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Newly Built Industrial Asset in Santa Fe Springs Signs First Major Tenant

17 Apr 2015, 7:40 pm

By Alex Girda, Associate Editor

A newly built Santa Fe Springs industrial asset completed a major long-term lease worth approximately $20 million. Gelson’s Markets recently inked an agreement for more of the available space at the Freeway Springs Logistics Center. The company will also take up a large component of the property’s available office space, where it will be relocating a large part of its staff. The transaction was arranged by two teams of Colliers representatives, rentv.com writes, with owner Freeway Springs LLC, a Golden Springs Development Co.

The industrial property has received LEED Silver certification from the United States Green Building Council. The current owner of the property was also the developer, with Golden Springs Development currently owning a class A industrial portfolio of around 5.5 million square feet.

Gelson’s will be taking over 248,300 square feet of industrial space, as well as 30,000 square feet of office space at Freeway Springs Logistics Center. The asset is located a 13833 Freeway Dr., near the I-5 in Santa Fe Springs, in a spot that offers tenants a great opportunity to access transit routes such as the San Gabriel River Freeway, the Riverside Freeway and the Century Freeway. The 463,000-square-foot facility is a concrete, tilt-up industrial building that features dock-high and ground level loading, 36-foot minimum ceiling clearances, a 180-foot concrete truck court, ESFR fire sprinkler system, a fenced and secured truck yard, more than 260 parking spaces, 94 trailer stalls and ample skylights.

Image courtesy of goldenspringsbc.com



PennySaver HQ in Brea Acquired by Intercontinental Real Estate Corporation

10 Apr 2015, 5:02 pm

By Alex Girda, Associate Editor

The current headquarters of PennySaver USA Publishing LLC recently traded hands in a deal arranged by real estate company HFF. The property is located in the North Orange County Brea/La Habra submarket, southeast of Los Angeles. The selling entity, a joint venture between Cohen Asset Management Inc. and American National Insurance Company, was represented by HFF.

Buyer Intercontinental Real Estate Corporation acquired the property free and clear of existing debt for a total of $14 million. The HFF investment sales team working on the deal was led by Senior Managing Director Anthony Brent and Managing Director Ryan Martin.

According to Anthony Brent, “the investment provided significant inflation adjusted rent growth and stable long-term cash flow.” Brent also noted that the asset’s stability in terms of occupancy and its Brea location meant that the asset was highly sought. The property is an important addition to the buyer’s current SoCal industrial real estate portfolio.

2830 Orbiter Street is a 101,420-square foot corporate headquarters building that sits on a lot totaling 6.59 acres. The property offers a mix of office and industrial space, with 49,351 square feet equipped for manufacturing, assembly and distribution purposes. The only tenant at the property is PennySaver, who occupies the entire asset. The company’s weekly pamphlet, web-based advertising systems and salesforce operations are located at the property.



San Bernardino Office Campus Acquired by Hines/Oaktree Joint Venture

6 Apr 2015, 1:17 pm

By Alex Girda, Associate Editor

A San Bernardino office portfolio was recently acquired in a deal completed by international real estate firm Hines. Part of a joint venture that it created with a fund managed by Oaktree Capital Management LP, the company acquired the Inland Empire property from two investment funds managed by Rancon Real Estate. The Tri-City Corporate Center is now under the ownership of the JV, with the financial terms of the property not being disclosed. Industry analysts placed the estimated value of the deal at around $100 million. After the completion of the transaction, the property management duties at Tri-City Corporate Center will be handled by Hines.

Located across 153 acres of land in San Bernardino, in the Inland Empire submarket of California, the portfolio consists of 17 office buildings. Tri-City Corporate Center offers a total of 1,055,596 square feet of office space, with the properties being 39 percent vacant at the time of the transaction. The campus features both Class A and B level assets, leased by a tenant roster that includes names such as Air Methods Corporation, Northrop Grumman and the Art Institute of California.

The campus offers workers on-site amenities, dining and retail options, retail banking, as well as fitness facilities. Tri-City Corporate Center offers easy access to the nearby 10 and 215 Freeways, as well as a new bus stop, located in the vicinity of the property. According to Hines Senior Managing Director Doug Metzler the acquisition of the park is an important move for the company, considering Inland Empire “is projected to be the number five rent-growth market in the country.” The company’s plan is to apply a strategy of improving leasing at the asset, and taking advantage of the market’s improving fundamentals.”



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







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