This Week's LA Deal Sheet
Kite Pharma just signed a new lease agreement at 2383 Utah Ave in El Segundo for $22.88M. Bisnow recently caught up with CBRE Group senior associate Andrew Riley to find out more.
Andrew (above right with friend Matin Roshan) says Kite Pharma will use the extra space for general office purposes.
This is in addition to the 43,500 SF lease CBRE finished for Kite in the same project last year. Kite now takes up 53% of the entire campus.
Andrew says it is an ideal area for Kite Pharma's manufacturing needs because of the location and proximity to LAX since the medical company aims "to expedite receipt and shipment of engineered T-cells" for patients across the US and Europe.
The site’s zoning, new construction, parking ratio, power capacity, ceiling height and rental rate also were important factors in selecting the project.
LA is becoming a more desirable location for healthcare companies, according to Andrew.
He says LA has the "ideal ecosystem to foster the life science and healthcare technology industry with venture capital, access to academic medical centers for research and clinical trials, and graduate students."
Academic medical centers are investing in incubator and accelerator programs to help technology innovators turn their ideas into medical breakthroughs, Andrew says.
El Segundo has become an attractive area for businesses with the new LA Lakers facility there as well as being the home of the LA Kings.
SALES
A private seller sold the Victor’s Square Shopping Center at 1915–1931 North Bronson Ave in Hollywood for $13.55M to a company controlled by Beverly Hills' Unilev Management Corp.
The seller got $885/SF on a 15,309 SF building on 20,692 SF of land.
There are six tenants on the property, including Victor’s Restaurant, The Oaks Gourmet and Fresh Brothers.
Coldwell Banker Commercial WESTMAC managing director T.C. Macker repped the buyer. Cushman & Wakefield executive director for retail Leslie Mayer repped the seller.
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ArcWest Partners, a JV between Arc Capital Partners and Belay Investment Group, just acquired Chapman Plaza, an approximately 50k SF retail center in Koreatown.
Chapman Plaza boasts 10 restaurant and dining options.
The deal marks the first acquisition for the recently formed JV. It aims to target urban infill properties.
Chapman Plaza opened in 1929 and was extensively renovated in 1990 by The Ratkovich Co and architect Brenda Levin.
It is anchored by Baekjeong and Quarters restaurants.
CBRE's Capital Markets’ Debt & Structured Finance Group VP Ben Wagner worked with Thorofare Capital and DoubleLine Capital’s CRE Debt Group to arrange the bridge acquisition and renovation financing.
Secured Properties president Jay Chu and CEO Ryan Yatman advised the buyer and seller in the off-market deal.
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Charles Dunn Co sold a fully occupied 31-unit apartment property at 6021-6029 Carlton Way in Hollywood for $8.1M.
The closing cap rate was 3.5%.
The price was just over $261k/unit.
Charles Dunn Co senior director Bryan Glenn repped the buyer, a private LA investment company.
Coldwell Banker Commercial repped the seller, an LA private investor.
FINANCING
Continental Funding Group secured $19M in fixed-rate refinancing for Courtyard by Marriott in Baldwin Park.
The financing for the 195-room hotel was arranged by Continental Funding Group president Mitch Paskover.
The Courtyard by Marriott in Baldwin Park was originally a Hilton. The property was later affilated with Radisson before it became part of Marriott 12 years ago.
The sponsor wanted a fixed-rate, non-recourse loan that would refinance the existing maturing loan and provide a cash-out component.
Continental Funding Group secured the loan from a major US investment bank.
The 10-year loan was priced at 4.98% with a loan-to-value leverage ratio of 68% with a 25-year amortization.
NEW CONSTRUCTION
Storm Properties recently held a ribbon-cutting for the Storm Fujimoto Industrial Center at 15913 South Main St in Gardena.
The Class-A 114,061 SF industrial building will have a new tenant, Exquisite Apparel Corp.
Storm Properties partnered with the Fujimoto family, longtime property owners, to develop the property. The site is the former home of Sam Fujimoto and his family's Coast Nurseries.
After 58 years, the family decided to shut down the business and sell and partner with Storm Properties.
New York's Exquisite Apparel will consolidate its West Coast distribution from two other locations.
EXECUTIVE NEWS
Charles Dunn Co named Christianne Schrobilgen as its new VP of marketing. Christianne will be responsible for growing the firm’s marketing department for its brokerage and property management divisions.
Previously, she was Colliers International's associate director for its national business development marketing team.
