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Real Estate Bisnow
The largest commercial real estate publication in the United States.
   
January 24, 2012 
 
 
The Deal Sheet

Last chance to get your tickets for our 2nd Annual LA State of the Market event tomorrow, Wednesday, Jan 25 at the Four Seasons in Beverly Hills. Great panels, great networking, decent breakfast. Register here.

 
It’s a jungle out there in the commercial RE world, and no one knows this better than JLL, which has been awarded leasing for Safari Business Center in Ontario.
 
Located off the 60 Freeway, the 16-building, 1.1M SF industrial complex boasts a wild animal theme. JLL was hired by the asset manager, American Realty Advisors, on behalf of the landlord. JLL’s Jeff Bellitti and Jordan Quinn are heading the leasing efforts. Jordan says Safari Business Center is “ideal for companies seeking a superior building in an excellent location.” (Or folks who need a place to wear their pith helmets.) The park features 30-foot minimum warehouse clearance, truck-well and ground-level loading, and loading dock doors with automatic levelers.

SALES

TRION Properties, a private equity investment firm, bought two Cali multifamily properties and sold two others. The company acquired a nonperforming note on a 16-unit townhome project in Auburn (2280 South Dr) and the fee interest on an 11-unit property in LA (4318 Avalon). Meanwhile, TRION sold a 35-unit property at 4620 Coliseum in LA and a 20-unit property at 8844 Tobias Ave in Panorama City. The brokers involved include Marcus & Millichap’s Tony Azzi, Rabbie Banafsheha, Josh Cohen, and Rick Raymundo, and Charles Dunn Co’s Blake Rogers and Al Shilton.

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Menlo Equities bought Irvine Crossings, a 420k SF industrial warehouse and data center at 17871 Von Karman & 17836 Gillette in Irvine, for $47M. According to CoStar, this was the largest consideration for an Orange County industrial building last year. Voit Real Estate Services’ Trent Walker and Sam Olmstead repped the buyer, and Trent also repped the seller, Irvine Crossings LLC.

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Phoenix Realty Group added a twelth apartment community to its SoCal portfolio with the $36.4M acquisition of Canyon Creek Apartments in Riverside. The property contains 288 units in 70 buildings on 24 acres, as well as a 24-hour fitness center, pool, spas, and a community car wash. PRG has embarked on a $3M renovation plan including upgrades to common areas and enhancements to the apartments. Berkadia’s Allan Freedman arranged project financing.

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JLNI LLC and KPN Industrial LLC bought a 102k SF industrial building, 26090 Ynez Rd in Temecula from US Bank for $3.8M. Lee & Associates ISG’s Charley Black and Mike Strode repped the seller, while Cassidy Turley’s Andy Melzer and Kerry Schimpf and Hightower Investments’ Jon Stevenson and Rick Gilliam repped the buyers.

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Marking its fourth acquisition since forming in June, Dunbar Real Estate Investment Management bought a high-image industrial building at 4880 W Rosecrans Ave in Hawthorne. The 83k SF building, acquired in partnership with Penwood Real Estate Investment Management, the 83k SF building on nearly 3.4 acres contains corporate offices, 22-foot clear warehouse space (with six dock-high doors), and a 150-foot truck court. DAUM’s Brad Levin repped both sides and also will market the building for sale or lease.

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Hanley Investment Group sold three multitenant strip centers in the Inland Empire totaling more than 96k SF to cash buyers for a total of $8M. The largest property, the 40k SF Grand Jurupa Center (5105-5145 Jurupa Ave in Riverside), was purchased by La Peer Investments LLC of Beverly Hills for just under $3.2M. Pegasus Investments’ David Chasin repped the buyer, while HIG’s William Asher and Edward Hanley repped seller 5119 Jurupa Ave.

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M West Holdings bought Cahuenga Plaza, a 73k SF office building (4130 Cahuenga Blvd) in Toluca Lake directly adjacent to NBC/Universal’s HQ, numerous film studios, and the Universal Studios theme park. Matthew Ziegler in Marcus & Millichap’s Encino office sourced and facilitated the deal for M West, while Martin Cohan in the West LA office repped the seller. Bank of America’s Malcolm Johnson provided the financing package.

