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One of veteran local real estate entrepreneur David Hager’s aggressive industrial property investment groups has just closed its latest acquisition a two-building R & D; complex at 9330/9350 DeSoto Ave. in Chatsworth.
Northeast Valley Industrial Parks LLC, an affiliate of the Hager-led Pacific Industrial Partners in Encino, bought the 130,000-square-foot property for about $7 million from an affiliate of The Voit Cos., according to sources familiar with the deal.
The complex which once housed Vivitar and Photo Research was 75 percent vacant just prior to the acquisition. But the new owners immediately leased about 52,000 square feet to National Notary Association, which will relocate from about 35,000 square feet in Canoga Park.
That brings occupancy at the 1988-vintage property, now known as Pacific Business Center, up to near 65 percent.
“Activity in the west Valley is tremendous and (lease) rates are rising; the only problem is keeping enough inventory,” said Scott Caswell of Delphi Business Properties in Van Nuys, who brokered the sale and negotiated the notary association lease on behalf of the new owners. CB Commercial Real Estate Group’s Alan Kipnis represented the association, which signed a 10-year lease valued at about $4 million.
Pacific Industrial Partners is headed by Hager a major figure in the local apartment world in particular and veteran real estate professionals Adam Milstein and Robert Neal.
Hager also heads the Pacific West Management group, and Hager and partner Elliott Dolin are also active under the Pacific Prime Properties banner.
The groups have been on a local acquisition binge over the last two years at about 1 million square feet annually and Hager said he expects to continue buying at that pace.
Last year the Northeast Valley group purchased 550,000 square feet of industrial properties in the Sylmar and Pacoima areas from Heitman Financial. The price wasn’t disclosed, but the principals said they paid something in the neighborhood of Heitman’s $17.25 million asking price.
Within the last three months, the Pacific Prime group acquired a 110,000-square-foot complex in Gardena and a 69,000-square-foot facility near LAX, and the Pacific Industrial group bought a 140,000-square-foot property in City of Commerce.
Hager noted that he also just acquired the Whittier Law School property on about four acres in the Hancock Park district on behalf of Samuel Fryer Yavneh Academy which is considering moving to the site after the law school relocates to Costa Mesa.
Furniture maker to Inglewood
High-end furniture manufacturer/interior designer J. Robert Scott Inc. will relocate its headquarters from Culver City to 106,900 square feet of business space in Inglewood in July.
The fast-growing company will double its plant capacity through the 10-year, $7.2 million lease it just signed with Marina del Rey-based Roxbury Property Management, owner of the future J. Robert Scott headquarters at 502 Oak St.
The new facility, which includes capacity for future expansion, will serve as the company’s headquarters for administration, design, manufacturing and assembly. About 130 will be employed at the new home office, which will include some 30,000 square feet of corporate offices.
Privately held J. Robert Scott, whose clients include high-end interior designers, maintains a showroom on Melrose Avenue in Los Angeles and others around the world.
“It’s virtually impossible for companies to make an expansion of this size in the West L.A. market,” said Doug Marshall of The Klabin Co., who brokered the lease transaction along with Klabin’s Ronald Rader and Jim Sullivan.
“Once you get above 70,000 square feet, there’s little space available and none of this quality. So now we’re seeing a southward migration,” Marshall added.
CB partners up
CB Commercial, the nation’s biggest commercial property services firm, just announced two expansion programs one nationwide and the other international.
On the domestic side, the downtown L.A.-based company’s CB Commercial Partners Inc. subsidiary has just completed partnership agreements with nine established real estate services firms operating in 10 cities around the nation.
CB assumes an equity position in each participating partner firm, while the participants gain access to CB’s international network, information technology resources and professional education programs not to mention the CB name.
Ultimately, the partnership program aims to nearly double CB’s service locations over the next few years into 75 target locations. CB Commercial expects to maintain its owned-and-operated U.S. offices in more than 80 locations while continuing to expand its international alliance relationships as well.
On that front, CB just signed a comprehensive agreement with Ikoma Corp. Japan’s largest corporate real estate services firm that adds a key partner to CB’s 33-nation global alliance.
CB’s multinational corporate clients now have the benefit of Ikoma’s 20 offices, which offer office, retail and industrial leasing, sales and acquisition services as well as consulting and valuation.
Ikoma will locate personnel at CB’s headquarters office and integrate its existing New York office into CB’s. CB had maintained various informal relationships with various Japanese partners, but the Ikoma arrangement is the first formal comprehensive alliance.
