LONG BEACH, CA-The weak dollar and exchange rate boosts foreign investment, as illustrated in the recent purchase of an apartment community in this week's wrap-up of deals.
By Natalie Dolce|March 26, 2010 at 11:02 AM
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Baratow LLC of Palos Verdes Estates, CA, a foreign buyer from the Philippines who is looking to invest in Long Beach, CA has purchased 1762 E. 3rd St. in Long Beach for $1.8 million. The buyer plans extensive improvements to the property including washers and dryers, plumbing upgrades, and changes to the face of the building. The 17-unit apartment community was sold at a cap rate of 7.3% with a 21-day escrow by 1762 E. Third St. LLC of Anaheim, CA. The transaction was negotiated by Hendricks & Partners on behalf of the seller. Robert Strepp of H&P notes that “we are seeing more foreign investors buying properties these days because of the weak dollar and current exchange rate.”
Ampso System Parking has taken 21,031 square feet in the AT&T Center located at 1150 S. Olive St. in downtown L.A. Ampco will use the AT&T Center location as one of its headquarter offices. Transwestern secured the lease on behalf of the tenant. “We were able to consolidate Ampco’s two downtown Los Angeles locations to increase efficiency of its operations,” says Jonathan Larsen, executive managing director at Transwestern. “The current downtown Los Angeles office market is uncertain and now is an ideal time for new and renewed leases. There is no telling how long a tenant will be able to take advantage of the economic climate and its aggressive terms. In fact, some brokerage firms saw a higher volume in transactions in the end of January 2010 than what was seen in 2009 and economists and commercial real estate professionals expect to see major growth in 2011 into 2012 in the Los Angeles office market, especially in high-rise, class A office buildings such as AT&T Center,” he adds. CB Richard Ellis represented the landlord, LBA Realty.
The US Department of Defense has taken occupancy of the newly completed Los Angeles Military Entrance Processing Station in El Segundo, which was developed by Mar Canyon Grand LLC, announced Allan Mackenzie, president of Mar Ventures Inc., the LLC’s managing member. The 32,980-square-foot building is located at 1776 E. Grand Avenue and features general office space, a state-of-the-art medical diagnosis and testing facility, medical office and lab space, classrooms, food service, meeting and ceremony rooms. The Department of Defense relocated the former Los Angeles MEPS to El Segundo from a decades old building on Rodeo Road in Baldwin Village after signing a 15-year lease.
Val Surf has leased 6,000 square feet of retail space from Regency centers at Valencia Crossroads in Valencia, CA. Regency was represented by Centerra Retail Group. According to Aaron Keswick, Regency Centers leasing agent, the 179,603-square-foot shopping center is anchored by a 88,966-square-foot Kohl’s and 35,000-square-foot Whole Foods alongside national retailers such as AT&T Mobility, Corner Bakery and Pei Wei. Valencia Crossroads is located at Valencia Boulevard and McBean Parkway.
NorthMarq arranged a $14.2 million first mortgage financing for Summerhill Park, a 100-unit multifamily complex located in Sunnyvale, CA. Financing was based on a 10-year term with a 30-year amortization schedule, and was arranged for the borrower by NorthMarq through its seller-servicer relationship with Freddie Mac. The loan was a 78% of value cash out on a free and clear good quality apartment asset, according to NorthMarq. NorthMarq also arranged a $16.5 million credit facility addition for Trabuco Villas, a 132-unit multifamily complex located in Lake Forest, CA. Financing was based on a four-year term plus two one-year extentions with full term interest only and was arranged for the borrower by NorthMarq through its seller-servicer relationship with Freddie Mac. NorthMarq also arranged a $3.16 million first mortgage financing for Palm Garden Apartments, a 90-unit multifamily property located in El Monte, CA. Financing was based on a 10-year term with a 30-year amortization schedule, and was arranged for the borrower by NorthMarq through a Fannie Mae DUS lender. The transaction was a 100% affordable housing deal and a buyout of an existing institutional partnership.
The California Credits Group LLC has leased 20,700 square feet in Corporate Center Pasadena, a class A mixed-use project at 251 S. Lake Ave. in Pasadena, CA. “To accommodate CCG’s tremendous growth over the last few years, Transwestern was able to negotiate below-market lease rates for CCG’s new headquarters space. In relocating to Corporate Center Pasadena, CCG will now occupy one full floor versus operating out of multiple floors in an inefficient older building with small floorplates,” says J.D. DeRosa, vice president at Transwestern, in a prepared statement. “CCG will also receive excellent signage rights facing South Lake Avenue and Del Mar Boulevard.” Transwestern represented the tenant, CCG. CB Richard Ellis represented the landlord, UBS.
James Burnett purchased 6,000 square feet of office space at 550 Lomas Santa Fe, in Solana Beach, CA from Donald J. Moore, Seymour Myers Trust and Jack A. Reingold for $2.7 million. Cassidy Turley BRE Commercial represented the seller in the transaction. Foster & Co. represented the buyer.
Ross leased 26,232 square feet of retail space for 10 years at 3450 College Ave. in San Diego from Cornerstone Property Management for $3.8 million. Cassidy Turley BRE Commercial represented the lessor in the transaction. Epsteen & Associates represented the lessee.
Temecula Kilt LLC dba Tilted Kilt leased 6,900 square feet of retail space for 10 years at 26520 Ynez Rd., Suite A, in Temecula, CA, from O & S Holdings for $2.8 million. Cassidy Turley BRE Commercial and Grubb & Ellis
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