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

New Joint Venture to Acquire Burbank Media District Office Campus

By Alex Girda, Associate Editor

Hudson Pacific Properties, Inc. has announced that it has entered a new joint venture, with M. David Paul & Associates/Worthe Real Estate Group, that will move to acquire one of the largest properties in the Burbank Media District. The new JV is set to close on the two-building facility named The Pinnacle, one of the highest-rated office properties in the district. MDP/Worthe is contributing its ownership of the Pinnacle II building to the venture. The joint venture will own the Pinnacle buildings for approximately $342.5 million, subject to $218.6 million of project financing.

The Pinnacle is a Class A office property offering 625,640 square feet of office space divided between the two buildings that comprise it. Its Burbank location means that it is in the immediate vicinity of major movie-making centers such as the Warner Bros. Studios and Burbank Studios, as well as just a couple of blocks away from Walt Disney Studios. Therefore, the 4.3 acre lot on which The Pinnacle was built presents potential movie industry tenants with prime real estate in a film-centric community.

The acquisition deal for Pinnacle I closed on November 8 for a fee of $212.5 million—$129 million was obtained via a new ten-year project loan. Additionally, Hudson paid $83.9 million for about 98 percent of the joint venture. Its contribution to the entity was divided between $38 million drawn on its unsecured credit facility and available cash on hand.

Pinnacle II is currently 100 percent owned by MDP/Worthe, and the company has agreed to submit the property to the joint venture for an acquisition price of $130 million, payable until the end of Q1 of 2013. Financial terms for the Pinnacle II include the assumption of an $89.6 million loan. Hudson Pacific will contribute funds for closing costs or prorations, with no additional capital contributions committed to the deal. However, as a press statement noted, Hudson’s ownership interest in the Pinnacle I property would be adjusted to reflect MDP/Worthe’s contribution to the JV.

Once the transaction is completed, the newly formed joint venture will control the entire media-oriented office campus that currently boasts an occupancy rate of 95 percent. The Pinnacle’s buildings boast an impressive tenant roster including names such as Warner Bros. Entertainment, NBC Universal, Sony and Clear Channel Communications. Given the fact that it is heavily entrenched in the movie industry, the property is sure to provide its new owners with a solid cash flow.

Division 13 Will Provide Local Transportation Authority With State-of-the-Art Maintenance Equipment

By Alex Girda, Associate Editor

The Los Angeles County Metropolitan Transportation Authority is now underway with the development of the new Metro Division 13 Bus Maintenance and Operations Facility. The state-of-the-art construction will be located next to Union Station and will be built over the following two years. While the facility will cost around $72 million by the end of the development process, the MTA received a crucial federal grant from the United States Department of Transportation worth $52.5 million. When finished, Division 13 will have 442,000 square feet of utility and office space.

The project calls for a multi-level parking garage, a maintenance building, bus fueling, bus washing, chassis wash and non-revenue vehicle washing, non-revenue vehicle fueling and maintenance and transportation offices and support areas to be built on a 7.5-acre site at the intersection of Vignes Street and Cesar E. Chavez Avenue. Three-axis lift systems used to access roof mounted equipment on the Authority’s vehicles, mobile work platforms as well as high-density stacking systems and carousel and vertical retrieval modules for parts are also planned for the maintenance center. Forecasts set the development’s impact in the job market at 1,200 direct and indirect jobs. Part of a growing national trend, the Division 13 facility will be built using sustainable design schemes, as well as energy efficient and environmentally responsible building, pursuing LEED Gold certification.

Specifically, the finished building will employ storm water reclamation and reuse for the vehicle washing system, with those components set to exclusively use 100 percent recycled water. Low-maintenance native vegetation will be planted on the green roof in order to fight negative consequences such as the water run-off and the urban heat island effect. Division 13 will benefit from it being part of the MTA’s Support Services Center, a 1.2 megawatt-generating power station that uses 6,720 individual solar panels.

Rendering courtesy of metro.net

Archstone Acquires Silicon Beach Residential Property Formerly Known as The Frank

By Alex Girda, Associate Editor

The Frank, a Venice, CA multifamily property, was the subject of a recent deal resulting from an Archstone-sponsored partnership. The company is currently on a shopping spree that includes the acquisition of a 205-unit apartment community in Marina del Rey, as well as a 237-unit Washington D.C. residential property. Archstone paid $56.2 million for the property, and has also decided to rename the asset Archstone Venice on Rose.

