This Week's LA Deal Sheet
Pomona's Monterey Station just sold for nearly $85M, making it the most expensive deal recorded in Pomona, according to Berkadia senior managing director Dean Zander.
The 349-unit transit-oriented apartment community at 120-180 East Monterey Ave. was built about three years ago.
Zander (above with Warren Buffett) said the seller was the original developer, a JV between Realm Real Estate of Newport Beach and the Bascom Group of Irvine. Buyer Clear Capital of L.A. was in a 1031 exchange.
"They are improving the quality of the assets in their portfolio, and they recognized the value in Monterey Station," Zander said.
Clear Capital is planning minor cosmetic improvements to the common area amenities to ride the strength of the downtown Pomona submarket, Zander said.
The community has two U-shaped four-story residential buildings on nearly seven acres across from the Pomona Metro Station.
Monterey Station offers studio, one- and two-bedroom units, plus 38 live/work apartments and has 17 floor plans.
Zander, Berkadia managing directors Joe Leon and Jeff Rowerdink repped the seller.
SALES
Stepp Commercial arranged the sale of a two-property apartment portfolio near downtown Long Beach for $6.15M. The portfolio closed at a 4.2% cap rate and a price/unit of just under $171k.
The properties are both two-story and were built in 1964. They were renovated in 2009.
The first property, at 1121 Daisy Ave., includes 12 one- and two-bedroom units. The second property, at 1164–1170 Daisy Ave., includes 24 one- and two-bedroom units.
The portfolio was 97% occupied at close of escrow.
Stepp Commercial principal Robert Stepp repped the seller, an L.A. private investor, and the buyer, a L.A. JV between MOR Real Estate LLC and Lewis LLC.
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Colliers International brokered the sale of The Ashmont, a historic apartment building in Mid-Wilshire, for $8.6M.
The 50-unit building, at 908 South Hobart Blvd., was bought by Vista Investment Group.
The 89-year-old building consists of studio and one-bedroom units, a garden and a large laundry facility. The building was approximately 90% leased at the time of closing.
The deal also included an adjacent 9,029 SF fully entitled land parcel now being used as a 33-car gated parking lot.
Vista plans to do a reno of the building, including upgrades to the exterior and common areas, landscaping and the interiors of the units as turnover allows.
Improvements within the apartments will include refinished and polished original hardwood floors, new shaker cabinets with quartz countertops and stainless steel appliances and modern bathroom fixtures.
Colliers International executive vice president Kitty Wallace repped the seller, a private long-term owner. Vista repped itself.
FINANCING
The Ratkovich Co just completed its recapitalization at The Alhambra, a 45-acre mixed-use urban community in the City of Alhambra.
ELITE International Investment Fund and Future Land Holdings will partner with The Ratkovich Co in a new ownership structure. The sale and refinancing of the property includes paying off the existing CMBS loan and replacement with new debt.
The Alhambra recently became nearly 75% leased with new tenants, including the County of L.A. Parks and Recreation Division moving its new department headquarters into 55,583 SF.
The University of Southern California’s Keck School of Medicine has also expanded into an additional 22,475 SF.
Encino's Investment Real Estate Associates brokered the sale of a 20-unit apartment complex in Glendale for $3.69M after multiple offers were received.
The building sold at a 2.25% cap rate, which set a record for the lowest cap rate in Glendale.
The 12,668 SF, 88-year-old building has a unit mix that consists of 16 single-bedrooms and four one-bedrooms. It is at 125 West Palmer Ave.
The seller is undergoing a 1031 exchange, looking to increase cash flow by over 100% and have fewer management responsibilities.
The buyer plans to renovate the units and the building's exterior.
IREA senior vice president David Leibowitz and associate Sevak Amranyan repped the seller, a private family trust and the buyer, a private LLC.
EXECUTIVE NEWS
Katie Cowan (above) and Shaun Stiles joined Cushman & Wakefield.
Cowan's new title is director while Stiles is executive director. Both will work out of the firm's downtown L.A. office.
Cowan will focus on agency leasing, tenant representation and landlord representation in the Tri-Cities, downtown L.A. and the San Gabriel Valley markets.
Stiles has more than 26 years of experience and will focus on agency leasing and tenant representation in the Tri-Cities market and on the life science industry.
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LaTerra Development added two veteran development executives to its senior management team.
Randall Reel (above) is now the managing director of development.
Lynn Beckemeyer joins as senior managing director of construction and development.
Reel has 20 years of experience in entitlements, acquisitions, development and project oversight for urban infill and high-rise multifamily developments.
Beckemeyer has more than 20 years of experience, delivering large scale, ground-up mixed-use and multifamily construction projects.
