Jeans and lifestyle company True Religion Apparel Inc. will move its corporate headquarters from a known hub for apparel manufacturing in Los Angeles to the beach – Manhattan Beach.
The company, founded in 2002 and long headquartered in business-friendly Vernon, signed a 15-year lease for a 72,250-square-foot building at 1888 Rosecrans Ave. Real estate sources estimate the deal with landlord Continental Development Corp. was valued at about $45 million.
The three-story building, which Continental acquired in 1988, was long occupied by Tecolote Research Inc. The building was vacated, gutted and in the midst of a substantial renovation when True Religion came calling. During construction, which is expected to be completed in the spring, the landlord changed the building’s address from 3601 N. Aviation Blvd. to one on Rosecrans.
“We think the Rosecrans corridor holds a greater cachet for an address than Aviation Boulevard,” said Bob Tarnofsky, director of real estate for Continental.
In a statement to the Business Journal, True Religion said the move will bring employees under one roof in an area that’s more attractive to workers.
“As we focus on attracting and retaining the best talent, we wanted to create a more modernized, cohesive work environment in a desirable location,” it said. “In addition, our team has been split between two buildings, and this will bring everyone together in one place so that we can work together more closely as we develop our brand for the future.”
Michael DeSantis and John Doyle of Cushman & Wakefield Inc. represented True Religion in the deal. Continental Development handled negotiations internally.
Inglewood Buy
Large apartment buildings in Inglewood don’t sell very often, and when they do, they tend to go for very little – less than $90,000 a unit in most cases. But in a purchase made last month, Century City firm Universe Holdings bet big on Inglewood, relatively speaking.
The real estate investment and development firm acquired the Sycamore Apartments, a Class C multifamily property with 50 units at 875 Victor Ave., from Victor D. Beeler of Pismo Beach for nearly $8.7 million. That’s about $173,000 a unit, 73 percent more than anyone has paid for a multifamily property with 50 or more units in Inglewood in the last decade. The largest recent deal for a property that size was the 2011 sale of a 50-unit property at 601 N. Market St. for $5 million, about $100,000 a unit.
The Sycamore, built in 1972, was about 95 percent occupied at the time of sale, with rents for one-, two- and three-bedroom units ranging from $983 a month to $2,025.
Henry Manoucheri, chairman and chief executive of Universe, said the company, which had in recent years focused on building its portfolio in San Diego, Ventura and the Inland Empire, was eager to re-enter the L.A. market.
“The Sycamores acquisition marks a renewed interest in the L.A. market for Universe, and we are confident in the long-term fundamentals of Inglewood,” he said. “Inglewood is one of Los Angeles’ historic high-density communities on the cusp of a major period of revitalization.”
Universe plans to spend $1 million to upgrade the property.
The sale comes as investors and developers have begun to hatch big plans for Inglewood. In January, Madison Square Garden Co. reopened the Forum concert venue after a $100 million renovation. Down the street, Hollywood Park Racetrack is slated for demolition to make way for a 238-acre mixed-use community to be known as Hollywood Park Tomorrow. Between those sites, Stan Kroenke, owner of pro football’s St. Louis Rams, purchased a 60-acre development site where Wal-Mart Stores Inc. had planned to build a store.
Brice Head of Re/Max Commercial & Investment Realty represented both the buyer and seller in the multifamily deal.
Moving Matters
Institutional Property Advisors, a division of Calabasas real estate company Marcus & Millichap Real Estate Investment Services Inc., has named Alex Garcia Jr. senior director responsible for covering the Inland Empire. Garcia, who joined Marcus & Millichap 25 years ago, was previously senior vice president of investments for the firm. Meanwhile, Marcus & Millichap Capital Corp., which provides clients with commercial real estate financing and capital markets expertise, has named Michael Derk and Jake Roberts as first vice presidents of capital markets.
Staff reporter Bethany Firnhaber can be reached at [email protected] (323) 549-5225, ext. 235.
