This Week's LA Deal Sheet
Drawn to what the Brickyard in Compton has to offer, UPS just signed a 10-year, 521,816 SF lease. Bisnow caught up with CBRE EVP and CBRE Global Port Logistics Group co-leader Bret Quinlan to get more details.
The former brick manufacturing facility on the 58-acre site was transformed by Clarion Partners and Trammell Crow into a state-of-the art industrial facility.
CBRE is the leasing agent on the project on behalf of Clarion Partners.
Bret (pictured with his son, Kenneth, at Pebble Beach) tells Bisnow UPS liked the Brickyard's central location, especially since "you can touch about 10 million people in under an hour."
The Brickyard focuses on the need for same-day logistics and has high-quality design features, 36-feet minimum clear height, huge truck yards and sizable parking lots for cars, according to Bret.
It's "unusual to find this size industrial site in an infill market," Bret says, since it would typically be found in places like the Inland Empire.
He says sites such as the Brickyard are increasingly important and "changing the face of industrial real estate" since e-commerce is a major driver of demand for state-of-the-art logistics space.
Reverse logistics is also becoming more vital, according to Bret.
It's all about the "necessity to meet customers’ needs for speedy delivery," he says, whether it's for the next day or the same day.
CBRE research has found "enhancing the return service helps e-retailers keep customer retention high" and drives e-commerce sales volumes higher each year, Bret says.
JLL EVPs Mike Fowler and Tim O'Rourke repped UPS. Elkins Kalt Partner Ray Friedman repped Clarion in the lease documentation.
SALES
SVN-Rich Investment Real Estate Partners sold the Hollyway Center at 8351 Santa Monica Blvd in West Hollywood for $11M, or more than $1,250/foot.
The property consists of a three-tenant strip center, totaling 8,790 SF.
The seller, The Levitt Family Trusts, first bought the property in the early 1950s and built the shopping center years ago.
The major tenants, Hollyway Cleaners and Earthbar, have been on the property for 26 years. Their leases don't expire until 2030.
SVN Rob Zaharia and NAI Capital Tim Steuernol repped the seller.
Pegasus Investments' David Chasin repped the buyer.
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Holliday Fenoglio Fowler sold 233 Wilshire, a landmark 128,935 SF office building in downtown Santa Monica.
HFF marketed the property on behalf of the seller, and procured the buyer, Douglas Emmett. The property was bought free and clear.
The Class-A asset features floor-to-ceiling ocean and mountain views, a newly renovated lobby and common areas, and a 385-stall subterranean parking garage.
It is 91% leased to Luther Burbank Savings, Tunnel Inc, Hirschfeld Kraemer, GoodRX and Enenstein & Ribakoff, among other tenants.
HFF senior managing directors Ryan Gallagher and Michael Leggett, who is the co-head of HFF's West Coast investment sales team, HFF directors Andrew Harper and Tim Geiman and real estate analyst Michael Matchett repped the seller.
NEW CONSTRUCTION
R.D. Olson Construction just completed a five-story, 94-room Hampton Inn & Suites hotel on the corner of Colorado Street and Brand Boulevard in downtown Glendale.
The Hampton Inn & Suites Glendale incorporates locally-inspired design into the hotel's theme and features mosaic windows, wood accents and high ceilings.
The 57,327 SF hotel has 41 queen, 24 king and 29 studio configurations.
Guests have access to free WiFi, an outdoor pool deck, free in-room movie channels, microwaves, refrigerators and workspaces with ergonomic furniture, among other amenities.
FINANCING
Thorofare Capital provided an affiliate of BRAD Management with a $14.9M floating-rate commercial mortgage to buy and renovate two multifamily buildings in South Pasadena.
The neighboring gated properties are at 1645 and 1653 Amberwood near the intersection of South Fair Oaks Avenue and the Arroyo Seco Parkway.
Thorofare moved quickly due to a shortened escrow timeline, according to Thorofare chief investment officer Brendan Miller.
Thorofare’s financing includes an approximately $2M CapEx facility for planned upgrades to the interior units, exterior, common areas and landscaping, as well as deferred maintenance remediation.
The properties, which total 63 units, were acquired debt-free but come with some maintenance issues.
Amenities at each property include a swimming pool, on-site laundry and a combination of subterranean, carports and surface parking.
The two properties could be combined into a single complex.
The Azzi Group of Marcus & Millichap repped both sides.
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Pacific Southwest Realty Services closed a $9.2M, 20-year amortization, fixed‐rate, non‐recourse loan for a 135,907 SF CarMax in Torrance.
Pacific Southwest Realty Services mortgage banker Trevor Blood closed the deal.
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Bellwether Enterprise Real Estate Capital closed a $22.7M refinance loan for 3787 East 11th St, an apartment community in Long Beach.
Bellwether Enterprise arranged the financing through Fannie Mae.
The apartments, built more than 30 years ago, consist of 18 three-story residential buildings with 156 units.
The garden-style complex has studio, one-bedroom and two-bedroom townhomes with rooftop views and vaulted ceilings with fans, walk-in closets, dishwashers and gas stovetops.
There is a swimming pool and a clubhouse on the property.
Bellwether Enterprise SVPs Jason Krupoff and Doug Taylor were the loan’s originators and are based in the Irvine office.
They delivered a 10-year, fixed-rate loan with only full-term interest-only through the Fannie Mae Green Rewards program.
EXECUTIVE NEWS
Noga Caspi joined the LA office of RCLCO, formerly Robert Charles Lesser & Co, as VP of BI Product Management.
She will lead the continued development of a proprietary BI tool that will allow RCLCO clients to gain insights about their customers and peers, and to apply these insights to improve their operating results.
Previously, Noga was a senior director at Irvine Co.
She has a bachelor's degree from Stanford University and an MBA in finance and real estate from the Wharton School of the University of Pennsylvania.
