This Week's LA Deal Sheet
Marina del Rey's reputation as a hot spot for swingin' singles died along with disco. Today, a new generation—or two—is taking their place, attracted by projects that have or soon will be getting major overhauls, like Mariners Bay Apartments.
A JV of Legacy Partners and Prudential Real Estate Advisors purchased the 379-unit apartment complex (14000 Palawan Way), and received approvals for a three-year rehab kicking off this summer. Legacy senior managing director Tim O'Brien tells us they'll be investing more than $100k/unit to renovate the property down to the studs. For example, Mariners Bay was built without AC, so a central HVAC system will be installed, and in-unit washer-dryers will be added, along with top-shelf amenities and upgraded tech. The project, which was built in the '70s and is 95% occupied, also will be renamed and rebranded.
The complex boasts 409 boat slips on 19 acres of land and water, making it one of the largest apartment and anchorage properties in Marina del Rey, as well as three tennis courts. In recent years, the Marina became a little bit sleepy due to a lack of new product. Tim says newly renovated and developed projects have helped fuel a resurgence of interest in the area. He's starting to see Silicon Beach workers migrate from Santa Monica, along with other Millennials and young families from other parts of LA County who are discovering Marina del Rey.
Mariners Bay sits on a peninsula, and over 70% of the units have water views. The renovation also will include the docks and waterfront promenade. Tim says the Marina also attracts empty nesters who are looking for a lock-and-leave lifestyle. Brian Eisendrath of CBRE’s Los Angeles office and Brandon Smith of CBRE’s Beverly Hills office arranged $96.4M in acquisition financing on behalf of Legacy. Legacy also owns Neptune Marina, a 136-unit property in Marina del Rey that was built in the late '50s or early '60s. According to Tim, that's a tear-down that will be redeveloped with 526 units, starting in 2016.
SALES
UCP Wheels for Humanity, a subsidiary of United Cerebral Palsy of LA, Ventura and Santa Barbara Counties, bought an industrial building containing more than 10k SF in Chatsworth (9509 Vassar Ave) for nearly $1.8M. The organization, which recycles, rebuilds and manufactures wheelchairs and other mobility aids for people in developing countries, plans to relocate from North Hollywood. Lee & Associates-LA north/Ventura's Jay Rubin repped UCP Wheels, which received an endowment to acquire the facility. Delphi Business Properties' Stu Leibsohn and Bruce Simpson repped the seller, a private trust.
LEASES
Boise, ID-based National Flooring Products signed a lease for nearly 38k SF of industrial space in Ontario (1975 E Locust St) for its first distribution facility in California. The five-year lease with Western States Technologies is valued at $1.3M. The space, part of a 92k SF building in Vineyard Airport Center near Ontario International Airport, features 30-foot clear height and two-story, high-image office space. The tenant makes and distributes hardwood, bamboo and laminate flooring throughout the US. Cushman & Wakefield's Milo Lipson and Ryan Velasquez repped Western States, and Synergy Real Estate Group's Jeremy Trotter repped National Flooring.
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Crunch Fitness leased 15k SF in Sylmar (13227 Gladstone Ave) for 10 years. Todd Nathanson, John Raudsep and Kyle Fishburn of illi Commercial Real Estate repped the landlord.
FINANCE
Quantum Capital Partners' Jonathan Hakakha and Mike Yim secured long-term fixed-rate debt to refi 606 S Olive St, a 24-story, 299k SF office building in Downtown LA. The 15-year IO loan is fixed at 3.5%. The financing was originated by John Hancock Life Insurance, which offered a five-month forward rate lock in December so that the borrower could avoid a prepayment penalty on an existing CMBS loan. Built in 1968 for City National Bank, 606 S Olive is 98% leased, with 60% of the rent roll leased to the GSA and nonprofits.
CONSTRUCTION/DEVELOPMENT
LA County reps including Supervisor Don Knabe and County Librarian Margaret Todd (center, in light-colored clothing) joined project team members to celebrate the grand opening of the new $19M City of Manhattan Beach Library (1320 Highland Ave). C.W. Driver completed construction on the 22k SF design-build project, which features a complex, point supported double glass curtain wall. The City's existing 43-year-old library was demolished to make way for the new building, which has achieved LEED Gold certification. Johnson Favaro created the master plan, and Harley Ellis Devereaux Architects completed the design.
The library faces the Pacific Ocean, making the floor-to-ceiling glass curtain wall a major focal point. C.W. Driver pre-tensioned the structural steel before setting the curtain wall to accommodate the weight of the glass and avoid cracking during installation. The glass curtain wall has the appearance of a continuous wall of glass, providing unobstructed views of the South Bay and Channel Islands. (Question: Does the library include a space for surfboard storage?)
KUDOS
Haggen Pacific Southwest is donating more than 1 million pounds of food to local food banks from 100 newly converted stores, as the Bellingham, WA-based grocery chain expands throughout California, Arizona and Nevada. The donations will continue until June 20 when the final three stores open in Carpinteria, Long Beach and Santa Barbara. Along with each store opening, the grocery chain is partnering with a local nonprofit—donating a total of $100k across 100 stores opening in 100 days. To date, the company has opened 66 new stores in California.
EXECUTIVE NEWS
Chris Strickfaden and Eric Adams, both formerly with JLL, joined the South Bay office of Newmark Grubb Knight Frank as senior managing directors. Chris has completed more than $3B in transactions throughout his career, which also includes stints at PM Realty Group and Cadillac Fairview Prentiss Properties. In addition, Jen Fairfield, formerly with LA Realty Partners, joined NGKF as a managing director in the Downtown LA office. NGKF has made a number of hires in its Greater LA and South Bay offices, having recently recruited capital markets specialists John Carrick and Robert Lindner to its West LA office.
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Jolie Hunt, founder and principal of New York-based marketing and communications agency Hunt & Gather, was elected to Kilroy Realty's board of directors. Her firm serves established brands and startup ventures in the development and implementation of business strategy, discreet influencer relations and reputation management. Previously, she served as chief marketing and communications officer for AOL, and SVP and global head of brand and public relations for Thomson Reuters.
