Plaza Del Amo
LOS ANGELES COUNTY
TORRANCE, CA-Plaza Del Amo LLC has refinanced its 99,584-square-foot Albertsons grocery-anchored shopping center via a $9.6 million loan arranged by Q10 Dwyer-Curlett in this week's roundup of commercial real estate news in the West. The borrower also pulled cash out in the refinancing, noted Dwyer-Curlett’s Shelley Magoffin and Max Sauerman, who arranged the loan with Lincoln National Life Insurance Co., one of the firm's correspondent life insurance companies. Magoffin and Sauerman note that Plaza Del Amo pulled cash out with the refinancing and that the interest rate was locked at acceptance of the loan application at 5.23%. Plaza Del Amo acquired the 100% leased shopping center, which is on Hawthorne Boulevard in Torrance, in 1996. Since then, the project has undergone one major renovation and a number of minor upgrades.
Hansen Heights
Montana Avenue Capital LLC a privately held investment firm based in Los Angeles, has acquired the 62-unit Hansen Heights Condominiums from MB Investment Group of Rancho Santa Fe for $8.5 million in a sale that was negotiated by listing brokers Dean Zander and Vince Norris of Hendricks & Partners. According to Norris, the property traded above a 6% cap on current operations. "That’s 75-150 basis points better than similar product in the South Valley," Norris said. "Combine the cap rate with the buyer’s low debt cost, and the positive leverage resulted in an excellent opportunity." Zander and Norris say the buyer was attracted to the property’s location adjacent to the Hansen Dam Recreation Area and Golf Course and proximate to four major freeways, its amenity base, and its unique competitive position in the local marketplace after completion of an extensive capital improvement program. The property consists of a three-story building over two levels of parking, located on over one acre of land. Other amenities include intercom-controlled entrance, leasing office, swimming pool, BBQs and picnic areas, fitness/activity center, and laundry facilities. The community offers two-bedroom/two-bath and three-bedroom/two-bath units. Zander and Norris noted that the previous owner had completed the conversion process and each unit was individually deeded as condominiums. However, none had been sold. Zander commented that, as multifamily cap rates continue to compress, particularly for core product in urban-infill and transit oriented areas, more transactions are beginning to execute in areas such as the north San Fernando Valley.
Manufacturer Malarkey Roofing Co. and air freight firm ENL Global have signed leases valued at $4.9 million to expand and extend their space at Westcore Properties' five-building, 545,299-square-foot Garfield Business Center in Commerce. Combined, the companies occupy more than 200,000 square feet, bringing the warehouse component of the project to the 100%-leased mark and the overall project to 97% leased. Hack Adams, Westcore SVP of leasing, said that ENL Global extended its term and nearly doubled its space in the project to 115,573 square feet with a $3.3 million lease extension/expansion. The one-stop logistics solution provider specializes in supply chain management, and operates the Garfield Business Center location as one of its nine warehouse locations worldwide. Malarkey Roofing signed a $1.6 million, 42-month lease for 87,309 square feet at 3412 Garfield Ave. The new lease represents an expansion of 36,056 square feet for the roofing company, which utilizes this site as one of two manufacturing facilities, the other being in Portland, OR. In both transactions, Westcore was represented by John Privett, Jeffrey Stephens and Cameron Merrill of CB Richard Ellis. ENL Global and Herbert Malarkey Roofing Co. both represented themselves.
Los Angeles-based Acorn II Partners has acquired a 16-unit apartment complex at 1946 Overland Ave. in West Los Angeles from Heyat LLC of Los Angeles for $4.1 million. The buyer was represented by Hamid Soroudi of Charles Dunn Co., and the seller by Dunn's Ramin Gheitanchi. The property sold at a cap rate of 5.3%. Built in 1963, the property totals just under 20,000 square feet and was 95% occupied at the close of escrow. The units range from one to three bedrooms and from 900 square feet to 1,300 square feet.
Venice LLC acquired a 17-unit apartment building at 1256 Tamarind Ave. in Los Angeles from Tamarind Investors for $1.95 million at a 5.35% cap rate. Both the buyer and the seller were represented by Henry Garcia of KW Commercial. The property, which was built in 1958, is a 13,112-square-foot building on a 14,872-square-foot lot.