The 70-unit Venice apartment community is located in close proximity to the famous Venice Beach, and it is part of a growingly tech-centric area of California that has been dubbed Silicon Beach. A number of popular technology companies have relocated to Venice in recent years, a move that has also brought a number of dining and entertainment venues to the area. Archstone’s president and CEO, Charles E. Mueller Jr., noted that the new entry to the company’s multifamily portfolio “is located in a highly desirable neighborhood with expensive single-family homes and very limited land on which to build new housing.” He also remarked that the area is part of “a city filled with the popular attractions and employment opportunities people are looking for today.”

Offering easy access to job centers such as Santa Monica, Century City, Westwood, Brentwood and Beverly Hills through its placement near the California Highway I, I-10 and the 405, Archstone Venice on Rose is seen as a great choice for young professionals. The LEED Platinum certified community’s amenities include a resident lounge with full kitchen and media center, dog run, community garden and solar water heating, as well as a parking garage. Units feature 11-foot ceilings, stone countertops, kitchen islands, stainless steel appliances and upgraded fixtures.

Image courtesy of livefrankly via Facebook

Historic Celebrity Magnet ‘El Royale’ Trades Hands for $29.5M

By Alex Girda, Associate Editor

One of the city’s most celebrated multifamily properties traded hands recently when a high-profile New York-based private investor partnered with a real estate professional to acquire the famous El Royale. Kamran Hakim and Farhad Eshaghpour paid a total of $29.5 million for the celebrity favorite, which they bought from the local family trust that had owned the property for 50 years. It is one of the most iconic residential communities in Los Angeles, and the acquisition deal has stirred up a number of memories regarding one of the Hollywood elite’s properties of choice.

Located at 450 North Rossmore Avenue, the building features 56 luxury units, with an impressive per-rate unit of $527,000. The property offers an expansive overlook with views that include Hancock Park and the nearby Wilshire Country Club. The average apartment is about 1,400 square feet. Forty-six of the units are rent-controlled, while the remaining ten are exempt due to their luxury residence designation. According to Ron Harris, one of the brokers in charge of the transaction, “El Royale is one of the most iconic and celebrated apartment communities in all of Los Angeles County”.

According to the new owner, the asset will be held for an extended period of time. The 1929-built El Royale could start a trend for the investment duo, as the possibility of a rare, marquee portfolio created through a number of similar acquisitions was not denied by the new owners.

According to data from real estate company Marcus & Millichap Real Estate Investment Services, the per-unit rate that El Royale charged its new owners simply blows the average value of a single-unit transaction in Los Angeles County out of the water, outpacing it by almost $400,000. However, the average price has seen a revival during 2012 and figures supplied by Marcus & Millichap show the market’s propensity for mid-range residential property transactions.

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

Photo courtesy of elroyaleapartments.com

Multifamily Portfolio in Lancaster is Acquired by MG Property Group

By Alex Girda, Associate Editor

A Lancaster, CA multifamily portfolio was recently acquired by real estate company MG Properties Group from an unnamed seller. The San Diego-based company paid approximately 91.75 million for the four residential communities. The properties comprising the portfolio are Cordova Park, Granada Villas, Sienna Heights and Woodlands West, all of them located in the city of Lancaster.

Cordova Park is a 416-unit residential community offering residents outdoor swimming pools, a spa facility, fitness center and landscaping. The apartments located at 43530 Gadsden Avenue offer in-unit amenities such as wall wardrobe closets, patios and private balconies, as well as storage space, gourmet gas range ovens and greenhouse windows. The Granada Villas complex offers 320 units that have been renovated.  A controlled entry system ensures secure resident access, while the basketball court, playing area and two pools and spas contribute to the overall ambiance of the community. The newly renovated units feature new kitchen appliances including an oven, a refrigerator, microwave, dishwasher and stove.

