This Week's LA Deal Sheet
A rare fee-simple ground lease under The Shops on Lake Avenue just sold in Pasadena.
Hanley Investment Group Real Estate Advisors brokered the sale for an undisclosed amount. The Shops on Lake Avenue is shadow-anchored by Macy’s; that store was not included in the deal.
The property consists of two land parcels, totaling about five acres with 131,153 SF of buildings at 345 and 401 South Lake Ave.
There are no plans to close or sell the Macy's store.
The Shops on Lake Avenue includes T.J.Maxx, Trader Joe’s, Coffee Bean & Tea Leaf, and Massage Envy.
More than 61 years remained on the lease term, including two 10-year options, and 100% of the improvements revert to the landowner when the ground lease expires.
Hanley Investment Group executive vice president Carlos Lopez, along with senior associate Lee Csenar, repped the seller, Macy’s Inc.
Lopez said "the sale was part of an ongoing corporate plan to strategically monetize certain real estate assets."
Buyers are attracted to shopping districts like Pasadena, according to Lopez.
The buyer, a private investor in San Diego, repped itself.
***
Hanley Investment Group Real Estate Advisors also brokered the sale of Arcadia Gateway Center, a 156,046 SF, mixed-use commercial center in Arcadia for $62.08M, representing a cap rate of 5.45%.
The nearly 30-year-old center is on about eight acres at 300-450 East Huntington Drive.
Hanley Investment Group president Ed Hanley, executive vice president Pat Kent and senior associate Corey Olson repped the sellers, Arcadia Gateway Centre Delaware Partners and Post Exchange.
The buyer, JLJ (USA) Investment of City of Industry, Calif., was repped by Lee & Associates senior vice president Henry Hong.
A 43,578 SF single-story multi-tenant building includes BJ’s Restaurant and Brewhouse and Olive Garden.
There is also a Men’s Wearhouse, Leslie’s Pool Supplies, Scottrade, Starbucks and Togo’s on the property and a 48,455 SF, two-story medical office building that is 100% leased to HealthCarePartners with a corporate signature guaranteed by DaVita.
A 64,013 SF, four-story multi-tenant office building also is 100% leased.
Marcus & Millichap brokered the sale of 2727 6th St., a three-story, 31-unit apartment building with ocean views in Ocean Park in Santa Monica for $17.4M, or $562,097/unit.
The building was constructed on a more than half-acre corner hilltop lot in 1969. The unit mix is 17 one-bedroom/one-bath units and 14 two-bedroom/one-bath apartments. Community amenities include a swimming pool, a rooftop deck with ocean views, a laundry facility and gated parking.
Marcus & Millichap senior managing director of investments Richard Ringer repped the seller, an affiliate of Hill Street Realty, and procured the buyer, a privately held company.
GROUNDBREAKING
Meta Housing Corp. broke ground on two affordable apartment communities, including 127th Street Apartments, an 85-unit apartment community for homeless and chronically homeless individuals, and El Segundo Boulevard Apartments, a 75-unit apartment community for veterans and their families.
The El Segundo Boulevard Apartments will have stormwater filtration planters that clean, treat and recycle all water that lands on the site and building and an outdoor courtyard and bike storage.
The apartments will be at 550 West 127th St. and 535-611 West El Segundo Blvd.
Both communities will have community spaces, including clubhouses, classrooms and technology centers for educational training.
The 127th Street Apartments will also offer a teaching kitchen for cooking classes and communal dining.
LEASING
Olive Hill Group leased half of the fifth floor of its creative office campus in Culver City to Omnia Media, a subsidiary of the international Canadian media company Blue Ant Media.
Omnia Media has outgrown its existing space and will relocate to 300 Corporate Pointe, where it will lease 9,762 SF. The move brings the building to 95% occupancy.
Savills Studley senior managing director Matt Brainard repped Omnia Media.
Madison Partners executive vice president Joe King and vice president Matt Sprowles repped the landlord, Olive Hill Group.
EXECUTIVE NEWS
Ryan Flautz was promoted to associate principal at KTGY Architecture + Planning.
Previously, he was executive director of production in the LA office. Flautz joined KTGY six years ago.
He has more than 25 years of residential design and project management experience.
***
CBRE Group hired first vice president Orbell Ovaness and vice president Brad Baskin to focus on high-street retail investment properties.
The team is based at the company’s Beverly Hills office.
Ovaness has 14 years of experience in commercial real estate. Previously, he was the executive vice president of Orbell Investment Group of BRC Advisors.
Baskin was previously vice president at BRC Advisors.
