The Real Estate Quarterly

Downtown

Downtown’s second quarter office vacancy rate fell to 15.9%, down from 16.2% the previous year and quarter. Average Class A asking rents rose to $3.83 a square foot, up 8 cents from the previous quarter and 28 cents over the previous year. Net absorption was 213,657 square feet while 116,000 square feet was under construction.

Main Events:

Irvine-based Ghost Management Group, which runs weedmaps.com, signed a lease for a 115,000-square-foot-office at the ROW DTLA at 767 S. Alameda St.

L.A. Care Health Plan signed a lease for 370,000 square feet at 1200 W. 7th St. in downtown with landlord Rising Realty Partners.

San Diego-based CommonGrounds Workplace signed a 13-year lease with Lincoln Property Co. for nearly 46,000 square feet at 915 Wilshire Blvd. in downtown.

•••

Hollywood

Hollywood’s office vacancy rate increased to 11.2%, up from 8% the previous quarter and 9.3% the previous year. Class A asking rates were $5.31 a square foot, down 12 cents quarter over quarter and 34 cents year over year. Net absorption was 34,580 square feet while 815,452 square feet was under construction.

Main Events:

A subsidiary of Santa Monica-based BLT Enterprises purchased the Ben Kitay Stages in Hollywood for an undisclosed sum.

Cypress Real Estate Advisors Inc. purchased MetWest, a 79-unit multifamily building at 5837 W. Sunset Blvd. in Hollywood from Cornerstone Holdings and Harridge Development Group for $38 million.

Vive LA purchased a 24-unit multifamily building at 1722 Garfield Place from an individual for $6.2 million.

•••

Westside

The Westside office vacancy rate decreased to 11.1%, down from 12.5% the previous quarter and 12.9% the previous year. Century City had the lowest vacancy rate at 4.6%. Playa Vista had the highest vacancy rate at 15.3%. Westside Class A asking rates were $5.36 a square foot, up 11 cents quarter over quarter and 14 cents year over year. Santa Monica had the highest asking rate at $6.68 a square foot. Brentwood had the lowest at $4.37 a square foot. Net absorption was 685,927 square feet while 1,449,207 square feet was under construction, with 564,356 square feet under construction in Culver City alone.

Main Events:

SHVO, Bilgili Group and Deutsche Finance purchased a development site at 9200 Wilshire Blvd. in Beverly Hills from New Pacific Realty Corp. for $130 million.

Santa Monica-based Douglas Emmett Inc. purchased a 350-unit apartment building at 1060 Glendon Ave. in Westwood from Clarion Partners for $365 million.

Los Robles Office Partners purchased a fully leased retail center at 11201-11223 National Blvd. in West L.A. from an individual owner for $13.5 million

Koreatown-based Jamison purchased a site at the intersection of Santa Monica Boulevard and Federal Avenue in West L.A. for $16 million from a family partnership that owns a carwash on the site.

Santa Clarita Valley

Santa Clarita Valley’s office vacancy rate held steady with the previous quarter at 13.7%, up from 11.8% the previous year. Class A asking rates were $2.84 a square foot, down 3 cents quarter over quarter and 4 cents year over year. Net absorption was negative 8,701 square feet. There was no office space under construction during the quarter.

Main Events:

Valencia Pipe Co. Inc. signed a lease for 170,990 square feet at Vista Business Park at 28305 Livingston Ave. in Valencia in a deal valued at $10.1 million.

Compass Acquisition Partners purchased the 232-unit Sierra Canyon Apartments at 27520 Sierra Highway in Canyon Country from Klingbeil Capital Management Ltd. for $60 million.

•••

San Fernando Valley

The San Fernando Valley’s office vacancy rate fell to 11.7%, down from 12.7% the previous quarter and 12.2% the previous year. Class A asking rates were $3 a square foot, up 21 cents quarter over quarter and 12 cents year over year. Net absorption was 189,910 square feet, and 240,000 square feet was under construction.

Main Events:

Brentwood-based Rexford Industrial Realty Inc. bought an industrial property at 15835 Oxnard St. in Encino for $16.8 million in a sale-leaseback transaction.

Johnston Group and Majestic Asset Management Inc. purchased Westlake Plaza Centre 2, a roughly 84,000-square-foot office building at 2829 Townsgate Road in Westlake Village from Kilroy Realty Corp. for $18.3 million.

•••

Tri-Cities

Second-quarter office vacancies decreased to 13.7%, down from 14.2% the previous quarter and 14.6% the previous year. Class A asking rents were $3.60 a square foot, up 10 cents quarter over quarter and 39 cents year over year. Net absorption was 29,492 square feet and 219,000 square feet was under construction.

Main Events:

Dana Point-based Raintree Partners purchased seven multifamily properties in Glendale from a private seller for $79 million.

Pasadena-based Arroyo Parkway purchased an 80,000-square-foot building leased to Whole Foods and 2 acres of nearby land from a private family trust at 465-577 Arroyo Parkway in Pasadena in a deal valued at more than $100 million.

•••

Wilshire Corridor

Wilshire Corridor’s office vacancy rate increased to 20.2%, up from 19.3% the previous quarter and 18.1% the previous year. Class A asking rents decreased to $2.54 a square foot, down 65 cents quarter over quarter and 51 cents year over year. Net absorption was negative 104,652 a square foot. There were no properties under construction during the quarter.

Main Events:

Century City-based Urban Commons bought seven parcels at 1009-1047 Crenshaw Blvd. from Crenshaw Country Club for $19 million.

An individual purchased Fusion Apartments, a 32-unit building at 855 S. Harvard Blvd. in Koreatown, from Kingstone Properties Inc. for $10.9 million.

The Intergulf Group of Cos. purchased land at 495 Hartford Ave. in Westlake from Torkian Construction Inc. and a trust for $18 million.

•••

South Bay

South Bay’s industrial market vacancy rate decreased to 1.6%, down from 1.9% the previous quarter. Roughly 1.7 million square feet was under construction, while 2.2 million square feet either sold or leased during the quarter. Asking rents increased to $1.00 per square foot, up

2 cents quarter over quarter and 5 cents year over year.

Main Events:

A joint venture between Ocean West Capital Partners and Lionstone Investments purchased a 318,000-square-foot building at 777 Aviation Blvd. in El Segundo from Westbrook Partners and Embarcadero Capital Partners for $170 million.

TA Realty purchased the 340,000-square-foot 101 Continental building at 101 Continental Blvd. in El Segundo from Vereit Inc. for $138.5 million.

•••

San Gabriel Valley

San Gabriel Valley’s second-quarter industrial vacancy rate fell to 1.9%, down from 2.1% the previous year. Asking rents were 77 cents a square foot, up 4 cents year over year. Roughly 1.8 million square feet was sold or leased during the quarter; roughly 2 million square feet was under construction.

Main Events:

Lennar Homes purchased a shopping center in Arcadia from Olson Co. for $36.6 million; it includes an approved tract map, improvement plans and construction drawings for a mixed-use development.

Brentwood-based Rexford Industrial Realty bought an industrial property at 218 S. Turnbull Canyon Rd. in the City of Industry from Clarion Partners for $27.1 million. Rexford also bought a 456,000-square-foot industrial portfolio from Colony Capital Inc. for $84.5 million.

For reprint and licensing requests for this article, CLICK HERE.