Owner of Apartments Moves Into Office Property

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Beverly Hills real estate company SM Management has purchased the Class A office tower at 6100 Wilshire Blvd. for $76.5 million, about $358 a square foot. The price represents a 6 percent premium to the price paid by seller Kennedy-Wilson Holdings Inc. when it purchased the 16-story building in 2008 for $71.9 million, about $337 a square foot.

The high-rise acquisition was a first for SM Management, a company that until this sale primarily owned apartment buildings in Los Angeles.

Said Hakim, patriarch of the family-run business, said he and his sons Sam and Michael were attracted to the building because of its impressive tenant roster. Tenants include media and entertainment companies CBS Corp., BMG Chrysalis, Huge Inc. and Mavrick Artists Agency, among others. Built in 1986, the 214,000-square-foot tower is about 95 percent leased, an improvement from its 86 percent occupancy the last time it traded hands.

“This is a trophy building, with many, many good tenants,” Said Hakim said. “Nothing like it was built after this one, from here to Beverly Hills to West Los Angeles; it cannot be replaced.”

SM Management financed the purchase with a 10-year, $65 million loan from UBS Real Estate Investment Inc. The company intends to hold the property as a long-term investment.

Real estate investment brokerage Eastdil Secured represented the seller in the deal; the buyer handled negotiations internally.

Inglewood Sale

A large community shopping center property in Inglewood was divvied up and sold earlier this month to two buyers for a total of $27.5 million.

The property, Inglewood Plaza, is a four-building retail site totaling nearly 101,400 square feet of leasable space at 3100-3180 W. Imperial Highway. The largest piece was purchased by a fund managed by Cole Capital Advisors Inc., a real estate investment trust out of Phoenix that bought the three largest buildings on the property, totaling about 96,900 square feet, for $25.1 million.

The remaining piece, a 4,500-square-foot building, was sold for $2.4 million to the owner of the business that has occupied it for years, a salon called Lisa Beauty Salon & Nail Spa.

The sellers, Johanna and Kenneth Kim of Costa Mesa, paid $25.6 million for the property in 2012.

The shopping center, built in 2008, was fully occupied at the time of sale. The three buildings sold to Cole had long-term leases with national tenants Burlington Coat Factory, CVS Pharmacy and T-Mobile.

Justin Mendelson, senior director in the Century City office of Charles Dunn Co., represented the Kims in their purchase of the property two years ago and in the recent sale. He said they had planned to break the site up and sell the four buildings individually, but that didn’t prove cost-effective.

“When we took the entire property to market, we found it was most productive financially to break off only the one small parcel,” he said. “It was never meant to be a buy-and-hold property.”

Fred Sheriff and Darrell Levonian of Charles Dunn also represented the sellers in the deal.

Architecture Alliance

Two local architecture firms – NAC Architecture of East Los Angeles and Osborn Architects of Glendale – merged last month, then signed a lease for new combined offices near downtown Los Angeles in Chinatown.

The new entity, which will operate as NAC Architecture, signed a long-term lease with landlord Redcar Properties for 13,000 square feet at 837 N. Spring St. in a deal valued at $3.3 million. The merged firm will move in before the end of the year and occupy the entire top floor of the three-story red-brick building.

Michael Pinto, a principal of the new NAC and former principal at Osborn, said the expanded firm needed a larger collaborative space to take advantage of new opportunities created by the merger.

With more than 40 employees, the combined entity will offer a wider variety of services than either individual firm previously did.

“The building is a blank slate and our in-house team of architects and designers are working closely with Redcar to create a custom turnkey build,” Pinto said.

The former Osborn firm has already sold its smaller 8,800-square-foot headquarters at 320 E. Harvard St. for $4.1 million to an undisclosed buyer.

Jim Jacobsen of Industry Partners represented the landlord in the Chinatown lease deal; Armen Kazaryan of Lee & Associates represented the tenant.

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

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