{"id":378,"date":"2011-09-03T08:37:42","date_gmt":"2011-09-03T16:37:42","guid":{"rendered":"http:\/\/www.jerrybice.com\/wordpress\/?p=378"},"modified":"2011-09-03T08:37:42","modified_gmt":"2011-09-03T16:37:42","slug":"vacant-condos-trade-in-short-sale-buyer-to-lease-units","status":"publish","type":"post","link":"https:\/\/www.jerrybice.com\/wordpress\/vacant-condos-trade-in-short-sale-buyer-to-lease-units\/","title":{"rendered":"Vacant Condos Trade in Short Sale, Buyer to Lease Units"},"content":{"rendered":"

Article by Bob Howard<\/a>\u00c2\u00a0of GlobeSt.com<\/p>\n

LOS ANGELES COUNTY<\/strong>
\n\"\"EAGLE ROCK, CA-The newly built Oxy Lofts condominiums at 4547-4555 Eagle Rock Blvd. have traded in a lender-assisted short sale in this week’s roundup of commercial real estate news in the West.\u00c2\u00a0Marcus & Millichap<\/strong>\u00c2\u00a0executive vice president\u00c2\u00a0Ron Harris<\/strong>\u00c2\u00a0and associate director\u00c2\u00a0Paul Darrow<\/strong>\u00c2\u00a0in the company’s Downtown L.A. office, who represented both the buyer and the seller, tell GlobeSt.com that the buyer paid $8.6 million in the all-cash transaction. Harris and Darrow point out that the property, which includes 32 residential units and one commercial space, features loft and townhome style floorplans designed by architect\u00c2\u00a0Jay Vanos<\/strong>\u00c2\u00a0to appeal to young professionals who have begun moving eastward to Eagle Rock from areas like Silverake and Los Feliz. \u00e2\u20ac\u0153Although the units were individually parceled for condominiums, the buyer will lease the apartments and consider selling the units as condos in a future market cycle,” Harris said. Darrow noted that, “This is the second transaction that Eagle Rock has seen this quarter in which an institutionally profiled buyer purchased a site from a local developer.\u00c2\u00a0While Eagle Rock remains less established than other parts of Los Angeles, its long term potential has begun drawing outside capital seeking to invest in emerging in-fill markets.” Due to timing constraints, the developers opted to forgo individual sales and dispose of the asset on a bulk-sale basis, and the property attracted multiple offers from local and regional investment groups. Harris and Darrow say one of the reasons that the property generated so much investor interest is that it “represented an opportunity to capitalize on Los Angeles’ already rebounding rental market or pursuse an immediate sell-out of the individual units.” The units “feature innovative loft and townhome style floorplans” that can be expected to yield “significant price premiums over the homegenous product that is generally available in the Los Angeles housing market,” the Marcus & Millichap team says. The buyer was\u00c2\u00a0PEI Asset Pool VI LLC<\/strong>, an opportunistic fund based in San Diego. The seller was a local private developer.<\/p>\n

Furniture and home furnishings retailer\u00c2\u00a0West Elm<\/strong>\u00c2\u00a0has signed a 15-year, $6.5 million lease for 10,909 square feet of retail space at 8366 Beverly Blvd. in Los Angeles for a new location. West Elm, a division of\u00c2\u00a0Williams Sonoma<\/strong>, is slated to open by the end of 2011. The retailer signed the lease with building owner Brand Art LLC, which was represented by\u00c2\u00a0David Ickovics<\/strong>\u00c2\u00a0and\u00c2\u00a0David Aschkenasy<\/strong>\u00c2\u00a0of\u00c2\u00a0Commercial Asset Group<\/strong>. West Elm was represented by\u00c2\u00a0Epsteen & Associates<\/strong>. The landlord has also retained CAG to provide property management services for the building.<\/p>\n

Sky High Sports<\/strong>\u00c2\u00a0has acquired a 34,321-square-foot industrial building at 6033 De Soto Ave. in Woodland Hills from a private seller for approxmately $5.35 million. The buyer was represented by senior EVP\u00c2\u00a0John DeGrinis<\/strong>, associate VP\u00c2\u00a0Patrick DuRoss<\/strong>\u00c2\u00a0and senior associate\u00c2\u00a0Jeff Abraham<\/strong>\u00c2\u00a0of Team DeGrinis, based in\u00c2\u00a0Colliers International\u00e2\u20ac\u2122s<\/strong>\u00c2\u00a0Encino office.\u00c2\u00a0Jim McDonald<\/strong>\u00c2\u00a0of Group 100 represented the seller. Sky High, a trampoline fun center, bought the property for an expansion, according to DuRoss. \u00e2\u20ac\u0153Sky High found tremendous success in the building we leased them in Camarillo in 2010,\u00e2\u20ac\u009d said DuRoss. \u00e2\u20ac\u0153For their expansion into the San Fernando Valley, we looked at several alternatives that just weren\u00e2\u20ac\u2122t the right fit. But when we saw this building, we thought it was the ideal location for Sky High.\u00e2\u20ac\u009d DeGrinis added, \u00e2\u20ac\u0153This transaction also took some creativity in putting the deal together. We ended up structuring the purchase with the seller carrying back the note, which helped accomplish both parties\u00e2\u20ac\u2122 goals.\u00e2\u20ac\u009d<\/p>\n

