This Week's LA Deal Sheet
Continental Partners secured $19.7M in financing for three multifamily properties totaling 180 units in LA.
While some lenders have been shying away from multifamily due to the high number of units planned to be delivered to the market in the coming years, there was interest in these particular deals, according to Continental Partners Director Zalmi Klyne.
"We are able to leverage our close relationships with lenders and deep market expertise to continue to secure competitive financing on behalf of our clients," Klyne said. "For these particular transactions, we were able to demonstrate the strong track record and business plans of each sponsor as well as the strong demand for multifamily product in these submarkets despite an uptick in multifamily development."
The firm secured $8.4M in ground-up construction financing for a 47-unit multifamily development in Westlake. The development will also include subterranean parking.
The sponsor was a luxury single-family home developer and its JV partner, a multifamily operator.
The 24-month, interest-only loan is sized to 65% of cost and is priced at prime plus 1%. The development will be at 218-224 South Occidental Blvd.
Continental Partners also arranged $6.6M in refinancing for a property with two adjacent apartment buildings totaling 88 units in Westlake.
The buildings are at 807 South Westlake Ave. and 2014 West Eighth St.
The sponsor, a private investor with five years of experience in value-add multifamily investments, bought the property four years ago and invested in significant renovations to stabilize the asset.
The sponsor requested a permanent loan to refinance the asset and cash out 100% of the initial equity.
Continental Partners also secured $4.7M in acquisition financing for a 49-unit multifamily property in East Hollywood at 1237 North Edgemont St.
The sponsor, a large real estate investor, requested a fixed-rate loan to finance the acquisition and reno of this value-add community with plans to reposition the asset and bring rents up to market, which would increase net operating income.
Klyne arranged the financing for all three deals.
SALES
CBRE brokered the sale of a historic Craftsman office building in Pasadena for $3.4M.
Known as the Sanborn House, it will be partly occupied by a local real estate investment firm.
The 6,827 SF property, at 65-69 North Catalina Ave., is a Greene & Greene Craftsman residence.
It was built 114 years ago and is used as a multi-tenant office property with three separate buildings on one parcel. The site has been renovated and preserved by Gaylaird and Gayle Christopher.
The property’s tenants include Hubris Studios, a design and advertising agency.
CBRE Senior Vice President Chalvis Evans and Senior Associate Kyle Barratt repped the sellers, Gaylaird W. Christopher and Gayle A. Christopher of Architecture for Education, which will be relocating to Old Town Pasadena.
Newmark Knight Frank Senior Managing Director David Kutzer repped the buyer, 65 North Catalina Avenue LLC.
Warner Center Townhomes, a 27-unit residential apartment community, sold for $11.5M.
LA's Warner Center Townhomes L.P. sold the 12-year-old property to Bay Area-based IEC.
Warner Center Townhomes is at 6737 De Soto Ave. in the Warner Center submarket.
The seller, an entity associated with Pacific Crest Realty, bought the property several years ago for $9.8M. All of the common areas have been cosmetically enhanced.
CBRE Executive Vice President Dean Zander repped both parties.
Berkadia brokered the sale of a newly built, 126-unit, mid-rise community in Lake Balboa for $43M.
The deal was completed on behalf of a private developer for Anaheim's Kort & Scott Financial Group.
The community was built last year.
Berkadia Managing Director Vince Norris, along with Managing Director Jim Fisher and Senior Director Mike Smith, completed the off-market sale.
In addition to this acquisition, Kort & Scott Financial Group also purchased 6940 Sepulveda Blvd. and the Plaza at Lafayette.
Spectra Co. founder and CEO Ray Adamyk bought the YMCA Building at 350 North Garey Ave. in Pomona for $2.65M from Sheng Ma LLC.
The 97-year-old, approximately 80K SF property, is listed on the National Registry of Historic Places, and includes two free-standing buildings.
The main building is a three-story brick-and-terracotta building that has more than 50 studio residential units, a swimming pool, a basketball court, a gym and four racquetball courts.
Spectra Co., which has been headquartered in Pomona since 2000, will relocate its operations to the YMCA Building once it restores the property and completes a multimillion-dollar renovation.
Plans include converting the main building into creative office and affordable residential units.
The gyms and sports courts will be restored to host special events such as weddings, holiday parties and corporate meetings. The southwest corner will serve the community with a new café and coffee bar.
Spectra Co. will begin the restoration and reno of the building later this summer with a groundbreaking ceremony to follow. The cost is expected to be $7.5M.
Bank of the West is providing the loan. A grand opening is tentatively planned for early 2019.
Avison Young brokered the $3.7M sale of a two-story, 7K SF fully leased retail and office property on Hollywood Boulevard.
The 23-year-old property is at 6501 Hollywood Blvd.
The closing cap rate was 5.25%.
Avison Young principal John Tronson and Vice President Steven Tronson, who are based in the company’s North Los Angeles office, repped the seller, a LA private investor, and the buyer, a private investor from New York City.
NEW CONSTRUCTION
Dedeaux Properties broke ground on its 246,543 SF Echelon Business Park in the City of Industry.
The $38M development is at 801 – 821 Echelon Court.
The Echelon Business Park’s seven free-standing buildings range between 27,438 SF and 43,166 SF, and include two-story office space, dock-height loading and configurations for loading shipping containers.
Construction is expected to be completed in the first quarter.
EXECUTIVE NEWS
David Rowley joined Newmark Knight Frank as regional director of management services for the Southwest region.
He will oversee regional operations and implementation of best practices, policies and procedures that maximize the value of real estate assets on behalf of NKF clients.
Rowley brings more than 22 years of commercial real estate management experience to his role.
Previously, Rowley was managing director of investor services for the Western region at Colliers International and was senior vice president at Davis Partners LLC.
