Vandenberg Air Force Base Military Housing Ends Six-Year Makeover Process

By Alex Girda, Associate Editor

The housing component at Vandenberg Air Force Base has received a major boost as the initial development period finally comes to an end. A partnership between Balfour Beatty Communiites LLC and Hensel Phelps Construction Company handled the renovation and construction of new military housing units at the base. The total investment made during the six-year interval now stands at around $158 million. Balfour Beatty Communities currently deals with a range of residential projects including multifamily, military and student housing. With the initial development period now over, the developer and property manager has increased the number of units it handles at the Vandenberg AFB to almost 1,000.

Started back in 2007, the development process has seen the partnership build around 160 brand-new homes, while 500 outdated housing units had to be taken down. A further 700 homes underwent extensive renovation operations at the Air Force Base. Also part of the lengthy development process was the construction of a new community center offering residents 6,200 square feet of common space. A pool as well as a number of multi-purpose rooms are included in the new amenity package which features parks, athletic facilities, bus shelters, perimeter fencing, and substantially improved infrastructure. The community will feature a new 2,400 square-foot maintenance facility.

Vandenberg AFB’s new residential component was built with energy efficiency in mind and to achieve that, most of the materials obtained through the renovation and demolition processes were reused to as great an extent as possible. New materials were locally sourced, local contractors were used meaning that around 80 percent of the investment went into the local community, while the construction process itself was carried out with the use of low voltage lighting, tankless hot water systems, Energy Star appliances, high efficiency furnaces, low-flow plumbing fixtures and low-VOC construction materials. Water conservation was also a priority as well as the use of native plants for the landscaping.

Image courtesy of vandenbergfamilyhousing.com

Upscale Gated Community in Century City Set to Expand After Land Deal

By Alex Girda, Associate Editor

L.A.’s residential market seems to be picking up where it left off as reports indicate that even the slowest neighborhoods of the city’s metropolitan area are now recording improvements in the residential sector. In fact, an affiliate of California Landmark Group has recently acquired a 70,000 square-foot, undeveloped site in Century City. The plan is to get a small, upscale residential community built here, one that will complement the existing Century Woods community. The land and developing rights for the lot cost the investor $13 million.

Located at the corner of Century Park West and Solar Way, the site will house ten 5,000-square-foot homes that will form The Enclave at Century Woods. The development process is set to be fast tracked and construction should begin during the next few months, with completion tentatively set for the end of next year. Along with purchasing the land from a neighboring homeowner association, CLG also acquired JMB Realty Corporation’s option to build homes there.

The development plan will also include a perimeter wall that will enclose the new high-end gated community into the existing Century Woods residential complex. The homes will be oriented towards a central common courtyard, while lush landscaping will form a transition area from the street and nearby buildings. The new homes will benefit from the same amenity package currently available to the residents of Century Woods including: secure entry, tennis court, indoor and outdoor pools, a fitness center and a clubhouse. CLG also handled the construction of the last four homes to be added to the community, back in 2002.

New Development in City’s Arts District Set to Reopen Market for Condo Homes

By Alex Girda, Associate Editor

The final construction phase on one of L.A.’s most interesting redevelopment projects has started. The development team of Blackstone and CityView recently announced that they have broken ground on the last stage of construction at their Barker Block residential community. Working in association with The Kor Group, the developers are now set to convert an old warehouse space into a loft and townhome component for this project in the city’s Arts District. When work is completed at the site, the total investment will clock in at around $150 million.

The Barker Block condo development will become the first new for-sale development in the city for quite some time and will offer 309 residential units to potential buyers in the Arts District. The final phase will include the construction of 68 units for an investment of around $25 million. With the backing of Los Angeles Mayor Antonio Villaraigosa, the community will be added to the city official’s Clean Tech Lab initiative for the surrounding district.

The condo development has taken shape in a number of repurposed buildings whose architectural elements have been preserved. Many materials from these original structures have been repurposed and used in the new construction process. The loft units and townhomes will have a number of green design features such as water-efficient landscaping, Energy Star appliances and energy-efficient homes that will include insulated dual-pane windows.

Developer Blackstone is eager to finish the final phase which will create around 100 construction jobs for the community and has voiced excitement regarding its partnership with CityView and the city’s local authorities through Jon Gray, the company’s head of real estate. “Blackstone’s investment demonstrates the impact that private capital can have on revitalizing America’s urban neighborhoods.” Gray also said that contributing to the local economy is a point of pride for the organization.  

