This Week's LA Deal Sheet
A 1960s-era, 24-unit Costa Mesa townhouse complex at 103 West Wilson St. has sold for $12.2M, or more than $500K per unit.
The buyer was identified as a private investor group based in Orange County. Property records name Colombo J P & S L Trust as the purchaser and Asa Investments LLC as the seller. The sale closed in late January but was just announced publicly.
The sale price is a 31% increase over the area’s per-unit median price in 2021, $386K, and exemplifies the increasing investor appetite for multifamily in the immediate area and Orange County, according to The Mogharebi Group, which represented the seller in the transaction.
SALES
A freestanding retail building at 8833 Beverly Blvd. in West Hollywood sold for $24M. The building is fully leased to Luxury Living.
The buyer is a joint venture between Acadia Realty Trust and Osiris Ventures.
The seller was TIAA, property records show. The sale, which worked out to about $2.5K per SF, was a loss for TIAA, which bought the property in 2016 for approximately $25.9M. Cushman & Wakefield announced the sale of the approximately 9,700 SF property; the firm’s Kazuko Morgan, Carine Mamann and Steve Algermissen represented the sellers.
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Pinnacle Capital Management Services sold an eight-building portfolio of medical office buildings, including properties in Van Nuys and the Bay Area.
Chris Bodnar, Lee Asher, Jordan Selbiger, Ryan Lindsley, Sabrina Solomiany and Zack Holderman with CBRE’s U.S. Healthcare and Life Sciences Capital Markets team represented the seller. The sale price of the assets and buyer information weren't disclosed.
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The Gershwin Lofts Retail @ Hollywood, a nearly 43K SF retail center at the corner of Western Avenue and Hollywood Boulevard, sold for $30.4M. The property at 5501-5521 Hollywood Blvd. and 1719-1723 North Western Ave. is fully leased to tenants including Marshalls, Petco and Farmer Boys.
The buyer was Hollywood Holdings, an LA-based private family office. CBRE announced the sale, and the firm’s Patrick Wade and Alex Kozakov represented the seller, an LLC connected to Canyon Partners.
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Staley Point Capital acquired two industrial buildings in Buena Park for $41M in an off-market transaction. The two buildings total over 166K SF and sit on 9.2 acres. They were purchased in a sale-leaseback transaction. The sale price works out to $247 per building SF or $102 per land SF. This is Staley Point's fourth Orange County investment in the last 12 months.
CONSTRUCTION AND DEVELOPMENT
Bunker Hill’s Colburn School is planning a Frank Gehry-designed expansion and could be getting underway on construction as soon as 2023. The 100K SF expansion will rise across the intersection at Olive and Second, where the school’s existing facilities sit. The music and dance school aims to complete the project, called the Colburn Center, in the fall of 2025.
LEASES
Two law firms have inked leases in Silverstein Properties' U.S. Bank Tower, the property owner announced. Patent and civil litigation firm Skiermont Derby LLP has signed a seven-year lease for 4,500 SF and will relocate to the tower in the summer. Global law firm Dechert LLP, which already leases 9,700 SF in the tower, will occupy another 5,900 SF on the 49th floor of the tower starting in September.
FINANCING
Yucaipa Cos. secured a $100M refinance on Koreatown’s The Line LA hotel, Commercial Observer reported. Corten Real Estate Partners provided the financing. The 384-key hotel has a pool, restaurants and a bar. A team from Institutional Property Advisors led by Jordan Ray, Steven Buchwald, Jamie Matheny and Lexington Henn arranged the financing.
