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National City Tower Acquired by Canadian Investor in $43 Million Deal

19 Oct 2014, 11:27 pm

By Alex Girda, Associate Editor

National City Tower, a historic adaptive reuse project in downtown Los Angeles, recently traded hands in a deal worth $43.26 million. Canada-based RC Acquisitions LLC acquired the property from seller National City Towers LLC in a deal arranged on behalf of both parties by Janet Neman and Bryan Glenn of full-service regional real estate firm Charles Dunn Company.

National City Tower is the former home of a National City Bank branch in the area. The historic property was originally developed in 1924, while a redevelopment process turned the building into a residential tower with a ground floor and basement retail component. Totaling 118,162 square feet of space, the 12-story asset totals 93 residential lofts. According to the brokers handling the transaction, at the time of the sale, National City Tower was operating on a 97 percent occupancy rate for the residential component, while the retail space was fully leased out.

Tenants currently occupying space at 810 South Spring Street include successful gourmet Italian restaurant Terroni, Northern Chinese cuisine provider Peking Tavern, and Crane’s Downtown Bar, occupying the original vault of National City Bank. The 93 residential units include 12 studios, 61 one-bedroom units, 16 two-bedroom units, two two-bedroom penthouses and two three-bedroom penthouses. Units range in size between 617 and 1,884 square feet. The loft-like units feature gourmet kitchens, high ceilings, polished concrete floors, modern finishes and abundant light throughout the units due to the large windows that also offer great views of the DTLA skyline.

Attracted by the stabilized asset and its DTLA location, buyers submitted a number of offers to the Charles Dunn Company, and Neman and Glenn eventually selected the Canadian entity whose portfolio consists of other high-end residential properties in Southern California.

This is the company’s first asset located in the city’s downtown area, a growing, vibrant part of Los Angeles that Neman said “is evolving into a 24/7 city which I believe will become the next Manhattan.” Total investment in the area between 1999 and 2013 stood at around $17.3 billion according to a report published by the Los Angeles Downtown Center Business Improvement District, more than $6 billion of which was directed towards residential real estate.  

Office Properties throughout the Los Angeles Market Trade Hands

12 Oct 2014, 2:21 pm

By Alex Girda, Associate Editor

Over the past couple of weeks, the Los Angeles area office market has seen a large number of transactions, with properties totaling nearly 300,000 square feet of space in the Pasadena, Conejo Valley and Burbank submarkets trading hands.

In Pasadena, an office building located at 234 E. Colorado Boulevard was acquired by 21st Century Techbanq Pasadena LLC which paid a fee of $36.4 million for the asset to Embarcadero Capital Partners. Madison Partners and Cassidy Turley represented the seller and buyer, respectively. The object of the transaction is a 123,100-square-foot historic office building with a lower-level retail component that was constructed back in 1923 and is currently listed on the National Register of Historic Places, according to rentv.com.  

The Conejo Valley transaction involved two Westlake Village office buildings totaling 84,000 square feet of space. The two properties in question are the Westlake Village City Center and the North Ranch Office Building. Pacifica Real Estate Group acquired the former from Farmers New World Life Insurance Company, while North Ranch Office Building was purchased by Osborne Management LLC from North Ranch Properties. Both deals were arranged by representatives from CBRE.

Meanwhile, in Burbank, Chinese company Creative International Investments Inc. paid $22 million for the property at 250 E. Olive Avenue. The property currently totals 76,700 square feet of Class A office space. The 2005-built asset will now be used to offer space to Chinese companies that operate in the multi-media and entertainment industry that are looking to benefit from the high density of entertainment and creative companies located in the Burbank submarket.

Image courtesy of sched.comic-con.org

Huntington Oaks Delaware Partners Secures $71 Million in Financing for Shopping Center in Monrovia

12 Oct 2014, 2:16 pm

By Alex Girda, Associate Editor

Huntington Oaks Delaware Partners was recently awarded with a total of $71 million in financing from lender Bank of America. The financing deal was announced by LUCESCU REALTY, an investment real estate services firm that handled the process on behalf of the borrower. According to the official announcement, the developer required the financing of Huntington Oaks Shopping Center in the City of Monrovia, CA. The specifics of the financing package arranged by LUCESCU REALTY include a $60.5 million senior mortgage and a $10.5 million mezzanine loan that replace a $51 million mortgage from Wachovia Bank.

Huntington Oaks Center is a community shopping center totaling 328,711 square feet of space. The anchor tenants for the property include Kohl’s, Trader Joe’s, Toys ’R’ Us, Marshalls and Bed Bath & Beyond, which take up a total of 197,852 square feet of space. The property’s current tenant roster also includes names such as Black Angus, Mimi’s Café, Chili’s, Applebees, Chuck E Cheese, Panda Express, Menchies, Sally Beauty and Wells Fargo Bank. At the time of the financing announcement, the property had an occupancy rate of approximately 98 percent, currently performing at a very good level compared to the area’s average levels.

