Chris Bonbright represented the buyer, JEBS Hollywood Entertainment LLC. The seller was represented by Will Poulsen and Peter Hajimihalis of JLL and Carl Muhlstein of Muhlstein CRE. Debt financing, provided by Castellan Real Estate Partners, was arranged by Slatt Capital, led by Antonio Hachem, Cornelius Baliukonis and Wendy Wang.
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Sagard Real Estate sold the Tustin Financial Plaza, a five-building, multitenant office property in Tustin, for $27.5M. The buyer was a local investment firm.
The plaza at 17772, 17782, 17822, 17852 and 17862 East 17th St. was 70% occupied at the time of sale. Combined, the five buildings total approximately 185K SF. CBRE Investment Properties' Anthony DeLorenzo, Sammy Cemo, Bryan Johnson and Greg Sullivan represented Sagard.
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CBRE arranged the sale of 3.34 acres of industrial-zoned land in Otay Mesa for $5.2M. CBRE's Ramin Salehi and John Smith represented both the buyer, IDS Real Estate Acquisitions, and the seller, FOTINM LLC. The land is located near a new Prologis industrial outdoor storage project and the Brown Field Airport redevelopment site. It is just north of State Route 905 with quick access to the Otay Mesa Port of Entry.
LEASES
The city of San Diego has leased 43K SF of office space at Five50West, a 20-story, 363K SF office building at 550 West C St. in downtown San Diego. The city will relocate its development services department to the building, with move-in planned for later this year. JLL’s Richard Gonor, Tony Russell and Bess Wakeman are leading the office leasing.
CONSTRUCTION AND DEVELOPMENT
Bolour Associates Inc. secured entitlements to build a seven-story, for-rent residential apartment building in East Hollywood’s Melrose Hill neighborhood.
The project at 4800 W. Melrose Ave. will include 61 studio and one-bedroom apartment units along with ground-level retail space facing the immediate southwest corner of Melrose Avenue and Harvard Boulevard. The project will include five stories of apartment units over two levels of above-grade parking and one level of below-grade parking.
FINANCING
Archway Capital provided a $22.8M loan for the acquisition of Simi Valley Town Center. The nearly 594K SF retail center at 1403-1685 Simi Town Center Way in Simi Valley was built in 2005 and sits on just over 42 acres.
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Marcus & Millichap Capital Corp. arranged $8.6M for the financing of The Marquis at Hillcrest, a renovated historical building featuring 58 loft-style apartment units located at 1751 University Ave. in San Diego. Senior Director Kevin Elliott and Executive Managing Director Chad O’Connor, both in MMCC’s San Diego office, worked together to secure the financing with a national bank on behalf of a private client.