Two Historic Multifamily Properties Trade Hands as 1920s Charm Makes a Comeback

By Alex Girda, Associate Editor

Los Angeles’ residential market saw a recent upswing in interest for smaller multifamily properties as two deals were completed for properties bearing those traits. South Park Lofts in the South Park district and Avondale Apartments in Hollywood were snapped up by investment firms M West Holdings and Avondale Hollywood LLC, respectively. However, the two properties don’t only have a small footprint in common. Both South Park Lofts and Avondale Apartments are historic properties.

South Park Lofts is a 49-unit high-end multifamily building located at 818 South Grand Avenue in downtown Los Angeles. The property was originally built in 1924, and it underwent extensive renovations in 2004. Resident amenities include a rooftop garden and spa, grilling area, glass enclosed rooftop gym and onsite café, as well as its coveted location within walking distance to the LA Live entertainment district and Staples Center. The property is currently on the National Register of Historic Places and was also granted landmark status by the California Historic Resources Commission. Sold by Rockwood Real Estate Advisors, a full service real estate investment banking firm, the property is now under the ownership of M West Holdings, a vertically integrated private real estate investment company that operates in Southern California and New York City.

Avondale Apartments is a 1928-built apartment asset in Hollywood, offering 58 residential units. Located at 1825 North Cahuenga Boulevard, the property retains a large proportion of its original architectural features, while providing a great opportunity for any owner seeking renovation. A number of improvements could be undertaken at the aging building, most notably unit modernization and a lobby makeover. The property was acquired by Avondale Hollywood LLC for a fee of $6 million from seller 1825 N. Cahuenga LLC. The transaction was arranged on behalf of both parties by a representative from Madison Partners.

 Images courtesy of splofts.com and Google StreetView

The Desmond will Join Creative Office Building Inventory in L.A.’s South Park District

By Alex Girda, Associate Editor

Lincoln Property Company is looking to capitalize on the growing demand for creative office space in the Los Angeles metro area and has snapped up an intriguing property in the city’s downtown. The company recently announced that it is finalizing the deal for The Desmond building, a property that has gathered quite the history in its nearly 100 years of existence. The space will be completely renovated and converted to match current standards for its type of property. The revamped facility would also benefit from proximity to the growing L.A. Live entertainment district.

The Desmond is a vacant five-story building located in downtown’s South Park District. When completed, the construction will offer potential tenants a total of 78,500 square feet of newly renovated creative office space. The refurbishing process at the property will begin immediately, with the process set to last for a year. With ceilings ranging in height from 11 to 16 feet, the building looks like a great candidate for a Class A property, especially in a growing market.

The facility features 15,600 square foot floor plates throughout, as well as an adjacent surface parking lot which the new owner will use to support the building’s office and retail residents. Renovations will deal with building mechanicals, new windows, and brand new interior finishes while maintaining the attractive sense of spaciousness and rooftop views. The location is in close proximity to the city’s Metro rail system, Downtown Dash Bus station and major roadways. Additionally, local authorities are considering restoring the Downtown Streetcar service which would have a stop just next to The Desmond. Leasing for the building is already underway

Long Beach Senior Affordable Community Finally Holds Groundbreaking

By Alex Girda, Associate Editor

A major step was taken to ensure that an important residential development in Long Beach will have new life following a number of funding delays due to redevelopment legislation. However, the Ramona Park senior affordable housing development has managed to pull through and recently held a groundbreaking ceremony, confirming the local market’s need for projects of its kind. The affordable housing community is being handled by Palm Communities and Western Community Housing, a nonprofit organization that specializes in affordable housing projects.

Ramona Park Senior Apartments will be a 60-unit housing community for residents that are over the age of 55 and earn less than 60 percent of the area’s median income. Located at 3290 E. Artesia Boulevard, in the immediate vicinity of Ramona Park, the development will feature 48 one- and 12 two-bedroom residential units. The community’s amenity package will feature a common courtyard, a pool, picnic area, spa, fitness facility, fire pit, classroom, rec rooms and other common rooms including a computer room, dining area, and library. The development process will employ standards reaching minimum LEED construction requirements, as well as local green building regulations.

Financing for the project was partially raised with $7 million in low-income housing tax credit equity from WNC, an entity dealing with community development projects across the U.S. That measure is a federal tax facility that acts as an incentive for developers aiming to construct affordable rental housing communities for low-income residents. The total development cost for the Ramona Park Senior Apartments will reach $22.5 million by the completion date set for April 2014.    

