The trend toward more workforce and low-income housing will be a very big part of Los Angeles’ future. Additionally, new and existing housing located near major transportation corridors will be in high demand amongst investors. The City of Los Angeles has proposed a 5-year housing plan with a $5 billion price tag to help provide more housing for those two market segments. Los Angeles apartment fundamentals are expected to have softened mildly coming into 2009, though vacancy will still be one of the lowest rates in the nation. Predictions are that the vacancy rate will have risen slightly to 4.5 percent by year-end 2008, then remain unchanged this year. The era of vacancy in the vicinity of 3 percent is not expected to return. Rent gains are decelerating from the invigorating pace of the past decade. This year, Los Angeles’ average asking rate is predicted to rise only slightly, approximately 0.7 percent, to $1,469 per month. In November, the 40,544-unit Beverly Hills submarket had an average asking rent of $1,909 per month; the Santa Monica submarket was at $2,404 per month; the 43,645-unit Wilshire/Westlake submarket at $1,308 per month; the 50,936-unit Hollywood/Silver Lake submarket at $1,468 per month; the Sherman …
WEST LOS ANGELES, CALIF. — Mel Moss of NAI Capital represented a private charitable foundation in the acquisition of a 173,000-square-foot industrial facility located on approximately 10 acres in Southern California. The sale-leaseback transaction was valued at approximately $15 million.
CARLSBAD, CALIF. — Sunroad Enterprises, dba Sunroad Otay Partners LP, has purchased a 67,000-square-foot, fully improved research and development (R&D) facility in Carlsbad. Located at 5858 Dryden Pl., the property sold for $8.65 million. The building is currently occupied by Callaway Golf. The facility features 100-percent HVAC-served, above-standard power and a 3 to 1,000 parking ratio. Tucker Hohenstein and Greg Lewis of Cushman & Wakefield represented the buyer and the seller, IDS Real Estate, in the transaction.
COMMERCE, CALIF. — Mesa West Capital has provided The Magellan Group with a $25.6 million first mortgage loan for the recapitalization of Grace Place Industrial, a 500,795-square-foot industrial complex in Commerce. The fully leased facility features 30-foot clear heights and ample turning radius. The Magellan Group also received $5.75 million of subordinate mezzanine debt from Penwood Select Industrial Partners II LP, for a total debt of $31.35 million. Mesa West Capital and Penwood closed the transaction in 30 days. Brian Halpern and Ben Wagner of CB Richard Ellis Capital Markets arranged the financing.
VAN NUYS, CALIF. — Jessica Kelley and Martin Agnew of Marcus & Millichap’s Encino, Calif., office brokered the disposition and acquisition of 14550 Haynes Street in Van Nuys. The 15,741-square-foot office property sold for $3.4 million. The seller and buyer were not disclosed.
TEMPE, ARIZ. — Roosevelt LLC, a Tucson, Ariz.-based partnership led by Arizona Restaurant Supply, has purchased an industrial facility, which is located at 3116 S. Roosevelt St. in Tempe, for $1.45 million. The seller was Phoenix-based DA-RO Investments LLC. Arizona Restaurant Supply, Stainless Concepts LLC and Scottsdale Restaurant Supply will utilize the property. Mark Detmer and Bo Mills of Cushman & Wakefield of Arizona Inc. represented the buyer; Jeff Woudenberg of Ross Brown Partners represented the seller in the transaction.
LOS ANGELES — Next Century Associates LLC, a partnership between Los Angeles-based real estate investor Michael Rosenfeld and an entity in the D.E. Shaw Group, has unveiled plans for a $2 billion mixed-use project to be located on the 5.75-acre Century Plaza site, which is located at 2025 Avenue of the Stars in Century City area of Los Angeles. The 1.4 million-square-foot project will feature a 50-story mixed-use tower offering a 240-room five-star hotel, 163 hotel residences and 100,000 square feet of office space; and a 50-story residential tower offering 130 luxury residential condominiums. Additionally, the project will feature 115,000 square feet of retail shops and restaurants, a spa and a fitness center. “The original design of Century City envisioned a lifestyle center around individual vehicles, parking in subterranean garages with access to both homes and offices through these garages,” explains Rosenfeld. “Green space was designed to be experienced as decorative rather than interactive and walking was limited to designated pathways, some underground.” The company is now transforming Century City into a place where walking and the outdoor experience are prized. The project is being designed by Pei Cobb Freed & Partners, with the landscape and gardens designed by Ken …
FREMONT, CALIF. — Overton Moore Properties (OMP), through its investment vehicle OMP Industrial III, has acquired a 506,940-square-foot industrial/research & development building in Fremont. Located at 901 Page Ave., the complex consists of manufacturing, warehouse, labs and office/work space. Additionally, the complex features 21 kVA utility service, 100 percent air-conditioned facilities, epoxy-coated ESD concrete slab floors, overhead power distribution bars in the manufacturing area, emergency power, 25 to 28-foot clear heights, fully calculated and ESFR sprinkler systems. Eric Fox of CPS CORFAC International and Peter Castleton of Voit Commercial Brokerage, a CORFAC International affiliate, represented the buyer. The seller was Hewlett-Packard Company. The value of the transaction was not disclosed.
GILBERT, ARIZ. — Webster, Mass.-based The Commerce Group Inc. has purchased a 58,194-square-foot single-tenant office building, which is located at 1555 N. Fiesta Blvd. in Gilbert. Reston, Va.-based Southwest Student Services Company sold the property for $8.76 million. The Commerce Group is a subsidiary of Mapfre International, a division of Mapfre SA, Spain’s largest insurer. Kit Tiedemann and David Barrett of CB Richard Ellis’ Phoenix office represented the buyer; Harry Klaff of Jones Lang LaSalle’s Washington, D.C., office represented the seller in the transaction.
CORONA, CALIF. — Scott Hook and Cory Waxman of Marcus & Millichap represented the undisclosed seller in the disposition of Bank Reo, a 20,031-square-foot retail property located in Corona. The property, which is located at 1138 E. 6th St., was 60 percent vacant at the time of acquisition.