This Week's LA Deal Sheet: San Diego Apartment Complex Sells For $67.9M
CBRE negotiated the sale of a 192-unit apartment complex in San Diego to American Assets Trust. CBRE announced the sale but did not disclose a price. According to Traded, it sold for $67.9M, or $353K per unit. The San Diego region’s average per unit price in the fourth quarter of last year was $421K, the second-highest quarterly figure on record, according to a CBRE report for the period.
The property at 3625 Earnscliff Place is called Genesee Park and was built in 1985. It was family owned and operated for 40 years, according to CBRE. CBRE's Rachel Parsons, Derrek Ostrzyzek, Mike Murphy, Chris Tresp and Kenji Thomas represented the seller, Hess Genesee Park LLC, in the deal.
PEOPLE
Newmark Group hired industry expert Justin Shepherd as co-Head and vice chairman of its U.S. healthcare capital markets practice, serving alongside co-Heads and Vice Chairmen Ben Appel and Jay Miele as well as Vice Chairman and Head of Healthcare Debt John Nero. During his 15 years specializing in the industry, Shepherd has facilitated over $20B in healthcare real estate transactions and advisory services.
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CBRE hired Stephen Somer to join its capital markets team in Los Angeles as a vice chair specializing in office and studio investment sales transactions. Joining Somer is Brooke Silver, who comes to CBRE as a senior vice president on Somer’s team, which will work out of CBRE’s Downtown office.
Both Silver and Somer were previously at Eastdil. Somer was a managing director and Silver as a vice president. In Somer’s 22 years of CRE experience, he has undertaken sales of offices and mixed-use campuses in LA.
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Eagle Real Estate Group founder Randy Friend is launching an affiliate company, Eagle Partners, with co-founders Taylor Friend, Shahny Lutfeali, and Clay Friend. The co-founders bring decades of experience in real estate acquisitions, asset management, development, investment banking and capital markets.
Randy Friend has acquired and developed approximately 6,000 multifamily units throughout his career and will serve as chairman of Eagle Partners. Eagle Partners will focus on the acquisition of value-add and core-plus affordable housing properties in Southern California.
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McCourt Partners appointed Patrick Rhodes as executive vice president of development. Rhodes will, among his other duties, focus on executing and expanding the McCourt Partners portfolio.
Rhodes comes to McCourt Partners from Brookfield Properties, where he served as senior vice president of development. During his time at Brookfield, Rhodes oversaw a pipeline of more than $5B in development opportunities, which included more than 10,000 multifamily units and 2M SF of commercial space.
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Storm Properties Inc. hired Bryan Leon as land acquisitions manager. Leon brings more than four years of experience in real estate acquisitions and asset management, with a strong background in underwriting, entitlements, and financing. Leon's hiring comes as Storm is growing its land entitlement and build-for-rent development efforts.
SALES
BLT Enterprises has completed the off-market sale of a Los Angeles industrial warehouse to its longtime tenant, Expo Flooring, for $4.75M. This transaction completes a multiproperty investment cycle, as the asset was once part of a contiguous group of industrial properties owned by BLT. The nearly 16K SF warehouse sits on 23K SF just off the 10 Freeway south of Downtown. BLT bought this asset in 2006.
CONSTRUCTION AND DEVELOPMENT
R.D. Olson Construction has begun work on the expansion of the Lido House hotel in Newport Beach. The expansion will include the addition of five cottages, expanded meeting rooms and a new 600 SF event space, The Cotton Pavillion.
The expansion of Lido House will be conducted in three phases, with the final phase, the new cottages, slated for completion in summer 2026. The Lido House opened in 2018.
FINANCING
Northmarq’s Newport Beach debt and equity team led by Scott Botsford and Joe Giordani secured $52M in financing for MCA Freeway Industrial Park at 1600-2060 Chicago Ave. and 1614-1616 Marlborough Ave. in Riverside. The property consists of 17 buildings totaling 481M SF and has 120 tenants.
Northmarq arranged the external refinance on behalf of the borrower, MCA Realty, sourcing the lending partner through its correspondent life insurance platform. Northmarq originated and will service the loan, which was structured on a sub-6% fixed-rate, five-year term.
