The LA Deal Sheet
Coworking company Spaces has signed a lease with CBRE Global Investors to occupy 67K SF of office space at the former Univision building in Westchester.
The terms of the deal were not disclosed.
CBRE’s Daniel Rainer represented Spaces. CBRE’s Bryan Dunne and Lincoln Properties’ Kent Handleman represented landlord CBRE Global Investors.
Owned by IWG, the lease is Spaces' ninth location in Los Angeles County and brings the coworking company's footprint to 389K SF in the Greater Los Angeles region, according to CBRE.
Spaces' recent lease illustrates the demand for coworking, especially in the Playa Vista and Silicon Beach area, where the building is located, according to CBRE officials. Coworking space in the Greater Los Angeles region has increased to about 4M SF or 1.8% of total office square footage in the area, according to CBRE research.
Further, the inventory for coworking has jumped by 50% over the past 24 months and more than 70% of companies surveyed in CBRE’s 2018 Americas Occupier Survey said they anticipate using coworking as a strategic solution for flexibility in the next three years.
Capitalizing on the growing demand, the real estate giant launched an Agile Real Estate Knowledge Hub to help companies better understand the different and shifting real estate landscape.
“The demand for coworking space is greater than ever,” Rainer said in a news release. “So many companies — from start-ups to well-established firms — are looking for flexibility. Whether it is because they are entering a new market and first want to test the waters or whether it is well-established firms who want to incorporate a combination of long-term and short-term leases. Coworking has become relevant to everybody.”
CBRE Global Investors acquired the former 174K SF Univision building at 5999 Center Drive in 2016 from Univision TV Group for $102M. Univision remains a tenant in the building, occupying about 100K SF after signing a leaseback agreement with CBRE Global Investors.
CBRE Global Investors completed an extensive multimillion-dollar renovation to reposition the building, which had been built as a single-occupier space, turning it into a multi-tenant setup for flexible workspace.
The building features indoor-outdoor ground-floor access, a deck, a patio and a lounge. The lobby has a focus on tenant interaction through technology and games and an opportunity for tenants to have their own back entrance to their offices.
SALES
A joint venture consisting of Ladder Capital, Rimrock Real Estate Ventures and Encore Capital Partners acquired a 40-property, 600-bed student-housing portfolio in Isla Vista from a private investor for $85M. The majority of the properties are on Del Playa Drive adjacent to the University of California Santa Barbara. Encore Capital Partners will manage the property. The names of the brokers were not disclosed.
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LBA Realty LLC has purchased three new industrial buildings at The Campus in Eastvale from Orbis Real Estate Partners and Chase Partners for an undisclosed amount. At 6285-6330 Providence Way, The Campus sits on nearly 10 acres and is composed of three Class-A warehouse and distribution facilities totaling 193K SF. The property is 100% leased. CBRE’s Barbara Perrier, Darla Longo, Rebecca Perlmutter, Eric Cox and Wes Jones represented the buyer and seller.
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Asana Partners has acquired The Fig Collection at Highland Park in Los Angeles from Engine Real Estate for $23.25M. The three-property mixed-use portfolio features a mix of multifamily, retail and commercial office space. The property at 5900 North Figueroa St. and 111 South Avenue 59 is a two-building multifamily and retail property. The 5711 North Figueroa St. property is a single-story, 2,250 SF retail building. The building at 5715-5717 North Figueroa St. is 22,500 SF with retail and commercial office space. JLL’s Dana Brody represented the seller. JLL’s Geoff Tranchina represented the buyer.
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A private limited liability company has purchased an eight-unit apartment in Los Angeles from an undisclosed seller for $1.37M. The property at 5168 West 20th St. consists of five separate buildings that sit on an 8K SF lot. Marcus & Millichap’s Lane Schwartz and Joseph J. Lee represented the buyer and seller.
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A private investor has purchased the 16-unit Bonita Terrace apartment building in Hollywood Hills from an undisclosed seller for $10.1M. Built in 2014, the property at 6900 Bonita Terrace is three stories on a 10K SF lot. Investment Real Estate Associates’ Jonathan Krikorian, Clark Everitt and William Everitt represented the buyer and seller.
FINANCING
Beverly Hills-based Sonnenblick-Eichner Co. has arranged a $50M loan for Provenance Hotels to refinance the Hotel Theodore in downtown Seattle. The floating-rate loan was sized to a debt yield of less than 6% and priced over Libor at a spread in the mid-300s, Sonnenblick-Eichner Co. officials said in a news release. The loan is being used to refinance the existing acquisition and renovation as well as provide a return of equity to the borrower. The Hotel Theodore is a 20-story, 153-room boutique hotel on Seventh Avenue and Pine Street. In November, Provenance completed a $32M renovation. Sonnenblick-Eichner Co. principal Elliot Eichner said the company received 14 competitive loan quotes from institutional lenders.
LEASES
Mechanix Wear, a protective glove manufacturing company, has signed a lease with IAC Properties to occupy 93,735 SF of industrial space at IAC Commerce Center in Valencia. Terms of the deal were not disclosed. The IAC Commerce Center is a master-planned, 116-acre business park adjacent to the Valencia Commerce Center. CBRE’s Craig Peters and Doug Sonderegger represented the tenant and landlord.
EXECUTIVE NEWS
BrightView Design Group has promoted Megan Horn to principal. Horn joined the company as an associate principal in 2014. Horn has 15 years of design and planning experience.
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Veteran real estate executive Michael Weiner has rejoined Colliers International as a senior vice president. Weiner will specialize in office properties, including sales, leasing and tenant representation. He will be based in the company’s downtown Los Angeles office. Weiner most recently served as president of Bridgman Real Estate. From 2001 to 2006, he served as a senior vice president at Colliers.
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Faris Lee Investments has appointed Jay Quinn as senior managing director of capital markets. As senior managing director, Quinn will focus on origination, structuring and marketing of debt and equity finance transactions across the U.S.
Prior to joining Faris Lee, Quinn served as senior director of debt and equity origination at RealtyShares.
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Blitz, an architecture and design firm headquartered in San Francisco, has appointed Riz Walker as senior designer in its newly opened Los Angeles office. Walker will work together with company co-founder and managing partner Seth Hanley to grow and advance the company. Prior to joining Blitz, Walker served as a design professor at UCLA and a designer at Omgivning.
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Stream Realty Partners has promoted Mike Adams to senior vice president. Adams will be responsible for providing services including leasing commercial properties, tenant representation, buyer representation, site selection and user representation. Adams first joined Stream in 2009 and has completed more than 1.75M SF of transactions with the company.
