As far as receivership deals go, the $43 million sale of 416 on Broadway, a 115-unit multifamily building at 416 E. Broadway in Glendale, managed to come without too much litigation.
It’s a lesson that cooperating and negotiating can sometimes be more efficient than courtroom wrangling, said Taylor B. Grant, principal of Newport Beach-based California Real Estate Receiverships, which sold the property as a court-ordered receiver.
“A lot of the lawyering was solving problems and not fighting in court,” Grant said.
The property was built as condos and came on line in 2009 after the economic downturn. Its value fell and a loan of more than $49.9 million, with penalties and other costs, was too much for owners East Broadway Ventures Inc. and Grant was named as receiver.
The property was encumbered by liens from about 30 contractors and subcontractors, he said, and it took six months of negotiations to resolve them.
But 22 offers were put on the property, the top three within about $1 million of each other.
“If I can get more than 20 offers on a piece of property like that, then we’ve gotten the right price,” said Grant, who added that the building was more than 90 percent leased when it was sold and is profitable.
Asking rents for one- and two-bedroom units range between $1,763 and $2,706, and tenant concessions are being phased out, according to the sales prospectus. The buyer, Essex Property Trust Inc., could resell the units as condos in the future. The property also has about 9,200 square feet of vacant ground-floor retail space.
Sean Deasy and Mark Petersen of Holliday Fenoglio Fowler represented the buyer and seller and were unavailable for comment. A representative of for East Broadway Ventures could not be reached.
High-Renting Drugstore
The southeast corner of Santa Monica Boulevard and Highland Avenue is getting a heavy makeover.
The Del Taco that stood at 6766-6768 Santa Monica Blvd. is being torn down for new tenant Walgreen Co. The building’s expected to be completed this spring.
The land changed hands, too, in an off-market deal valued at $10.7 million. The seller was Village Properties Inc. and the buyer Livermore Plaza LLC. Walgreen agreed to a 75-year-lease, which increased the value of the land. The sale price for the planned 7,830-square-foot structure is more than $1,368 per square foot, which makes it the highest price per square foot for a single-tenant drugstore in the United States last year, according to CoStar Group and Real Capital Analytics.
Livermore Plaza is a Bay Area investor that is planning to hold the property long term. Mark Thiel, of Marcus & Millichap, represented Livermore.
Village Properties is a longtime developer for Walgreen. The drugstore chain does not have another store nearby, and usually takes sites with drive-throughs and lots of about 55,000 square feet. This Walgreens store won’t have a drive-through and the lot is smaller, about 18,350 square feet.
Jon Selznick, a broker with Irvine-based commercial real estate firm Pacific Commercial Investments Inc., represented the seller. Chris Rodriguez, of Pacific Commercial Investments, also represented the seller.
Westwood Health Care Growth
Zynx Health Inc., a health care technology company, plans to add more than 70 engineers and software employees to its headquarters at Oppenheimer Tower in Westwood. Four years before its lease expired, the company and landlord Equity Office agreed to renew and expand the company’s space at 10880 Wilshire Blvd.
The renewal and expansion will increase the company’s square footage by more than 50 percent, from about 26,000 square feet to almost 41,500 square feet. The 73-month lease is valued at about $4.5 million, with rents per square foot in the high $2-$3 range through February 2016.
The company will occupy the entire third and fourth floors of the building, as well as expand on the fifth and 14th floors, said Steven Marcussen, an executive director at Cushman & Wakefield, who represented the tenant.
Landlord representatives Hunt Barnett, Peter Best, Beau Rawi and Karly Nolen, of L.A. Realty Partners, were unavailable for comment. A representative of Equity Office did not return requests for comment.
Staff reporter Max Zimbert can be reached at [email protected] or at (323) 549-5225, ext. 263.
