This Week's LA Deal Sheet

Veteran commercial brokerage pro Joe Vargas, who ran Lee & Associates' South Bay office as president in 1991 before moving on to high-level roles with Cushman & Wakefield, has rejoined the broker-owned commercial real estate firm.

In his second stint with Lee, he'll act in a national adviser role and help in national market expansion and agent recruiting. Based in LA, Joe brings more than 30 years of experience. He'll report to Lee & Associates CEO Jeff Rinkov, who credits Greg Gill, president of Lee’s LA/Long Beach office, as the catalyst for the union. Joe was with Cushman & Wakefield from 1998 to 2014, serving as the West Region president, among other positions. From 1984 to 1991, he was VP of Grubb & Ellis LA South Bay. Pointing to his long relationship with Lee, Joe notes his return comes during a time when the firm's expansion and broker recruitment is in high gear.

SALES

StarPoint Properties bought a 32-unit multifamily property near downtown Santa Monica and the Third Street Promenade for $18.5M. The company plans to launch a $1.3M value-add repositioning of the property (901 3rd St), which has been renamed Wave @ 3rd. According to CEO Paul Daneshrad, the reno includes upgrading the interiors and exteriors, and adding a new state-of-the-art gym and yoga lounge. Originally built in 1973, Wave @ 3rd also will undergo a tech upgrade calling for common area WiFi. Charles Dunn Co's Albert Shilton repped both StarPoint and the seller, a private family trust.

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AF Trust bought the I-10 Commerce Center, a 116k SF multitenant industrial property in Banning (1143 and 1147 W Lincoln) from WLA Investments for $6.6M. The Class-B industrial park consists of three fully occupied buildings. The complex is in a key trade area along I-10 between Beaumont and Palm Springs, according to Herrik Johnson of Lee & Associates Riverside, who repped the seller along with Mark Larson of Lee & Associates Investment Services Group. Eric Strauss of American West Properties and Greg Ozimec of Industrial Brokers repped the buyer.

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FSA Capital LP bought a 34k SF multi-tenant industrial property in Santa Clarita (20724 Centre Pointe Pkwy) from Gilco 1 Santa Clarita Props Holding Co for just under $5.6M. Built in 2003, the project consists of three fully leased units. The largest tenant, 3D International LLC, which occupies 47%, was the project's original owner when it was built in 2003. NAI Capital repped both sides: Yair Haimoff for the seller and Rod Delson for the buyer.

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County Commerce Bank bought a 4,183 SF freestanding bank building in Westlake Village from Westlake Gateway Properties for $3M or $621/SF. The building (2663 Townsgate Rd in the Westlake Corporate Center) was previously occupied by Rabobank, which has moved out prior to its October lease expiration. The building boasts a 7:1,000 parking ratio and double drive-thru lanes. NAI Capital's Michael Schiff repped the seller.

LEASES

DLR Group, an architecture, engineering, planning and interior design firm, signed a lease for more than 35k SF at The Bloc (700 S Flower St), Ratkovich Co's mixed-use redevelopment in DTLA. The firm will occupy the entire 22nd floor and a portion of the 23rd floor for its regional office, consolidating offices in Pasadena and Santa Monica. DLR chose The Bloc to have a space that demonstrates its collaborative and creative work environment, according to JLL's Darren Eades, who repped the tenant along with Mike McKeever and Jordan Gaffney. The new space brings DLR's 150 LA-area employees under one roof. CBRE repped the landlord.

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LA Opera leased an industrial/flex building at 1655 E 14th St in Downtown LA to relocate its costume design shop from the Arts District. Valued at $4.6M for more than 27k SF, the 10-year deal provided a significant discount to Arts District rents, according to Charles Dunn Co's Chris Steck, who repped the opera company along with Chris Giordano and John Anthony. Major Properties represented landlord Danjon Realty, which previously occupied the building. The building includes second-floor office space and a secure parking lot.

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ClearTech Media leased a 4,717 SF creative warehouse in Altadena (729-735 W Woodbury Rd) as its new corporate HQ. NAI Capital's Marie Taylor repped the tenant. The company, which specializes in audio-visual systems for classrooms, boardrooms and conference rooms, is relocating and expanding from Pasadena.

FINANCING

CBRE's Brian Eisendrath and Annie Rice arranged a full-term, IO, floating rate loan at approximately 82% LTV on behalf of Kennedy Wilson Multifamily for the acquisition of Alexander Gardens Apartments in Las Vegas. The 480-unit community near the Las Vegas Technology Center, a major employment hub, is the LA-based investor's second purchase in Las Vegas in the past 12 months. Kennedy Wilson will implement a value-add renovation program upon acquisition.

CONSTRUCTION/DEVELOPMENT

No, these aren't the famous Nazca Lines geoglyphs in Peru—the lines delineate the remaining 875 acres in Riverside County's Meridian Business Park. A JV of Waypoint Property Group and The Lewis Group of Cos has acquired the development rights and master developer designation for the property. Waypoint president David O. Team says the venture plans to improve an initial 220 acres for commercial development, including logistics facilities, in partnership with the March Joint Powers Authority. The property is one of the largest contiguous, entitled development sites in SoCal, according to Cushman & Wakefield's Phil Lombardo, who repped both the buyer and seller along with Chuck Belden and Andrew Starnes. The 1,290-acre, master planned Meridian Business Park is on a portion of the former March Air Force Base.

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Adding to its volume of detention and healthcare projects, Bernards won a California Department of Corrections and Rehabilitation contract to build new prison healthcare facilities and renovate existing buildings at two state prisons. The work entails construction of eight new buildings and two additions at both North Kern State Prison in Delano and Wasco State Prison in Wasco. Bernards also will perform site work and infrastructure upgrades at the prisons, which are about a 20-minute drive from each other.

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Genton Property Group, a privately held real estate investment and development company, will break ground in October on the Four Seasons Private Residences-Los Angeles: 58 luxury condos and a top-floor penthouse that the developer anticipates will be the highest-priced condos ever to enter the LA market. RTKL designed the project, located at 9000 West Third St adjacent to the Four Seasons Hotel. Units will average 2,400 SF in three wings, two of which will offer a collection of private roof decks. The $50M penthouse, located atop the third wing, will span more than 12k SF of open-concept indoor/outdoor living space along with direct elevator access and a private six-car garage.

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Alliance Residential has opened the 122-unit apartment community Sway Santa Monica, with 45% of the units leased. The project (525 Broadway) was designed by Cuningham Group Architecture and features one of SoCal's largest living green walls at five stories tall, according to principal Jonathan V. Watts. Other amenities include a Zero edge saltwater pool with LED lighting, underwater speakers and projector screen, and an art gallery featuring local artists. Sway is located at the corner of Sixth and Broadway. The Broadway side of the property includes a 4,500 SF retail and office component, anchored by Umami Burger and Medical One.

EXECUTIVE NEWS

JLL named 25-year veteran Tony Morales as brokerage lead in the LA region, setting the strategic direction for the brokerage business and overseeing a team of approximately 80 brokers across six offices. He'll also direct recruiting efforts and strategies for pursuing new business opportunities, in addition to his role as a JLL LA managing director, advising clients on their office needs.