HOLLYWOOD-The buyer of the $7.4-million Franklin Pointe Apartments had some competition since the property's location attracted a range of private investors in this week's wrap-up of deals.
By Natalie Dolce|March 04, 2010 at 12:28 PM
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Franklin Pointe Associates LLC has sold the Franklin Pointe Apartments in Hollywood for $7.4 million. Located at 1825 N. Cherokee Ave., the three-story 53-unit apartment complex lies at the heart of Hollywood’s renaissance. Darin Beebower of Madison Partners was the listing broker for the property, representing both the buyer, 1825 Partners LP, an L.A.-based real estate investment company, and the seller. The property was substantially renovated by the previous owner and the new owner plans minimal cosmetic upgrades to the well occupied building. The complex has a unit mix comprised of eight studio units, 29 one bedroom/one bath units, eight one bedroom/two bath/den units and eight two bedroom/two bath units. The property consists of 42,945 square feet and is situated on a 23,479-square-foot lot. Originally constructed in 1963, the property was renovated in 2007-2008. “The buyer recognized the unique opportunity to acquire a renovated asset in an excellent location at a basis that should minimize their downside exposure while allowing for great cash flow and significant potential upside as the economy and local rental market recover,” says Beebower. According to Beebower, the property received numerous offers from local families and private investment groups attracted to the excellent condition, outstanding location and optimistic belief in the long-term strength of the sub-market. Brian Eisendrath of CBRE Capital Markets secured the borrower’s new seven-year debt at a fixed rate of 5.45% via Freddie Mac’s DUS program.
Dominion Healthcare Financial Corp., a subsidiary of Dominion Corp., a national commercial real estate banking firm headquartered in Los Angeles, closed a complicated $14.125 million loan on a portfolio of five skilled nursing facilities in California. Dominion Corp. VP Loren Thall structured a capital stack that consists of both senior and subordinated debt, of which $10.125 million is secured by the real estate. The remaining $4 million is secured by the accounts receivables of the skilled nursing homes. The five-year loan amortizes over 25 years and is based on a debt coverage ratio of 1.35 at an LTV below 70%. “This was the second time we have worked with this borrower,” Thall pointed out. “This helped when coordinating the various and complicated ownership structures and other components of the transaction.” He says the financing provided significant challenges because the debt needed to be structured to allow for some of the equity partners’ ownership interests to be phased out, while also completing a lease-purchase option and providing working capital for the the borrower, an owner/operator of healthcare properties. Dominion eliminated the prepayment penalty of 1% after year one of the five-year loan term. The properties totaling 235 beds, are located in San Francisco, Oakland, San Leandro and Culver City. All of the properties were originally constructed in the 1960s and 1970s and have since been renovated. The facilities offer skilled care as well as acute care services and are also Medicaid and/or Medicare providers.
Southwestern Law School has acquired a 40-unit apartment building at 676 Shatto Place from Shatto Place Apartments LLC, a Los Angeles-based private investor. The buyer was represented by by senior vice president Hirsch Sherman and vice president Jared Levine of KW Commercial on behalf of Southwestern Law School; the seller was represented by Seth Polen, also of KW Commercial. The asking price was $5.1 million, but the purchase price was undisclosed. The apartment building, which was 98% occupied at the time of the sale, was built in 1927 and renovated in 2006 renovation. The mix consists of 33 studios and seven one-bedroom, one-bath units. “In a market of such diverse real estate investment mediums, it is good to see conventional deals still getting done. We have several other conventional deals under contract and we look forward to a stronger 2010 market,” Levine says.
[IMGCAP(2)]Grubb & Ellis Co. has represented MachineWorks LLC in the lease of 19,431 square feet at MachineWorks Building to the US General Services Administration, Indian Health Services. Indian Health Services has executed a 15-year lease and will occupy the entire eighth floor of the building, bringing the building to 90% leased. “MachineWorks was delivered in the worst economic market in memory and we are thrilled to be hitting the 90% leased milestone after just 12 months,” says Al Solheim, MachineWorks’ managing partner. Jones Lang LaSalle represented the General Services Administration in the transaction. Located at 1414 NW Northrup St., MachineWorks is a 209,000-square-foot mixed-use project, incorporating four levels of class A office space totaling 70,844 square feet, a state-of-the-art LA Fitness Facility and three levels of parking.
SWH Corp. leased 21,910 square feet of industrial space, located at 1820 E. Walnut Ave., Fullerton, from 360 South Acacia Partnership. Jeff Read of Grubb & Ellis’ Anaheim office represented the lessor in the transaction. Tom McAllister of CB Richard Ellis represented the lessee.
Ecliptek Inc. signed a lease renewal for 21,567 square feet of industrial space, located at 3545 Cadillac Ave., Costa Mesa, from Tetsuo Mori Testamentary Trust. Jeff Read of Grubb & Ellis’ Anaheim office, in conjunction with Scott Read of Grubb & Ellis’ Newport Beach office, represented both parties in the transaction.
Asset Marketing Systems leased 19,652 square feet of office space for three years, four months at 15050 Avenue of Science, Suite 100, from Arden Realty Inc. for $1.4 million. Richard Gonor, Tony Russell, and Brian Starck of Cassidy Turley BRE Commercial represented the lessor in the transaction. Scot Ginsburg of Jones Lang LaSalle represented the lessee.
The University of California Riverside and Barnhart Balfour Beatty have completed a $15-million renovation of the University’s geology building. The project was completed in multiple phases over the past three years while research and experiments remained active in the occupied building throughout construction. The project was suspended for nine months near the end of construction because of the State’s temporary freezing of bond funding for numerous projects throughout the UC system. The 58,546-square-foot geology building received upgrades to building systems, infrastructure and seismic enhancements. Upgrades to building systems included new electrical switchgear, emergency generators, lighting and communications systems. Replacements also were made to windows, interior partitions, doors, HVAC systems, offices, and electrical and plumbing services to all labs, including all new lab equipment and casework. WWCOT Architecture provided architecture and engineering services.
A private investor shed a 3,000-square-foot Jack in the Box for nearly $2.2 million at 2560 Perris Blvd. in Perris, CA. The sales price represents a 6.5% cap rate and $725.00 per square foot. The buyer and seller were undisclosed. Marcus & Millichap Real Estate Investment Services had the exclusive listing to market the property.
A local orthodontist purchased 1210 Ward Ave., a 15,000-square-foot office building in Honolulu for $2.3 million. Hawaii Commercial Real Estate LLC represented the orthodontist in the purchase and in the 90% financing with the SBA 504 loan program. Jamie Brown handled the real estate transaction and Ted Ketcham arranged the financing. Hawaii Commercial Real Estate is managing and leasing the property for the new owner, who will renovate the property, relocate her office to about half of the building and lease out the balance.
Grubb & Ellis
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