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Nima Accessories bought a 105k SF industrial property, 16804-16808 Gridley Place in Cerritos, from L-W Income Properties for $7M. Lee & Associates’ Jim Halferty and James Kinetz repped the buyer, while Colliers International repped the seller.

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A Canada-based private venture bought River’s Crossing, a 32k SF multi-tenant retail center in Rancho Mirage, from Santa Monica-based Highpoint Capital for $6.8M in cash. The center (72014-72060 Highway 111) was built in 1991 and is 89% occupied. Hanley Investment Group’s William Asher and Edward Hanley repped the seller, while Cushman & Wakefield’s Michael Dyer and DBI Group’s Dick Bridy repped the buyer.

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NAI Capital’s Tim Steuernol and Rob Zaharia sold two vacant properties—an eight-unit apartment building at 1181 N Virgil Ave and a 10k SF office building at 560 S St Louis Ave in Boyle Heights—for a total of $2.1M. The closing cap rate for the three-story office property was over 11%.

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Thomas Mathie and Carlos Deviez bought a 23-unit apartment property at 7442 Vineland Ave in Sun Valley from Alpha LP for just under $2.2M. Hendricks & Partners’ David Harrington repped the seller, while Marcus & Millichap repped the buyer.

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Hope Tree LLC bought a 6,150 SF ground-floor retail space in the luxury residential condo building Luma (1100 S Hope St in Downtown LA) from Amazing Grace Investments for more than $2.6M. Hanley Investment Urban Retail Advisors’ Carlos Lopez repped the buyer, while Top Properties’ Jay Park repped the seller.

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A private investor from Japan bought an eight-unit apartment building, 505 N Alfred St in West Hollywood, from LA-based Cran50 LLC for $2.4M. The property is one of just four multifamily properties in West Hollywood that sold for more than $300k/unit last year. Commercial Asset Group’s Dana Brody repped the seller, while Rodeo Realty’s Todd Jones repped the buyer.

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Safco Capital Corp bought Chateau Normandie, a 30-unit apartment property at 756 S Normandie Ave in LA, from J&B Asset Management for nearly $1.8M. Hendricks & Partners’ Brent Sprenkle negotiated the deal, which involved no buyer contingencies.

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Marcus & Millichap sold an eight-unit apartment property, 1135-1137 S Norton Ave in LA’s Country Club Park neighborhood, for $855k. Lane Schwartz and Thomas Jonsson had the listing, and also secured and repped the buyer.

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JB Tobias LLC bought a 20-unit apartment property at 8844 Tobias Ave in Panorama City for $1.4M or $117/SF, all cash. Marcus & Millichap’s Rick Raymundo, who repped both sides, says the sale took place just 72 hours after the first trust deed holder foreclosed.

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Marcus & Millichap sold an eight-unit apartment property, 833 Victor Ave in Inglewood, for $1M. West LA associate Tyler Virgadamo and first VP Jerry Wise had the listing and also secured and repped the buyer, an LLC.

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LEASES

Electronic Arts signed a new long-term lease for 125k SF of office space at the Water’s Edge complex in Playa Vista. JLL’s Tony Morales, Maureen Hawley, Paul Bryant, and Josh Wrobel repped the tenant, while EdgeCore Real Estate Group’s Stefan Khudic and Tim Marchal repped landlord Maguire Investments. Developed by Rob Maguire, Water’s Edge features direct access to bike and running trails to the ocean, and regulation-sized athletic fields. Maguire Investments engaged Industry Partners and EdgeCore to market the property as a multi-tenant complex for users requiring 10k to 80k SF.

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Two law firms, Rogan and Lehrman and Trope & Decarolis, leased a total of 14.8k SF on the 13th floor of 12121 Wilshire Blvd (Wilshire Bundy Plaza) in LA. Madison Partners’ Mitchell Stokes repped landlord Douglas Emmett Co.

