Downtown Los Angeles
Downtown’s office vacancy rate narrowed slightly in the second quarter, dipping to 16.4 percent from 16.6 percent in the prior quarter, and compared with 18.3 percent in the year-earlier period. Class A rents rose a tad, to $3.50 a square foot from $3.47 in the first quarter last year. Net absorption was 68,379 square feet. There are 356,000 square feet.
Main Events
-CBRE Global Investors sold parent company CBRE Group Inc.’s headquarters at 400 S. Hope St. for $330 million to PNC Financial Services Group and GLL Real Estate.
-Russell Simmons’ video network All Def Digital moved from Culver City to 1212 S. Flower St., picking up 26,200 square feet.
-Tom Gilmore’s San Fernando Building at 400 S. Main St., one of downtown’s first adaptive reuse apartments, sold for $37 million to MWest Holdings.
Hollywood
Hollywood’s office vacancy rate grew considerably in the second quarter, reaching 28.7 percent from 20.9 percent in the prior quarter, and compared with 12.7 percent in the year-earlier period. Even so, many leases were signed, pushing up Class A to $4.31 a square foot from $4.26 in the first quarter last year. Net absorption was 71,871 square feet. There are 624,600 square feet under construction.
Main Events
-The Redbury Hotel at 1717 Vine St., operated by Sam Nazarian’s SBE Group, was sold to Vulcan Inc. for $40.9 million by Pebblebrook Hotel Trust.
-A seven-acre plot at 1999 N. Sycamore Ave., home to the Yamashiro Restaurant, sold for nearly $40 million to 1999 Sycamore, owned by Beijing hotel company JE Group.
Westside
The Westside’s office vacancy rate increased a tad in the second quarter, reaching 13.7 percent from 13.5 percent in the prior quarter, and compared with 13 percent in the year-earlier period. Even so, Class A rents rose notably, to $4.76 a square foot from $4.62 in the first quarter last year. Net absorption was a loss of 71,579 square feet. There are 947,280 square feet under construction.
Main Events
-Blackstone Group sold its 50 percent stake in Santa Monica’s Colorado Center for more than $500 million, or more than $900 a square foot, to Boston Properties Inc. Blackstone also sold 11601 Wilshire Blvd. in Brentwood for $311 million to Hudson Pacific Properties Inc.
-Vintage Capital Group sold a 17,908-square-foot retail strip at 460 N. Canon Drive in Beverly Hills for just under $38 million, or about $2,122 a square foot.
Santa Clarita Valley
The Santa Clarita Valley’s office vacancy rate dipped in the second quarter, reaching 11.2 percent from 12.6 percent in the prior quarter, and compared with 13.4 percent in the year-earlier period. Class A rents fell slightly, to $2.68 a square foot from $2.73 in the first quarter last year. Net absorption was 34,555 square feet.
Main Events
-Retail Opportunity Investments Corp. bought the 149,000-square-foot Bouquet Center at 26500 Bouquet Canyon Road in Santa Clarita for $59 million.
-Gelt Inc. bought a 232-unit Santa Clarita apartment complex at 28085 Whites Canyon Road for $45.5 million from Fowler Property Acquisitions.
-Biomedical company SetPoint signed a 10-year lease for more than 14,000 square feet
in the Mann Biomedical Park in Valencia at 25101 Rye Canyon Loop.
San Fernando Valley
The San Fernando Valley’s office vacancy rate slipped in the second quarter to 13.4 percent from 13.6 percent in the prior quarter, and compared with 15.2 percent in the year-earlier period. Class A rents stayed virtually flat at $2.72 a square foot over $2.70 in the first quarter last year. Net absorption was 61,327 square feet. There are 60,470 square feet under construction.
Main Events
-Tom Redfern & Associates bought a 200-unit apartment complex at 10201 Lindley Ave. in Northridge for $53.5 million from AEW Capital Management.
-LAApartments.Biz bought a 170-unit apartment building at 14040 Foothill Blvd. in Sylmar for $33 million from the Laramar Group.
-Healthcare Realty Trust Inc. bought the 64,000-square-foot West Hills Medical Center at 7301 Medical Center Drive for $19.8 million from Consolidated Investment Group.
Tri-Cities
The office vacancy rate in the Tri-Cities slid in the second quarter, hitting 12.3 percent from 12.7 percent in the prior quarter, and compared with 15.3 percent in the year-earlier period. Class A rents bumped up, to $3.06 a square foot from $2.99 in the first quarter last year. Net absorption was 132,233 square feet.
Main Events
-Granite Properties bought a 21-story Glendale office tower at 550 North Brand Blvd. for just under $80 million, next door to a tower it bought three years ago.
-The 9.6-acre Pasadena Business Center at 465 N. Halstead St. sold for about $67 million to EverWest Real Estate Partners.
-A 126,000-square-foot, nine-story Glendale office building sold for $27 million, or about $217 a square foot, to Volwood Corp.
Wilshire Corridor
The Wilshire Corridor’s office vacancy rate stayed fairly flat in the second quarter, dipping to 18.5 percent from 18.6 percent in the prior quarter, and compared with 19.2 percent in the year-earlier period. Class A rents held steady at $2.65 a square foot from $2.67 in the first quarter last year. Net absorption was 16,752 square feet.
Main Events
-ArcWest Partners bought Koreatown’s Chapman Plaza at 3451 W. Sixth St. from a local family in a deal valued by market sources at roughly $53 million.
-Ocean West Capital Partners bought 4525 Wilshire Blvd. for $22.7 million with plans to do extensive office renovations in the 76,000-square-foot space that houses the Korea Times newspaper.
-AXA Investment Managers – Real Assets bought a 49 percent stake in 5900 Wilshire, partnering with co-owners Prudential Real Estate Investors and Ratkovich Co. on the 452,765-square-foot Miracle Mile tower. The deal put the full value of the property at $245 million.
South Bay
The South Bay’s office vacancy rate narrowed in the second quarter, dipping to 18.4 percent from 19.6 percent in the prior quarter, and compared with 21.7 percent in the year-earlier period. Class A rents grew a bit, hitting $2.53 a square foot compared with $2.44 in the first quarter last year. Net absorption was 19,700 square feet. There are 96,670 square feet under construction.
Main Events
-El Segundo’s Apollo at Rosecrans office complex, set on 13 acres with 547,000 square feet, sold for roughly $328 million, or more than $600 a square foot. Intercontinental Real Estate Corp. bought the property at 2150 Park Place from Invesco Ltd.
-A 97,445-square-foot El Segundo office at 550 Continental Blvd., home to Time Warner, sold for $30.5 million, or just over $300 a square foot.
San Gabriel Valley
The San Gabriel Valley’s office vacancy rate saw the county’s biggest vacancy jump in the second quarter, ticking up to 13.2 percent from 12.3 percent in the prior quarter, and compared with 13.8 percent in the year-earlier period. Class A rents stayed fairly steady, at $2.42 a square foot from $2.45 in the first quarter last year. Net absorption was a loss of 110,225 square feet.
Main Events
-Developer Goodman Birtcher acquired a pair of massive distribution centers in Santa Fe Springs and El Monte from Albertsons Cos. Inc. with an estimated value of $240 million.
-Rexford Industrial Realty Inc. bought 1.53 million square feet of property across Southern California for $191 million, including a 325,800-square-foot building at 16425 E. Gale Ave. in the City of Industry.
