This Week's LA Deal Sheet
NGKF helped seal the deal on the $43M sale of the Fine Arts Building in the financial district in DTLA.
NGKF Capital Markets president, West Coast capital markets Kevin Shannon said the seller, Sorgente Group of America, did a full reno of the building at 811 West 7th St., and had made strides in getting much of it leased.
The 87.5% leased building's tenants include WeWork, which takes up 39%, Pfeiffer Partners Architects and LTK Consulting Services.
"This is an emotional building with a rich history that could never be replicated," Shannon said.
The seller worked hard to restore the building to its prior condition, including the restoration of Burt Johnson’s sculpture “The Highnote," he said.
"It’s a unique atmosphere for today’s new creative office formats," Shannon said.
The buyer, Manchester Capital Management, had a 1031 exchange to complete but is also attracted to historic buildings.
NGKF Capital Markets' Shannon, executive managing director Ken White, managing director Laura Stumm and managing director Gibran Begum repped the seller, Sorgente Group of America, and the buyer.
SALES
Stepp Commercial brokered the $14.4M sale of Sandpiper Apartments, a 71-unit apartment community in Whittier.
The property closed at a 4.84% cap rate with a price of nearly $202K/unit.
The more than 50-year-old property at 14515 Leffingwell Road has 41 two-bedroom units, 29 one-bedroom units and one studio.
Fifty-five of the units were recently renovated with updated kitchens and new carpets.
Stepp Commercial principal Robert Stepp and vice president Michael Toveg repped the seller, LA's Westside Capital Partners, and the buyer, a private investor from Long Beach who was in a 1031 exchange.
***
Terreno Realty Corp. just sold an industrial property in Whittier, California, for approximately $25.3M.
The property consists of one industrial building containing approximately 162K SF on approximately 7.4 acres.
The property is at 12252 East Whittier Blvd. It is 100% leased to one tenant.
Terreno bought the property for approximately $16.1M.
***
The Mason Canter Co./KW Commercial Los Feliz brokered the sale of a classic 1920s, Spanish-style multifamily building at 1515 North Hayworth Ave. for $4.41M, or $735K/unit, which was over the asking price.
The six-unit property designed by Raphael Nicolais was built by J.C. Hoffman in 1927.
Each of the property's two-bedroom townhouse units has private gardens and patios.
Its sale price exceeds the multifamily price-per-unit for this type of building in the 90046 ZIP code, according to agent Mason Canter.
CBRE Group brokered the sale of a multifamily complex in West LA to an experienced local real estate investor, Nikal Limited, for approximately $6.6M, yielding a 2.69% cap rate and a 19.7 gross rent multiplier.
The 16,360 SF building, at 1633 South Bundy Drive, is a three-story apartment complex with 20 units, ranging from one to three bedrooms.
CBRE senior vice president Priscilla Nee repped the buyer.
Marcus & Millichap's Rob Narchi and Peter James repped the seller, Kensuke and Sakiko Ogura.
FINANCING
West Hollywood's Shamina Investments received an $11.25M floating-rate whole loan from Thorofare Capital to buy and reno the 53-room Claremont Hotel Westwood.
The Claremont is adjacent to UCLA at 1044 Tiverton Ave. in Westwood Village.
The local family that sold the property has owned it since they built it in 1939.
A portion of the loan proceeds will be used for an extensive reno that will include upgrades to all the guest rooms, common areas, the lobby and the exterior.
The five-year, non-recourse loan was priced at a competitive spread over the 30-day Libor and includes structure for reserves to cover reno costs, debt service and operating deficits.
The loan was arranged by the New York City office of Mission Capital Advisors.
Shamina Investments plans to reopen the hotel in February 2018 as the Palihotel Westwood.
***
New York's The Moinian Group closed a $119.75M refinance for 550 South Hill St., also known as the International Jewelry Center, in DTLA.
Bank of China provided the five-year loan, which is interest-only throughout the term.
The new loan, at approximately 60% loan-to-value, refinanced an existing $116.8M CMBS loan.
The International Jewelry Center has 405 tenants, including jewelry manufacturers, wholesalers, retailers and couriers.
EXECUTIVE NEWS
Compass welcomed two teams, Isidora Fridman and Tomer Fridman, and Dana Olmes and Jeff Biebuyck, to the company’s Beverly Hills office.
These agents represent celebrities, including the Kardashian-Jenner family, Justin Bieber, Jennifer Lopez, Britney Spears, Beau Bridges and Charlie Sheen.
The two teams co-list and collaborate on deals above $6M.
Prior to joining Compass, both teams were top producers at Ewing & Associates, Sotheby’s International Realty.
