Beverly Hills Apartments Score $85M In Construction Financing: The Los Angeles Deal Sheet
Marcus & Millichap Capital Corp. arranged $85M in construction financing for the development of a roughly 298K SF mixed-use project at 55 N. La Cienega Blvd. in Beverly Hills.
MMCC worked on behalf of the undisclosed property owner. Urbanize LA previously reported the site owner is Westland Development Group. The project involves the redevelopment of the commercial site into 140 apartments and 13K SF of ground-floor retail.
MMCC’s Sharone Sabar secured the financing for the sponsor through a national banking institution. The four-year construction loan was structured at 65% loan-to-cost.
The sponsor acquired the property in October 2014 and spent more than a decade navigating the entitlement and planning process, Sabar said in a statement.
PEOPLE
BKM Capital Partners announced that Bill Galipeau will retire as chief operating officer and chief financial officer. Mike Valdes, formerly BKM's senior managing director of finance and accounting, will take Galipeau’s place after a transition period.
SALES
Marcus & Millichap announced the sale of The Versailles Apartments, a five-story, 78-unit apartment complex on a full block at 8811 Burton Way, adjacent to West Hollywood and Beverly Hills. The property sold for $47M, or approximately $603K per unit. Tony Azzi and Rabbie Banafsheha of Marcus & Millichap represented the seller and procured the buyer.
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Lift Partners bought a roughly 3.7-acre industrial outdoor storage site at 4500 York Blvd. in Highland Park. The price tag was $14.5M, according to The Registry. The site is next to the Sparkletts water bottling facility. CBRE’s Michael Bogle facilitated the sale.
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Marcus & Millichap announced the sale of a retail building at 14651 Ventura Blvd. in Sherman Oaks for $11.2M. The property was built in 1999 and spans approximately 25K SF.
The property’s location on Ventura Boulevard and single-tenant, net-leased structure made it attractive to buyers, Marcus & Millichap’s Lior Regenstreif said in a statement. Regenstreif procured the buyer, an unnamed local private investor. SRS represented the seller.
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Berkadia oversaw the $6M sale of the Grevillea Apartments, a 24-unit garden-style apartment complex in Lawndale. Steffan Braunlich of Berkadia El Segundo led the transaction on behalf of the seller, an unnamed private South Bay-based family trust.
The Grevillea Apartments at 17226-17304 Grevillea Ave. sold to Newport Beach-based MBI Equity Partners at a 5.28% cap rate. The sale price translates to $250K per unit.
The Grevillea Apartments were built in 1979 and contain 24 apartments, all two-bedroom, one-bathroom units.
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Farallon Capital Management, Jofa Capital and Urban Investment Research Corp. have sold 3507 Jack Northrop Ave., a 41K SF flex industrial and research and development campus in Hawthorne. The property is fully leased to an undisclosed advanced manufacturing tenant.
CBRE’s Michael Longo, Melissa Moock, Anthony DeLorenzo, Mark Shaffer and Katrin Gist represented the seller.
LEASES
Rexford Industrial Realty sold 17031–17037 Green Drive in the City of Industry for $16.7M, or $326 per SF. The 51K SF warehouse sits on 3.6 acres. The buyer was an unnamed nail care brand. MacLeod & Co.'s Chase MacLeod represented Rexford.
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Manufacturer Reotemp Instrument Corp. has signed a 12-year lease for a 75K SF facility at 10225 Willow Creek Road in San Diego’s Scripps Ranch. The landlord is Luminous Capital Management, in partnership with Austin-based Virtus Real Estate Capital.
The lease will commence upon completion of the tenant’s build-out, which is scheduled for the second quarter of 2027. The company will be the sole occupant of the Willow Creek project, which sits on a 4.6-acre corner parcel in Scripps Ranch Business Park.
Cushman & Wakefield’s Brant Aberg, Bryce Aberg and Louay Alsadek represented the landlord, while Cushman’s Andy Ewald and Peter Curry worked on behalf of Reotemp.
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Tempo, a company specializing in thermal energy storage for industrial electrification, signed a lease in Sorrento Mesa for a new 35K SF headquarters building. The company will use the facility for materials development, engineering, prototype assembly and system testing, according to a release from Tempo. JLL’s Joe Anderson and Greg Bisconti represented Tempo.
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Daum Commercial Real Estate Services completed a long-term lease for a 38K SF industrial property in unincorporated Los Angeles County. The total consideration of the lease was approximately $2.5M.
Daum's Brad Levin, Jack Stone, Michael Collins and Dustin Hullinger represented the landlord, Hager Pacific Properties. Daum's Sean Homsy and JD Vogelzang represented the tenant, Zetinos Transport.
