This Week's LA Deal Sheet
The city of Tustin has signed an exclusive negotiating agreement with AvalonBay and Abode Communities to develop the Legacy Village, a 19.4-acre mixed-use project with more than 1,200 apartments at Tustin Legacy, a 1,600-acre planned community and former Marine Corps facility in Tustin. A quarter of the apartments will be income-restricted affordable units for tenants making 30% to 80% of the area median income in Orange County. The remainder will be market-rate units.
The project, designed by OfficeUntitled, includes multiple buildings from three to five stories tall spread across three blocks. The buildings are connected by pedestrian spaces, elevated walkways and open spaces, including interior gardens that transition from semiprivate to public open spaces.
SALES
Onni bought a 1.4-acre high-rise development site on Wilshire Boulevard. The property is now the site of a handful of retail shops, including a U.S. Post Office and The Wig Shop. The site is within a Tier 4 area of the city’s Transit Oriented Communities guidelines, which would allow for Onni to build up to roughly 430K SF of floor area if it creates the set number of income-restricted affordable units. Kadie Presley Wilson and Laurie Lustig-Bower of CBRE’s Los Angeles Multifamily Investment Sales arranged the sale of the property at 5350-5376 Wilshire Blvd. and represented the seller, two private families.
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The Bakerie, a cannabis dispensary at 1386 Harbor Ave. in Long Beach, has sold for $11M. The transaction is the largest retail dispensary sale recorded in the state, according to Stan Johnson Co., the brokerage that represented the seller in the transaction. The firm’s Christian Tremblay and Isaiah Harf worked on the deal. The roughly 8K SF property was sold by an unnamed Michigan-based private investor to a foreign investor who lives part time in California. Edwin Mariscal of CRE Advisory Group represented the buyer.
LEASES
The Klabin Co./CORFAC International negotiated a multi-year sublease for Thermosource Tooling and Manufacturing, a manufacturer of food packaging, at an industrial building at 21046 South Figueroa St. in Carson. The Klabin Co.’s Matt Stringfellow represented Thermosource in the 102-month lease for about 43K SF, valued at more than $5.7M. Thermosource is subleasing the space from Hacor Inc., an in-flight catering company that had signed a 10-year lease for the space but never occupied the building because of the effects of the coronavirus on the airline industry. Lee & Associates’ John Son represented Hacor.
FINANCING
JLL arranged $52M in acquisition financing for the four-building Van Nuys Industrial Park, a fully leased, value-add business park in Van Nuys. JLL represented Longpoint Realty Partners, the borrower.
The Van Nuys Industrial Park totals about 84K SF and is in the greater San Fernando Valley industrial submarket, which, according to JLL Research, had the most absorption of any region in the greater LA area in the first quarter of 2022. Total vacancy in the submarket is 1.8%.
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Bellwether Enterprise Real Estate Capital LLC closed a $77M construction loan for a flex office campus in northern Los Angeles. The borrower intends to build a 204K SF building with 35-foot clear heights and on-site trailer storage space. A new parking structure will also be built as part of the project. BWE Executive Vice President Tom Kenny, Senior Vice President Josh Boehling and Assistant Vice President Alex Gregoire originated the loan on behalf of the undisclosed borrower.
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JLL Capital Markets arranged $85M in acquisition financing for a fully leased, 12-building industrial portfolio within last-mile locations in California, Georgia, Maryland and Minnesota. The portfolio totals 815K SF. JLL worked on behalf of the borrower, MDH Partners, to place the five-year, floating-rate, interest-only nonrecourse loan with Truist. The portfolio includes five buildings in Riverside at 22380, 22340 and 22320 Van Buren Blvd. and 925 and 975 Marlborough Ave. It also includes four buildings in the Baltimore metro area, two buildings in Minnesota and one outside Atlanta.
