The Sept. 11 terrorist attack on New York and Washington hit home for Chris Maling when the logistical nightmare that followed threatened a $3 million sale he thought was closing.
“Time kills deals and you never know what can happen,” Maling said. “The lender can change underwriting criteria or a tenant could vacate.”
Maling, a senior investment associate with Marcus & Millichap Real Estate Investment Brokerage Co. who brokers deals for infill retail centers, said things were moving along well on a deal he was working in the Mid-Cities area. All that was left to seal the transaction were final signatures from both sides. Closing was scheduled for Sept. 21.
Then all flights in and out of the United States were grounded. One of the partners on the sell side was in London on vacation. Because FedEx was not flying and the U.S. embassy in London was not open, there was no way for that partner to finish the necessary paperwork.
Another partner also was out of the country on vacation originally booked on a return flight Sept. 12 and could not get back to the States to complete his end of the deal.
The deal remained on table last week, as did Maling’s hope to collect his $135,000 commission.
Because the deal has not closed, Maling refused to identify the 28,000-square-foot property or the parties to the negotiations. He did say it is a strip mall, fully leased to mom-and-pop retailers and has a fast-food pad.
Why would parties to a $3 million deal even go on vacation in the final days of negotiation? Fax machines, Internet, overnight delivery and other technologies make global business easy to conduct normally, Maling said.
Cinema Switcheroo
Abandoned movie theater space long has been a head-scratcher for landlords and their brokers looking for ways to re-use the property.
Chris Wilson, president of Wilson Commercial Real Estate in West L.A., thinks he has figured out how to make it work and hopes to turn many vacant cinemas around the area into viable retail operations.
Wilson represented San Diego-based landlord National Retail Partners in a deal that brought Jacksonville, Fla.-based Stein Mart Inc. to the San Fernando Valley. The discount clothing company recently signed a $3.2 million lease for 32,276 square feet that used to be an eight-screen United Artists Theatres operation at 10801 Chatsworth St. in Granada Hills.
Because of their unusual construction, with walls separating the individual screens and sloped floors, movie houses are not easily converted for typical retail use. To make the deal work, National Retail Partners kicked in a tenant improvement allowance of $50 per foot that Stein Mart will not have to return.
Wilson said he is working on more theater conversion deals, but wouldn’t reveal the parties involved until they’re finished.
TrizecHahn Bails
The pool of potential dance partners for Rob Maguire is down to two.
TrizecHahn Corp. has dropped out of negotiations for his portfolio of office properties, saying the timing is not right for the deal as it goes about restructuring and unloading its retail holdings.
Responding to reports that the company had reached a deal with Maguire, TrizecHahn put out a news release last week saying it had dropped out of the talks.
That leaves Maguire reportedly at the table with Sam Zell’s Equity Office Properties Trust and Crescent Real Estate Equities Co. of Dallas.
Maguire Vice President Peggy Moretti confirmed that TrizecHahn had bailed, but would not confirm who still is talking or what losing a negotiation partner meant to Maguire’s leverage in pulling off a deal.
“They’d really like to do it,” Moretti said of TrizecHahn. “Just not now.”
According to documents circulated last summer to select parties by representatives for Maguire, the properties under discussion include four downtown high-rises: Library Tower (1.43 million square feet), Gas Co. Tower (1.37 million square feet), Wells Fargo Tower (1.43 million square feet) and KPMG Tower (1.14 million square feet). Also for consideration is the Plaza Las Fuentes complex in Pasadena (196,617 square feet of office space and a 350-room hotel). Another office building in Dallas reportedly is on the table, as well.
Buying for Building
Laborers Training & Retraining Trust of Southern California spent $1.9 million to buy 10.4 acres in Azusa with plans to build a training school. The property, at 1385 W. Sierra Madre Ave., is the future site of a 29,5650-square-foot, three-building facility that will allow the trade school to move from Riverside County. A six-month construction schedule begins in December. Jim Center of Grubb & Ellis Co. represented the buyer in the transaction. Independent broker Mike Macke represented the seller, Whittier resident Robert Osborne
Golden Star LLC bought 1.5 acres at 2370 Crenshaw Blvd. to build a 20,000-square-foot retail center to be called Torrance Star Plaza. Construction on the planned Mediterranean-style, 12-store center will begin this fall, with an opening scheduled for summer 2002. Sheri Messerlian and Eric Herold of NAI Capital Commercial represented Golden Star and the sellers, Jim Yates and Mary Petros, in the transaction.
Suburban Sales
Chaim Treibatch of Tarzana sold the 25-unit Sunny Lane apartment complex at 15735 Saticoy St. for $1.5 million to a West Hollywood investment partnership known as 3545 Jasmine Avenue LLC
Magic Plastics Corp. bought a 37,360-square-foot building at 25235 Avenue Stanford in Valencia Industrial Center for $2.5 million. The building is next door to Magic Plastics’ corporate headquarters. The company will occupy half of the building and lease the remainder to Lindsey Studios. Jim Ebanks of Binswanger Realty Group represented the buyer in the deal. Michael Stevens of Daum Commercial Real Estate Services represented the seller, Patti Vonne LLC.
Staff reporter Christopher Keough can be reached at (323) 549-5225 ext. 235 or by e-mail at [email protected].
