Hancock Park is known for monied residents and stately homes, but apartment buildings? Not so much. So when a rental property changes hands, like the sale of three apartment buildings (535-553 N Rossmore Ave) to Michael Hakim‘s Colony Holdings for $11.3M, it gets attention.
Pacific Partners Real Estate Investments founder and principal Zac Freehling (second from left) tells us the all-cash transaction closed at a 2.5% cap rate. He repped both the buyer and seller, a private investor, along with Pacific Partners VP Jason Shenitzer (left, with the firm’s David Regalado, Max Lund and Ramtin Noury). The seven-unit buildings occupy three contiguous lots totaling half an acre. The property is zoned R4, which could lend itself to a development deal. However, Zac says the buyer, who also owns the elegant El Royale Apartments across the street, is a big fan of historic and architecturally significant properties. He expects the buyer will bring the property up to modern standards while maintaining its architectural integrity. Brent Sprenkle of Berkadia was the referring broker on the deal.
535-553 N Rossmore Ave consists of three nearly identical buildings constructed in the ’30s. According to Zac, the buildings are on the premier street in Hancock Park, but have quite a bit of deferred maintenance and some vacancies. That said, he notes the apartment inventory in Hancock Park is limited. When properties do become available and are priced correctly, he says, “investors are extremely aggressive about jumping on them.” Pacific Partners has sold three buildings in Hancock Park this year, part of more than $70M in deals the five-person firm has done over the past year and a half.
Speaking of Brent, the Berkadia partner (and avid wine collector) just sold the El Dorado Villas, a 33-unit condo building at 4510 Murietta Ave in Sherman Oaks, to an Indonesian buyer for $19.5M or $590k/unit. He represented seller Shapiro-Ben Basat, which developed the project in 2008 as luxury condos. Then the subprime crisis hit, but fortunately, the developer was in an economic situation where it could rent the units out and keep the building. “They filled the place up with tenants, and waited until a point where cap rates fell low enough and rents high enough that they could sell the property in bulk.” It didn’t happen overnight, and the asking price was substantial, but the El Dorado Villas eventually sold to a group out of Jakarta. Jeff Louks and Gayle Factor of Marcus & Millichap repped the buyer.
New York Life Real Estate Investors acquired 400 and 600 Corporate Pointe, two institutional quality, Class-A office buildings in Culver City, on behalf of institutional investors. The company plans to upgrade and reposition the two buildings to take advantage of the Westside’s thriving tech, media and entertainment submarket. The properties will be managed by Lincoln Property.
Timberlane Partners bought the Harvey Apartments, a 177-unit mixed-use apartment community in Hollywood (5640 Santa Monica Blvd) from a private seller for just under $15.3M. The 1920s Art Deco-style building contains 176 bachelor units and a single one-bedroom unit, along with 1,800 SF of ground-floor retail occupied by a grocery, juice bar, tailor, and barber shop. Marcus & Millichap’s Ron Harris, Paul Darrow and Michael DiSimone repped the seller and also procured the buyer.
An affiliate of Hackman Capital Partners acquired 8911 Aviation Blvd, a four-building, 94k SF campus in Inglewood, less than two miles from LAX. The property is fully occupied by Spartan College of Aeronautics and Technology for its training program focused on aircraft maintenance and repair. Spartan College and its predecessors have leased the property for more than 40 years. The campus includes a three-story office building, a 4,564 SF building and two hangars of 33k and 16k SF, respectively.
Dedeaux Properties bought eight industrial buildings totaling 121k SF in Santa Fe Springs from the Adaya Family Trust for $12.5M. The freestanding buildings range from 10k to 24k SF and are on or near the Milroy Place cul-de-sac. Two of the buildings will be immediately refurbished while the others are occupied by tenants with various lease expirations, according to CBRE’s Steve Young, who repped the seller along with Tom Dorman, with the Meridian Group facilitating.
Bristol Central LP bought Rosewood Shopping Center, a 60k SF retail center in Bellflower, from Rosecrans Bellflowers LLC for just under $13.3M. The property is 74% leased with tenants that include healthcare and fast-food users. CBRE’s Arthur Flores, who repped the seller, says the center boasts a hard corner, infill location, but was encumbered by a low loan-to-value, non-recourse CMBS loan that the buyer had to assume. The low in-place rent and complementary mix of retail and service tenants made this a prime value-add acquisition for the 1031 exchange buyer, he says.
KHP Capital Partners has purchased the 158-room Goodland Hotel in Goleta from Makar Properties. Makar acquired the former Holiday Inn hotel in June 2013 and opened The Goodland in October 2014. CEO Paul Makarechian, who lived in Santa Barbara while attending UCSB, personally curated the property’s surf culture and beach vibe through hand-picked art such as murals by legendary surf and street artists, music and programming.
Capital Square Realty Advisors completed its Delaware statutory trust offering, CSRA 1530 W Covina DST, consisting of a 37k SF 24 Hour Fitness facility. The property (1530 W Covina Pkwy) includes a two-story building and a three-level, freestanding parking garage. CEO Louis Rogers says this marks the 17th DST that Capital Square has fully subscribed since its founding less than three years ago.
Molina Healthcare leased more than 73k SF at One World Trade Center, a 27-story office tower in downtown Long Beach. The facility will serve as an expansion of the company’s corporate HQ, which is located across the street. Greenlaw Partners, Walton Street Capital and Stillwater Investment Group acquired the 574k SF office complex in August for $105M and are finalizing plans for a large-scale reno. The improvements will include revamping the existing outdoor plaza area and bringing in new retail tenants, as well as modernizing the building lobby. JLL’s Steve Solomon, Jason Fine and Kristen Bowman, along with CBRE’s Dave Smith, repped the landlord. Damion McKinney and Jamie Keller of McKinney Advisory Group repped Molina.
WSS (Warehouse Shoe Sale), a regional shoe store chain, leased more than 17k SF of retail space on Paramount Boulevard in the City of Paramount. Colliers Retail Foresight’s James Rodriguez and Michael Bohorquez repped both the tenant and landlord in the deal, which was valued at $2.8M.
Rob Hannan rejoined CBRE‘s top institutional office investment team in the Western US, led by Kevin Shannon, as an SVP. Along with associate Danielle Russo and client services coordinator Danielle Mooney, this expands the team to 15 members. Based in CBRE’s South Bay office, the team has completed more than $22B in office investment sales in the Western US in the last five years, including $4B in sales in the past 12 months alone. Most recently with Kennedy Wilson, Rob previously worked at CBRE from 2005 to 2011.