This Week's LA Deal Sheet
A multifamily portfolio of Craftsman-style buildings just sold after attracting significant interest from investors. The terms of the deal were not disclosed.
The properties, which total 506 units, include Park Anza, at 23418-23818 Anza Ave., Park Vista at 2525-2745 and 2811 West 235th St. and Park Yukon at 16635-16733 Yukon Ave. in Torrance.
"Historically, multifamily properties in Torrance are family-owned and they have been in the same family for generations, so it’s rare for properties to even come on the market here," Lee & Associates Multifamily Advisory Group principal and National Director Warren Berzack said. "The other thing that was very unusual about this transaction was its size. You just don’t see 500-unit portfolios, so there was tremendous interest from the marketplace."
Don Wilson Builders, a 62-year-old development company, developed the buildings and has owned them since the 1960s.
Park Anza, with 239 units, and Park Vista, with 183 units, are designed as townhomes that look similar to single-family properties.
Park Yukon is designed like a traditional apartment building with six contiguous buildings with 84 units.
Berzack said the family that owned the property felt it was simply the right time to sell it given the market fundamentals since multifamily values have been at record levels.
The buyer plans to do a significant reno of the property, including updating the interiors, according to Berzack.
Berzack, Lee & Associates Senior Vice President Travis Haining and Senior Vice President/principal Alton Burgess, repped both the seller, Don Wilson Builders, and the buyer, an affiliate of Boston's Rockpoint Group in a JV with Strategic Housing Partners, an affiliate of Coastline Real Estate Advisors.
SALES
Lion Real Estate Group sold Kingsley Tower, a 45-unit apartment building at 530 South Kingsley Drive in Koreatown, to San Francisco's Prana Investments for $8.7M.
Lion Real Estate Group bought the property for approximately $4.2M five years ago.
The firm did a reno that included adding refinished hardwood flooring, exposed brick walls, new appliances, granite countertops, designer light fixtures and pedestal sinks.
The 87-year-old Kingsley Tower has five bachelor units, 30 studios and 10 one-bedroom units with average rents ranging from $911 to $1,402/month.
Madison Partners Senior Executive Director Darin Beebower repped Lion Real Estate Group. Prana Investments repped itself.
Reno, Nevada's Dermody Properties recently bought the Bloomfield Industrial Center in Santa Fe Springs from a private investor.
The 75,960 SF warehouse and distribution facility at 10712-10748 Bloomfield Ave. is the company's first property in Southern California.
There are two units available for lease at the project: a 22,440 SF unit with 1,349 SF of refurbished office space and a 15,360 SF unit with 1,357 SF of refurbished office space.
The units are adjacent and can be combined to create a single unit size of 37,800 SF.
Bloomfield Industrial Center also offers dock-high loading, 24-foot interior warehouse clearance and LED lighting.
Cushman & Wakefield Executive Managing Director Jeff Chiate, Executive Director Jeff Cole, Senior Associate Mike Adey, Director of Capital Markets Ed Hernandez, Director Chuck Berger and Newmark Knight Frank Managing Director Bob Crenshaw repped the buyer and seller.
FINANCING
George Smith Partners secured $26.5M in refinancing for Gershwin Apartments, a 163-unit apartment community with 10,500 SF of ground-floor retail, along with acquisition financing for Gershwin Villas, an adjacent nine-unit multifamily property in Hollywood.
The Gershwin Apartments, on Hollywood Boulevard, were acquired by Massie Capital and Glenn & Shannon Dellimore two years ago.
George Smith Partners arranged a competitive loan for the acquisition at that time.
Another loan was requested two years later to refinance the existing loan and complete Phase 2 of a reno, while also buying an adjacent multifamily property, bringing the property’s unit count to 172.
Plans now include adding a resident lounge at The Gershwin and a screening room, a jacuzzi and a rooftop deck. Its fitness center will also be upgraded.
The Gershwin Villas will be rebranded as the Gershwin Bungalows and offer private patios and amenities.
Gershwin Apartments is at 5533 Hollywood Blvd., and Gershwin Villas is at 1714 Garfield Place.
George Smith Partners’ Managing Director Shahin Yazdi arranged the financing.
JLL's Hotels & Hospitality Group arranged the sale of the DoubleTree by Hilton Los Angeles Downtown on behalf of the undisclosed seller.
The purchase price is not being made public. Han's Group USA bought the 434-room property.
The DoubleTree by Hilton Los Angeles has three food-and-beverage outlets, approximately 18K SF of flexible event space and a fitness center.
There is also an outdoor Kyoto Gardens, a Japanese-inspired half-acre of manicured greenery, waterfalls and ponds.
JLL International Director John Strauss, Executive Vice President Tony Muscio and Vice President Willis Cheng led the JLL team on the deal.
LEASING
In spite of several competing bids, Colliers International was able to secure a five-year lease agreement on a 158,357 SF warehouse and distribution facility for a Hacienda Heights-based shipping company in Rancho Dominquez.
Empire Container Freight Station Inc. signed the lease agreement valued at $6.7M.
The Black Equities Group-owned property is at 19600 South Alameda St.
The building had a complete facelift complete with a new interior and exterior paint job and new carpets on the office floors.
The property also has one to 1.5 acres of excess land for truck parking and container storage.
Colliers International Senior Vice President Lary Carlton, along with Associate Vice President Kyle Degener, repped Empire Container Freight Station.
