The LA Deal Sheet
Citing a dearth of office building developments and potential business growth in the area, Olive Hill Group is purchasing 520 Broadway, a Class-A trophy building in downtown Santa Monica from Tishman Speyer for $117M.
Olive Hill President Michael Cho said in a statement the company is bullish on the area as established tech companies and startups continue to move in and around the west side of Los Angeles.
“This is a unique investment opportunity in a very supply-constrained region of Silicon Beach,” Cho said. “520 Broadway is the only building of this size in the downtown area not held by long-term ownership. Future acquisition opportunities in Santa Monica will be rare, which strategically positions this property to perform well over time.”
Tishman Speyer had purchased the property from Vornado for $90M in 2015.
Built in 1981, the six-story, 113K SF building is several blocks from the Santa Monica Place mall, the Third Street Promenade outdoor shopping district and the Santa Monica pier and beach.
The office building underwent $13.2M in renovations in 2013 and is 82% occupied.
Citing Transwestern’s third-quarter report, rental rates in Santa Monica have increased to $6.04/SF, Olive Hill Group Vice President of Corporate Development and Legal Affairs Tim Lee said in the statement.
Lee said investments in the tech sector in Los Angeles continue to thrive, raising $4.2B in 2016, a 38% increase from 2015.
“We expect this number to continue to climb, attracting more and more tech startups and companies to the region,” Lee said.
“Lack of supply will drive long-term demand for 520 Broadway, which also benefits from the tremendous growth of Silicon Beach, which continues to emerge as a hub for the technology, entertainment and digital information industries,” Cho said.
Eastdil Secured represented Olive Hill. Manatt, Phelps & Phillips' Steven Edwards and Grace Winters also represented Olive Hill as legal counsel.
Grand Pacific 7-28 LLC has purchased an office building in Sherman Oaks from an undisclosed private investor for $16.7M. With 86% occupancy, the five-story office building built in 1981 sits on 1.24 acres at 5900 North Sepulveda Blvd. Colliers International’s Patrick Barnes, David Maling, Chris Maling, Kevin Fenenbock and Jacob Mumper represented the buyer and seller.
Metros Capital 2 LLC has purchased two apartment properties in West Hollywood from Sweetzer Rosewood L.P. for $5.68M. The properties are the nine-unit Sweetzer Apartments at 561 Sweetzer Ave. and the eight-unit Rosewood Apartments at 8355 Rosewood Ave. Each property sold for $2.84M. Stepp Commercial’s Kimberly Stepp represented the seller. Stepp Commercial’s Mark Ventre represented the buyer.
Essex Property Trust Inc. has purchased The Village at Toluca Lake from Cusumano Real Estate Group for $59M. The Village is a two-building, 146-unit non-rent-controlled apartment complex at 211 and 235 North Valley St. in Burbank. KW Commercial’s Michael Koshet represented the buyer and seller.
A private investor has sold a 97K SF warehouse and distribution facility to CapRock Partners for an undisclosed amount. The single-tenant property at 5331 and 5333 Slauson Ave. in Commerce is leased to manufacturer Indio Products. NAI Capital’s Ryan Campbell and Lee & Associates’ Tony Naples represented the buyer and seller.
Interstate Equities Corp. has purchased a 45-unit apartment building in the San Fernando Valley from Gault LLC for $10.02M in an all-cash transaction. Built in 1979, the non-rent-controlled apartment is at 15314 Gault St. in Van Nuys. Berkadia’s Jim Fisher and Mike Smith represented the buyer and seller.
HFF has arranged $57.2M in financing for two mixed-use properties and two creative office buildings totaling 126,598 SF in Santa Monica. The company worked on behalf of the borrower, Lionstone Investments, to secure a 15-year, 3.74%, fixed-rate refinancing from Principal Real Estate Investors for two of the properties at 625 Arizona Ave. and 401 Santa Monica Blvd. Principal Real Estate Investors also provided financing for a property at 1347 Fourth St. and provided a 15-year, floating-rate loan for the fourth property at 2415 Michigan Ave.
On behalf of J.H. Snyder Co., Meridian Capital Group has arranged $68M in bridge financing for a Class-A office building in North Hollywood. The nine-story, 179K SF building is at 5250 Lankershim Plaza. Meridian’s Seth Grossman, Jackie Tran and Steve Edelstein negotiated the transaction.
Peter Wilhelm, the former founder and CEO of consulting firm Novita Ventures, has joined Caruso as chief financial officer. Wilhelm will be responsible for overseeing the company’s financial, tax and accounting operations. Previously, Wilhelm served as chief financial officer for the Los Angeles Dodgers.