Hudson Pacific Properties Inc. has sold an office building and adjacent plot of land in Santa Monica for $35 million to solar power provider Cypress Creek Renewables.
The 50,700-square-foot office building at 3402 Pico Blvd. sold March 21 for $25.6 million, according to CoStar. The 1.2-acre plot, which spans 2337 to 2403 S. Centinela Ave., sold for $9.4 million.
Brentwood-based Hudson Pacific purchased the building for $18.5 million in 2014, paying all cash. Then vacant, the property was once headquarters for the National Academy of Recording Arts and Sciences. The real estate company also snapped up the adjacent lot in the transaction.
Hudson Pacific said it intends to use net proceeds from the sale toward the company’s pending acquisition of Hollywood Center Studios, which is expected to close May 1.
Hudson Pacific entered into a contract in January to acquire the nearly 15-acre media and entertainment campus for $200 million from Studio Management Services Inc., according to public records.
The studio, at 1040 N. Las Palmas Ave., has played host to television shows such as “I Love Lucy,” “The Addams Family,” and “The Cosby Show” as well as films including “The Karate Kid” and “When Harry Met Sally,” according to its website.
Echo Effect
Champion Real Estate Co. acquired a collection of aging retail buildings on Sunset Boulevard in Echo Park last month for $9.5 million. The West L.A. developer plans to repurpose them into a mixed-use development of retail, restaurants, and residential lofts called BrickWorks.
The existing property includes nearly 19,800 square feet of retail space on 36,000 square feet of land. The buildings in the deal comprise an Asian supermarket, a former Chinese barbeque restaurant space, a two-story commercial building, and a parking lot. The property, at 1485-1501 W. Sunset, hit the market in 2015.
Champion said BrickWorks was slated to include 15,000 square feet of retail space and a food court-style collection of eateries and restaurants. The developer is still planning the size of the residential portion.
“The acquisition of BrickWorks is consistent with Champion’s strategy of acquiring properties at discounts in ‘A’ locations, and we continue to focus on sourcing similar deals in surrounding neighborhoods,” said Garrett Champion, the company’s vice president.
Franchise Player
Sperry Commercial Global Affiliates has picked up a top exec for its Koreatown market as the company moves to attract more brokers with its franchise business model.
Jimmy Chai was named managing director of Sperry’s new Koreatown office, making the jump from Cushman & Wakefield.
Irvine-based Sperry Commercial, founded last year by real estate veteran Rand Sperry, operates on a franchise model. Brokers pay a one-time fee ranging from $2,500 to $5,000 and then $300 a month, Sperry said. The company then provides a range of research and marketing tools, and offices independently set the commission split.
Sperry, the company’s chief executive, said the model is designed to attract private practitioners seeking brand-name support as well as brokers from big firms looking for higher commissions.
“You’re getting pretty much everything the big boys give you in terms of support, but you’re making more money,” he said.
After nine years working for Cushman in downtown L.A across the commercial spectrum – including deals for Herbalife Ltd., the Community Redevelopment Agency of Los Angeles, and Korean and Korean American business owners in Los Angeles – Chai is now aiming to focus on connecting institutional buyers with Koreatown opportunities.
Staff reporter Helen Zhao contributed to this report. Staff reporter Daina Beth Solomon can be reached at [email protected] or (323) 556-8337.
