Billionaire Neil Kadisha’s investment vehicle is picking up yet another underperforming office complex: a Torrance building for $34 million.
An affiliate of Beverly Hills’ Omninet Capital LLC is in escrow to buy the 240,400-square-foot diamond-shaped building at 20101 Hamilton Ave., the firm’s eighth L.A. acquisition in just over a year.
Omninet, which is operated by Kadisha, purchased the building from a court-appointed receiver, which typically takes over a building on behalf of a lender when the owner fails to make mortgage payments. The details of the previous owner’s financial circumstances are not known, but CoStar Group Inc. lists the last owner of the building as L.A.’s Chase Partners Ltd., which purchased the property at the height of the market in 2007 for $43.4 million. Chase did not return calls requesting comment.
The 29-year-old building is 71 percent leased to professional firms including Computax Inc., a subsidiary of Dutch publisher Wolters Kluwer; the U.S. General Services Administration; and Raytheon Co.
Chris Strickfaden, managing director in the El Segundo office of Jones Lang LaSalle Inc. who is not involved in the deal, said buildings in receivership do not typically accommodate tenant improvements, so the sale should help the building attract tenants.
“This is a very good thing for the building,” he said. “A known quantity has bought it and (likely) has capital reserves to fund improvements and commissions.”
Kadisha, who made his fortune in telecommunications, ranked No. 34 in the Business Journal’s list of Wealthiest Angelenos in May with a reported net worth of $1.2 billion.
Omninet has been paying cash for underperforming commercial properties of more than 50,000 square feet and valued at more than $5 million. The firm has targeted properties in California and the Southwest.
Among its recent purchases, it bought a 490,000-square-foot business center in Long Beach for $69 million, a 189-unit apartment building in the Miracle Mile for $9.3 million in cash and a five-building Commerce office campus for $40.1 million.
Listing brokerage CBRE Group Inc. did not return calls.
An artist-centered senior apartment complex is about to open its doors in North Hollywood.
Westwood multifamily developer Meta Housing Corp. plans to unveil its $32 million, 126-unit North Hollywood Seniors Art Colony, at 10747 Magnolia Blvd., next month.
The complex will include art-focused amenities such as studios, film-editing rooms, green-screen rooms and a theater with 78 stadium-style seats. Non-profit arts group Engage will offer arts and wellness classes to residents.
Road Theatre Co., a professional theater group at the Lankershim Arts Center, is moving its headquarters into the project and some of its members plan to become residents.
Meta Housing has completed dozens of senior projects around Southern California, but Chief Executive John Huskey said the idea for an arts-based senior development began 15 years ago as an attempt to lease up some properties that were sitting partially vacant. The strategy turned out to be more successful than he’d originally imagined; in addition to helping the project lease up quickly, it also appeared to improve the lives of the residents.
“Not only does it give a level of excitement to the project – that’s what makes the economics good – but we had a major study that people who participate in our program have a significant increase in health, longevity and self-reported happiness,” he said.
Open to residents 62 and older, the one- and two-bedroom units range from 680 to 890 square feet. About 20 percent of the units are affordable housing; rent for those units range from $700 for a one-bedroom to $831 for a two-bedroom. Meanwhile, the market-rate units rent for $1,700 for a one-bedroom and $2,100 for a two-bedroom.
Fewer Los Angeles County homeowners paid their residential mortgages on time last quarter, according to credit reporting agency Transunion.
The mortgage delinquency rate rose to 7.1 percent in the third quarter this year, compared with 5.3 percent a year ago.
The county also experienced a growth in the average per-consumer mortgage debt, which increased nearly 5 percent to $369,290.
It bucks the trend in the rest of the state, which saw the second greatest year-over-year decline in delinquency rates last quarter, dropping to 5.6 percent from 7.3 percent, while also seeing its total mortgage debt falling as well, to $323,934 per consumer.
Nonetheless, both Los Angeles and California exceed the national average of $186,445 average mortgage debt. Nationwide delinquency rates improved to 5.4 percent from 5.5 percent a year ago.
Staff reporter Jacquelyn Ryan can be reached at firstname.lastname@example.org or (323) 549-5225, ext. 228.
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