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Old Pasadena Collection Snapped Up by Private Investor in $42 Million Transaction

18 Jul 2014, 8:07 pm

By Alex Girda, Associate Editor

Four buildings in downtown Pasadena were recently part of a $42.6 million mixed-use deal as Old Pasadena Collection traded hands between two private investors. A team of representatives from real estate company Institutional Property Advisors arranged the sale on behalf of both parties.

The four properties that comprise the Old Pasadena Collection are located at 22 West Green Street, 65 West Dayton Street, 60 West Green Street and 70 West Green Street. The four properties total 91 residential units and a retail component that is unevenly divided between the four buildings. The residential units are located in the buildings at 22 West Green St. and 65 West Dayton St., while the ground floors of these buildings, and the two freestanding projects at 60 W Green St. and 70 W Green St., contain the retail component of the Old Pasadena Collection.

Also known as the Messina, 65 West Dayton St. offers 43 residential units and a ground-floor retail suite that is currently occupied by a tenant and the leasing office for all of the 91 residential units. The 2004-built property offers great resident amenities such as on-site gated parking, a central courtyard as well as a roof deck with lounge-style furniture and grill. In-unit features include central A/C, granite countertops, a black appliance package, stacked washers and dryers, carpeted living areas and a two-tone paint scheme.

The mixed-use building at 22 West Green St. is known as the Palermo and comprises 48 residential units, as well as four ground-floor retail suites, three of which are currently under contract. Amenities at the 2003-built Palermo include similar on-site gate parking and a central courtyard. In-unit amenities are similar to those found in the Messina, with track lighting, sunshades and views of the mountains added in some select units.   

Image courtesy of oldpasadenacollection.com


Vitus Group Acquires Senior Affordable Housing Building in Koreatown for $22.5 Million

14 Jul 2014, 2:51 am

By Alex Girda, Associate Editor

An affordable housing community catering to seniors was recently sold by the Christ Unity Church in a deal worth approximately $22.5 million. The property in question is Christ Unity Manor in Koreatown, an asset that waited approximately 15 months to be traded; eight of those months the property spent in escrow. The sale was handled by real estate brokerage Colliers International. Although a large number of companies inquired about the property, the winning bid belonged to Vitus Group.

Christ Unity Manor is a 156-unit community located at 615 S. Manhattan Place that was developed back in 1973 and totals 116,664 square feet of space, according to real estate data provider PropertyShark.com. The property has since served as a senior affordable housing complex operated by the church. The non-profit seller only agreed to the deal once it found a buyer that would guarantee to maintain the property’s designation. The new owner has agreed to maintain the property as intended for at least 55 years. According to Colliers International, 43 prospective buyers bid for the chance of owning the 12-story affordable housing building.

With the area’s average rent rate currently at around $1,275 per month, the complex holds its rate near the $375 per month for the complex’ one-bedroom, one-bath units. Vitus will bring its experience with acquisitions and rehab of affordable housing assets, its commitment to renovating the structure and implementing other programs that would enhance the tenant experience. According to Colliers, the new owner is also committing around $5.45 million to add upgrades and renovations to Christ Unity Manor.

 Image courtesy of Google Maps.

MacFarlane Partners Acquires Downtown Development Site, Lines up Two-Building Mixed-Use Project

7 Jul 2014, 7:10 pm

By Alex Girda, Associate Editor

MacFarlane Partners has recently completed the acquisition of a high-profile development site located in the growing residential market of downtown Los Angeles. The developer has two residential buildings lined up for the piece of land, as well as a retail component and large amounts of open space. The buyer acquired the development site from Africa-Israel USA, in a deal brokered by Newmark Grubb Knight Frank representatives from New York and Los Angeles.

Located on the northeast corner of Fifth and Olive Streets and overlooking the nearby Pershing Square, the project known as Park Fifth will comprise approximately 600 residential units with a mix of apartments and condo units. The site offers a total of 99,000 square feet upon which Macfarlane will build a large mixed-use project that will offer around 600,000 square feet of space. The retail component would offer around 17,000 square feet of retail space, while roughly one half-acre of open space and amenities are also set to take shape on the podium that will link the two buildings together. According to rentv.com, talks regarding the deal have been underway for almost a year, with the project meanwhile completing the entitlement process, and approval finally coming through for the project during the first half of 2014. Construction at the Park Fifth development project is lined up for mid-2015.

