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West Hollywood Apartment Community Earning Above Average Prices

30 Mar 2015, 4:00 pm

By Alex Girda, Associate Editor

A West Hollywood apartment property located in the vicinity of the Pacific Design Center recently traded hands at a per-unit rate that more than doubles the average residential unit price in L.A. According to Marcus & Millichap, whose representatives arranged the transaction for both parties involved, the seller received a total of $8.25 million for the asset. First Vice President Investments in Marcus & Millichap’s West L.A. office marketed the property on behalf of the seller while Los Angeles office Senior Associates Michael Hanassab and Elliot Hassan advised the buyer.

Located at 526 North Orlando Avenue, the 19-unit apartment community stands just east of La Cienega Boulevard and south of Melrose Avenue. The property’s neighboring area also includes the Rosewood Avenue Elementary School, Sunset Strip, Runyon Canyon Park, The Grove and the Beverly Center. The residential asset was originally constructed in 1964, but an extensive renovation process carried out back in 2012 improved the asset and added a number of features and resident amenities. The four-story, wood-frame and stucco apartment building offers its residents secure entry, a lobby entrance, as well as 29 parking spaces located in a gated subterranean parking facility.

The community offers residents three one-bedroom/one-bath units, 15 two-bedroom/two-bath units, as well as one upscale three-bedroom/two-and-a-half-bath penthouse unit that also includes multiple decks and balconies, as well as secured elevator access. The per-unit sales price of $434,211 is notably larger than the average value of an average L.A. residential unit – Marcus & Millichap Real Estate Investment Services research data shows that at the end of 2014 that value stood at under $180,000.



Notable Hollywood Tower Sold by Joint Venture in $16.4 M Deal

24 Mar 2015, 2:40 pm

By Alex Girda, Associate Editor

The Cahuenga Media Tower, one of the most representative properties in the Hollywood submarket of Los Angeles, recently traded hands. An undisclosed buyer paid $16.4 million to a joint venture consisting of GPI Companies and KBS Strategic Opportunity REIT. The deal was brokered by CBRE representatives Kevin Shannon, Scott Schumacher, Michael Longo and Ken White, who worked on behalf of the seller.

Located south of Hollywood Boulevard in the Cahuenga Corridor, the six-story Cahuenga Media Tower offers a total of 34,666 square feet of office space. The multi-tenant office building features a penthouse level that gives tenants 360-degree views of Hollywood, and totals 7,331 square feet of space. The tenant amenity package includes common area kitchens, lounges, a commercial film screening room with luxury seating, ceiling treatments, hardwood and concrete flooring, a recording studio, as well as private parking. The property offers easy access to the 101 freeway, as well as a number of dining and entertainment spots such as Katsuya and the Pantages Theater.

The property underwent a number of changes, made by the seller in an effort to boost occupancy number. These improvements include a renovation of levels two and four, upgraded elevators, lobbies, garage entrances and an outdoor lounge space. These measures took the building’s vacancy down from 58 percent to 23 percent. According to Drew Planting, Co-Founder and Managing Principal of GPI, “the Hollywood market has become increasingly tight, and we felt now was a good time to sell and capitalize on this momentum after repositioning the building.”

Image courtesy of http://gpicompanies.com



Caruso Affiliated Files for Entitlements for Brand New Luxury Residential Community

16 Mar 2015, 1:32 pm

By Alex Girda, Associate Editor

Caruso Affiliated recently announced that it filed all paperwork necessary for a new L.A. development project. The company is planning to build a new multifamily asset in the immediate vicinity of one of its most successful projects in the Los Angeles area. The developer is confident that it will be able to apply its vision of opening the new residential community by late 2017.

Located in the core of L.A., the 333 La Cienega mixed-use luxury residential tower will be a “sister property” to Caruso’s 8500 Burton Way, a residential building located just across the street from the site of the proposed new tower. Its location will offer residents immediate proximity to Beverly Hills, as well as downtown Los Angeles, Hollywood Hills and the Pacific Ocean. The building will feature a design created by MVE & Partners, with the façade provided by Hetzel Design. Saturated light, contemporary aesthetics, open living spaces and modern living amenities will be the focal points of the building’s design scheme.

