Stockdale Capital Partners has acquired a Santa Monica medical building, and it may be the first prong in a medical office roll-up by the company.
Stockdale, an arm of Westwood real estate firm Triyar Cos. Inc., shelled out $38.5 million last week to acquire 2825 Santa Monica Blvd., a three-story 54,200-square-foot Class A medical office building. It paid roughly $710 a square foot to the seller, a partnership of Dallas developer Lincoln Property Co.; Santa Monica’s Linwood Ventures; and Washington, D.C., firm Artemis Real Estate Partners.
Industry sources said Stockdale is shopping for other medical buildings in and around Santa Monica, attempting to assemble a portfolio. Stockdale did not respond to requests for comment.
The property was 100 percent occupied at the time of sale. It was already 95 percent leased when Lincoln, Linwood and Artemis acquired it for only $27.5 million, or $500 a square foot, in 2013. The partnership brought the property to full occupancy earlier this year through an expansion and renewal of UCLA’s Cancer Center lease at a lower rate closer to market rent, said David Binswanger, executive vice president at Lincoln.
The sale of the building, which brought in more than $10 million in profit for the partnership, is indicative of how tight the medical office market is in Santa Monica, said Scott Schonfeld, principal at Linwood.
“If you look at the other buildings in the area, they are full, with no expected rollover in the near future,” he said.
Bob Safai, Matt Case and Brad Schlaak of West L.A.’s Madison Partners represented the partnership. The buyer was represented internally.
Koreatown Living
A limited liability corporation attached to Bill Rheinschild, president of Thousand Oaks firm RWR Homes Inc., shelled out $36 million to downtown L.A. developer Urban Commons in an off-market deal to acquire an unfinished apartment project in Koreatown – but the buyer will complete the project as for-sale condos.
Unit sizes at the 436 S. Virgil Ave. building range between 1,000 square feet and 1,350 square feet. Given the units’ large size, the buyer thought a 74-unit condo complex made more sense, said Kelly West of Keller Williams Brentwood, who represented the buyer in the acquisition.
She said the project will contain the first for-sale condos to hit Koreatown in years.
West will also be the selling agent on the condos when the project, dubbed Element436, is completed and units hit the market in January or February. Exact pricing is not set, but units will start for around $600 a square foot, West said. That means the smaller units will be at least $600,000.
Calmwater Capital provided a $31 million term loan for the acquisition and completion of construction. At the time of the deal, the project was 70 percent completed.
Realty Relocation
Beverly Hills real estate firm Hilton & Hyland is moving across the street, from 250 N. Canon Drive to 257 N. Canon.
The firm signed a 10-year lease with landlord Bradley Simmons of Beverly Hills development firm Standard Oil Investment Group to take the entire 15,200-square-foot second floor of the roughly 50,000 square-foot building, which is under construction and expected to be completed in November of next year.
Hilton will expand from the 10,000 square feet it currently occupies.
In a staff memo, Chairman Rick Hilton and President Jeff Hyland said the open concept, glass walls and single-floor layout would lead to more effective communication.
The firm will move in when construction on the project is complete.
Legend Passes
Fred C. Sands, founder of Fred Sands Realtors and Vintage Capital Group, died unexpectedly Oct. 23. He was 77.
Sands built his eponymous brokerage from an office in Brentwood the size of a two-car garage to the second-largest real estate and financial services firm in California and the seventh largest in the country. He sold it for more than $100 million in 2000 to Coldwell Banker, the same firm where he started his 30-year career in real estate as a top-producing agent.
Fred Sands Realtors grew from a small operation to one that employed 4,000 people throughout 72 offices across California and Nevada as well as its franchised operations, generating $9.4 billion in sales a year at the time he sold it to Coldwell.
The year after that sale, Sands left residential real estate behind. He started Brentwood investment firm Vintage, pursuing a new thrill: acquiring shopping centers and regional malls throughout the United States.
“Who’s to say what a piece of real estate is worth?” he told the Business Journal in April. “That inefficiency fascinated me and I’ve stayed with the industry for three decades.”
Staff reporter Hannah Miet can be reached at [email protected] or (323) 549-5225, ext. 228.
