Downtown’s first quarter office vacancy rate rose to 16.2% from the fourth quarter’s 15.9%, but was lower than the 16.7% vacancy rate from same period a year ago. Average Class A asking rents rose to $3.75, up 5 cents over the previous quarter and 24 cents more than the asking price from the first quarter of 2018. Net absorption was negative 163,484 square feet, while 116,000 square feet of office space was under construction.
Warner Music Group’s parent company purchased the remodeled Ford Factory building at 777 S. Santa Fe Ave. in the Arts District from Shorenstein Properties for $195 million. The building, which is approximately 217,000 square feet, will be Warner Music’s West Coast headquarters.
Atlas Capital Group sold the Box Yard, a 261,528-square-foot industrial property at 2445 E. 12th St., to Bridge Development Partners for $68 million.
WeWork Cos. Inc. signed a 78,000-square-foot lease at the Western Pacific at 1031 S. Broadway for an undisclosed sum. The coworking company also signed a lease for 55,000 square feet at the Maxwell at 1019 E. 4th Place in the Arts District.
Downtown-based video startup company TubeScience USA Inc. leased nearly 104,000 square feet at 655 S. Santa Fe Ave. in the Arts District on undisclosed terms.
Hollywood’s office vacancy rate decreased to 8%, down from 9% the previous quarter and from 9.4% during the same period a year prior. Class A asking rates were $5.43, down 10 cents from the previous quarter and 14 cents from the first quarter of 2018. Net absorption was nearly 35,000 square feet and 978,177 square feet was under construction.
Slate Property Group purchased two apartment complexes in Hollywood, the 103-unit Villa Elaine Apartments at 1245 Vine St. and the 55-unit Julie Lee at 1665 N. Sycamore Ave. for a total of $39.3 million from the Chandler A&B Jones Family Trust.
Content management company Bitmax Inc. signed a 9,201-square-foot lease for its headquarters at 959 Seward St. in Hollywood in a deal valued at $6 million. The office campus is owned by the J.H. Snyder Co.
South L.A.-based DavHan Inc. purchased a 28-unit multifamily building at 5727 La Mirada Ave. in Hollywood for $17.7 million from a private individual.
The Westside office vacancy rate fell to 12.5%, down from 13.2 % the previous quarter and 13% during the same period the previous year. Century City had the lowest vacancy rate at 5.7%; Culver City had the highest at 21.6%. Westside Class A asking rents were $5.25, up 1 cent over the previous quarter and up 19 cents over asking rates in the first quarter of 2018. Net absorption was more than 308,000 square feet and more than 1.5 million square feet was under construction, with roughly 745,000 square feet under construction in Culver City.
HBO leased the entire 240,000 square foot office component of Lowe Enterprises Inc., AECOM-Canyon Partners and Rockwood Capital’s Ivy Station project in Culver City. Terms were not disclosed.
Blatteis & Schnur Inc. purchased a mixed-use building at 1404-1408 3rd St. in downtown Santa Monica for $24.5 million from an undisclosed individual owner.
Pasadena-based Alexandria Real Estate Equities Inc. purchased Bristol 61, a four-building creative office campus at 6100 to 6160 Bristol Parkway in Culver City for $39.2 million from Boston-based Intercontinental Real Estate Corp. and San Francisco-based Swig Co.
Santa Clarita Valley
Santa Clarita Valley’s office vacancy rate fell to 13.7%, down from 14.1% the previous quarter but up from 11.6% during the same period a year ago. Class A asking rents were $2.87 a square foot, up 3 cents from the previous quarter and 7 cents from the first quarter of 2018. Net absorption was roughly 9,000 square feet. There was nothing under construction during the quarter.
Kaiser Permanente Inc. renewed its 10,934-square-foot lease at 27201 Tourney Road in Valencia. Terms of the lease were not disclosed.
Triscenic Production Services Inc. leased an industrial building at 25045 Avenue Tibbitts in Valencia from landlord LIPT ASP Valencia Inc. in a lease valued at $7.7 million.
An unnamed, independent studio operator signed a 166,359-square-foot lease at Rockefeller Crossing, an industrial building at 27420 Avenue Scott in Santa Clarita owned by LBA Logistics.
San Fernando Valley
The San Fernando Valley’s office vacancy rate held steady with 2018’s fourth quarter vacancy rate at 12.7%, up from 11.9% during the first quarter of last year. Class A asking rates were $2.79, up 1 cent over the previous quarter and year over year. Net absorption was nearly 7,000 square feet, and roughly 218,000 square feet was under construction.
