This Week's LA Deal Sheet
Arixa Capital Advisors launched a $100M joint venture with funds managed by Oaktree Capital Management to originate senior secured loans backed by residential and commercial real estate. The venture has the ability to increase the $100M in the future, according to a release from Arixa.
The JV will provide bridge, renovation and construction loans across residential and commercial real estate projects in infill markets, especially in California, Arizona and other Western markets.
SALES
Hudson Pacific Properties sold two office buildings, 604 Arizona Ave. and 3401 Exposition Blvd. in Santa Monica, for $72.5M. The properties sold in separate transactions, but prices and buyer information for each weren't disclosed. Property records don't yet reflect the sale. Both buildings are leased to tech and media tenants on leases whose original terms expire in 2025.
CONSTRUCTION AND DEVELOPMENT
A retail center on Wilshire Boulevard has been revamped and repositioned by developer Jeff Appel. The center, dubbed The Now, is a 40K SF, two-story retail hub at 11819 Wilshire Blvd. in Brentwood. Beta Agency’s Matt Saker and Richard Rizika are leading the leasing efforts at The Now.
FINANCING
Onni Group secured a three-year extension for $384.3M in financing tied to its Wilshire Courtyard office campus in Miracle Mile, Commercial Observer reported. The commercial mortgage-backed securities loan from Natixis is now extended to July 2026. The loan was sent to special servicing earlier this year after failing to earn 1.1 times the monthly debt service. WeWork had been the Courtyard’s top tenant, leasing almost a third of the campus, but when it exited in 2021, occupancy slumped to 54% and stayed there through 2022. Onni Group acquired the property for $624.9M in 2019.
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JLL Capital Markets arranged $75M in construction financing for the development of Birtcher Logistics Center Rialto, a 493K SF Class-A logistics facility under construction in Rialto. JLL represented the borrower, Birtcher Development, and secured the nonrecourse loan from the lender, Principal Global Investors. The JLL Capital Markets debt advisory team was led by Senior Managing Director Greg Brown, Senior Director Peter Thompson and analyst Spencer Seibring.
THIS AND THAT
Stream Realty Partners has been selected as the leasing team for Here @ Laguna Hills, the largest multitenant office campus in Laguna Hills. The freshly renovated five-building creative office park at 23332, 23382 and 23422 Mill Creek Drive and 24411 and 24461 Ridge Route Drive totals 225K SF. It is owned by The Kelemen Co. Stream Managing Director Mike Adams, Vice President Peter Joyce and senior associate Morgan Adams will serve as the leasing team.
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Advanced Real Estate has launched an alternative to the 1031 tax-deferred exchange concept it calls The X Fund. The X Fund sidesteps the traditional sales process. Instead, sellers agree on a value for their property with Advanced, then contribute their property into the X Fund in exchange for partnership shares in the fund.
“With a simple transaction, the investor transforms from being a single property owner, to a partner in a professionally managed diversified group of limited partners who own multiple properties,” Advanced said in a release about its new fund.