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The Ventura County Dept. of Child Support Services signed a 48.6k SF lease to consolidate several facilities, currently located in the City of Ventura, to 5171 Verdugo Way in Camarillo. The 10-year office lease is valued at nearly $8.5M. According to Lee & Associates-La North/Ventura’s David Kim, John Ochoa, and Grant Harris, the complicated deal took a year to complete—in addition to various government approvals, the space needed to accommodate expanded services stemming from a statewide restructuring of child support services. The Lee & Associates team repped both the county and the landlord, Hill Street Partners VI.

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MARCH Vision Care, a provider of vision care management services for government-sponsored health plans, signed a 17k SF lease expansion at 6601 Center Dr in the Howard Hughes Center. The company will continue to occupy 10k SF at 6701 Center Dr, its corporate HQ, and consolidate its training, operations, and customer service center at the new location. Cresa LA’s Brian Davies and Dave Toomey repped MARCH, while LA Realty Partners’ Rick Buckley and Beau Rawi repped landlord Equity Office Properties.

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Ahern Rentals leased a 125k SF industrial space, 16930 Valley View Ave in La Mirada, for a construction equipment rental business, in a 10-year deal valued at $5.2M. Lee & Associates’ Jeff Hubbard repped landlord 16930 LLC, while Delta Mobility’s Chris Koceman repped the tenant. According to Jeff, the property attracted 16 sale offers, but the client preferred to lease because of the difficulty finding good replacement industrial properties in Greater LA.

FINANCINGS
 

Mesa West Capital acquired a $30.3M first mortgage loan secured by America Center in North San Jose from an affiliate of AllianceBernstein US Real Estate Partners. According to principal Ronnie Gul, the property consists of two new, Class-A office buildings totaling more than 426k SF. The loan on the property was restructured last year with an AllianceBernstein affiliate. As part of that restructuring, America Center developer/owner Legacy Partners infused fresh equity.

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Dominion America Realty Advisors closed a loan modification and finance restructuring on a newly built assisted living and memory care facility in Riverside. The new finance arranged by DARA’s Paul Horvitz and Keith Olson provided the borrower, who was in default on an expired construction loan, with an extension of the original $6,000 loan principal and extended the loan term by 12 years at the existing rate.

***

CT/KDF Community Development Partners (a JV between CT Realty Investors and KDF Communities) placed nearly $10.5M of its New Markets Tax Credit allocation to develop a grocery in the Mercado del Barrio project in Downtown San Diego with its investment partner, Wells Fargo. The 36k SF Northgate Gonzalez Market, 1950 Main St, is scheduled to open this summer.

EXECUTIVE NEWS

Elaine Kanelos joined HOK as VP and director of strategic development, responsible for expanding the firm’s position in SoCal. She comes to HOK from OZ Architecture in Colorado, where she was principal, VP, and director of marketing and business development.

***

Trigild promoted two San Diego-based members of its executive team. Jason Hull, formerly director of commercial real estate, was named senior managing director, focused on new business opportunities, acquisitions, and client relations. Former director of commercial property management Brian Morelan was named managing director of commercial real estate, directing both the asset and property management teams.

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Grace Soueidan joined the Peak Corporate Network as COO for the Peak entities. She brings more than 15 years of operations experience in the real estate industry.

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Rene Soto was named senior managing director in Charles Dunn Co’s Glendale office, where he’ll focus on tenant representation services throughout the Tri-Cities office market.

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Pat Luke joined California Landmark in the newly created position of VP of acquisitions. Besides sourcing multifamily, office, and retail deals, he’ll be responsible for securing debt and equity financing. Before this, Pat was director of multifamily acquisitions for Starpoint Properties.

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HFF hired James Fowler as a managing director in the Orange County office, where he’ll focus on debt placement and structured finance transactions for properties throughout SoCal. James was the principal/founder of US Realty Capital, a nationwide commercial RE financial intermediary.
 
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