VITAL STATISTICS
BRICKSTONE ARTS DISTRICT
441 Colton St., Los Angeles
Square Footage: 25,000
AIRE Ancient baths and spa had been looking for a space in Los Angeles since 2015. The requirements were very specific and difficult to locate within the market. AIRE needed approximately 25,000 square feet with the ability to build pools on close to half the surface. The team needed a building with character, high ceilings, and very few columns that could withstand the weight of the water surface. After AIRE hired Urbanlime Real Estate in 2022, toured the entire market, the decision makers were able to narrow the options down to two potential properties and secured a 25 year lease a year later.
AIRE Ancient Baths and Spa signing a lease in DTLA’s Arts District reaffirms the importance and attraction of that submarket to tenants wanting to be in a community that stands out. The Arts District is a place where adaptive reuse has created some of the most unique spaces and experiences in the city. AIRE Spa’s use is also a new concept to LA, which has no similar tenants in the market. This required the group to hire a group of experts to navigate the zoning code and introduce various city agencies to the particular needs. The project is anticipated to take 18 months to build and cost $12-$15 million dollars.
This 40-unit senior affordable housing complex located in South LA was purchased by a local non-profit senior affordable housing company that has a large presence throughout the Los Angeles submarket. After a lengthy escrow process that was required to HUD approval for the ownership transfer, the transaction successfully closed in December 2022. The asset consists of 40 senior (age 55 and up) apartments on a two-acre campus. The community currently maintains strong occupancy and was consistently high before and through the COVID-19 pandemic. Section 8 housing waivers subsidize the majority of the rent, providing a stable and consistent income stream.
The immediate surrounding area is expected to see a significant increase in the senior population over the next five years, notably a 23.9% increase in the 75-plus age group. Ensuring that the property sold to a non-profit company that would continue to have rents subsidized with HUD approval was an important feature for ownership.
VITAL STATISTICS
MODERA ARGYLE
6220 Selma Ave., Los Angeles
Square Footage: 23,211
In October 2023, upscale regional grocer Bristol Farms signed a 15-year lease for 23,211 square feet at Modera Argyle, a luxury community with 276 apartment homes, at the corner of Selma and Argyle Avenues in the heart of the Hollywood Entertainment District. Kennedy Wilson Brokerage’s executive vice president and director of retail, Lee Shapiro represented the landlord, Mill Creek Residential, in the transaction.
Modera Argyle is located between Sunset and Hollywood Boulevards one block east of Vine St. and consists of studio, one-, two- and three-bedroom luxury units. It sits adjacent to the Hollywood Palladium. The mixed-use development is currently under construction, and expected completion is Q2 2024.
VITAL STATISTICS
THE PROMENADE AT WESTLAKE
140 Promenade Way, Thousand Oaks
Square Footage: 21,517
CBRE’s Justin Schultz and his team successfully facilitated a complex transaction that met the needs of clients Nike and Williams-Sonoma. Nike was able to buyout of the lease and Williams-Sonoma was able to secure the same space under favorable terms. The landlord, Caruso Affiliated, also had a positive outcome with a valuable new tenant that helps elevate this already prominent shopping destination.
This transaction presented a remarkable level of complexity as it involved addressing the financial considerations of three prominent stakeholders. Through strategic negotiations and a deep understanding of the retail leasing landscape, Schultz successfully harmonized the financial interests of all parties.
