Cohen has already turned around Manhattan's Design & Decoration Building, which is considered a premier high-end home furnishings center. Now he'll be put to the test with PDC.
Although the original Cesar Pelli-designed blue building was a big hit when it opened in 1975, the green building added more showroom space than the marketplace could absorb and the project struggled with vacancies and debt. But with the Westside office market on fire, the time could be ripe for a turnaround.
Santa Monica Place, Santa Monica
Buyer: Macerich Co.
Seller: The Rouse Co.
Price: $130 million
Santa Monica-based Macerich added another well-located Westside mall to its portfolio with its purchase of Santa Monica Place for $130 million last fall.
Maryland-based Rouse Co. sold the Frank Gehry-designed mall because it didn't mesh well with the rest of its portfolio, but for Macerich, it's a great fit. Macerich, also known as the "Mall Doctor," likes to cluster nearby centers to take advantage of operational and marketing synergies.
The real estate investment trust also owns the Westside Pavilion and Villa Marina Marketplace. With Santa Monica Place added to the mix, the malls serve a million residents with an average annual household income of $84,000. Macerich plans to make physical changes and tweak the tenant roster to increase annual per-square-foot sales, which already stand at a healthy $375.
1888 Century Park East, Century City
Buyer: Bentall US LLC
Seller: Whitehall Street Real Estate Ltd.
Partnership and Walton Street Capital
Price: $111 million
Bentall Corp., a publicly traded real estate company based in Vancouver, was looking hard for property in the Los Angeles area when 1888 Century Park East came on the market.
"We've had an affinity for the L.A. Basin. Our tentacles were out for some time. This is the first one we were able to make happen," said Gary Carpenter, executive vice president of the firm's U.S. operations.
Bentall US LLC bought the 21-story tower last August for $111 million and is investing in upgrades, with an eye to holding it long term and increasing the value. Carpenter said the tower was under-performing in terms of "where the market is going to go." It is currently 94 percent occupied, mostly with traditional Century City tenants such as lawyers and accountants, as well as Turner Entertainment.
Carpenter said Bentall hopes to further expand into Southern California and add to its holdings here.
5350-5580 Bandini Blvd., Bell
Buyer: Clarion Partners
Seller: NewCrow III
Price: $98.6 million
Modern industrial buildings in the southeast area of Los Angeles County are a hot commodity. Consider the 1.8 million square feet of space at 5350-5580 Bandini Blvd. in Bell, which is almost fully occupied.
Boston real estate investment manager Clarion Partners purchased the industrial park last fall on behalf of pension fund investors for almost $100 million from a group that included AEW Capital Management.
An institutional investment fund managed by AEW developed the buildings at the site of a former military base in the late 1970s in a joint venture with Trammell Crow Co. It sold the 14 buildings in a liquidation of the fund.
Ranging in size from 15,000 square feet to 125,000 square feet, the buildings are occupied by a variety of tenants, most of which use the space for local distribution operations.
For reprint and licensing requests for this article, CLICK HERE.
Stories You May Also Be Interested In
- REAL ESTATE---With Better Deal Possible, MGM Plaza Lets Tenant Go
- Office Buyer Gets Even More Creative in South Bay
- Tishman Purchasing Properties in Beverly Hills and Downtown
- Rand Corp. Expected to Stay at Its Home by the Sea
- Tishman Sells Oft-Traded Tower Burbank
- Tishman Speyer Set to Buy Arts District Office for $25 Million
- Rooftop Fire Turns Sunset Tower Into Even Hotter Property