This Week's LA Deal Sheet
Seco Canyon Village, a 42,134 SF shopping center in Santa Clarita anchored by a CVS Pharmacy, sold for $15.5M.
The buyer was a private 1031 exchange buyer, a family trust based in Beverly Hills. The seller was a Beverly Hills private investor.
Seco Canyon Village is at 22872-22892 Copper Hill Drive and 27911-27983 Seco Canyon Road.
In addition to CVS, which has a drive-thru pharmacy, the 12-year-old Seco Canyon Village's tenants include AIM Mail Center, Papa John's Pizza, Verizon Wireless and Supercuts.
CVS represents 41% of the tenancy and has successfully operated at the center since it was built.
Outside of CVS, 100% of the tenants have signed new leases or extended their existing leases. Eighty-two percent of the tenants have been in the center for at least six years.
"The buyer was seeking an investment that would balance a high-quality location while still providing a higher yield than the single-tenant property the buyer sold in the exchange downleg," Hanley Investment Group Executive Vice President Kevin Fryman said. "Seco Canyon Village accomplished these objectives as the demographics are very affluent with an average household income of $131K in a one-mile radius."
Fryman and President Ed Hanley represented the buyer and seller.
Fryman said having CVS as the anchor provides the stability of a long-term lease.
The seller felt it was an ideal time to sell with interest rates and cap rates continuing to remain low combined with a 96% occupied center with minimum near-term lease rollover, he said.
SALES
Stepp Commercial completed the nearly $2.55M sale of East Third Street Apartments in Alamitos Beach in Long Beach.
The eight-unit apartment property closed at a 4.3% cap rate and $318,750 per unit.
The 90-year-old property is a Spanish-style, two-story property at 1136 East Third St. that consists of five two-bedroom units and three one-bedroom units.
Stepp Commercial principal Robert Stepp represented the seller, 1136 Apartments LLC.
The buyer was a private investor from LA.
After multiple offers, Adams Place in Glendale, at 525 North Adams St., sold for $17.6M, or $550K/unit.
The buyer was interested in the 32-unit condo development because the property was nearly brand new. It consists of primarily three-bedroom units.
The private seller built the development and had originally planned to sell the units off individually, but after the downtown began to rent them out and held them until now.
The buyer is a private family trust that plans to hold onto the property for the long term and continue operating it as an apartment building.
The Partners Trust Senior Vice President Morgan McMullin, Executive Vice President Dario Svidler and Associate Partner Patrick Barakat represented both the buyer and the seller.
Iconic Investments arranged the sale of Habitat Apartments at 514 South Mariposa Ave. in Koreatown for $4.03M.
The midcentury property has two studios and 17 one-bedroom, one-bath units.
The property received about eight offers and sold at a 3.15% cap rate.
Iconic principal Peter Strauss represented the sellers.
LEASING
MannKind Corp. recently moved its corporate headquarters to Westlake Village.
The firm signed a new 12,596 SF lease at 30930 Russell Ranch Road in Westlake Landmark, a two-building office complex in Westlake Village.
The company officially moved into the building last month.
JLL Executive Vice President Dan Sanchez represented MannKind.
The landlord, IDS Real Estate Group, was represented in-house by David Saeta and David Smith and JLL Managing Director Jim Lindvall.
CONSTRUCTION AND DEVELOPMENT
CBRE plans to develop a multifamily complex in Woodland Hills in a JV with the landowner, Gortikov Enterprises and AMCAL Equities LLC.
The partners plan on developing as many as 335 multifamily units at the site at 22055 and 22121 Clarendon St.
The property totals approximately 4.17 acres.
The two parties just broke ground on the project.
CBRE Executive Vice President Laurie Lustig-Bower, Senior Vice President Dan Riley, Executive Vice President Blake Mirkin, Senior Vice President Sam Alison and Senior Sales Director Kamran Paydar helped arrange the partnership.
CORRECTION, SEPT. 12, 5:11 P.M. PT: An earlier version of this story did not note the multifamily project at 22055 and 22121 Clarendon St. had just broken ground. The story has been updated.