New Renaissance Hotel will Join Already Impressive Hospitality Roster at L.A. LIVE

By Alex Girda, Associate Editor

The L.A. Live development has reimagined a troubled area of downtown Los Angeles by injecting a new sports and convention space-anchored complex. The revitalization of the area surrounding the STAPLES Center seems to be a success as the company responsible for the L.A. LIVE concept, AEG, recently sold a 60,000-square foot land parcel to Williams/Dame & Associates which will be used for a new hotel project. The reported investment would be of around $200 million, and the developer intends to operate the venue as a Renaissance Hotel, one of the brands under the Marriott International canopy.

The 450-key facility will be located at the northeast corner of Olympic Boulevard and Georgia Street. This would be the fourth hospitality spot to be operated under a brand owned by Marriott International in the area. The new Renaissance Hotel joins an existing 123-key, 5-star Ritz-Carlton Los Angeles Hotel owned by AEG, the JW Marriott Los Angeles LIVE Hotel featuring 878 rooms, and two other properties currently in development that will be part of a 24-story high-rise scheduled to open in July 2014, both owned by Williams/Dame & Associates and American Life, Inc. When completed, the two hotels will add around 400 rooms to the area’s Marriott-operated inventory.

With the new Renaissance Hotel beginning construction in Q1 of 2014 and a completion date set for 2016, the L.A. LIVE area looks forward to offering a plethora of hotel options, with 1,844 rooms featuring five different Marriott brands: Ritz-Carlton, Renaissance, JW Marriott, Courtyard and Residence Inn. The venues will ensure that visitors will have a variety of hospitality options when checking out one of the many attractions of the entertainment district: STAPLES Center, the Los Angeles Convention Center, Nokia Theatre L.A. LIVE, Regal Cinemas and the GRAMMY Museum.

Image: L.A. LIVE, courtesy of lalive.com

Bixby Office Park Acquired for $85 Million; TIAA-CREF Expands Portfolio With Industrial Purchase

By Alex Girda, Associate Editor

It was recently announced that the Bixby Office Park has been acquired by a private, fully integrated real estate investment company. Parallel Capital Partners sealed a deal worth approximately $85 million to secure the commercial asset in Seal Beach, CA. This constitutes the largest office transaction in Orange County in 2013. The seller was a large national insurance company, represented by an Eastdil Secured team consisting of Adam Edwards and K.C. Scheipe. The buying entity was PCPI BIXBY LP, an affiliate of Parallel Capital, which represented itself.

The 297,200-square foot complex occupies a 16-acre lot at 3001-3005, 3010, 3020 and 3030 Old Ranch Parkway, in close proximity to the 405 Freeway. Originally developed in 1987, and featuring an above average occupancy rate of approximately 98 percent, the complex features a tenant roster including names such as Baker Corp, SAIC, Olson Urban Housing, Seagate Offices and Clean Energy Fuels Corp.

In other real estate news from the area, TIAA-CREF recently completed the acquisition of an industrial property in Carson. Located at 16325 S. Avalon Boulevard, the multi-tenant warehouse and distribution asset offers up 210,700 square feet of leasable space. The property was bought from Trammell Crow, an entity specializing in the sale of completed spec developments to investors.

The value of the transaction made by Teachers Insurance and Annuity Association – College Retirement Equities Fund was not disclosed. The facility is a Class A commercial real estate property that was developed on a land parcel bought by Trammell Crow back in 2011 from Evergreen USA. The company later developed the property which features 26 loading docks and 32-foot-high ceilings and is pending LEED Silver certification.  

Image courtesy of bixbyland.com

Creative Office Building in Santa Monica Secures Refinancing Deal as Silicon Beach Concept Gains Traction

By Alex Girda, Associate Editor

Holiday Fenoglio Fowler recently announced that it has provided a refinancing plan to The Luzzatto Company, Inc. and Welk Real Estate, Inc. HFF arranged $14 million for the property located at 2700 Pennsylvania Avenue, a creative office building in one of the country’s budding markets for tech-oriented tenants. With Microsoft as the latest company to express its interest in Silicon Beach, a number of office space owners are looking to recapitalize on their local assets in order to make sure that their properties will be among the ones that bring in the next big tech names to the area.

