With limited inventory and historically high values and rental rates, it’s safe to say the Los Angeles industrial market is enjoying an all-time high. There are several factors contributing to ongoing strength in the market, including a healthy appetite for acquisitions, strong tenant activity and creative solutions to adapt to supply constraints and maximize ROI. Industrial buyers continue to be active in Los Angeles, even with tightening availability and compressing cap rates. The fact is, there is still tremendous value to be found in this gateway city. Interest rates remain low, and those looking to acquire properties know that the sooner they buy, the better. Conversely, sellers are not especially eager to dispose of properties in the current market, based primarily on the challenge in finding acquisition-worthy assets. Specifically, owners seeking 1031 exchanges are finding it increasingly difficult to identify properties to trade into. That said, values are high enough that some owners are selling and choosing to simply pay taxes on capital gains or look to other markets for product to acquire. For example, Daum recently helped a seller dispose of a property in Los Angeles and reinvest those funds into an asset in Cleveland, Ohio, at a 7 …
ROCKLIN, CALIF. — Soma Capital Partners, in partnership with Timbercreek Asset Management, has acquired Blue Oaks Marketplace in Rocklin for $19.2 million. The seller was Diamond Creek Properties. At the time of sale, the 100,000-square-foot property was 81 percent leased.
LOS ANGELES — Faris Lee Investments has arranged the sale of a retail strip center located at 3921-3929 W. Olympic Blvd. in the Koreatown neighborhood of Los Angeles. A private Los Angeles-based investor acquired the property for $2.9 million. Built in 1920, the asset features 13,070 square feet of retail space. Tom Chichester, Joseph Chichester and Matt Brooks of Faris Lee Investments represented the buyer, while Rosano Parters represented the seller, a private Los Angeles-based family, in the deal.
VENTURA, CALIF. — Marcus & Millichap has arranged the sale of College Square Strip Center, a retail property located at 134-156 N. Ashwood Ave. in Ventura. An undisclosed buyer acquired the 7,680-square-foot property for $2.3 million. Brandon Michaels of Marcus & Millichap represented the seller, a limited liability company, in the transaction.
WOODLAND HILLS, CALIF. — NAI Capital has arranged the acquisition of a restaurant property located at 19723 Ventura Blvd. in Woodland Hills. Canzonet Investments purchased the restaurant property from Green Springs Partners for $1.9 million, or $585 per square foot. Sushi Ichiban Kan leases the 3,567-square-foot property. Matt Ehrlich of NAI Capital represented the buyer in the transaction.
ESCONDIDO, CALIF. — Paragon Commercial Group has closed two long-term leases with HomeGoods and ALDI at Escondido Valley Center at the corner of West Valley and Auto parkways in Escondido. The retailers are backfilling the former Sports Authority space at the 127,436-square-foot shopping center. HomeGoods will occupy 24,261 square feet and ALDI will occupy 21,869 square feet. Bruce Schiff and Phil Lyons of Cushman & Wakefield represented the landlord in both transactions.
LOS ANGELES — Housing & Healthcare Finance has arranged a $6 million HUD refinancing for a 99-bed skilled nursing facility in the greater Los Angeles area. The name of the facility was not disclosed. In addition, the same company recently arranged a $32 million refinancing for two facilities in the New Orleans area. The Archdiocese of New Orleans owns both properties, which total 437 beds. The refinancing takes out the construction loan for a 30-unit rehabilitation center at the properties.
ALISO VIEJO, CALIF. — Chronic Tacos, a California-inspired Mexican grill, plans to open 26 new locations in the United States and Canada by the end of 2017, bringing its total to over 50 locations. 2017 planned openings include: Birmingham, Ala. (2 locations) Waterfront, B.C. Bell Gardens, Calif. Burbank, Calif. Clovis, Calif. Hillcrest (San Diego), Calif. Irvine, Calif. Laguna Beach, Calif. Oceanside, Calif. Pacific Beach, Calif. Paseo, Calif. Redlands, Calif. Sacramento, Calif. Fort Meyers, Fla. Windermere, Fla. Tampa Bay, Fla. Alpharetta, Ga. Atlanta Oahu, Hawaii Las Vegas T-Mobile Arena Raleigh, N.C. Wake Forest, N.C. Nashville, Tenn. Spokane, Wash. Tacoma, Wash. (Lakewood) 2018 planned openings include: Barstow, Calif. Newbury Park, Calif. Alberta, Canada Denver West Midtown, Ga. Aliso Viejo, Calif.-based Chronic Tacos is a California-inspired Mexican grill founded in 2002.
LOS ANGELES — The Yucaipa Companies has received a $93 million loan for the 384-room Line Hotel in Los Angeles. The newly renovated lifestyle hotel is located in the Koreatown neighborhood. The 12-story, full-service boutique hotel opened in 2014. The Line is a new lifestyle hotel brand owned by Ron Burkle’s Yucaipa Companies and managed by Sydell Group, a hotel management company co-founded by Burkle and Andrew Zobler. The funds were used to refinance an existing renovation loan after recent multi-million-dollar improvements at the property. The new loan will also provide additional funding for minor ongoing property renovations. The sponsors plan to reposition the first-floor lobby and restaurant areas, as well as upgrade the grand ballroom. Natixis provided the loan.
LOS ANGELES — Square Mile Capital Management has originated a $70.5 million loan that is secured by a 415,000-square-foot office building in the Koreatown neighborhood of Los Angeles. The 22-story building is located at 3600 Wilshire Blvd. The property spans a full city block from Wilshire to 7th Street. It also includes an 825-space parking deck behind the office building. Jamison Services acquired the building in 1999 and is refinancing the existing debt. Square Mile’s loan also includes proceeds to fund future capital expenditures and leasing costs.