Sienna Heights Apartment Homes and Townhomes is at 43519 Kirkland Avenue in Lancaster. The 314 units located just north of Palmdale have easy access to the I-14 Freeway, making it similar to all of the other properties included in this transaction. High-end amenities coupled with reasonable rates make this property one of the most attractive in Lancaster. The fourth property in MG Properties Group’s new portfolio—the 140-unit Woodlands West Townhomes Apartments—is at 2237 West Avenue J-8. Also recently renovated, the apartments feature new carpeting and flooring, as well as increased space and new appliances.

The per-unit rate that MG paid for the 1,190 units comes in at about $77,000. Regarding multifamily sales trends in Los Angeles County, data from Marcus & Millichap Real Estate Investment Services shows that 2012 is set to improve on a 2011 that proved much stronger than 2010, marking a return to rates the area hasn’t seen since 2008.

Photo courtesy of cordovaparkapartments.com

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

Kilroy Expands SoCal Portfolio With Media-Centric Office Acquisitions

By Alex Girda, Associate Editor

Real estate investment trust Kilroy Realty Corp. has further increased its Southern Californian footprint by completing the acquisition deal for Columbia Square, a Hollywood media campus. The company is also in final stages on the acquisition of Tribeca West, an entertainment-oriented office property in West L.A. The Columbia Square property cost Kilroy a reported $65 million while Tribeca will come in at around $73 million.

The Columbia Square property is an office campus that includes three historic office buildings offering approximately 96,000 square feet. The property is the former home of CBS’s local radio and TV branch. The site is also fully entitled for the development of a mixed-use project including office, retail and multifamily components. A development agreement valid for 15 years is also in place for the project. The 6121 W. Sunset Boulevard campus is located just one block from another of the REIT’s properties, the Sunset Media Center. A multi-phase redevelopment and development plan is already being considered by Kilroy; it would increase the amount of available office, retail and residential space by 550,000 square feet while also preserving the existing William Lescaze-designed buildings.

Tribeca West is positioned as an upcoming deal, as KRC is currently in contract to buy the property. The specs of the agreement include the assumption of a $41 million existing secured loan by Kilroy. The 151,000-square-foot complex carries a $73 million price tag. Located on Olympic Boulevard, a prime West Los Angeles spot, the building is a favorite of production companies. Carrying a 96 percent occupancy rate, Tribeca West is one of the hottest properties in the area.

Photo courtesy of tribecawestla.com

Wells Fargo Inks Decade-Long Renewal Deal With MPG Office Trust

By Alex Girda, Associate Editor

Wells Fargo recently completed a deal to keep it at its current Los Angeles home. The banking giant has finalized a lease renewal with landlord MPG Office Trust, Inc. for space at the Bunker Hill-located Wells Fargo tower. The financial entity will stay on the building’s tenant roster for another 10 years, according to a press statement MPG recently released.

Wells Fargo agreed to extend its stay at the property named after the company for another decade. The decision was made to retain the entire footprint the bank currently occupies at the Wells Fargo Tower building, part of the Wells Fargo Center in downtown Los Angeles. The 291,000 square feet make the company one of the property’s anchor tenants. Between the Wells Fargo Tower and the KPMG Tower, the complex features a tenant roster boasting high profile names such as Oaktree Capital Management, KPMG, Latham & Watkins and Gibson, Dunn & Crutcher.

The 1982-built, twin tower skyscraper complex was originally dubbed the Crocker Center, after the Crocker National Bank, a financial entity that merged with Wells Fargo in 1986. Wells Fargo has since then kept a strong presence at the property. The renewal deal includes an option that would allow Wells Fargo to reduce the amount of office space it occupies by 89,000 square feet, while also being able to expand its footprint by 25,000 square feet.

MPG Office Trust currently holds the title of the largest owner and operator of Class A office properties in the Los Angeles Central Business District. In addition to owning the two towers that form the Wells Fargo Center, the company also owns the US Bank Tower, Gas Company Tower and 777 Tower.

Image courtesy of user Minnaert via Wikimedia Commons

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City Planning Commission Approves Hyatt Regency Century Plaza Hotel Redevelopment

By Alex Girda, Associate Editor

The efforts of area homeowners, conservation groups and local officials who have championed the Hyatt Regency Century Plaza Hotel’s redevelopment plan have been rewarded. The Los Angeles City Planning Commission recently approved developer Next Century Associates’ comprehensive proposal to turn the hotel they own into a new focal point for Century City.

