According to associate Han Widjaja in the Downtown Los Angeles office of Colliers International, the buyer gained title to the Reseda apartment complex via a deed in lieu of foreclosure. "The tricky part of this deal was the deed in lieu process, which extended beyond the expected timeline," says Widjaja, who represented the buyer.
Negotiating key points of the deal between the previous owner and buyer was vital to the successful transfer of ownership of the property, according to Widjaja, who notes that the discounted purchase price was below replacement cost. The complex was built in 2008 and occupies a 27,265-square-foot lot. Seller China Bank did not have broker representation.
In the San Pedro transaction, president Carlos Lopez of Irvine-based Hanley Investment Urban Retail Advisors reports that International Longshore & Warehouse Union Local 13 acquired a 18,864-square-foot ground-floor retail component of a 116-unit residential condominium building called the Centre Street Lofts at 285 W. Sixth St. for an undisclosed price. Lopez, who represented seller Centre Street Lofts LLC of Hollywood, reports that nearly all of the condominiums had been sold and that the retail portion was 18% occupied at the time of the sale. The vacancy enabled the union to acquire the project to occupy as its corporate headquarters, Lopez points out.
"The transaction represents some growing trends specific to today's marketplace in regard to the sale of retail commercial portions of mixed-use developments," Lopez says. Developers of such projects are now seeking further profits in addition to residential condominium sales, or in some cases the sales proceeds are being used to pay down debt, he adds.
Besides these factors, Lopez says, "Slower absorption in the leasing of ground floor commercial/retail space and a continued downward pressure on values of commercial real estate in general have also been significant reasons why we are seeing more owner/user type purchases."
The buyer was represented by Joel Mostert of the Heger Co. in Los Angeles.
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