Musicians Institute Inc.<\/strong>\u00c2\u00a0bought a 5,612-square-foot, single-story office building on 13,000 square feet of land at 1536 N. Highland Ave. in Los Angeles from\u00c2\u00a0Mher<\/strong>\u00c2\u00a0and\u00c2\u00a0Sossy Tavidian<\/strong>\u00c2\u00a0of\u00c2\u00a0Vartan Tavidian<\/strong>\u00c2\u00a0for $3 million. The sellers were represented by SVO\u00c2\u00a0Kathleen Silver<\/strong>\u00c2\u00a0and associate\u00c2\u00a0Kay Thorpe<\/strong>\u00c2\u00a0in the West Los Angeles office of Colliers International. The buyer was represented byRamsey-Shilling Commercial Real Estate Services Inc.<\/strong><\/p>\n

Trucking company\u00c2\u00a0So Cal Carriers Inc.<\/strong>\u00c2\u00a0has acquired 110,000 square feet of land at 6403 E. Slauson Ave. in the City of Commerce for $2.7 million at one of the highest sale prices for land in the Commerce market in the past two years, according to SVP\u00c2\u00a0Brian McLoughlin<\/strong>\u00c2\u00a0in the Commerce office of\u00c2\u00a0Voit Real Estate Services<\/strong>. McLoughlin, along with\u00c2\u00a0David Fults<\/strong>, also an SVP in Voit\u00e2\u20ac\u2122s Commerce office, represented the seller,\u00c2\u00a0Maechling Family Trust<\/strong>. So Cal Carriers will use the land as its new Commerce headquarters in a relocation from the City of Industry. McLoughlin notes that a 36,123 square-foot warehouse is situated on the land, and the buyer plans to use a portion of that building and demo the rest. The buyer was represented by\u00c2\u00a0Casey Mungo<\/strong>\u00c2\u00a0of\u00c2\u00a0Daum Commercial Real Estate Services<\/strong>.<\/p>\n

ORANGE COUNTY<\/strong><\/p>\n

\"\"<\/p>\n

The owner of the 63,000-square-foot Bristol Place retail center at 3370-3398 S. Bristol St. in Santa Ana has secured a $15.5 million senior loan to refinance the maturing loan on the center. The loan was arranged by a\u00c2\u00a0George Smith Partners<\/strong>\u00c2\u00a0team including principal and managing director\u00c2\u00a0Gary Mozer<\/strong>, SVPs\u00c2\u00a0Steve Orchard<\/strong>\u00c2\u00a0and\u00c2\u00a0Josh Roseman<\/strong>, and VP\u00c2\u00a0Michelle Lee<\/strong>. Bristol Place is a 75%-occupied, Target shadow-anchored center for which the client required a 75% LTV loan for the refinancing. \u00e2\u20ac\u0153The primary challenge of the deal,\u00e2\u20ac\u009d explained Roseman, \u00e2\u20ac\u0153was the tenant base as 67% of the leases rolled in three years, and several of the tenants were delinquent on their rents.\u00e2\u20ac\u009d With the property only demonstrating break-even debt coverage and with a high ($250) loan per square foot, the transaction fell beyond the comfort level of many capital providers. In order to get the deal closed, Roseman says, GSP highlighted and supported the strengths of the deal, which included “an experienced, retail-focused sponsor, strong historical performance by the shadow anchor, an infill location in a major retail corridor and significant leasing velocity.\u00e2\u20ac\u009d The financing was secured on a non-recourse basis, floating at LIBOR plus 375 basis points with a 7.75% floor, interest-only for the full term. The term is three years with two one-year options, and is locked out for 12 months with an open prepay thereafter.<\/p>\n

SAN DIEGO COUNTY<\/strong><\/p>\n

\"\"Torrey Corner<\/div>\n

Buyer\u00c2\u00a03 Tier Investments LLC<\/strong>\u00c2\u00a0has acquired the 13,344-square-foot Torrey Corner Shopping Center at 11120 and 11130 E. Ocean Air Dr. in the Carmel Valley submarket from\u00c2\u00a0Sorrento Hills Marketplace 2 LLC<\/strong>\u00c2\u00a0for $6.1 million.\u00c2\u00a0Andrew Peterson<\/strong>,\u00c2\u00a0Bruce Schiff<\/strong>,\u00c2\u00a0Phil Lyons<\/strong>\u00c2\u00a0and\u00c2\u00a0Chad Iafrate<\/strong>\u00c2\u00a0of\u00c2\u00a0Cassidy Turley BRE Commercial\u00e2\u20ac\u2122s<\/strong>\u00c2\u00a0retail division represented the seller; 3 Tier Investments represented itself. Tenants include Bank of America, Love to Dance, Prudential Real Estate, Sun Smiles Dentistry, Zip Fusion Sushi and Massage Envy. The sale represented “a high price for retail strip shopping centers,” Peterson said, explaining that the price reflects how “Carmel Valley is a highly sought-after trade area with limited retail projects and many barriers to entry for new development.”<\/p>\n