The retail property was constructed in 1986 on a 26.1-acre parcel located at the southeast quadrant of Interstate 210 and Huntington Drive. Due to its location, the property offers about 1,400 feet of highway frontage in the Pasadena/Arcadia/Monrovia submarket, which currently leads the greater Los Angeles area in lease rates and occupancy levels. The property also benefits from an average household income within a three-mile radius of about $100,823.  

Image courtesy of shophuntingtonoaks.com

Pacific Design Center Announces New Tenant in Westside Affiliated Holdings as Visit West Hollywood Signs New Agreement

29 Sep 2014, 3:29 pm

By Alex Girda, Associate Editor

One of the most coveted office assets in the West Hollywood submarket recently gained a brand new tenant and re-signed an existing one. The owner, developer and manager of Pacific Design Center (PDC), Charles S. Cohen, has announced that two leasing contracts have been signed at one of the property’s three buildings. The tenant that has re-committed to its presence at the Pacific Design Center’s Green Building is Visit West Hollywood, the official visitor-marketing center for the City of West Los Angeles. The new resident at the building is Westside Affiliated Holdings, Inc., a local-based homebuilder that has announced that it is moving operations from its old Beverly Hills location.

The Pacific Design Center office complex is a local landmark and offers a total of 1.2 million square feet of space. The Green Building is located at 700 North San Vicente Boulevard and is one of three contemporary design facilities featuring bold and colorful designs by architect Cesar Pelli. The campus is located on a 14-acre site and originally opened with the unveiling of the Blue Building in 1975. The 450,000 Green Building followed in 1988 and the Red Building that became a two-tower, 400,000-square-foot office structure connected by seven levels of parking that can accommodate around 1,500 vehicles.  

The Green Building currently hosts a number of tenants from the media, marketing and related creative sectors such as the West Coast HQ of Interpublic Group, an advertising and marketing services company. Westside Affiliated Holdings was welcomed to the PDC by Senior Vice President of Cohen Brothers Realty, Jeff Lasky, who also acts as the director of leasing at the asset. The executive also noted Visit West Hollywood’s re-signing “enhances both the image of the city’s visitor and information bureau and the Pacific Design Center.”

The Pacific Design Center offers tenants a number of amenities including a Michael Graves-designed fitness facility, two restaurants created by world-famous restaurateur Wolfgang Puck, and the possibility of holding film, art and design events. Screenings, parties, receptions and other special events are regularly held on-site in the facilities available at the PDC. The 200-seat conference-center with an auditorium, the 380-seat Silver Screen Theater, a public plaza with a 300-seat amphitheater and an outpost of the Museum of Contemporary Art are part of the offering at the asset owned by Charles S. Cohen since 1999.

Image courtesy of pacificdesigncenter.com

Rexford Industrial Acquires Fully Leased Industrial Property in San Fernando Valley for $30.5 Million

22 Sep 2014, 2:42 pm

By Alex Girda, Associate Editor

Southern California’s industrial market has clearly been improving lately and Rexford Industrial Realty Inc. is also jumping on the bandwagon. The real estate investment trust recently announced the cash-funded acquisition of 9120 Mason Avenue in Chatsworth, CA for a reported fee of $30.5 million. The company specializes in owning and operating industrial properties located in SoCal infill markets.

Located on an 11.82-acre site in Los Angeles County, in the greater San Fernando Valley sub-market, the industrial asset offers coveted features in a property of this type. 9120 Mason Avenue offers 24-26 foot minimum clearance, 61 dock-high positions, a state-of-the-art ESFR fire sprinkler system and a large secured yard.

The 319,348-square-foot facility also offers a great location, including proximity to the 405, I-5, SR-118, and SR-101 freeways, as well as easy access to Burbank Airport and the site is rail-served. The area possesses an excellent industrial profile, with data from CBRE indicating an average vacancy rate of around 1.3 percent at the end of June 2014. The greater San Fernando Valley submarket currently boasts around 172 million square feet of industrial space.  

According to Howard Schwimmer and Michael Frankel, co-chief executive officers of Rexford Industrial, the acquisition of 9120 Mason Avenue “further expands the company’s presence in one of our core infill Southern California submarkets and brings Rexford’s total acquisition volume thus far in 2014 to more than $260 million.”The property boasts great tenancy as it is currently fully leased to two occupants through 2020. The last major renovation carried out at the property took place in 1999. Rexford now owns interests in 89 properties totaling around 9.8 million rentable square feet and manages an additional 20 properties that total 1.2 million rentable square feet.

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