2700 Pennsylvania Avenue is a 62,000-square-foot creative office building that will benefit from its proximity to the upcoming Bergamot Station on the Expo Light Rail line, when it opens in 2015. The building has a 100 percent occupancy rate with its two lease holders Yahoo! and Jakks Pacific. HFF secured a seven-year, fixed-rate loan through Principal Real Estate Investors on behalf of Welk and The Luzzatto Company through its debt placement team led by Director Chris Vittetoe and Real Estate Analyst Steven Paskhover.

2012 was a positive year for Santa Monica’s office sector, with vacancy rates not exceeding an average rate of 10.3 percent. Q3 was by far the best timeframe for the area in terms of occupancy with only 9.6 percent of the total office space in the area being left unoccupied. Q4 saw a slight bounce in vacancies; Santa Monica finished 2012 with an average vacancy rate of 10 percent, according to data compiled by Reis Reports, a provider of commercial real estate performance information and analysis.

Market Data Courtesy of Reis Reports

SKECHERS Distribution Center Becomes Largest LEED Gold Building in the U.S.

By Alex Girda, Associate Editor

A distribution center operated by footwear manufacturing company SKECHERS has received U.S.G.B.C. LEED Gold certification. It is the largest LEED-certified building in the country to have achieved Gold status. According to SKECHERS CEO and CFO David Weinberg, the company “is committed to growing its business in a way that conserves natural resources, protects the environment and reduces waste,” therefore the development process, handled from planning through construction by Highland Fairview, was focused on sustainability from the start.

The 1.82 million-square-foot distribution center located in Rancho Belago, CA had a number of green technologies employed in its construction process, as well as environmental features built into the end product. Some of these eco-friendly measures include: the accommodation of 280,000 square feet of solar power generation systems on the building’s roof, motion sensor-regulated lighting that partly uses solar-power, a facility-wide ventilation system that uses air drawn through louvers facing the prevailing winds, as well as similar heating and cooling systems, a white “cool roof” and light colored pavement that reduce heat emissions, water efficient and drought tolerant landscaping that reduces irrigation by half, low voc-emitting paints, coatings, glues.

Recycled and regional building materials that reduce the carbon footprint of the construction process were employed, as well as a recycling process for most of the byproducts that resulted from building operations.  

Officially started in the spring of 2010, SKECHERS’ new facility opened its doors in November 2011. The facility includes 20,000 square feet of office space used by the company, as well as a retail operation dealing with the company’s signature footwear products.

Image courtesy of businesswire.com

Microsoft Strengthens Retail and Office Presence in Westside Tech Submarket

By Alex Girda, Associate Editor

As Microsoft continues its steady expansion into the retail world, the company is also gaining a stronger footing in major tech hubs. With upcoming real estate deals the Redmond, WA-based tech giant has lined up, it is poised to expand its Los Angeles office space presence. The company is close to completing two different leasing deals in the city’s growing Westside technology-driven submarket.

According to The Los Angeles Business Journal, Microsoft’s entertainment division, the one responsible for the massive gaming hit that is the Xbox console, is preparing to carve out new office space at 520 Broadway in Santa Monica. The amount of space that Microsoft would be taking over once the deal is finalize has not been disclosed.

The second move that the company is looking to finalize is a brand new 25,000-square-foot office lease at 13031 Jefferson Boulevard in Playa Vista. Microsoft is ready to move its customer-focused software and sales teams from downtown L.A. to this more tech-centric setting. In fact, the organization looks eager to move most of its operations to the city’s Westside, in order to get in on the revived Silicon Beach surge.

Clues regarding Microsoft’s intentions were revealed as early as November 2012, when the company further expanded its already growing retail presence with an 11,000-square foot lease in Venice. The new retail spot offers the company visibility in that area’s flourishing tech market, and it also paves the way for its current office moves. The aggressive retail moves that Microsoft has made recently clearly highlight its new persona as an integrated technology provider rather than a core software provider, emulating the blueprint for success of its competitor Apple.

Image courtesy of Google Maps 

Hyatt to Take Over as Operator for L.A. Hotel Downtown as Hospitality Giant Continues L.A. Push

By Alex Girda, Associate Editor

One of the best known hotels in downtown Los Angeles is set to undergo a major renovation and rebranding process over the next few months. Owned by China-based Shenzen New World Group, The L.A. Hotel Downtown will don the Hyatt Regency brand. The property will reopen this May under the name Hyatt Regency Los Angeles Downtown. The reported value of the rebranding and renovation process will be approximately $20 million.

