Serial Seller May Be Picking Up Purchasing Pace

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After a year spent selling more properties than it acquired, Jamison Services Inc. seems to be back in buying mode.

Jamison, founded by Dr. David Lee, was the largest private office landlord in Los Angeles before selling off more than 10 percent of its portfolio over the last two years.

Now, a year-end deal recorded last month might signal a reversal of course. The Mid-Wilshire real estate services company has acquired the 19-story Superior Court building at 600 S. Commonwealth Ave. for $50 million, the most the company has spent on a property since 2008, according to CoStar Group Inc.

Jamison, which manages and leases more than 22 million square feet in more than 100 commercial buildings in Los Angeles, acquired the Koreatown building when it bought a majority stake in Commonwealth Management, a limited liability company connected to the estate of the late Arthur Blech. Blech, who died in 2011, was President Richard Nixon’s tax attorney for the years he was in office and owned the building for close to 30 years.

The building is about 93 percent leased, mostly to Los Angeles County for the offices of the Superior Court and the departments of Health Services, Mental Health and Child Support Services.

Andrew Harper, a director in Los Angeles for real estate services firm HFF Inc., represented the seller. He said the property had been on the market since June, and the sale closed Dec. 31.

“The sale demonstrates the continuing (upward) momentum of office fundamentals in Los Angeles,” he said.

Richard Plummer and Michael Ross of HFF also represented the seller. Jamison was represented internally.

Apartment Acquisition

M West Holdings, a Sherman Oaks real estate investment firm, bought the 248-unit Milano apartment complex at 20900 Anza Ave. in Torrance for $60.8 million, or nearly $245,000 a unit. The seller, a limited liability company named for the property, bought the four-building complex in 2007 for $56 million.

Built in 1964 and renovated in 2008, the apartment community features studio, one- and two-bedroom apartments with rental rates that range from about $1,200 a month to nearly $2,500. Amenities at the property include two swimming pools, a basketball court, two tennis courts, a fitness center, a business center, a conference room and billiards room.

Greg Harris, an executive vice president of investment for Institutional Property Advisors, a multifamily brokerage division of Marcus & Millichap, represented both sides in the sale. He said improvements made to the property in recent years – and the potential for more – were a strong selling point.

“The property had received $4.2 million in capital expenditures during the last five years,” he said in a statement. “The new owner, M West Holdings, has an opportunity to enhance revenue through the continuation of strategic renovations.”

Andrew Paulson, senior asset manager for M West, said renovations will begin with landscaping in common areas, developing areas for fire pits, outdoor seating and cabanas.

“(This purchase) represents M West’s ongoing commitment to expanding our core portfolio with strategically located, well-designed and highly functional multifamily investments that cater to the needs of the local tenant base,” he said in a statement.

M West owns and manages multifamily, office, retail and industrial properties totaling more than 1 million square feet in California, Florida, New York and Texas.

Harris was joined in the representation by Ron Harris, Paul Darrow and Michael DiSimone, all of IPA.

Affordable Housing

In order to afford the purchase of a median-price home in Los Angeles, a homebuyer should have a salary greater than $72,000, according to a report released last week by HSH.com.

The mortgage and consumer loan researcher, which came up with the calculation for 25 American cities, combined fourth quarter home-price data from the National Association of Realtors and average interest rates for 30-year, fixed-rate mortgages in each area to determine how much homebuyers would need to earn. The calculation assumed a 20 percent down payment, but did not take into account the cost of taxes, insurance and other expenses, nor did it take into account other debt that purchasers might already have.

With the median home price in Los Angeles in the fourth quarter at about $424,000, monthly payments would be about $1,700.

In 2012, according to the U.S. Census Bureau, the median salary in Los Angeles was only a little more than $57,000.

Staff reporter Bethany Firnhaber can be reached at [email protected] or (323) 549-5225, ext. 235.

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