Next Century Associates is an entity created through the partnering of Woodbridge Capital Partners with funds managed by Oaktree Capital Management L.P. Funds were previously supplied by D.E. Shaw, which was replaced by Oaktree in 2011.

The project planned for the Hyatt Regency Century Plaza redevelopment calls for 1.5 million square feet of mixed-use space to be constructed on a six-acre site that will include a fully renovated 394-key hotel, as well as 63 residences. Two 46-story residential towers designed by Pei Cobb Freed will comprise the residential component of the redevelopment initiative. Retail construction with shops and restaurant spaces totaling 100,000 square feet will also be constructed. Two acres of public open space featuring fountains and courtyards will tie the Next Century project together.

According to Michael Rosenfeld, managing partner of Next Century, the redevelopment of the Hyatt Regency Century Plaza Hotel will “create a pedestrian friendly, transportation oriented, sustainable mixed-use project that will serve the entire community, connect the elements of Century City and bring economic growth and jobs to Los Angeles.”

Photo courtesy of booked.com 

Olympic-Bundy Media Campus Trades Hands for $89 Million

By Alex Girda, Associate Editor

The Olympic-Bundy Media Campus has been snapped up by Hudson Pacific Properties, Inc. according to a statement the company released via its official website. The company had hinted at this move earlier this year when it announced that it had entered a purchase agreement for the acquisition of the property. The deal had a reported price of $89 million.

The Olympic-Bundy Media Campus stretches over 11.55 acres of land and four different buildings that offer a total of approximately 233,600 square feet of space. Only 84,200 square feet are currently leasable and this portion of the property bears a 64 percent occupancy rate. Online advertising technology company Rubicon Project is the current lease holder in a deal that is set to expire at the end of May 2013.

The remainder of the square footage will undergo a complete makeover and be turned into best-in-class creative office space by Q1 of 2014. The urgency for the remodeling comes from West LA’s status as an emerging technology, entertainment and media hot spot. Located at 1901, 1925 and 1933 South Bundy Drive and 12333 West Olympic Boulevard, the media campus has been touted by Hudson Pacific Chairman and CEO Victor J. Coleman as “an exciting opportunity to leverage our design, repositioning and leasing expertise and create significant value for our shareholders.”

Hudson Pacific is a full-service, vertically integrated real estate company that will be looking to add value to the project as it improves its tenant roster. The company is already gearing up for an aggressive campaign to get the space it has snagged filled up through “initial design efforts… and early marketing activities,” the company’s CEO stated.

Image courtesy of Google Maps.

Kemper’s Lincoln Square Development Moves Forward With Building Permits

By Alex Girda, Associate Editor

Bellevue’s Lincoln Square expansion project is set to recapture the attention of local developers and officials as the company heading the project recently applied for building permits. Kemper Development Company already has a visible presence in downtown Bellevue through its Bellevue Collection comprising Bellevue Square and Bellevue Place, as well as the existing part of the Lincoln Square development.

When completed, the $850 million mixed-use project would include structures such as a 120-room hotel, a residential tower with 200 units, and commercial space totaling 937,000 square feet. The development located at 410 Bellevue Way N.E. sits at the intersection of Northeast Fourth Street and Bellevue Way Northeast, near the city’s Arts Museum. One of the construction projects the recently filed permit focuses on is an underground parking facility that will be built below this massive mixed-use project. The seven-level parking structure should ensure the necessary space to accommodate all of the shoppers and residents at the Lincoln Square development.

Office development is picking up in this market. Bellevue will see another office building at 320 108th Street, courtesy of developer Bentall Kennedy. The Summit office building will offer up to 330,000 square feet of space, and construction will begin as soon as the developer secures an anchor tenant. Also under different stages of development are Beacon Capital’s 32-story, 680,000-square-foot building at 10833 N.E. 8th Street and Wright Runstad & Co.’s two office towers in the Wilburton neighborhood that will feature 476,000 square feet of space.

Image courtesy of city-data.com

Miracle Mile Development Breaks Ground Under Favorable Circumstances

By Alex Girda, Associate Editor

BRE Properties recently broke ground on an 800,000-square foot mixed-use development at the corner of Wilshire Boulevard and La Brea Avenue. The $105 million project is situated just at the edge of the coveted Miracle Mile area in Los Angeles, and in close proximity to the Mid-Wilshirem Hancock Park and Koreatown areas of the city.