L.A. Hotel Downtown is a 491-key hospitality property in the central part of Los Angeles, and the move by Hyatt to take over as operator of the facility is part of its more aggressive stance in the greater Los Angeles area. It was recently revealed that Hyatt would be the new operator of the Century Plaza Hotel in Century City, another major hotel renovation project.

The end product will include a number of upgrades to the building and the amenity package, including new floor plans for the 17 separate meeting and event rooms totaling 22,000 square feet. Included are two ballrooms and 4,000 square feet of pre-function space. Rooms will feature a new minimalistic design and color palette with bright red, orange and beige motifs. Also, guest rooms will be rethought with new carpeting, new wall treatments, revamped bedding, new furnishings and redesigned bathrooms and work areas.

L.A. Hotel Downtown offers easy access to nearby city landmarks such as L.A. Live, Staples Center, Walt Disney Concert Hall and the headquarters of a number of major corporations. Hotel management is currently handled by Interstate Hotels & Resorts.

Image courtesy of Google Maps 

Mill Creek Residential Announces New Glendale Luxury Apartment Community

By Alex Girda, Associate Editor

A new joint venture funded by Mill Creek Residential Trust LLC is poised to begin development on a Los Angeles-area residential project. MCREF Verdugo LLC recently completed the off-market acquisition of a 67,518-square-foot land parcel in Glendale, and it will proceed to use it as the site of a brand-new, 245-unit apartment community.

Located at 610, N, Central Avenue, the site will be the home of a new six-story, mid-rise, high-end apartment structure, one of the first properties of its kind for the developer. Resident amenities will include an underground parking facility, a resort-style pool and spa, an around-the-clock fitness center and yoga facility, and a resident clubroom featuring a kitchen and business center, as well as two rooftop decks offering views of the nearby Verdugo Mountains.

The construction is also groundbreaking in the sense that the funding will come through a newly established $400 million equity fund. Mill Creek Residential created the fund in order to aid its focus on the development of upper tier apartment communities in the real estate markets of Southern California.

According to the Managing Director of Mill Creek Residential for Southern California, Michael Genthe, “(the company’s) business model is to develop luxury rental communities on in-fill locations in desirable, well established cities like Glendale with above average population growth, strong employment characteristics, strong rental fundamentals and consistent and sizable institutional investment demand.” The representative also mentioned the fact that the construction deadline for the community is set for some time during 2015.

Image courtesy of Google Maps

Woodbridge Capital Partners, Oaktree Capital Management to Redevelop Century Plaza Hotel

By Alex Girda, Associate Editor

L.A.’s Century Plaza Hotel has been a staple of Century City, and now it will propel its iconic look into a new century with a recently approved redevelopment project. Next Century Associates, the entity in charge of a proposed $2 billion makeover plan for the site, recently got a unanimous go-ahead from the Los Angeles City Council for its ambitious initiative. The project is the result of a collaboration between conservation groups, homeowners, developer Next Century Associates and local authorities.

The current owner of Hyatt Regency Century Plaza Hotel is planning to develop 1.5 million square feet of mixed-use space on the six-acre adjacent site. Next Century Associates is a partnership created between Woodbridge Capital Partners and fund manager Oaktree Capital Management L.P.

The project calls for a two-tower residential complex that will also feature a 100,000 square-foot plaza including retail space and a dining area. Two acres of land would be transformed into public open space with fountains and courtyards. Pei Cobb Freed’s project design also includes the restoration of Century Plaza Hotel’s iconic arched building. The end result will be a development comprising 394 hotel rooms and 63 high-end residential units.

Construction at the Avenue of the Stars and Constellation Boulevard site would ideally start at the beginning of 2014 and would connect an area of approximately 10 million square feet, including attractions such as the Westfield Century City Mall. The area will benefit in the future from a metro station on the upcoming Westside subway line.

Image courtesy of user Minnaert via Wikimedia Commons

Mixed-Use Development Announced for Palms Neighborhood

By Alex Girda, Associate Editor

L.A.’s Palms submarket has seen its fair share of turmoil but important changes are slated for the Westside neighborhood after a recent report announces a new mixed-use development. Frost/Chaddock Developers has announced that work has commenced at its $30 million Palms apartment community that will use the proximity of a planned Expo Line light-rail station as its hook. The Expo Line is a Los Angeles County Metro Rail line between Santa Monica and L.A.’s downtown area. Frost/Chaddock’s new residential complex has a construction deadline set for May 2014.

