Commercial Acquisition Sets Westside Record

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A West L.A. building occupied by a JP Morgan Chase Bank branch sold for a record $1,500 a square foot last month.

Two Alhambra families, under the name Golden Matrix LLC, paid $7.51 million for the 5,000-square-foot building at 11975 Santa Monica Blvd. from a Westside family.

That’s the highest square-foot price ever paid for a single-tenant retail property on the Westside, according to CoStar Group Inc. The highest previous sale was in June 2010 for a building at 9245 Wilshire Blvd. in Beverly Hills where a Chase branch also was the sole tenant. It sold for $1,161 a square foot.

HJRJ, an entity for the Westside family, decided to sell because the family had owned the property for 75 years and was ready to cash out, according to Charles DeSantis, senior managing director with Charles Dunn Co. in Century City who represented the sellers.

The buyer had been searching the Westside for an investment property and eventually decided upon the Santa Monica Boulevard building, with a 22,000-square-foot plot that can support further development. The all-cash deal closed within three weeks.

“It’s rare that a single-tenant, great-credit property is available on the Westside, so they were willing to pay for it. The buyer is happy; the seller is happy,” DeSantis said.

The families intend to maintain the property as is until Chase’s lease expires in five and a half years. At that point, they may consider a redevelopment but there are no specific plans.

The buyers were represented by brokers at Coldwell Banker George Realty.

Multifamily Mania

If there were any question about how hot the multifamily market is right now, consider Glendale. Five new apartment buildings that could add more than 1,200 residences to the city’s housing stock are planned or moving forward.

Construction is well under way at 524-550 W. Colorado St., where Alliance Residential Co. plans to open a 208-unit building in December. The five-story structure will include eight lofts and 14 three-story townhomes, along with more than 8,000 square feet of retail.

Another 208-unit project, Broadway Lofts, is under construction at 200 E. Broadway and is expected to be completed next year. Developed by American Multifamily Inc., it will include about 15,000 square feet of retail.

Meanwhile, CBRE Investors is seeking entitlements to develop a 238-unit, 22-story property at 111 N. Brand Blvd. Crown Realty & Development Corp. is seeking approval of a 307-unit project, Lex on Orange, at 320-324 N. Central Ave. In addition, Camden Property Trust is proposing a 242-unit building with ground-floor retail at 3900 San Fernando Road. It hopes to break ground this year.

The developers are entering a market that is projected to see rents rise nearly 10 percent over the next two years – and office landlords could benefit from the development as well.

Arty Maharajh, a senior research analyst at Transwestern, said the new residences could help soak up Glendale’s empty office space as companies decide they want to be near a growing employee base. The struggling office market reported a 23.6 percent vacancy rate in the first quarter, according to Jones Lang LaSalle Inc.

“Pasadena and downtown L.A. will still be competition for the younger renter cohort and the employers who will follow, but not all firms will want to be (there),” said Maharajah, who is based in downtown Los Angeles. “Glendale, I feel, will have a decent chance at chipping away at its already (high office) vacancy rate.”

Media City Deal

German electronics and broadcast equipment supplier Rohde & Schwarz is moving and expanding its Burbank offices.

The Munich-based company signed a seven-year lease last month for nearly 12,000 square feet at 2255 N. Ontario St. with landlord M. David Paul. Terms were not disclosed but sources estimate the value of the deal at roughly $3 million.

The company is expanding from 9,000 square feet it occupied at 300 E. Magnolia Blvd. Rohde will move in Aug. 1 and sublease the space from the Judicial Council of State of California Administrative Offices for a year before its lease starts in July 2013.

Jonathan Larsen, regional managing principal for brokerage Cassidy Turley Inc. who represented Rohde, said the company was looking to upgrade its facilities and be closer to other entertainment businesses.

“It was in move-in condition, including the furniture, and was a first-class project close to its clients,” he said.

The new lease brings the building up to virtually 100 percent occupied.

Suzanne Lee, managing director at Cassidy Turley, also represented the tenant. Brad Feld at Madison Partners represented the landlord.

Staff reporter Jacquelyn Ryan can be reached at [email protected] or (323) 549-5225, ext. 228.

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