A 34-year-old apartment complex less than two blocks from the shore in Hermosa Beach was sold last week for $68.5 million to Equity Residential Properties Trust, which plans substantial improvements to the property.
The 285-unit complex at 415 Herondo St. was sold by the original owner, who prefers anonymity, and Fairfield Residential LLC, an equity partner the developer brought in the mid 1990s.
"They decided it was a strategic move based on the real estate cycle," said Ron Harris, a broker at the Los Angeles office of Marcus & Millichap, who represented both sides in the sale along with Greg Harris, a broker in the company's El Segundo office.
Units at the aging complex now rent for about $2.38 a square foot on average, which is under the market rate of about $2.70-plus per square foot that newer complexes with more amenities command, Harris said.
Equity Residential, based in Chicago and one of the nation's largest apartment real estate investment trusts, plans substantial improvements, including renovated kitchens, bathrooms and common areas.
"The property is in a good position and has been well maintained, but it has not been renovated to the level where full market rents can be achieved. Post renovation they will be able to approach closer to (the market average)," Harris said.
The complex has 83 singles, 148 one bedrooms and 54 two bedrooms. It is currently 100 percent occupied.
Office Park Sold
Commerce Park, a three-building Los Angeles office campus on the Santa Monica border, sold last week for $29.1 million after less than a month on the market.
The 5-acre campus was sold by Pacific Structures LLC to Redwood Capital Partners. It was built in the late 1970s and recently renovated with a cumulative total of 110,000 square feet of office space at 3211 Olympic Blvd., 1811-1855 Centinela Ave. and 3212-3232 Nebraska Ave.
"The Commerce Park property, which is on a ground lease, produces $2.2 million of net operating income, and presented a rare opportunity to acquire a very desirable stake in one of Los Angeles County's best-performing markets," said Bob Safai, a principal at Madison Partners, who along with Mitch Stokes, represented both sides in the deal.
The area is home to various entertainment, architecture and arts and production companies. Pacific Structures listed the property with Madison Partners in May after the brokerage completed a 10-year, $23.3 million refinancing.
Technicolor is expanding and centralizing its digital postproduction facilities in Los Angeles into a new, six-story building on the Sunset-Gower Studios lot in Hollywood.
Construction will begin in July on the 115,000-square-foot building, which will house operations currently located at Technicolor's existing Hollywood postproduction complex, a Burbank facility and other operations in Los Angeles.
"Our new postproduction hub at Sunset-Gower Studios will allow us to stay ahead of demand, consolidate locations and gain certain economic advantages from limiting duplication of infrastructure and operational functions," said Mary Ann Fialkowski, president of Technicolor Content Services and Technicolor Film Services.
Technicolor is expecting to assume occupancy of the building by November 2007. The company is a unit of Paris-based Thomson.
Kam Sang Co. Inc. is breaking ground this month on the Atlantic Times Square Project, a mixed-use redevelopment project in Monterey Park totaling more than $200 million.
The project, at North Atlantic Boulevard and Hellman Avenue, will feature 205,000 square feet of retail space and 210 condominiums, ranging from studios to three-bedroom units. AMC Theaters will be an anchor tenant.
The project, adjacent to the Santa Monica (10) Freeway, is being designed by F-A Architect, which is producing a Mediterranean-style. Kam Sang, based in Arcadia, has developed and operated a broad range of projects, including retail shops, restaurants, hotels and housing.
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