According to The Los Angeles Times, the development was designed by Killefer Flammang Architects and will feature 115 residential units featuring studio and one-bedroom floorplans. Seventeen units will be designated as low-income housing, in keeping with the city’s initiative to deliver as much low-income housing to the market as possible.

Located at 3425 Motor Avenue, the five-story mixed-use development will feature street-level retail space and restaurants that will flank the entrance leading into a courtyard. Tenants will have access to a rooftop deck featuring a garden, as well as an underground parking facility. Aimed at young professionals willing to relocate to the Palms neighborhood, Frost/Chaddock’s new project is the second project of its kind to be announced in the submarket in a relatively short timeframe.

In 2012, the Westside Cities have had a completion rate that was far lower than recorded in the Greater Downtown area and Los Angeles. However the San Fernando Valley and South Bay both had extremely weak completion rates last year. With a number of projects in the pipeline for the Westside Cities, that rate should see some improvement in 2014 and 2015, with the strengthening market set to drive apartment projects forward.

Rendering courtesy of kfarchitects.com

Chart courtesy of Marcus & Millichap Real Estate Investment Services at marcusmillichap.com

Hines Lines Up Transit-Oriented Multifamily Development in Pasadena After Completing Land Deal

By Alex Girda, Associate Editor

A new multifamily development is set to take shape in Pasadena after international real estate firm Hines recently announced that it has acquired a patch of land on which it intends to develop a residential community. The company will develop a for-rent residential community in a submarket that it has deemed one of the strongest for such projects in Southern California. Handling the development process will be Hines’ Multifamily Division, an entity created in 2011 to better manage and develop the company’s multifamily assets.

The 212-unit rental apartment building will be constructed in the near future on the newly acquired 3.5-acre parcel located at the corner of Sierra Madres Villa Road and Foothill Boulevard, in the immediate vicinity of the 210-freeway. The structure will include a four-story apartment building located over a two-level resident parking facility, in a neighborhood that features a host of restaurants and convenience retail. The area provides easy vehicular and public transit access throughout the city of Pasadena and the greater Los Angeles area.  

Set to be a Class A transit-oriented development, the property will aim for best-in-class status, according to the desires of developer Hines. This multifamily project in Pasadena promises to open a new door for residential development by the company throughout the state as Hines Multifamily Division’s Senior Managing Director Alan Patton has mentioned that the company “has a legacy of delivering high-quality projects all over the world, and we expect that to continue with our multifamily product throughout California.”

Image courtesy of user Bobak Ha’Eri via Wikimedia Commons

Caruso Targets a Host of Properties in Central Pacific Palisades for Renovation and Rebranding

By Alex Girda, Associate Editor

The Pacific Palisades neighborhood looks ready for a makeover after news recently surfaced regarding the acquisition of a large number of properties in the core of the area. Local developer Rick Caruso reportedly completed a deal for 10 retail properties in the upscale part of town, the Los Angeles Times reports. The real estate mogul is now in escrow on the aforementioned properties located over 2.8 acres on East Swarthmore Avenue and Sunset Boulevard. The Los Angeles-based developer is set to renovate the properties in accordance with his branding initiatives once the transaction is completed.  

The central properties cost Caruso an estimated $40-$50 million. However, the financial terms of the transaction were not disclosed to the media and an accurate number is currently not available. Most of the properties are currently tenant-free and are 50-60 years old, making them perfect for a complete overhaul. The Times points out that even the tenants in place have clauses in their short-term contracts that stipulate that the owner has the right to modify the property and redevelop the site.

Rick Caruso is buying the properties from the Wilson Family Trust, according to industry data from the CoStar Group. Caruso has experience in developing high-end retail properties, with developments such as the Grove in downtown L.A. and the Americana at Brand retail and residential property in Glendale. The developer also owns 48 acres in Carlsbad, CA which is most likely the future location for another upscale mixed-use property by the high-rolling developer.

Image courtesy of losangeles.blockshopper.com

Culver City Creative Office Campus Development Breaks Ground

By Alex Girda, Associate Editor

A new Culver City office campus officially broke ground recently when developer Hackman Capital Partners LLC kicked off the construction of its WorkScapes at the Hayden Tract facility. The project includes the renovation and conversion of three different industrial buildings, operation for which the company has also recently secured a senior loan from Deutsche Bank. The space will be turned into creative offices that would match current market standards for facilities in the Westside.

