In a move that highlights the growing need for creative office space in Santa Monica, CBRE brokered the sale of the three-story Adidas and Burn Fitness building at the Third Street Promenade for $30.3M.
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Golden West Properties and Starpoint Properties purchased the 30K SF property at 1231-1233 Third Street Promenade from San Diego Promenade Investors LLC.
CBRE broker Orbell Ovaness, who represented the buyer and the seller, said the Beverly Hills-based investors plan to create a mixed-use building by subdividing the ground-floor retail space once Adidas departs and converting the remaining space into creative office with a rooftop terrace.
Third Street Promenade is a popular outdoor shopping district next to Santa Monica Place mall, the Santa Monica Pier and the beach. The area attracts more than 15 million visitors a year.
Burn Fitness has a short term remaining on its original lease, with no option to extend, Ovaness said.
“This was a rare chance to create value through lease-up and the reconfiguration of the building, making this an opportune mixed-use investment,” he said.
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SALES
866 Hilldale LLC has purchased an eight-unit apartment in West Hollywood from an undisclosed seller for $4M. Built in 1957, the property at 866 Hilldale Ave. consists of four one-bedroom and four two-bedroom units. Marcus & Millichap’s Jeff Louks and Michael Sterman represented the buyer.
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In a 1031 exchange, Fortunate Realty has purchased a 20,662 SF retail property in Van Nuys from an undisclosed seller for $6.1M. The property was recently renovated and is occupied by Crunch Fitness.
Faris Lee Investments’ Matt Brooks and Thomas Chichester represented the buyer. SRS Real Estate Partners represented the undisclosed seller.
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A private investor has purchased a 20-unit apartment at 1400 North Gardner St. in Los Angeles from an undisclosed investor for $5.8M. Marcus & Millichap’s Jeff Louks represented the buyer and seller.
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Khursan Investments has sold the 10-unit Beachwood Apartments in Hollywood to a private investor for $2.6M. The two-story property at 1155 Beachwood Ave. was built in 1961. Stepp Commercial’s Kimberly Stepp represented the seller and the buyer.
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FINANCING
On behalf of the developer, Markwood Enterprises, CBRE’s Capital Markets’ Debt & Structured Finance team secured a $23.1M bridge and construction loan for renovation of 900 South Hill Street Garage. Markwood plans to use the loan to upgrade the building as a modern mixed-use facility. CBRE’s Mark Fisher, Alex Furnary and Val Achtemeier secured the loan.
EXECUTIVE NEWS
HFF has appointed Senior Managing Director Bill Fishel to co-head the firm’s Los Angeles office. Fishel will be responsible for leading the office’s debt and equity placement business alongside Senior Managing Director Paul Brindley. Fishel first joined HFF in 2009.
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JLL Capital Markets has hired Toni Steele as an executive vice president. Prior to joining JLL, Steele served as vice president of acquisitions and asset management for Southern California at Goldman Sachs. At JLL, Steele will focus on acquisitions, dispositions, recaps and financings.
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