This Week's LA Deal Sheet
A joint venture between Morgan Stanley and Meridian paid $81.5M for a three-story Beverly Hills medical office building at 150 North Robertson Ave. Called the Beverly Hills Medical Plaza, the property contains 67.5K SF of Class-A space and is leased to physicians and other high-profile medical tenants. Meridian said the joint venture plans to invest significant capital into improvements at the building, which was 88% leased at the time of sale.
Newmark’s co-Head of U.S. Capital Markets Kevin Shannon, Executive Managing Directors Rob Hannan and Ken White and Senior Managing Director Laura Stumm represented the seller, Beverly Hills Medical Plaza Properties, a private family office that developed the property in 1989. Newmark Senior Managing Director Steven Salas also participated in the sale and will lease the asset on behalf of the buyer.
PEOPLE
Newmark is expanding its Lodging Capital Markets Group into three new locations, including California, hiring Senior Managing Director Nick Pappas and relocating Director Greg Morgan. Both will be based out of the LA office. Pappas and Morgan will focus on California, the Pacific Northwest and the Mountain region. Prior to coming to Newmark, Pappas worked for Canyon Partners. Morgan comes to the LA office from Washington, D.C.
LEASES
Creative agency Mother signed a long-term lease for 27K SF at 4202-4216 West Jefferson Blvd. in West Adams. Mother’s new space will span three continuous creative office and retail spaces, according to the landlord, real estate investment platform Fundrise. Fundrise purchased the properties in 2019 and owns an additional 18-site portfolio within a few blocks of this location.
EOP Realty’s Lee Polster and Ashton Kent represented Fundrise. Corporate Realty Group’s Craig Zund represented Mother.
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XOS, producer of last-mile electric delivery vehicles, inked an 85K SF lease for a free-standing industrial building at the Glendale Commerce Center, Colliers announced. XOS will use the space for office, manufacturing and warehouse uses. Colliers Vice Presidents Matt Dierckman, David Harding and Greg Geraci and Senior Vice President Billy Walk represented the landlord, Rexford Industrial.
SALES
The North County Corporate Center, a five-building, roughly 494K SF industrial campus in Vista, sold to Black Creek Group for $147.5M, Newmark announced. The property was 100% occupied at the time of sale.
Newmark Executive Managing Directors Bret Hardy, Jim Linn, Andrew Briner and Brunson Howard and co-Head of U.S. Capital Markets Kevin Shannon represented the seller, Barings.
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Avanath Capital Management announced it acquired River Run Senior, a 360-unit affordable housing community for seniors in Corona. River Run is the company’s second acquisition in Riverside County; its first was acquired in 2014 and is also a senior community (Woodside Senior). The purchase price was not disclosed and public records do not yet reflect the sale.
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CBRE announced the sale of a luxury multifamily community in Santa Monica to a private Asian investor for $70M. The 38-unit property at 301 Ocean Ave. was constructed in 1952. CBRE’s Laurie Lustig-Bower and Kamran Paydar represented the seller, Marquis Property Co. Eric Chen represented the buyer.
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Meridian closed its sale of a newly renovated, 53.5K SF medical office building in Santa Ana to an undisclosed buyer identified only as a large Southern California healthcare provider. The sale price was $29.9M. Meridian purchased the property at 3601 West Sunflower Ave. in 2019, paying $20.35M.
The buyer was represented by Newmark brokers, including Executive Managing Director Justin Hodgdon, Associate Director John Scruggs, Executive Managing Director David Kluth and Associate Director Mai Hu. Meridian represented itself.
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Lee & Associates – Pasadena principals Christopher Larimore and Dan Bacani facilitated the sale of a roughly 5.6K SF free-standing retail building at 1950 South Atlantic Blvd. in Monterey Park to a local hair salon owner. The building had previously been a pet supply store and suffered from extended vacancy.
This sale set a record for the highest sale price per SF this year in the city of Monterey Park for a retail building larger than 1.5K SF.
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Dunleer sold a multi-tenant, approximately 20K SF industrial property in North Hollywood for $5.4M. The property at 7633 Varna Ave. was 100% occupied by three tenants at the close of escrow. It features 83 gated parking spaces, nine rear roll-up doors and nine units. Dunleer purchased the property in 2019, paying approximately $4.4M, public records show.
CONSTRUCTION AND DEVELOPMENT
Intracorp broke ground on a 178-unit Class-A apartment complex at 2055 Main St. in Irvine. The project is in the Irvine Business Complex, and it is Intracorp’s first for-rent multifamily development and fourth ground-up project in that area.
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Apple is planning to build two new mid-rise buildings on multiple parcels in Culver City and LA on a property bounded by Venice, National and Washington boulevards, the Los Angeles Times reported. Apple did not say what company would build the new buildings or offer a construction timeline. The two buildings would hold over 550K SF. Apple occupies about 500K SF in LA right now, the Times reported.
CORRECTION, OCT. 11, 8:10 A.M. PT: A previous version of this story misstated the size of the building in Santa Ana that Meridian sold. It is 53.5K SF. The story has been updated.