Set to take shape in a growing development market of L.A., the project would add to a slate of large projects in an area with a local population density of 14,800/square mile. Around 100 building projects have sprouted in the city’s downtown area over the past few years, CoStar shows.

Image courtesy of macfarlanepartners.com

DJM Scores $93 Million in Financing as Construction Continues Unabated

28 Jun 2014, 2:04 pm

By Alex Girda, Associate Editor

A major retail development project in Huntington Beach recently received a serious fund injection as developer DJM landed approximately $93 million in financing. The funds were arranged by George Smith Partners Principal and Managing Director Steve Bram and Senior Vice President David Pascale. The funding is divided between a $56.5 million senior loan and a $37 million mezzanine loan. DJM will be using the proceeds to continue the development process at its Pacific City project.

The 191,000-square-foot retail center is located near the Huntington Beach Pier, along Pacific Coast Highway, three blocks away from Main Street. It features a two-story open design that facilitates views of the nearby Pacific Ocean to the largest part of the property’s tenants. With only a small amount of preleasing necessary as part of the financing process handled by George Smith Partners, information regarding the property’s tenant roster is still rather scarce.

Set to debut in 2015, the retail component of Pacific City will include a wide range of lifestyle brands, popular dining spots and an Equinox fitness center. The property’s Lot 579 will be a marketplace-style arrangement featuring local and regional food vendors in the vein of San Francisco’s Ferry Building. Construction at the project began late last year on the lot that DJM had acquired back in 2012. The process will continue with no changes in the development schedule due to the securing of the two loans.

The Pacific City development project was approved back in 2004, and calls for a brand new mixed-use experience to be built in Huntington Beach on a 31.5-acre plot of land, offering new retail, residential units and a hospitality facility. Currently, DJM Capital Partners Inc. is in charge of development for the commercial/retail project, R.D. Olson Development is handling the construction of the eight story, 250-key hotel that will also include 5,800 square feet of meeting and banquet space. Crescent Heights is listed as the applicant for the 17.23-acre multifamily component of the development that would include 516 residential units.

Image courtesy of huntingtonbeachca.gov

Kilroy Realty Corp. Reveals Plans for Mixed-Use Project in Hollywood

21 Jun 2014, 4:07 am

By Alex Girda, Associate Editor

One of the most active commercial real estate companies in the Los Angeles market has unveiled plans for a large creative media mixed-use office campus at the recent Hollywood Economic Development Summit. Kilroy Realty Corporation will be developing its proposed project known as The Academy on a site acquired in Q4 of 2013 from The Academy of Motion Pictures Arts and Sciences. The site is an entire Los Angeles city block located between Vine Street, DeLongpre Avenue, Ivar Avenue and Homewood Avenue.

Meant to create a mixed-use community on the block, KRC’s plan calls for three four-story creative office buildings and a 23-story residential tower to be built on the premises. The three office buildings will range in size between 78,000 and 100,000 square feet. The project includes a copious amount of open space; approximately 40 percent of the four-acre site will remain open space with the residential tower set to take shape on the northwestern corner of the campus.

The public area will be outfitted with art and create a large public gathering area, featuring most of the development’s planned 20,000 square feet of street-level retail. The development will open up at the corner of Vine and DeLongpre. Kilroy has designed the project to cater to entertainment, media and technology tenants that require both small and large spaces.

The largest of the three office buildings will reportedly feature a design scheme sourced from the historic mid-century bow trussed buildings that are currently making waves in the creative office market. The executive architect on the project is House & Robertson with the Shimoda Design Group also playing an important part in the development process.

All three buildings will feature terraces, the cascading design providing tenants with the opportunity of having individual space including private entrances and outdoor meeting areas. The buildings will be connected by a series of landscaped passageways that run through the center of the development. Construction is expected to begin during Q1 of 2016, and will be aimed at receiving LEED Gold certification from the U.S. Green Building Council.

