This Week's LA Deal Sheet
Walker & Dunlop arranged construction financing totaling $100M for a planned 368-unit, seven-story apartment project at 1331 North Cahuenga Blvd.
The development, called The Rise Hollywood, is being developed by Boca Raton, Florida's Rescore Property Corp., a private real estate investment trust founded by Arthur Falcone, Tony Avila and Bill Powers, along with LA's Cal-Coast.
The financing was arranged by Walker & Dunlop managing director of capital markets Kevin O’Grady and managing directors Daniel Sheehan and Eric McGlynn.
"Hollywood is a distinct neighborhood in LA with a tremendous vibe," O’Grady said. "Overall LA apartment absorptions have been very strong, but for distinct neighborhoods like Santa Monica, Westwood and Hollywood, the units are in high demand."
Some of the modern amenities the project will have include nine-foot ceilings, wood flooring, state-of-the-art appliances, quartz countertops, walk-in closets, a clubroom, a fitness room, a yoga dome, a dog run and a swimming pool, according to O'Grady.
The loan, provided by Bank of the Ozarks, closed on March 30.
SALES
Roxborough Fund I, an affiliate of San Francisco's The Roxborough Group, in partnership with LA's The Ruth Group, bought 9841 Airport Blvd. for $12.5M.
The 15-story, 304,821 SF office tower is 62% leased. A major reno of the building not far from LAX is now planned.
The renovation will include a complete rebranding, cosmetic upgrades to the exterior, a full reno of the office lobby and entrance and improvements to the signage and landscaping.
This is the first acquisition for the partnership.
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Shopoff Realty Investments bought a 45.89-acre manufactured housing community in El Monte for approximately $52.7M.
The community has 421 home sites at 12700 Elliott Ave., with a 64% occupancy at the close of acquisition.
Shopoff Realty Investments plans to reposition, re-tenant and stabilize the manufactured housing community by adding 150 homes to the community and the city’s housing stock.
Ladder Capital served as both Shopoff Realty Investments' lender and equity partner.
MCA Realty bought an eight-acre land parcel in Temecula.
The firm plans to develop a 140K SF industrial building on the site, which will be the first industrial development built in Temecula in more than eight years, according to MCA Realty principal Tyler Mattox.
MCA Realty plans to break ground this month on the new industrial development, which it will brand as MCA Business Center.
MCA Business Center will be have 32-foot clear heights, 120-foot truck courts, ESFR sprinklers and 15 dock-high loading doors.
It will be built with the flexibility to accommodate a single tenant or multiple tenants.
CBRE senior vice president Roger Carlson and Lee & Associates vice president Scott Steward repped MCA in the acquisition of the land and will lead the leasing efforts for the new development.
Stepp Commercial brokered the sale of Cherry Avenue Apartments, a 12-unit apartment property within the Retro Row neighborhood of downtown Long Beach for $3.3M, or $275K/unit.
The property closed at a 4.4% cap rate.
The two-story property, built in 1963, is at 546 Cherry Ave.
The property includes seven one-bedroom units, three two-bedroom units and two studio units and has controlled-access entry, parking and a laundry facility.
Stepp Commercial principal Robert Stepp and vice president Michael Toveg repped the seller, 546 Cherry Waterford LLC from Long Beach.
The buyer was a private investor from Palos Verdes.
LEASING
JLL negotiated three leases on behalf of Champion Glendora, an affiliate of Champion Real Estate Co.
Creamistry, Oke Poke and Orangetheory Fitness will open at the 70,500 SF shopping center at 655 South Grand Ave. in Glendora.
These new tenants will bring the center to 85% leased prior to completion of the redevelopment.
The center is scheduled to open Wednesday.
The ribbon-cutting ceremony is scheduled to begin at 10:30 a.m. with the City of Glendora and the Glendora Chamber of Commerce.
Champion Real Estate Co. acquired the retail center in 2016 and is investing $32M in the reconfiguration and repositioning of the existing 85,615 SF property into a smaller 70,500 SF grocery-anchored neighborhood shopping center. Completion is planned for July 2017.
JLL senior vice president Shauna Mattis and associate Blake Kaplan are handling leasing and repped the landlord in each lease.
Mattis and Kaplan are in negotiations for another 8,200 SF, which would make the project 97% leased.
EXECUTIVE NEWS
Allen Matkins welcomed back tax partner Scott Dommes to its LA office.
Dommes rejoins the firm's tax and joint venture practice groups after spending the last year as in-house tax counsel at Chevron Corp.
Previously, Dommes worked as a senior associate in the transaction advisory services group of Ernst & Young LLP and was an associate in the Silicon Valley office of Latham & Watkins LLP.
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Craig Taggart joined Commercial Brokers International's team of CRE agents.
Taggart will assist commercial investors with their real estate goals.
He has 10 years of experience in mergers and acquisitions and business financing.
