This Week's LA Deal Sheet
George Smith Partners arranged the financing for Massie Capital for the William Penn Apartments, a 200-unit multifamily property in Westlake. Bisnow caught up with George Smith Partners principal Shahin Yazdi to find out more about the deal.
The challenge with the William Penn Apartments, at 2208 West 8th St, is they are in what is considered to be a lower rent district, Shahin says.
However, they overcame the perception "by communicating Westlake’s tremendous upside potential," he says. He tells us the area is centrally located and "has been largely ignored by investors to date."
The five-story building was originally a hotel.
Massie Capital plans to renovate the building, creating modern housing that is affordable in comparison to surrounding neighborhoods, Shahin says.
The units have kitchenettes instead of kitchens. This will offer the opportunity for “micro” multifamily units, he says.
Massie Capital founder Brian Massie says the renovation will help the firm keep rents more affordable, appealing to a younger demographic. The company also plans to maintain the character of the building.
Shahin says "securing a bridge loan with no reserve requirements" was a big feat for the market.
Bridge loans usually require "at least $200 per unit for replacement reserves, and most lenders will hold funds back to meet interest and/or construction reserves," Shahin says.
Instead, Massie Capital negotiated a loan that funded completely "on day one, supporting our client’s needs and keeping the project timeline on track," he says.
SALES
JLL sold a 1,900 SF owner-occupied office building at 738 North Highland Ave in Hollywood for $1.8M, or $947/SF, to a private investor in LA.
It is a record price per square foot for an office building in Hollywood, according to JLL's Nicole Mihalka (pictured with her husband, Martin Fenlon), who repped the seller, an LA private investor, along with JLL's Angela Sanders.
“Hollywood, and particularly the Highland Avenue corridor, is not only an epicenter for entertainment," but also is a destination that houses design showrooms and art galleries, Nicole says.
She expects the trend to continue and expects the area will "rival the La Brea and Melrose/Robertson corridors" in the next decade.
"Investors in the know are capitalizing on that foresight," Nicole says.
San Francisco's Pacific Eagle Holdings is selling condos at its Cavalleri property in Malibu.
Cavalleri, near Zuma Beach, will undergo a renovation this summer. The 68 two- and three-bedroom units range from 1,577 SF to over 2,200 SF. Prices start at $975k.
Edmonds + Lee is designing the project, which includes craft finishes, hardwood floors, gourmet kitchens and open floor plans.
Cavalleri also has a 52-foot swimming pool, a fitness center, an outdoor dining pavilion, two tennis courts, a bocce ball court, dog parks and a meditation area.
It is scheduled to be completed by the end of this year.
Beverly Hills' Concord Real Estate Services sold the Mira Vista Apartments for $10.425M in an off-market deal.
The 64-unit multifamily property is at 11145-11125 El Camino Real in Atascadero.
LA private investor Sunday Rules LLC bought the property, which was renovated 10 years ago. It was originally built in 1985 and has eight two-story buildings over four acres.
There is a swimming pool and spa, an on-site laundry facility and a detached single car garage for each unit.
The property was 100% occupied. Concord Real Estate Services managing director Kenny Stevens brokered the off-market deal.
Party Unlimited Rental and Supplies bought a 16.3k SF industrial building at 13320 South Figueroa St in the South Bay for $2.3M.
The building has 3k SF of office space and will be used to house its warehouse operations.
A refurbishment is planned before Party Unlimited moves into the new facility. The move-in date is scheduled for late in Q3.
The Klabin Co SVPs Matt Stringfellow and Courtney Bell repped Party Unlimited. Cushman & Wakefield director of leasing, industrial Rusty Smith repped the seller, 13320 Figueroa St LLC.
AWARDS
NewMark Merrill Cos founder, CEO and president Sanford “Sandy” Sigal recently received the EY Entrepreneur of the Year 2016 Award in the Services category. NewMark Merrill owns or manages a portfolio that includes more than 85 shopping centers. It also reps more than 1,500 tenants and 10M SF.
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Rios Clementi Hale Studios’ design for The Resort at Playa Vista just got two awards from the Westside Urban Forum, or WUF, and the LA Business Council. The Resort at Playa Vista is a new, 25k SF recreational facility and park. It won the People’s Choice Award and a Citation Award in the Mixed-Use/Built category at WUF’s 2016 Design Awards. The resort also received an LA Architectural Award in the LA County Sustainability category from the LA Business Council.