Image courtesy of kilroyrealty.com


Hines and Oaktree Partner Yet Again for the Acquisition of Brea Place Office Campus

13 Jun 2014, 7:58 pm

By Alex Girda, Associate Editor

International real estate firm Hines recently announced the purchase of Brea Place, a sprawling office campus that also includes a plot of mixed-use development land, part of its ongoing partnership with Oaktree Capital Management. Financial terms of the deal were not disclosed to the press.

Brea Place is an office campus offering a total of 557,589 square feet of space in the North Orange County submarket. The campus comprises six office buildings ranging in height between one and six stories on the east and west sides of S. State College Boulevard, near the Brea Mall. The Brea Place campus has a current occupancy rate of around 75 percent and a variety of tenants. The property’s current tenant roster includes names such as Chevron, Merrill Lynch, MetLife, Wells Fargo, Sully-Miller Contracting Co. and Union Bank. After the completion of the transaction, Hines is assuming management duties for the asset.

Hines also acquired the 30 acre-property for the seven acres that are included in the package and clearly pose a great development opportunity. The acres are targetted for future mixed-use development projects that would increase the value of the asset in terms of future possibilities.

Ray Lawler, a Hines managing director and the person leading the company’s Orange County development and investment, said that the market that Brea Place is part of “is a highly attractive submarket where Hines and Oaktree expect to grow our portfolio.” Representatives of frequent business partner, Oaktree, share the positive outlook regarding the asset. Managing Director Ambrose Fisher noted that the company is “excited to partner with Hines on another significant office opportunity.”

Retail Opportunity Investments Corp. Announces Purchase of Fallbrook Shopping Center for $210 Million

6 Jun 2014, 3:12 pm

By Alex Girda, Associate Editor

Retail Opportunity Investments Corp. recently announced that it will become the new owner of a major retail center in the San Fernando Valley. The company has entered into a binding contract for the acquisition of the Fallbrook Shopping Center, for a purchase fee of $210 million in cash, from General Growth Properties. The transaction will reportedly be closed by the end of this quarter.

Fallbrook Shopping Center is a 1.12-million square foot shopping center located in West Hills, CA, and is one of the top retail properties in the West San Fernando Valley. The property’s current tenant roster includes three different supermarkets, namely Ralph’s, Trader Joe’s and Sprouts, while a diverse mix of national retailers such as WalMart, Home Depot and Target, is also part of the package available at Fallbrook.

In terms of leasing, the retail property is currently 98 percent under contract, with two-thirds of the agreements being completed with investment-grade rated retailers. The average remaining lease term for the property’s anchor tenants currently stands at around 12 years.

The acquisition of the Fallbrook Shopping Center will contribute to the enhancement of the new owner’s long-term cash flow and tenant diversification, while also increasing its pro forma unencumbered GLA to 87 percent. The acquisition is accretive to Retail Opportunity Investments Corp.’s net income and fund from operations per diluted share. The asset is located in a trade area that totals around 474,000 in population, with a median house-hold income of around $100,000 per year.

According the President and CEO of Retail Opoortunity Investments Corp., Stuart A. Tanz, the buyer expressed its excitement regarding the deal, noting the fact that “Fallbrook is one of the strongest shopping centers in the San Fernando Valley and is an excellent strategic fit with our existing portfolio, given its location and market position.”

Marcus & Millichap Arranges Sale of Two Playa Vista Retail Properties for $16.9 Million

31 May 2014, 12:57 am

By Alex Girda, Associate Editor

Marcus & Millichap’s Encino office recently arranged the sale of a two-property retail portfolio for a total of approximately $16.9 million. The two shopping spots are located in the L.A. submarket of Playa Vista. The acquisition was arranged by Marcus & Millichap Vice President investments, Brandon Michaels, and Janette Monfared, an associate with the Encino office. The seller is an affiliate of Brookfield Residential.

The two retail properties, Pacific Promenade and Seabluff Drive, are located at the ground floors of mixed-use projects in Playa Vista, at 13020 Pacific Promenade and the corner of Seabluff Dr. and Runaway Dr. respectively. According to rentv.com, the acquisition was made possible through the obtaining of nonrecourse CMBS debt at 65 percent loan to value. Arranged by MMCC’s Encino office, the financing totaled approximately $10.8 million.

