A new JV between Newcastle Partners and Westport Capital Partners just purchased a 40K SF creative office in West LA.
The JV is planning a full-scale reno of the property and bought the two-story building at 5830 Rodeo Road from a commercial property user who has owned the building for approximately 30 years.
The property was a perfect prototype for the newly formed JV's strategy, according to Newcastle Partners partner Brad Cummings.
"Our JV was formed for the acquisition and rehabilitation of low-rise creative office buildings that are within walking distance to light-rail stops," Cummings said. "Our preference is to reposition assets in strong office submarkets that have immediate or near-term vacancy."
The building is unique for a variety of reasons, including 14-foot ceilings.
"The property has a really strong identity on Rodeo Road, visible from the light rail with 60,000 daily commuters, and once we execute our new glass curtain wall it's going to really pop," he said.
First Property Executive Vice President Mike Geller and Vice President Josh Bernstein will handle the leasing assignment with Shubin Donaldson and Del Amo Construction executing the repositioning.
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SALES
Marcus & Millichap brokered the sale of Citra Apartment Homes, a partially renovated 34-unit apartment building in Burbank.
The property sold free and clear of existing debt for $9.75M, or $286,765/unit or $470/SF, which is the highest price/SF on record for an apartment building with more than 10 units in Burbank, according to Marcus & Millichap.
The 59-year-old property is at 700 South Sixth St. in Burbank, within walking distance of the Burbank Town Center shopping mall and Glenoaks Boulevard. The Burbank Metrolink station is less than a mile away.
Marcus & Millichap Executive Managing Director of Investments Ron Harris, Vice President of Investments Bryan Schellinger and Vice President of Investments Tyler Martin repped the seller, a discretionary fund manager, and procured the buyer, a private investor.
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Madison Partners arranged the sale of 3223 Wilshire Blvd., a two-story, 11,730 SF building on approximately 0.44 acres of commercially zoned land near Santa Monica. The purchase price was not disclosed.
The property consists of two parcels, both of which are zoned mixed-use boulevard, allowing for a wide range of redevelopment opportunities.
Madison Partners partner Mitchell Stokes repped both the seller, Satnam Investments Inc., and the buyer, Cypress Equity Investments.
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DAUM Commercial Real Estate Services brokered the acquisition of a 104,339 SF industrial building on 4.45 acres in Rancho Dominguez for $12M on behalf of national REIT Industrial Property Trust Inc.
IPT began a $2.5M capital improvement campaign to modernize the building at 18554 South Susana Road.
DAUM Commercial Vice Chairman Michael Collins repped IPT.
Collins and DAUM Commercial First Vice President Jordan Lara will serve as the property's exclusive leasing agents.
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FINANCING
Continental Partners secured $9.7M in permanent financing for Ten38 Lofts, a 32-unit, American Institute of Architects award-winning multifamily property in Koreatown.
The sponsor, a private multifamily investor, requested a permanent loan to refinance an existing construction loan for the property.
At closing, the property, which was built last year, was nearly fully leased at 95% occupancy.
Ten38 Lofts, at 1038 South Mariposa Ave., has one- and two-bedroom units, along with a courtyard and a rooftop garden.
The 10-year, fixed-rate loan has a two-year interest-only period and is structured with a 30-year amortization schedule.
The non-recourse loan is priced at 4.69% sized to 85% of cost with a debt coverage ratio of 1.25.
The financing was arranged by Continental Partners Director Zalmi Klyne.
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CBRE secured $127.5M in financing for the purchase of a three-story, 327,641 SF Class-A medical office building at 26001 Redlands Blvd. in Loma Linda.
CBRE’s Debt & Structured Finance team Tom Traynor and James Millon, along with CBRE Capital Advisors' James Scott and Bernard Van der Lande secured the loan on behalf of the borrower, Easterly Government Properties.
Goldman Sachs provided the 10-year, fixed-rate, interest-only loan at 60% loan-to-value.
The property has been 100% leased to the Department of Veterans Affairs for 20 years.
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