WorkScapes at the Hayden Tract will offer potential tenants 126,400 square feet of loft-style, pet-friendly office space. The development also includes plans for a new parking structure at the site, one that will offer 556 covered parking spaces and 190 surface parking spaces at the corner of Hayden Avenue and Higuera Street. Abramson Teiger is the architecture company tasked with turning the three industrial buildings in Culver City into a high-grade creative office space. The market has surged in that area recently and it’s Hackman Capital’s bet that the WorkScapes development will be able to capitalize on the rise of creative office space.

The work at the site will include façade improvements using industrial concrete, glass and sculptural steel, while the parking facility will be branded using an installation artist and sculptor commissioned by Chris Puzio. Landscaping at the site will feature a host of low-water plants and outdoor tenant areas with barbecue pits and patios offering views of the nearby Culver hillside.

The development will also offer tenants 77,000 square feet of contiguous space, a feature that along with plentiful onsite parking, is a major draw in Hackman Capital Partners’ eyes. In addition to Abramson Teiger, the other companies involved with the WorkScapes at Hayden Tract creative office development are Artifex 10 landscape architects, VCA Engineers, Mars Engineering, Sigma Design & Insight Engineers, Standards Parking, LE Walters for general contracting, and Millie and Severson parking garage contractors.

Rendering courtesy of abramsonteiger.com

Chinatrust Bank Moves HQ to 801 Tower As It Plans Expansion

By Alex Girda, Associate Editor

Taiwan-based Chinatrust Bank is set to move its headquarters after a recent announcement was made by company officials regarding a new lease deal. The financial entity will move its operations from its current Torrance HQ to the new location, in 801 Tower, in the financial neighborhood located just north of the Staples Center. While specifics of the deal were not disclosed, speculations place the length of the deal at around 10 years while the value of the agreement should be around $20 million.

Chinatrust Bank will move about 175 employees into its two floors of office space at the 801 Tower, totaling approximately 40,000 square feet, by the middle of 2013. The bank was looking for a  more financial-friendly neighborhood and L.A.’s financial district located north of the downtown area dominated by Staples Center was the best choice. The Los Angeles Times notes that the company’s move from Torrance to a central L.A. location is part of a current trend that reverses the former migration seen in the mid-1980s when so many companies left downtown areas of major cities for the suburbs.

This move will also change the appearance of 801 Tower, as Chinatrust will introduce its company name to the top of the highrise. 801 Tower is located at 801 South Figueroa Street. Completed in 1992, the 10,600-square-foot facility rises 381 feet. According to Skyscraperpage.com, the building was the first major property to be sold in downtown L.A. in five years when, in 1996, it was traded for $60 million.     

Image courtesy of manibrothers.com

Academy Tower in North Hollywood Now Part of Kennedy Wilson’s Portfolio for $48 Million

By Alex Girda, Associate Editor

North Hollywood properties have been the subject of some interest lately, a trend that is making itself noticed through a number of purchases. The latest of these is the acquisition of The Academy Tower, an office property located in the area, by international real estate firm Kennedy Wilson. The company reportedly paid $48 million for the office building, a large chunk of which was raised through a financing deal facilitated by KW with Bank of America Merrill Lynch.

The Academy Tower is a large office property offering 175,012 square feet of space at 5200 Lankershim Blvd. in North Hollywood. According to Kennedy Wilson Commercial Investment Group President John Prabhu, the building “occupies a premier location in the heart of the NoHo Arts District.” Tenant demand is there for the building as it offers close proximity to major production studios, points of interest that have boosted the area’s occupancy rates. The Academy Tower is 97 percent leased; some of the company names on its tenant roster are Endemol, JPPT and Starcom Worldwide.

As previously mentioned, Kennedy Wilson completed a financing deal with Bank of America Merrill Lynch worth $29 million. The remaining $19 million was provided by the company’s equity. The real estate investment firm also recently refinanced one of its California office properties, One Baxter Way, in Thousand Oaks. The 354,782-square foot building is 91 percent occupied by Baxter, State Farm and Dignified Transition Solutions. KW received $63.5 million from BofA Merrill Lynch in the refinancing process. The company has moved on the market to acquire around $6.8 billion in real estate assets and real estate related debt since the beginning of 2010.

Image courtesy of ajalatlaw.com