Pacific Promenade is an 11,800 square-foot retail property, home to tenants such as Coffee Bean, Bank of America, Yoga Vista, Sweet Fish Sushi Bar and Hollyway Cleaners. The 2005-built property is located on the ground floor of a mixed-use community that also includes 179 condo units.

Seabluff Drive is a 10,900 square-foot retail center that was developed in 2007, as part of another mixed-use community, also featuring 179 condominiums on the upper floors. The property’s retail tenant roster features names such as Coldwell Banker, Playa Pilates, Yummy.com Fresh Market and Pinkberry.

The properties have an occupancy rate of 100 percent and were fully leased at the time of the transaction. Part of an already well-performing area of Los Angeles where the average vacancy rate stands at around 4.5 percent, the assets are overachieving. According to data provided by Marcus & Millichap Real Estate Investment Services, the Westside Cities area ranks fourth in terms of vacancy rates, trailing only the Tri-Cities, the Mid-Wilshire area and South Bay/Long Beach.

Image courtesy of Google Maps.

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

The Wolff Company Develops Mixed-Use Community in L.A.’s South Park District

23 May 2014, 3:12 pm

By Alex Girda, Associate Editor

A new community is nearing its official groundbreaking, with The Wolff Company currently set to start work on its latest mixed-use project. Poised to take shape in downtown Los Angeles, the 12th & Olive development is a $54 million project on which developer The Wolff Company is working with TCA Architects and Bernards.

Located at 1243 S. Olive in the downtown L.A. district of South Park, the new community will include residential and retail space as well as common space for resident amenities. The 293 residential units included in the seven-story structure will feature high-end finishes and long-term maintenance advantages. The building will feature a total of 17,300 square feet of ground-floor retail, while the common space will occupy a total of 7,000 square feet of space. Based on designs from TCA, the podium-like structure of the building will be the defining feature of the mixed-use project. 12th and Olive will be located near Staples Center, the home of the most important local sports franchises, the Clippers, the Lakers and the Kings, and the LA Convention Center, as well as “7th Street Restaurant Row” and the Grammy Museum.

The community will offer its residents high-end amenities such as a 24/7 on-site valet service and concierge service, creating a hotel-like experience. The project is very similar to the developer’s nearby 12th & Grand mixed-use community, with that project offering a slightly larger number of residential units and a slightly higher amount of ground-floor retail space. That project will take shape at 1200 S. Grand Avenue, creating a specific style of community for The Wolff Company in the downtown Los Angeles real estate market.

Image courtesy of awolff.com

Colliers Arranges Land Deal for The Olson Company, New Residential Development Set-up in Temple City

16 May 2014, 9:27 pm

By Alex Girda, Associate Editor

A parcel of land that formerly housed an industrial facility in Temple City in the San Gabriel Valley is set to be transformed into a new housing community by Orange County-based The Olson Company. The home builder recently acquired the land with the help of real estate firm Colliers International.

The brokerage worked on behalf of both Olson and selling entity, Ramshorn Corp., during the transaction. Colliers was also responsible for holding the transaction together through the process of getting plans for the housing development approved by local authorities. Senior Vice President Wayne Lambert, Executive Vice President Scott Heaton and Associate Joe Williams comprised the Colliers team in charge of the deal.  

According to Colliers, the developer will now look to build 74 new homes in Temple City. Olson Company is set to create a new gated community with a combination of single-family attached and detached homes that will be named “Linden Walk.” The neighborhood will include on-site recreational amenities for future residents, as well as a sound wall meant to minimize the amount of sonic pollution coming from the nearby Union Pacific Railroad line. The project is being referred to as a “walk,” given the developer’s focus on bringing resident amenities that are within walking distance of the new homes it builds. The amenities include mass transit hubs, shopping centers, schools and entertainment options.

Acquiring the former lumber yard site is no one-time deal for The Olson Company as the company’s Chief Executive Officer, Scott Laurie recently revealed. “We really like the San Gabriel Valley market and we continue to look for additional opportunities there,” Laurie said, focusing on the lack of inventory in the area and the existing demand for new housing projects as main reasons for the developer’s current strategy.   

Images courtesy of olsonhomes.com

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