In one of the biggest multifamily deals in Los Angeles County in 2010, a 90-unit apartment building at 6507 and 6510 Ocean Crest Drive in Rancho Palos Verdes has been sold.
The property, called the Madison, is one of only a handful of larger apartment complexes in the Palos Verdes area. It sold April 28 for $22.9 million. The deal breaks down to $254,033 per unit.
Pacific Property Co. of Palo Alto sold the 118,874-square-foot property to Alliance Residential of Phoenix after owning it for about five years. The building is 97 percent occupied and is not restricted by a rent control ordinance.
Ron Harris of Marcus & Millichap Real Estate Investment Services said that there were 23 offers on the property, which was listed at $24.5 million. There were other comparable bids to Alliance’s, but the company was selected because of its “terrific track record and a high probability of closing,” said Harris, who represented both parties.
More than half of the units have ocean views. One-bedroom units rent from $1,550 to $1,650; two-bedroom units rent from $1,750 to $2,250.
“There are very few properties that come available with a location of this caliber – a true coastal view location,” said Drew Colquitt, Alliance’s managing director in California. “This is a property in a submarket that is performing probably better than any in Los Angeles; there are no concessions in this market.”
Colquitt said his company believes the rental market in Rancho Palos Verdes has already bottomed out and noted Alliance’s ability to raise rents. First, the company plans a cosmetic renovation of common areas. Units will be remodeled as they become vacant.
Pacific Property had recently completed a $2 million renovation of the property, Harris said.
Joseph Smolen of Marcus & Millichap also represented both parties.
Music Lease
Universal Music Publishing Group, a unit of New York-based Universal Music Group Inc., moved into new headquarters space April 26. The company relocated to 2100 Colorado Ave. in Santa Monica after leaving 2440 S. Sepulveda Blvd. in West Los Angeles, where it had kept offices for 15 years.
Terms of the 11-year deal for 55,000 square feet were not disclosed.
Universal occupies all of one building and a portion of another in Kilroy Realty Corp.’s three-building project. The space was formerly occupied by Sony BMG Music Entertainment, which decamped for Beverly Hills in 2008.
“The building works well for the entertainment industry and the improvements are liked by media and entertainment tenants,” said John Fucci, senior vice president at Kilroy. “We feel very happy to have Universal in the building.”
The move constitutes a local expansion for Universal’s publishing arm, which previously occupied about 39,000 square feet at the Sepulveda offices. Its new digs are down the block from other Universal Music Group offices.
Universal was represented by Dave Toomey and Brian Davies of CresaPartners, and Brad Wilson of Jones Lang LaSalle Inc. Kilroy represented itself in-house on the deal, and was also represented by Jeff Pion and Deron White of CB Richard Ellis Group Inc.
Universal declined to comment. The lease was signed in late 2009, but wasn’t reported.
Pasadena Rehab
The Church of Scientology is nearly done with its $16.5 million renovation of the historic Braley Building in Pasadena. The building, which is on the National Register of Historic Places, originally housed Edgar R. Braley’s bicycle manufacturing facility and shop. The 50,800-square-foot building will house a chapel, bookstore, classrooms and offices for the Church of Scientology of Pasadena.
The organization bought the building in April 2006 and started the renovation, which was designed by architecture firm Gensler, in January. The work is expected to be finished by May 15, said Nhan Nguyen, project manager for Howard Building Corp. of downtown Los Angeles, which is handling the construction.
The renovation preserves the building’s façade. The five-story building has a four-story atrium that Nguyen said is also being fully preserved.
“It’s been very fun, with all the challenges of incorporating the historic features and the new design elements,” he said.
Staff reporter Daniel Miller can be reached at [email protected] or (323) 549-5225, ext. 263.
