This Week's LA Deal Sheet
Chicago-based Sterling Bay and Harrison Street have announced that they are the new owners of a life sciences portfolio in San Diego’s Sorrento Mesa submarket and that they plan to develop as much as 1.1M SF of ground-up, Class-A life sciences campus space on the properties.
In late August, Bisnow reported that City Office REIT agreed to sell its entire life sciences portfolio for $576M, but the identity of the buyers was unknown. Development will be carried out in phases, with the first round scheduled to begin in 2023.
PEOPLE
AO announced the addition of Doug Pearl as principal of its mixed-use studio. Pearl comes to AO with more than 23 years of architecture and commercial real estate development experience.
Before coming to AO, Pearl served as national vice president of architecture and placemaking for Regency Centers, a national REIT that owns, operates and develops mixed-use, retail and life science properties throughout the U.S.
SALES
Cruzan and Independencia Asset Management purchased a post-production facility in Burbank for $37.4M, CBRE announced. The building at 2130 North Hollywood Way is fully leased and occupied by Deluxe Media Inc., a post-production, distribution and asset management company for entertainment clients. The single-story, 95K SF facility sits on 4.4 acres. The campus was last renovated in 2017.
CBRE’s Mike Longo, Todd Tydlaska and Sean Sullivan represented the seller, Strategic Office Partners. CBRE’s Greg Grant and Clayton Matsuda facilitated the loan on behalf of the buyer.
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Bolour Associates sold a parcel in Koreatown near Western Avenue. Bolour entitled the site at 606 North Western Ave. for 65 multifamily units. It has been purchased by a private investor/developer.
LEASES
Activision Blizzard's video game publishing company, Activision Publishing, has moved its headquarters into Lincoln Property Co. West's Pen Factory in Santa Monica, Commercial Observer reported, citing anonymous sources. Activision Publishing is reportedly subleasing 90K SF from Kite Pharma. Earlier this year, Activision Blizzard and its studio left Boston Properties' Santa Monica Business Park.
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Cold storage company DSW Distribution Center renewed and expanded its lease at two adjacent Rancho Cucamonga properties. Newmark announced it arranged a roughly 165K SF lease renewal and approximately 25K SF expansion for the company at 8858 Rochester Ave. and 8675 Rochester Ave., respectively.
CONSTRUCTION AND DEVELOPMENT
SHVO announced the development of the Mandarin Oriental Residences at 9200 Wilshire Blvd. The residences will be the first West Coast residential location for Mandarin Oriental and the first stand-alone residential concept in the U.S. for SHVO. The project will feature 54 residences, a pool, a courtyard, a rooftop lounge, a restaurant and in-home dining offerings by Michelin-starred chef Daniel Boulud.
The residences will be represented by Mauricio Umansky, founder and CEO of The Agency. The project is financed through a joint venture between SHVO and Deutsche Finance America.
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Lightstone has topped out its dual-branded Moxy Los Angeles Downtown and AC Hotel Los Angeles Downtown. The property is located in the heart of Downtown Los Angeles, across the street from the LA Convention Center and Staples Center, at West Pico Boulevard and Figueroa Street.
Scheduled to open in late 2022, the 37-story, 600K SF mixed-use tower will consist of the 380-room Moxy hotel and a 347-room AC hotel. The property will also include over 22K SF of digital and static signage and over 8K SF of ground-floor retail space.
