This Week's LA Deal Sheet
Rexford Industrial bought Kearny Mesa Business Park in San Diego, containing more than 187k SF on 12 acres, for $32.3M or $172/SF.
Kearny Mesa Business Park (6970-7170 and 7310-7374 Convoy Ct in Kearny Mesa) consists of 13 multi-tenant industrial buildings ranging from 8,400 to 33k SF. The complex's 57 units are 98% occupied to tenants in regional distribution, warehousing and manufacturing. Rexford plans cosmetic upgrades to increase the property’s marketability and raise its below-market rents. The private seller was motivated to complete the deal by year-end, according to co-CEOs Howard Schwimmer and Michael Frankel. Including Kearny Mesa Business Park, the LA-based industrial REIT snapped up 36 properties totaling more than 3.73M SF in SoCal infill markets last year for nearly $400M.
SALES
Hudson Pacific Properties has agreed to sell its First Financial office property in Encino (16830 Ventura Blvd) to Douglas Emmett for $89M. HPP Chairman Victor Coleman says the transaction, expected to close in Q1 (subject to assumption of an existing $43M loan), is part of Hudson's goal to shed non-strategic assets and recycle capital. Douglas Emmett is the perfect buyer given its complementary holdings in the submarket. Hudson's predecessor entity acquired the six-story, 220k SF building at the time of its IPO in June 2010.
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American Realty Advisors bought a Class-A multitenant industrial building containing more than 174k SF in Santa Fe Springs (15050-15066 Shoemaker Ave) from Lincoln. The building is 100% leased to five tenants, including JB Hunt Transport, a Fortune 500 company; Spartech, a major manufacturer of extruded plastic sheets; and Pacific Diving Academy, a nonprofit diving org. With a slim vacancy rate of 3%, the mid-counties industrial market is seeing its lowest levels of supply in six years, according to CBRE's Barbara Emmons, who repped both sides along with Darla Longo and Rebecca Perlmutter Finkel. Colleague Laird Perkins provided local support.
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Land Advisors Organization's Brian Carricaburu closed the sale of the Metrolink Apartments site along Indiana Avenue in Riverside. The site is approved for 187 multifamily units.
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Circle K Stores bought nearly 77k SF of vacant land in Victorville (southwest corner of Mojave and Village Drive) from Mojave Victorville LP for just under $1M. NAI Capital's Fred Encinas and Samantha Zoleta repped the buyer.
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Space Vector, a provider of components, systems and launch vehicle solutions to the aerospace industry, and prime contractor for various government agencies, bought a 22k SF industrial property in Chatsworth (20520 Nordhoff St) for $2.9M. NAI Capital's Timothy Foutz repped seller George DiRado.
LEASES
99 Cent Only Stores signed a seven-year lease for more than 21k SF in Sylmar (13237 Gladstone Ave). Todd Nathanson, John Raudsep, Kyle Fishburn and Jordan Lolli of illi Commercial Real Estate repped the landlord.
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V Himark Inc leased a 13k industrial property in Irwindale (16057 Foothill Blvd) from CWCA Foothill 40 LLC. NAI Capital's Richard Lee and Nicholas Chang repped the tenant, which makes specialty double-sided adhesive tapes.
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Crunch Fitness & UFC, a health club chain co-owned by Angelo Gordon, leased a 25k SF retail property in Rancho Cucamonga (12739 Foothill Blvd) from THM Enterprises. NAI Capital's Vicky Espinosa, Fred Encinas and Lidia Talavera repped both sides in the $3.2M deal.
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Student Transportation of America leased two industrial properties (6,480 and 3,500 SF) in Ontario at 609-613 and 601 S Oaks Ave from Kobold Construction. NAI Capital's Don Archer repped the school bus company in both deals.
CONSTRUCTION/DEVELOPMENT
Brandywine Homes plans to break ground this month on Brighton, a fully entitled residential project in unincorporated West Carson. The new community will consist of 60 three- and four-bedroom homes ranging from 1,564 to 1,966 SF on 4.5 acres. Using the NAHB formula to determine economic impact, the project is expected to generate $12.7M in local income, $1.3M in taxes and other revenue for local governments, in addition to 194 local jobs.
EXECUTIVE NEWS
Yen Hope was promoted to partner at Gilchrist & Rutter. The Harvard Law School grad's practice focuses on business, real estate and land use litigation, including construction defects. A SoCal Super Lawyers Rising Star in 2010, she also reps clients in mobile home park conversions.