2850 Ocean Park Blvd.
EdgeCast Networks recently expanded its office space at 2850 Ocean Park Blvd. in Santa Monica to 27,000 square feet from its previous 10,000 square feet in the 148,000-square-foot office building. EdgeCast renewed its direct lease and is subleasing 17,000 square feet from another tenant. EdgeCast was represented by Dave Toomey and Brian Davies of CresaPartners in Los Angeles. Its space is in one of 20 buildings in the Santa Monica Business Park, a one-million-square-foot office complex. The landlord for the direct lease, Equity Office Properties, was represented by Deron White, Bryan Dunne, and Grant Newman of CB Richard Ellis. The landlord for the sublease, HUB International, was represented by Steve Kolsky, Ron Burkhardt, and Hank Kobrin of Newmark Knight Frank.
INLAND EMPIRE
8950 Rochester Ave.
IFCO Systems has signed a 60-month lease renewal for a 100,876-square-foot industrial building at 8950 Rochester Ave. for its subsidiary Reusable Container Corp. for a total consideration of $1.7 million. The tenant was represented by Frank Geraci, Walt Chenoweth, Patrick Wood and Juan Gutierrez of the Inland Empire office of Voit Real Estate Services. Geraci says that the Voit team began negotiating with the landlord more than a year before the lease was set to expire, in anticipation that lease rates would rise. Landlord DCT Industrial represented itself in the transaction.
Los Angeles-based Meriwether Management Co. has acquired The Villas of Mirada, a 46-unit, high-end, single family development in Rancho Mirage, as part of its plan to invest $100 million over the next few years in opportunistic real estate projects in core resort and urban markets throughout North America. Meriwether, a real estate private equity and development firm focused on luxury residential and hospitality assets, bought the project for an undisclosed price directly from a Texas-based bank that had accepted a deed in lieu of foreclosure in November. The property has a standing amenities agreement with the Ritz Carlton that allows homeowners full access to the resort’s facilities. The Villas of Mirada was Meriwether’s first acquisition as a company, and was executed as a joint venture with Monterrey, Mexico-based investment partners Gava Capital and PC CAD. Meriwether’s principals are Graham Culp, Noah Hahn and Brian Barrow, all of whom have extensive experience in the luxury residential market.
LAS VEGAS
Rainbow Corporate Center
MIG Real Estate, a Newport Beach, CA-based real estate investment company formerly known as Stoneridge Capital Partners, has acquired the 151,662-square-foot Rainbow Corporate Center at 777 N. Rainbow Blvd. through a special servicer, marking MIG's third Las Vegas acquisition since October. Terms of the sale were not disclosed. The mixed-use property features two three-story office buildings totaling 147,116 square feet and a 4,546-square-foot single-story retail building anchored by Starbucks Coffee. Greg Merage, CEO of MIG, says the location of the class A property adjacent to US-95 at the entrance to the 25,000-acre master-planned Summerlin community, positions the property "to be among the first to lease up as the market recovers.” The seller of Rainbow Corporate Center was represetned by Michael Roberts, Steve Rowland, Bob Hawkins and Dana Berggren of Cushman & Wakefield. MIG represented itself.
VENTURA COUNTY
Two tenants have signed leases for more than 21,000 square feet of office space at Topa Management's Topa Financial Plaza in Oxnard. Bill Kiefer and Steve Doll of NAI Capital’s Ventura County office, who represented Topa Management in the leases, report that DeVry Inc. has signed a long-term lease for 15,000 square feet at 300 E. Esplanade Dr. The Illinois based professional school, operating as DeVry University, will occupy space in the 22-story Tower II beginning in July. The tenant, represented by Newmark Knight Frank, will open an entirely new facility to service Ventura County and nearby areas. The other tenant is NewLeads Inc., which signed for 7,000 square feet of offices at 400 E. Esplanade Dr, The tenant, relocating from Ventura, provides lead management solutions and trade show lead retrieval-software. NewLeads plans to relocate to the new space beginning in August. Ray Howden of Cushman & Wakefield represented NewLeads.
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