The developer is working with Bernards, one of the leading commercial builders in the country, for the pre-construction phase of development. A tentative completion date for the project has been set for April 2014. The 3.38-acre site occupies an entire block and was previously the location of a one-story abandoned bank. Before its demolition, however, the building had been converted into a Korean church.

Dubbed The Wilshire at La Brea, the new BRE Properties development will feature 480 residential units as well as 44,000 square feet of retail space. Parking at the site will be ensured by an underground parking structure offering 997 spaces. The mixed-use project is one of the first developments of its kind in the area since the effects of the market downturn hit the city. Amenities will include two swimming pools, a state-of-the-art fitness facility and themed façades on street-facing sides of the structure that will encourage investors interested in the retail component of the project. The site also boasts 500 feet of frontage on La Brea Avenue, as well as 270 feet on Wilshire.

According to architecture firm TCA, the development will seek LEED Silver certification, as it is also part of the city’s new infill development initiative. The planning policy currently in place encourages the replacement of obsolete structures in order to increase density in urban infill areas. Wilshire at La Brea has already garnered a number of awards such as the 2011 Gold Nugget Grand Award for “Best-on-the-Boards,” sponsored by the California Building Industry Association.

For a more in-depth look at this news story, click here.

Kilroy Acquires Yet Another Value-Add Office Property

By Alex Girda, Associate Editor

Kilroy Realty Corporation recently expanded its Los Angeles office portfolio with the acquisition of a 22-story office building centrally located in Hollywood. The property stands at 6255 Sunset Boulevard, just off the well-known corner of Sunset and Vine, in an area that has seen its fair share of retail and residential investment during the past couple of years. Kilroy reportedly paid a fee of around $79 million for the Sunset Media Center, making the purchase part of an aggressive West Coast expansion campaign.

The 22-story, class A office tower offers 320,000 square feet of office space in the booming Hollywood submarket, allowing tenants easy access to the Metro Rail Red transit line and numerous area amenities. Currently leased at an occupancy rate of approximately 87 percent, the Sunset Media Center provided Kilroy Realty Corp. with one of the best value-add opportunities in the area. The new owner reportedly has the intention to execute extensive renovations of the building’s lobby, common areas and tenant spaces.

Being part of a submarket that has limited expansion potential for its office stock, investors like Kilroy aim to enhance the existing property’s value through “well-targeted improvements to the building’s aesthetics, amenities and energy efficiency,” said David Simon in a recent press statement. According to KRC’s executive vice president for the Los Angeles region, the property was attractive because it “is located in the heart of an increasingly desirable ‘live, work, and play’ submarket.”

As part of the financial terms of the acquisition deal, Kilroy Realty assumed a secured mortgage loan of approximately $54 million that bears interest at a rate of 5.23 percent and matures on January 1, 2016. The company also issued approximately $5 million in common limited partnership units of Kilroy Realty, LP.

The total fee that KRC paid for Sunset Media Center means a per-square-foot price of about $246, well above the median rate office properties traded for in Los Angeles in 2011, as the chart suggests. However, the property’s central placement in one of the city’s most sought-after areas should be indicative of the premium the buyer paid for the office building, when compared to median values.

Chart courtesy of marcusmillichap.com 

$100 Million Residential Development Slated for Little Tokyo

By Alex Girda, Associate Editor

With the acquisition of a 1.74-acre lot in L.A.’s Little Tokyo, Irvine-based developer Sares-Regis is moving ahead with its new residential development. The company intends to build a 240-unit premium multifamily community on the site as soon as possible in order to capitalize on downtown L.A.’s housing needs. Bill Montgomery, president of Sares-Regis’ Multifamily Acquisitions & Investment Division, stated that the area has become one of improved desirability over the last several years.

Located at South San Pedro and East 2nd streets, the forthcoming multifamily development will stand just three blocks from Los Angeles City Hall and in close proximity to the city’s Bunker Hill financial district. The developer plans to build a seven-story, type III podium design that will respect the community’s local character while also introducing contemporary architectural elements. Building amenities will include a pool, a spa, a two-level fitness facility, club, game and café lounges, as well as a rooftop deck.

