Los Angeles

Karlin Real Estate has acquired a condominium development inBaldwin Hills through bankruptcy. Named Bedford Parc & BedfordPromenade, it consists of approximately 110 condominium units andprime retail space encompassing 154,440 total square feet and 3.5acres. KRE’s real estate team bought the property through astructured 363 sale. KRE had previously purchased the notes thatsecured the condominiums in August of 2009 and quickly moved intosimultaneous negotiations with the developer to structure a creditbid sale that was approved by the judge in April. According to aprepared statement, this is not an uncommon scenario for KRE, whichcontrols more than $1 billion in unleveraged equity capital.Matthew Schwab, KRE’s managing director, points out that “inaddition to the special situation, we became interested inacquiring this particular asset because of its excellent location,the existence of multiple exit strategies, and the US Government’sefforts to boost the housing market with stimulus dollars for firsttime buyers.” KRE will continue to work with the property’sdeveloper, the Bedford Group, to market and sell the units.

Century City-based Pegasus Investments, on behalf of seller, hascompleted the sale of a mixed-use property in El Monte locatedalong Rosemead Boulevard. The property was sold by a privateinvestor in connection with a Chapter 11 reorganization. Multiple offers were collected for a period of approximately 45days, at which time a local investor was chosen as the leadbidder. The buyer closed on an all-cash basis approximately60 days later. At the time of the sale the property wasleased to a combination of commercial and residential tenants andrepresented an opportunity for the buyer to assemble a large parcelof land along a highly trafficked thoroughfare in El Monte. The sales price was approximately $835,000, which represents abuilding value of approximately $156 per square foot and a landvalue of approximately $32 per square foot. The buyer wassourced during Pegasus Investments’ marketing process and was notrepresented by an outside broker.
The closing of the Rosemead Boulevard property marks the secondproperty sale completed by Pegasus Investments this year inconnection with a Chapter 11 reorganization. The firstproperty, which is located along Garvey Avenue in the city ofRosemead, was sold at the end of March 2010 for approximately $1.5million. The Garvey Avenue property was purchased by one ofthe tenants operating a meat distribution business. Theproperty was composed of a cold storage distribution warehouse anda retail building. The buyer obtained a loan in connectionwith the acquisition.