Kennedy Wilson purchased an 80-acre West Hills office campus at 8521 Fallbrook Ave. from Brookfield Office Properties Inc. for $160 million.
WeWork Cos. Inc. signed a 40,000-square-foot lease for a North Hollywood location at 5161 Lankershim Blvd. Terms of the lease were not disclosed.
Advanced Business Solutions purchased the Apple Tree Apartments at 9229 Sepulveda Blvd. in North Hills from Apple Tree Village Partners for $23.5 million.
Tamkin Enterprises purchased University Gardens at Northridge, a 29-unit apartment building at 8762 Etiwanda Ave. in Northridge from Cosmo Investments for $7 million.
First-quarter office vacancies decreased to 14.2%, down from 14.3% the previous quarter and 14.8% year over year. Class A asking rents were $3.50, up 19 cents over the previous quarter and 40 cents over the previous year. Net absorption was 9,521 square feet, and there were no projects under construction during the first quarter.
San Francisco-based driverless car company GM Cruise signed a 47,051-square-foot lease at 465 N. Halstead St. in Pasadena valued at $11.4 million. The landlord is EverWest Real Estate Investors.
Coworking company Spaces, owned by IWG, signed a 130-month lease for 48,831 square feet at the Playhouse Plaza office building at 680 E. Colorado Blvd. in Pasadena on undisclosed terms.
Gemalto Cogent Inc. signed a $14 million lease for 54,811 square feet at 3100 New York Drive in Pasadena.
Glendale-based ServiceTitan Inc. leased 125,000 square feet at 800 N. Brand Blvd. in Glendale on undisclosed terms. It is an expansion of the company’s headquarters, which includes the space next door at 801 N. Brand Blvd.
Wilshire Corridor’s office vacancy rate fell to 19.3%, down from 20.9% the previous quarter but up from 13.5% from the same period a year ago. Class A asking rents rose to $3.19, up 2 cents from the previous quarter and 9 cents year over year. Net absorption was 163,497 square feet. There was no office space under construction during the quarter.
San Francisco-based Prana Investments Inc. sold the Western Arms, a 76-unit, 4-story apartment building at the corner of S. Western Ave. and W. 11th St. for $12.6 million to an LLC tied to Carson-based Texollini Inc.
Sun Equity Partners purchased an apartment building at 425 S. Detroit St. in Mid-Wilshire from Timberlane Partners for $7.4 million.
South Bay’s industrial market vacancy rate increased to 1.9%, up from 1.7% the previous quarter and 1.5% in the same period a year ago. Roughly 1.7 million square feet was under construction, while 2.2 million square feet either sold or leased during the quarter. Asking rents held steady at $0.98 a square foot.
An affiliate of Transpacific Development Co. sold a roughly 60,000-square-foot office building at 2325 Crenshaw Blvd. in Torrance for $15.8 million to Optimus Properties.
Scottsdale-based 1784 Capital Holdings paid $5.8 million to a private trust for a 1.3-acre site at 3155 W. El Segundo Blvd. in Hawthorne. It plans to turn the property into a self-storage facility.
Electric vehicle developer Faraday & Future Inc. sold its Gardena headquarters at 18455 S. Figueroa St. in Gardena to Atlas Capital Group on undisclosed terms.
Friendly Franchisees Corp. purchased the 206-unit Landing at Long Beach apartment complex at 1613 Ximeno Ave. from an investment fund managed by Western National Group Inc. for $72 million.
San Gabriel Valley
San Gabriel Valley’s first-quarter industrial vacancy rate rose to 2.2%, up from 2.1% during the previous quarter and 2% during the same period a year ago. Asking rents were $0.75 a square foot, up 1 cent over the previous quarter and 3 cents over the first quarter 2018 asking rate. Roughly 1.6 million square feet was sold or leased during the quarter, down from 3 million the quarter before. Roughly 2.3 million square feet of industrial space was under construction.
Uhon Inc. purchased a 177-unit apartment complex at 4608-4640 Arden Way in El Monte called The Parker for $40.5 million from Benedict Canyon Equities Inc.
Jinbo Holdings purchased an office building with more than 14,000 square feet located at 1237 E. Main St. in Alhambra from B Squared Partners for $14.8 million.
Lucky Group USA Inc. purchased the Lewis Business Center, a roughly 80,000-square-foot industrial property at 745-755 S. Epperson Drive in
the City of Industry from YHS Trading USA Inc. for $14.7 million.
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