Seventeen thousand square feet of retail space will also be incorporated into the project, as well as parking for all residents in a three-level underground parking facility. A 100-space public parking structure will be constructed simultaneously and will be sold to a third party operator after its completion. According to Montgomery, development costs will be approximately $100 million. He also said that rents at the residential building will be around $2,200.

Sares-Regis Group is currently one of the leading commercial and residential real estate development and management firms in the western part of the U.S. Its property and fee-based asset portfolio is valued at around $4 billion, with 15 million square feet of commercial and industrial space, as well as 13,000 apartment units.

San Fernando Valley Apartment Community Awaiting New Owner

By Alex Girda, Associate Editor

Marcus & Millichap/Institutional Property Advisors is currently marketing a North Hollywood multifamily property for approximately $30 million. The Marquee Apartments is a residential community in the eastern part of the San Fernando Valley community of North Hollywood, at 12300 Sherman Way. The team that is handling the fee-simple interest in the property includes Greg Harris, Kevin Green and Joseph Grabiec.

The listing price for the 236-unit asset is $29.995 million which breaks down into a per unit asking price of $127,000. The Marquee Apartments has gone through a number of renovations over the last three years, with a total of $4 million invested by the owner in the property. Developed in 1965, the community still has 74 units that will require renovation by the new owner. According to Marcus & Millichap/Institutional Property Advisors, the property offers upscale living in the emerging North Hollywood area, at considerably lower prices than the more publicized NoHo and Arts District.

The Marquee Apartments is organized into three two-story buildings with 194 studio units, 35 one-bedroom units and six two-bedroom units. The amenity package includes a swimming pool, a spa, fitness facilities, barbecue area and outdoor seating.

As previously stated, the per-unit asking price for this up-and-coming residential community is around $127,000. Marcus & Millichap estimates that, should the asking price be met, the transaction would exceed median per-unit values for the San Fernando Valley.

The median transaction price, as illustrated in the chart, stands in the mid $120k range, as projected for this year’s Q3. 2008’s high point saw prices overtake the $130,000 mark, while Q3 of 2009 dipped to the lowest median value in recent years, in the low $120k’s.

Photo courtesy of themarqueeapts.com
Chart courtesy of marcusmillichap.com

Wood Partners Restarts 290-Unit High-Rise in Downtown L.A.

By Alex Girda, Associate Editor

Low construction costs and growing demand in all housing segments are helping multi-family projects in Los Angeles escape from development limbo. Among the latest is a 290-unit Downtown high-rise planned by Wood Partners and stalled since 2008. Wood is positioning the property to attract young professionals, especially those working Downtown.

Located at 801 S. Hope Street in the South Park district, the 22-story complex will be modeled on Glass House Dallas and Glass House Denver, multi-family high-rises developed by Wood Partners in Texas and Colorado.

Like those two properties, the Los Angeles tower will feature one- and two-bedroom units characterized by floor-to-ceiling glass. The amenity package will include high-end interior finishes, a 10,000-square-foot elevated pool deck, a clubroom with retractable glass walls facing the pool, an outdoor dining area, a spa, a fire pit and a garden retreat. A rooftop deck offering views of the Staples Center and L.A. Live will round out the incentives. Also planned are six levels of parking and 5,000 square feet of street level retail space.

Caruso Launches $32M Mixed-Use Complex in West L.A.

By Alex Girda, Associate Editor

Caruso Affiliated  has started construction of 8500 Burton Way, a mixed-use development at the corner of Burton Way and La Cienega Boulevard in West Los Angeles. The $32 million project will consist of 88 luxury apartment units, plus a 14,000-square-foot Trader Joe’s and a coffee shop on the ground floor.

The 252,700-square-foot complex’s residential units will offer one- and two-bedroom  suites ranging in size from 900 to 2,200 square feet. Apartments will feature high celiings, floor-to-ceiling windows, hardwood floors and cabinets, stainless steel kitchen appliances and quartz countertops.

For residents, 8500 Burton will offer media rooms, a private residential lobby, valet service, 24-hour concierge service, a fitness center, rooftop pool and spa, and a clubroom. Project contractor Bernards is building the eight-story concrete-frame complex from a design by Irvine-based McLarand Vasquez Emsiek & Partners Inc. Completion is projected for September 2013.

