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Brandywine Homes Expands in Richard Nixon’s Childhood Neighborhood

1 Jul 2015, 2:58 pm

By Alex Girda, Associate Editor

Yorba Linda just received an added dose of luxury as the city’s newest townhome community recently held a grand opening. Developer Brandywine Homes unveiled its latest completed residential project in Orange County, adding a 51-unit urban infill community in the proximity of the Richard Nixon Presidential Library and Museum.

Brandywine only recently announced the development of another townhome community in Norwalk back in May, confirming its L.A.-area expansion strategy. The company also has two other communities lined up in Yorba Linda.

Brandywine Homes' Covington community

Brandywine Homes’ Covington Community

The 5.1-acre Covington luxury community is located near Yorba Linda Boulevard and Blair Street, in the affluent Orange County suburb. The townhomes range in size between 1,842 and 2,100 square feet of space and feature a craftsman-style design, provided by Pate Smeall Architects. The community’s placement, in the vicinity of the 91 freeway, means that residents gain quick access to venues such as Angel Stadium, Honda Center, Knott’s Berry Farm, and Disneyland.

Unit features include efficient tankless water heaters, recessed lighting, double-strength glass windows, state-of-the-art communication and networking, as well as storage space and fully-equipped kitchens.

Residents at Covington have access to a common amenity package that includes a pool, rec center, as well as a barbecue and gathering area. Its position within the Placentia-Yorba Lind Unified School District also proves to be a big selling point for the Covington. The community is rapidly becoming a success, with twelve of the seventeen homes part of Phase 1 have already been either sold or reserved.

Foremost Communities Changes Direction and Name with SoCal Retail Acquisition

24 Jun 2015, 4:56 pm

By Alex Girda, Associate Editor

The changing real estate landscape is challenging investment companies to alter their strategies and even diversify their portfolios. Foremost Companies is one such entity. The company recently acquired two adjacent shopping centers in Diamond Bar for a combined $23 million.

The Ranch Center and Oak Tree Plaza are located on Diamond Bar Boulevard, and together occupy an area of 10.4 acres. Offering a joint total of 120,000 square feet of retail space, the two properties feature a tenant mix that includes dining spots, medical offices, a bowling alley, as well as a number of retailers that service the community. Foremost has tasked Stonewood Properties to act as property manager for both centers.

Oak Tree Plaza and The Ranch Center

Oak Tree Plaza and The Ranch Center aerial view

The acquisition of two retail centers is slightly out of left field for Stonewood. The entity currently owns or manages 12,000 lots throughout SoCal and has moved $200 million worth of land to home builders during the past few years. In order to further illustrate the adjusted trajectory followed by the company, the name of the firm was changed from Foremost Communities to Foremost Companies. The acquisitions were made in order to diversify the company’s portfolio with “income-producing assets”, noted company president Steve Cameron.

Preferred Bank provided acquisition financing for both centers, while also being the seller in the deal perfected for The Ranch Center. The bank foreclosed on the property last fall. In the Oak Tree Plaza deal, Foremost acquired and consolidated the interest of the long-term ground-lease tenant and the underlying fee ownership while restructuring a new lease with the anchor tenant.

Successful Repositioning Project Nets Record-Setting Price

23 Jun 2015, 1:36 pm

By Alex Girda, Associate Editor

An extensive renovation process recently resulted in the record-setting sale of a commercial asset near the CBS Television City. The Souferian Group just netted $19.6 million in the offloading of the office property at 8075 W. 3rd Street to buyer Continental Development Inc.

8075 W. 3rd St.

8075 W. 3rd St.

The five-story asset was transformed into a Class A-level office property after a renovation process that lasted around 18 months. The Souferian Group completely overhauled the building, adding new tenant amenities such as providing custom bicycles to building tenants. The 30-year-old building was also fitted with a custom-made 20-foot-high black steel portal entrance featuring architectural diamond shapes. The property’s community spaces were also redone and transformed into a collaborative courtyard.

8075 W. 3rd Street offers 35,270 rentable square feet of space, meaning that the per-square-foot price comes in at around $556. This is one of the highest rates paid for an office asset in the entire area. The transaction was arranged by Bob Safai, Matt Case and Brad Schlaak of Madison Partners on behalf of the seller.

According to Marcus & Millichap, average prices per square foot in the L.A. metro area ended the previous year at just under $300. This further underlines the success of the repositioning effort put in by The Souferian Group at the property. An increased rate of development in L.A. is set to somewhat stifle rent growth. Although vacancy is decreasing, the metro’s average was still above 14 percent at the end of 2014, as per the company’s 2015 Office Market Outlook.


Sunbelt Shedding Inventory at a Fast Pace in SoCal

22 Jun 2015, 1:49 pm

By Alex Girda, Associate Editor

Last year, Sunbelt Enterprises LLC orchestrated an initiative to move a substantial amount of its commercial real estate portfolio. The company started by naming Robert Griffith and Rick Scheckter, both Executive Managing Directors with NGKF Capital Markets, in charge of that effort. Since then, Sunbelt completed the sale of a considerable amount of the space it put up for sale, culminating with the recent sale of six properties totaling more than 1.1 million square feet of space in SoCal and Las Vegas.

The rundown of properties sold by the company over the past half-year in Southern California is as follows:

- Recently sold Packing House Square property at 18200 Yorba Linda Boulevard in Yorba Linda: a Class A, seven-building office and asset totaling 146,700 square feet of space; acquired by PRES Companies

- The Moorpark Town Center in Moorpark, CA: a retail property totaling nearly 140,000 square feet of space, 12 percent of which is currently vacant; acquired by Retail Opportunity Investment Group.

- Six multi-tenant industrial properties in Oxnard were sold to Rexford Properties. The assets had an average occupancy rate of 94 percent.

- A different mini-portfolio of industrial assets was acquired by Prudential. Six of the seven single tenant buildings totaling 393,000 square feet of space were occupied at the moment of the sale.

Other Sunbelt Enterprises assets awaiting deals in California are three single-tenant industrial buildings in Moorpark that offer a total of 283,000 square feet of space. The company is also selling three land parcels in Oxnard along the 101, a total of more than 20 acres. Five fully occupied multi-tenant buildings in Ventura County are also up for sale.

NAI Capital Closes Sale on Retail Asset in Inland Empire

18 Jun 2015, 1:17 pm

By Anca Gagiuc, Associate Editor

The former Mervyn’s building at Ridgecrest Town Center in the city of Ridgecrest is under new ownership. The retail asset was acquired from China Lake 700, LLC by Newport Coast-based investor El Rey Properties, LLC.

The single-story community center was built in 1987 and encompasses 204,709 square feet of space. It is located at the corner of N. China Lake Blvd. & Drummond Ave. and offers open air shopping with about 32 stores that are currently leased by Big Lots, Big 5, Starter Brothers, Goodwill, Kragen Auto, and Starbucks.

El Rey Properties acquired the 59,909-square-foot asset for $5.8 million, which breaks down to well over  $97 per square foot. Senior Vice President Steve Heri and Vice President Steve Gim of NAI Capital represented the buyer in the transaction.

At the time of the sale, the asset was 100% leased to Jo-Ann Fabrics & Crafts, Marshals, and DSS shoes. “This property presented El Rey Properties with the opportunity to buy into the dominant grocery anchored center in Ridgecrest with a high yield potential,” said Heri in an official statement. “With a rebound in consumer spending under way, this investment provides great upside potential for long term appreciation and cash flow,” Gim added .

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