Downtown’s second-quarter office vacancy rate tightened to 16.2 percent from the first quarter’s 16.7 percent. The vacancy rate fell 0.1 points from a year earlier. Average Class A rents rose 4 cents over the prior quarter and 3 cents year over year to $3.55 per square foot. Net absorption was 52,000 square feet; 116,000 square feet was under construction.
LaSalle Investment Management Inc. sold Canvas, a 210-unit apartment building at 138 N. Beaudry Ave., to Levenfeld Pearlstein and Magnolia Capital for $88.3 million.
Ratkovich Co. sold its stake in The Bloc at 700 S. Flower St. for an undisclosed amount.
Arup Engineering signed a 15-year, $57 million lease for 66,000 square feet at the Wilshire Grand at 900 Wilshire Blvd.
Citigroup Inc. signed a lease for 29,000 square feet at One California Plaza at 300 S. Grand Ave. from Colony Capital and Rising Realty Partners.
Netmarble Games Corp.’s U.S. division signed a lease for 14,000 square feet at 600 Wilshire Blvd. from Onni Group.
Hollywood’s office vacancy rate tightened to 9.3 percent in the second quarter, down from 9.4 percent in the prior quarter and 16.6 percent a year earlier. Rents rose to $5.65 per square foot, up 8 cents from the previous quarter and $1.11 from the year-earlier period. Net absorption was 4,000 square feet. More than 813,000 square feet was under construction.
Ocean West Capital Partners bought the 126,000-square-foot Taft Building at 1680 Vine St. for $70 million from DLJ Real Estate Capital Partners.
Vanbarton Group purchased a five-story, 74,000-square-foot office building at 6725 Sunset Blvd. for $37.8 million from Crown Acquisition Associates.
Artisan Realty Advisors bought a five-property portfolio at 1520, 1534, 1538 and 1542 N. Cahuenga Blvd. and 1535 Ivar Ave. for $61 million from Cahuenga Lofts and Ivar Group.
Sirius XM Holdings Inc. signed a lease with CIM Group Inc. for 27,000 square feet of office space at 953 N. Sycamore Ave. for its West Coast programming headquarters.
The Westside office vacancy rate fell to 12.9 percent in the second quarter, dropping from 14.3 percent during the year-earlier period. Culver City had the highest vacancy rate at 23.5 percent, pushed up by more than 547,000 square feet of office space under construction. Santa Monica saw its office vacancy rate drop to 11.4 percent in the second quarter compared with 12.9 percent in the previous quarter. The beach city was the most expensive Westside community for office space at $6.15 per square foot, a decline of a penny from the first quarter.
London & Regional Properties bought Hotel MdR – a 283-room DoubleTree by Hilton at 13480 Maxella Ave. in Marina del Rey – for $127 million from Lubert-Adler Partners.
DivcoWest purchased a 90,000-square-foot office building at 331 N. Maple Drive in Beverly Hills for $83 million.
Cruzan Co. bought the 107,000-square-foot Palm Wilshire Building at 9171 Wilshire Blvd. in Beverly Hills for $69.3 million from John Hancock Life Insurance Co.
Playboy Enterprises Inc. subleased 40,000 square feet from marketing agency Wasserman at 10960 Wilshire Blvd. in Westwood for its new headquarters.
SANTA CLARITA VALLEY
Santa Clarita Valley’s office vacancy rate rose to 11.8 percent in the second quarter from 11.6 percent in the previous quarter but fell from 12.4 percent a year ago. Rents rose 8 cents from the previous quarter to $2.88 per square foot. Net absorption turned negative to 4,100 square feet.
Sikand Properties sold The Retreat, a two-story, 148-unit, 161,000-square-foot apartment building at 22900 Oak Ridge Drive in Santa Clarita, to Benedict Canyon Equities for $35 million as part of an eight-property $162 million portfolio.
First Industrial Realty Trust Inc. purchased Vista Business Park, a 173,000-square-foot building at 28545 Livingston Ave. in Valencia, for $20.7 million from 28545 Livingston Ave. West.
SAN FERNANDO VALLEY
The office vacancy rate rose to 12.2 percent quarter over quarter from 11.9 percent and was flat from the year-earlier period. Rents rose 10 cents from last quarter to $2.88 per square foot. Negative net absorption increased to 76,000 square feet; 218,000 square feet was under construction.
Majestic Asset Management Inc. sold Building A-1 of the Warner Center Business Park, a 53,000-square-foot property at 5955 De Soto Ave. in Woodland Hills, for $14 million to LFT-De Soto.
Pacific Urban Residential bought Vue Laurel Canyon, a 56-unit Valley Village apartment building at 4950 Laurel Canyon Blvd., for $17.9 million.
Bel Air-based investor Sergey Zengin purchased a North Hollywood car wash for $6.5 million.
Second-quarter office vacancies tightened in the Tri-Cities submarket of Burbank, Glendale and Pasadena to 14.6 percent, down from 14.7 percent in the previous quarter but up from 12.7 percent a year earlier. Rents increased 11 cents from the previous quarter to $3.21. Glendale had nearly 45,000 square feet of negative net absorption.
Carmel Partners sold Altana Apartments, a 507-unit building at 540 N. Central Ave. in Glendale, to Brookfield Property Group for $256 million as part of a seven-property portfolio that sold for $1.9 billion.
Coretrust Capital Partners bought a four-office-building, 640,000-square-foot portfolio at 201, 225, 251 and 283 S. Lake Ave. in Pasadena for $254 million from UBS Realty Investors.
Wilshire Corridor’s second-quarter office vacancy rate rose to 18.1 percent from 13.5 percent in the previous quarter but was down from 20.7 percent a year ago. Rents fell to $3.05 per square foot, down 5 cents from the first quarter. Net absorption remained negative at 76,000-plus square feet.
Create Advertising Group signed an 11-year, 42,000-square-foot lease at the Harbor Building at 4201 Wilshire Blvd. in Mid-Wilshire. Jamison Services Inc. owns the 258,000-square-foot building.
Edelman signed a five-year extension of its lease for 30,500 square feet at 5900 Wilshire Blvd., a 493,000-square-foot office tower on the Miracle Mile. Ratkovich Co. is the landlord.
South Bay’s industrial market tightened in the second quarter with vacancies falling to 1.3 percent. About 417,000 square feet is under construction, while 2.7 million square feet either sold or leased, about 55 percent more than the first quarter. Rents climbed to 95 cents per square foot.
PM Realty Group sold a three-office property, 573,000-square-foot portfolio to FRM Associates for $124 million. The Torrance properties involved were 3100-3110 W. Lomita Blvd. and 3121 Skypark Drive.
Ring Inc. signed a 10-year lease for 62,000 square feet for its headquarters at 12515 Cerise Ave. in Hawthorne. VE Equities is the landlord.
SAN GABRIEL VALLEY
The San Gabriel Valley’s second-quarter industrial vacancy rate increased to 2.1 percent from 2 percent in the prior quarter and 0.8 percent a year ago. Rents were 74 cents per square foot. About 2.7 million square feet was sold or leased. About 1.4 million square feet was under construction.
GreenBridge Investment Partners bought a 92,500-square-foot office building at 625 Fair Oaks Ave. in South Pasadena for $30.7 million from Genton Cockrum Partners.
Arcadia-based investor Chris Yau purchased The Carousel, a 22-unit apartment building at 939 Arcadia Ave. in Arcadia, for $9 million from Gabriella Harvey of Scottsdale, Ariz.
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