Rendering courtesy of mve-architects.com

Toll Brothers Plans High-End Community in Lake Forest

By Alex Girda, Associate Editor

As luxury locations go, you can’t go much higher than Orange County, Calif., an area whose wealth has been represented in countless movies and TV shows. The high-end lifestyle here has apparently stimulated the imagination of luxury home builder Toll Brothers, Inc., which has just snapped up the rights to develop Baker Ranch, a master-planned community in Lake Forest that has approvals in place for as many as 2,000 homes.

Divided into three villages, Baker Ranch would be comprised of about 1,780 single-family homes and 414 apartments.  The master-planned community will be located on a sprawling 40-acre chunk of land in one of the state’s most sought-after residential markets. An 8.4-acre parcel will be dedicated to a central park, while an additional seven neighborhood parks, three of which will include private recreation clubs, will complete Baker Ranch’s open and spacious feel.

Toll Bros. has associated itself with Shea Baker Ranch LLC, part of the Shea family of companies, for the development process. The homes will cater to a variety of buyer profiles with single-family attached, detached and multi-family homes available in the three planned villages. Groundbreaking is set to take place this year on the first village and the first batch of homes will be marketed starting in spring 2014.

The Saddleback Valley Unified School District will offer some of the county’s highest-rated school, and the Foothill Transportation Center will provide easy access to transit. Additionally, the City of Lake Forest is developing a nearby community park that will include sports facilities such as six baseball and softball fields, five soccer fields, six courts for basketball or tennis, two large playgrounds and a 30,000-square-foot recreation center featuring an attached amphitheater.

Image courtesy of provincewest.com

Kennedy Wilson Snaps Up West Covina M-F Complex for $44M

By Alex Girda, Associate Editor

Kennedy Wilson has acquired Torrey Pines, a 251-unit apartment community in West Covina, for $43.7 million. Kevin Hart, president of the firm’s multi-family group, explained that the property’s position as “the newest market-rate apartment community in the city,” combined with a dearth of new product in the pipeline, made it an attractive investment. Torrey Pines joins a multi-family portfolio that consists of more than 14,000 units, including deals under contract.

Located just south of the I-10 freeway, Torrey Pines is a community of 21 buildings in the vicinity of a healthcare hub. The six courtyards in which the community is arranged include such amenities as five pools, two spas, a playground and a fitness center. Kennedy Wilson plans on renovating half of the community’s units, upgrading landscaping, kitchens and bathrooms; adding new equipment to the fitness center; and opening a new leasing office.

The acquisition was facilitated by  $33 million in 10-year financing from Freddie Mac at a rate of 3.91%. Kennedy Wilson has ramped up its investment activity during the past two years, and has invested $6.6 billion in new acquisitions as well as real estate secured debt via joint ventures and investment partnerships. At the end of the first quarter this year, the company had about $11.8 billion under management.

Image courtesy of Google Maps

Agoura Hills Retail, L.A. Office Complex Draw Investors

By Alex Girda, Associate Editor

A recently completed Agoura Hills retail complex developed and owned by Adler Realty Investments was recently snapped up by Walnut Creek-based Loja Group for $21.3 million, or $588 per square foot. The transaction was arranged by May Realty Advisors, rentv.com reported.

The center’s 36,200 square feet are fully leased. Tenants include such national retailers as Trader Joe’s, Panda Express, The Habit, Stone Ground Bakery and Verizon. The retail center is comprised of five buildings on Canwood Street and has easy access to the 101 Freeway near the Kanan Road interchange.

In other commercial real estate news, Alliance Commercial Partners has secured half the space at the LA Media Tech Center. The company has acquired a discounted note on four two-story buildings that total about 187,000 square feet of space at the property, which is located on a 12-acre lot on Media Center Drive in Los Angeles near the city’s border with Glendale.

LA Media Tech Center encompasses seven buildings that total about 400,000 square feet of space. Amenities include gated entry and patrolling security for the campus and parking facilities.

Coram Healthcare and JPMorgan Chase are among the tenants. Financial terms have not been disclosed; however, NAI Capital will continue to manage leasing.

Photo courtesy of loopnet.com