Real Estate Quarterly Report: Q1 2021
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L.A. County Real Estate Submarket Data Summary
Downtown
Downtown’s first-quarter office vacancy rate rose to 18.8%, up from 18.3% the previous quarter and 16.6% the previous year. There was 116,000 square feet of office product under construction during the quarter and negative 154,218 square feet of space was absorbed in the market. Asking rents were steady year over year and up 1 cent quarter over quarter to $3.86 a square foot.
Main Events
Waterton purchased Olive DTLA, a 293-unit multifamily property at 1243 S. Olive St. from the Wolff Co. for $121 million.
TRJLA purchased a development site at 717-759 N. Hill St. in Chinatown from Pacific Alliance for $19 million.
California Community Foundation purchased a nearly 53,000-square-foot office property from First City Credit Union at 717 W. Temple St. for $15.4 million.
Hollywood
Hollywood’s office vacancy rate rose to 29.1%, up from 21.5% the previous quarter and 7.1% the previous year. Rents increased to $5.43 a square foot, up 4 cents over the previous quarter and 1 cent over the previous year. Net absorption was negative 172,039 square feet and 358,813 square feet was under construction during the quarter.
Main Events
Post-production group Company 3 signed an 11-year lease for 70,285 square feet at Hudson Pacific Properties Inc.’s Harlow, an office development at the Sunset Las Palmas Studios.
Westside
The Westside office vacancy rate increased to 14.2%, up from 12.6% the previous quarter and 8.7% the previous year. Marina del Rey had the highest vacancy rate at 35.4%, Century City had the lowest at 9%. The asking rate for Class A space on the Westside was $5.63 a square foot, down 1 cent from the previous quarter but up 1 cent from the previous year. There was 2.9 million square feet of office space under construction, including 1.1 million in Culver City and 1.8 million in West L.A. There was 716,734 square feet of negative net absorption on the Westside during the quarter.
Main Events
Hackman Capital Partners and Square Mile Capital purchased the Sony Pictures Animation Campus in Culver City from H&R Real Estate Investment Trust for around $160 million.
Coastline Real Estate Investments purchased the 28-unit Luxury Living apartment building at 901 Ocean Ave. in Santa Monica from American Alliance Property Management for $32.6 million.
LaSalle Investment Management purchased a nearly 51,00-square-foot medical office building in Beverly Hills known as the Archway Medical Plaza from UBS Realty Investors for $74.4 million.
Brookfield Asset Management Inc. purchased the Sunrise of Beverly Hills, a skilled nursing facility, from Healthpeak Properties Inc. for $38.1 million.
Santa Clarita Valley
Santa Clarita Valley’s office vacancy rose to 18.7%, up from 17.8% the previous quarter and 13.2% the previous year. Net absorption was negative 15,037 square feet and there was no new office product under construction. Asking rents rose 1 cent year over year and held steady quarter over quarter to $2.82 a square foot.
Main Events
CGI Cos. purchased a portfolio of six multifamily properties with 141 units on Walnut Street in Santa Clarita for $30.8 million.
Lennar Corp. purchased 24 acres of land in Santa Clarita from an individual for $18.4 million.
Formosa Flexible Packaging purchased a distribution center at 25636 Ave. Stanford in Valencia for $9.22 million.
San Fernando Valley
The San Fernando Valley’s office vacancy rate rose to 17.1%, up from 16.4% the previous quarter and 11.7% the previous year. Rents decreased 7 cents year over year but held steady quarter over quarter at $2.95 a square foot. Net absorption was negative 406,063 square feet and nearly 309,673 square feet was under construction.
Main Events
Alliant Capital purchased the Calabasas Commerce Center at 26050 Mureau Road from Crusader Insurance Co. for $12.7 million.
Hope of the Valley Rescue Mission purchased a skating rink at 18140 Parthenia St. in Northridge from Christian Foundation of America for $7 million.
LAApartments.Biz purchased the Imperial Manor, a 64-unit multifamily property at 21601-21609 Strathern St. in Canoga Park for $11.2 million.
Tri-Cities
First-quarter office vacancies increased in the Tri-Cities submarket of Burbank, Glendale and Pasadena to 14.4%, up from 13.6% the previous quarter and 11.5% the previous year. Negative 184,228 square feet was absorbed in the quarter while more than 1 million square feet was under construction. Rents increased 2 cents quarter over quarter but fell 4 cents year over year to $3.58 a square foot.
Main Events
Bridge Seniors Housing Fund Manager purchased Morningstar Senior Living, an assisted living facility at 951 Fair Oaks Ave. in Pasadena from Regency Park Senior Living Inc. for $64.5 million.
California Community Housing Agency purchased Next on Lex, a 494-unit complex in Glendale from Cypress Equity Investments for $290 million.
JRK Property Holdings purchased the 164-unit Harrison Glendale at 318 W. Wilson Ave. from Molasky Ventures for $90.7 million.
Alvarez & Marsal Holdings purchased a R&D building at 3100 New York Drive in Pasadena from Graymark Capital for $33 million.
Wilshire Corridor
Wilshire Corridor’s first-quarter office vacancy rate rose to 23.6%, up from 23.3% the previous quarter and 19.6% the previous year. Negative 46,023 square feet was absorbed into the market, and no new office product was under construction. Asking rents fell to $2.91 a square foot, down 1 cent over the previous quarter but were up 6 cents over the previous year. Asking rents in Miracle Mile were much higher at $4.34 a square foot.
Main Events
Veritas Investments Inc. purchased the eight-property Westside Collection, which included a building in Mid-Wilshire, from an individual for $75.7 million.
Dalan Management purchased a portfolio of three multifamily properties with 115 units in Koreatown from an individual for $17.5 million.
Elim Associates Inc. purchased a medical office building at 2970 W. Olympic Blvd. in Koreatown from an individual for $15.3 million.
South Bay
The South Bay’s industrial market vacancy decreased to 2.2%, down from 2.4% the previous year and steady with the previous quarter. Roughly 959,000 square feet was under construction while 3.3 million square feet sold or leased during the quarter. Rents rose to $1.05 a square foot, up 3 cents over the previous quarter and 1 cent over the previous year.
Main Events
Beyond Meat Inc. signed a 12-year lease for 280,000 square feet at Hackman Capital Partners’ 888 N. Douglas St. creative office project in El Segundo.
Server Farm Realty purchased a data center at 444 N. Nash St. in El Segundo from T5 Data Centers for $71 million.
Waterford Property Co. and California Statewide Communities Development Authority purchased the 216-unit Oceanaire at 150 W. Ocean Blvd. in Long Beach with plans to convert it to middle-income housing.
San Gabriel Valley
The San Gabriel Valley’s first-quarter industrial vacancy rate decreased to 2.3% from 2.6% the previous quarter and 3.1% the previous year. Asking rents were $0.86 a square foot, up 4 cents over the previous quarter and the previous year. Roughly 3.4 million square feet was sold or leased during the quarter and nearly 998,000 square feet was under construction.
Main Events
Realty Income Corp. purchased the Longo Lexus dealership at 3530 Peck Road in El Monte for $51.4 million.
Rising Realty Partners, Brasa Capital Management and CrowdStreet Inc. purchased an industrial building at 9320-9328 Telstar Ave. in El Monte for $41 million.
An individual purchased a 141-room Holiday Inn at 9920 Valley Blvd. in El Monte from California Investment Regional Center for $35 million.
For the full First-Quarter 2021 Real Estate Special Report data, see the April 26, 2021, print edition.