The building will feature a very high-end amenity package that includes a sky deck pool, state-of-the-art fitness center with spa amenities, 24-hour attendant and call center, and five-star lobby concierge. 333 will showcase upscale hotel-grade resident services such as an on-site valet, One-Touch Concierge service, residents-only events, full room service and pantry service, dog walking, on-call luxury sedan for residents, as well as VIP valet passes to The Grove and The Americana at Brand.

333 will be architecturally linked with 8500 Burton Way across the street, a building that Caruso Affiliated opened back in 2012 and has become a fully leased major success. The property will also feature an upscale grocer and restaurant/café at the building’s ground level. The surrounding area will include landscaping features and state-of-the-art pedestrian safety improvements that are designed to enhance the resident experience.



Retail Property Housing Kohl’s in L.A. Trades Hands at Record-Breaking Cap Rate

6 Mar 2015, 3:28 pm

By Alex Girda, Associate Editor

A Los Angeles area Kohl’s recently traded hands in a deal worth a reported $22 million. The transaction was arranged by Ed Hanley, Kevin Fryman and Eric Wohl of the Hanley Investment Group. The team arranged the deal for the triple-net leased property at a cap rate of 4.8 percent, one that Hanley Investment Group calls “the all-time lowest ever for a single-tenant Kohl’s in the U.S.”

The property is an 88,000 square-foot retail facility that will stay under contract with retailer Kohl’s for another 14 years. The only tenant at the property also has strong incentives to re-sign. “The record low cap rate was due to the lack of inventory and the fact that cap rates are continuing to compress, combined with the long-term lease, Kohl’s investment grade credit and its excellent location.”

The new owner of the retail property is a private northern California 1031 Exchange investor. Hanley Investment Group worked on behalf of the seller in arranging the record-breaking deal. The previous record in terms of lowest cap rate for a single-tenant Kohl’s was previously held by a Redondo Beach property that traded hands back in November 2013. This transaction marked a 50 basis point lower cap rate than that property.

The success of this type of transaction in the L.A. area is mostly due to the fact that “single-tenant net-leased demand is at a historic high due to the lack of quality inventory in the market and strong pent-up buyer demand”, said Ed Hanley.



South Park Business Improvement Lands Major Victory with Sidewalk Initiative

2 Mar 2015, 6:15 pm

By Alex Girda, Associate Editor

The South Park Business Improvement has been very effective in its efforts to address the issues city sidewalks present in the booming area of downtown. BID received a great deal of assistance from Councilman José Huizar, the Los Angeles Board of Public Works, the Bureau of Engineering, and the Bureau of Street Services. Through this support system, the BID was able to fund a pilot program with 800 sidewalk locations receiving safety improvements and being brought to the specifications of the Americans with Disabilities Act.

Once the priority of the program was set, namely sidewalk repairs for the area, the BID was able to come up with solutions to improve the 32-block district over the entire year. 2014 also saw the emergence of a new technology that identifies issues with sidewalks and fixes them without the use of excessive intervention such as demolition and replacement. The program used state-of-the-art software with GPS mapping and patented technology to repair the existing infrastructure, reducing the amount of necessary reconstruction.

The program was approved by the Board of Public Works in December 2014 and work began this past January. According to José Huizar, one of the largest supporters of the program, “The resulting public-private partnership is a powerful demonstration of what can be accomplished when the City and property owners work collaboratively toward a common goal.” Huizar also noted the impact that the project has had on South Park, although the actual time spent solving issues took less than 14 work days, with zero complaints recorded. The program, put in place by BID, was also cost-effective with an estimated $180,000 saved compared to other repair methods.

With this model in place, the City may now turn to other areas of L.A. where 4,400 miles of hazardous sidewalks are yet to be repaired.







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