\"\"Bel Vue Terrace<\/div>\n

Buyers have acquired two apartment complexes in San Diego totaing 68 units in two separate transactions. The\u00c2\u00a0M.S. Browar Family Trust<\/strong>\u00c2\u00a0bought the 48-unit Grand Avenue Apartments at 2202-2242 Grand Ave. from\u00c2\u00a0Howard F Barton, Successor Trustee<\/strong>\u00c2\u00a0for more than $5.4 million, and\u00c2\u00a0Brunner Properties LLC\u00c2\u00a0<\/strong>bought the 20-unit Bel Vue Terrace at 1304-48 Brunner St. for more than $4.1 million. The Grand Avenue transaction was negotiated by\u00c2\u00a0Allen Chitayat<\/strong>\u00c2\u00a0of the San Diego office of\u00c2\u00a0Hendricks & Partners<\/strong>\u00c2\u00a0on behalf of the buyer. In the Bel Vue Terrace sale, Chitayat negotiated the deal on behalf of the seller.<\/p>\n

 <\/p>\n

INLAND EMPIRE<\/strong><\/p>\n

Borrower\u00c2\u00a0Riverside University Hills Apartments<\/strong>\u00c2\u00a0has secured a $7.5 million in refinancing for University Hills, a 116-unit housing complex near the University of California at Riverside. The loan was arranged by an\u00c2\u00a0HFF<\/strong>\u00c2\u00a0team led by director\u00c2\u00a0Mark Erland<\/strong>\u00c2\u00a0and associate director\u00c2\u00a0Charles Halladay<\/strong>. It is a 10-year, 4.38%, fixed-rate financing including two years of interest-only withFreddie Mac<\/strong>. HFF will service the securitized loan through its Freddie Mac Program Plus Seller\/Servicer program. Loan proceeds replaced the existing floating rate debt on the property and included a cash-out component. University Hills has four residential buildings situated on a 2.5-acre site at 140, 160, 180 and 200 West Big Springs Rd.<\/p>\n

Third-party logistics provider\u00c2\u00a0Selco Associates<\/strong>\u00c2\u00a0has signed a lease for a 93,522-square-foot industrial building at 14277 Ramona Ave. in Chino after subleasing the space from\u00c2\u00a0Las Vegas Express<\/strong>\u00c2\u00a0for the past 15 months. Selco was represented by\u00c2\u00a0Jones Lang LaSalle<\/strong>\u00c2\u00a0executive vice presidents\u00c2\u00a0Mike Fowler<\/strong>\u00c2\u00a0and\u00c2\u00a0Tim O\u00e2\u20ac\u2122Rourke<\/strong>. Ownership was represented by\u00c2\u00a0Steve Belletti<\/strong>\u00c2\u00a0andJosh Hayes<\/strong>\u00c2\u00a0of Colliers International. Terms of the lease were undisclosed.<\/p>\n

NEVADA<\/strong><\/p>\n

The owner of an Albertsons grocery-anchored retail property at 10520 S. Eastern Ave. in Henderson has secured an $18.5 million loan to refinance the property. The loan was arranged by a George Smith Partners team including principal and managing director Gary Mozer, SVPs Steve Orchard and Josh Roseman, and VP Michelle Lee. The GSP team explains that, while the property was 98% occupied, its tertiary location about 15 miles southeast of Las Vegas severely limited the number of interested capital providers. The client also required certainty of execution as the existing loan matured in less than 30 days. In addition to the time constraint and challenging market, the existing lease did not require\u00c2\u00a0Albertsons<\/strong>\u00c2\u00a0to provide sales information. \u00e2\u20ac\u0153If we had strong sales information from Albertsons, or if they were credit-rated,\u00e2\u20ac\u009d Lee explained, \u00e2\u20ac\u0153we would have easily mitigated the market and tenant risk. Alternatively, by identifying the key risks early and completing significant due diligence to mitigate these risks, we identified several lenders who were comfortable with the asset.\u00e2\u20ac\u009d The 70% loan-to-value loan closed as seven-year, non-recourse debt at a 4.75% fixed interest rate with 25-year amortization and step-down prepay.<\/p>\n

 <\/p>\n

Original article posted at\u00c2\u00a0http:\/\/www.globest.com\/news\/1991_1991\/losangeles\/313652-1.html<\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Article by Bob Howard\u00c2\u00a0of GlobeSt.com LOS ANGELES COUNTY EAGLE ROCK, CA-The newly built Oxy Lofts condominiums at 4547-4555 Eagle Rock Blvd. have traded in a lender-assisted short sale in this week’s roundup of commercial real estate news in the West.\u00c2\u00a0Marcus & Millichap\u00c2\u00a0executive vice president\u00c2\u00a0Ron Harris\u00c2\u00a0and associate director\u00c2\u00a0Paul Darrow\u00c2\u00a0in the company’s Downtown L.A. office, who represented … <\/p>\n

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