Faring Property Group sold the 349-unit Monterey Station for $130 million.
Two trends that have gained momentum in the second half of 2021 show the potential to become the norm this year: modular housing and dedicated office designs. Both help developers and owners save time and money.
Real Estate Quarterly Report: Q4 2021
Time and cost savings increase interest in modular building
Rapid turnaround drives demand for spec space
Summary of LA County real estate submarket data
DOWNTOWN
The downtown office vacancy rate rose to 21.2% in the fourth quarter from 19.9% in the previous quarter and 18.3% a year ago. There was no office product under construction during the quarter and negative 160,991 square feet of space was absorbed by the market. Asking rents were flat quarter-on-quarter at $3.83 per square foot, but down 2 cents year-over-year.
main events
A 199,860-square-foot historic downtown building known as the May Co. Garage building has received a $10.7 million loan to refinance.
Keno Properties sold a portfolio of three downtown industrial buildings for $11.3 million.
Clothing and accessories retailer Johnny Was signed a lease for 400,000 square feet in an office building at 712 S. Olive St.
East End Capital acquired a warehouse space at 2233 Jesse St. for $43 million with plans to convert the cold storage facility into a production studio. It is located in Boyle Heights near the downtown border.
HOLLYWOOD
Hollywood’s office vacancy rate fell to 29.2%, down from 30.9% in the previous quarter and up from 19.3% a year ago. Rents rose to $5.21 per square foot, up 3 cents from the prior quarter and year over year. Net absorption was 331,151 square feet with no office properties under construction during the quarter.
main events
A joint venture of funds managed by Trinity Fund Advisors and funds managed by Oaktree Capital Management acquired a leasehold interest in the iconic W Hollywood Hotel for $197 million.
Morguard Corp. acquired Lumina Hollywood, a 299-unit apartment building at 1522 Gordon St. for $79.4 million.
According to the Commercial Observer, Onni Group of Cos. a historic building called Romaine and Sycamore in Hollywood for $40 million.
Investor Deepak Mehta and Xenon Investment Corp. purchased the 33-unit Hollywood Apartments at 7044 Lanewood Ave. for $7.5 million.
WEST SIDE
The Westside office vacancy rate fell to 18.5%, down from 18.6% in the previous quarter but up from 12.6% a year ago. Marina del Rey had the highest vacancy rate at 28.4%, while West Hollywood had the lowest at 11.8%. Asking prices for Class A space on the Westside were $5.62 per square foot, up 3 cents sequentially but down 1 cent year-on-year. There were 2 million square feet of office space under construction, including 655,632 million square feet in Culver City and 1.3 million in West LA. During the quarter, 113,371 square feet of net absorption was recorded on the Westside.
main events
An unnamed buyer purchased property from the Harkham family at 360 N. Rodeo Drive for $200 million.
Riot Games Inc. signed a 10-year lease for 200,000 square feet of space Hines, Philena properties and USAA Real Estate‘s West Edge mixed-use project.
A joint venture between Chicago-based John Buck Co. and El Segundo-based 3MR Capital received $34.1 million financing for the $210 million mixed-use development of 11111 Jefferson in Culver City -Dollar.
Armata Pharmaceuticals Inc. signed a lease for 56,300 square feet in a new headquarters building at 5005 McConnell Ave. in DelRey.
SANTA CLARITA VALLEY
Office vacancy in the Santa Clarita Valley increased 22.1%, compared to 21.2% in the previous quarter and 17.8% a year ago. Net absorption was minus 22,693 square feet and there was no office product under construction. Asking rents were flat quarter over quarter but fell 5 cents year over year to $2.87 per square foot.
main events
Covington Group Inc. acquired approximately 1 million square feet of Saugus Station industrial center in Santa Clarita for an undisclosed price. The deal included a separate 24-acre property.
A one-story, 7,580 square foot Class A office building at 21080 Center Pointe Parkway in Santa Clarita has sold for $2.6 million.
Blackstone Group Inc. acquired the 84-unit Crescent Valley Mobile Home Park in Newhall for $15.8 million.
SAN FERNANDO VALLEY
The office vacancy rate in the San Fernando Valley rose to 18.9% from 18.1% in the previous quarter and 16.4% a year ago. Rents were flat quarter-over-quarter, but declined 1 cent year-over-year to $2.94 per square foot. Net absorption was negative at 239,595 square feet and 306,673 square feet were under construction.
main events
Hackman Capital Partners of Culver City and Square Mile Capital Management of New York entered into an agreement to purchase the 55-acre CBS Studio Center for $1.85 billion from ViacomCBS Inc.
A detached industrial building at 758 Arroyo Street in San Fernando sold for $1.7 million.
Beverly Hills-based Dunleer sold a 38-unit multi-tenant industrial park at 7361 Ethel Ave for $10.4 million. in North Hollywood.
A private investor bought a 1.5-acre shopping center in Canoga Park for $9 million with plans for redevelopment.
THREE CITIES
Office vacancy in the Tri-Cities submarket of Burbank, Glendale and Pasadena rose to 15.5% in the fourth quarter, up from 15% in the previous quarter and 13.6% a year ago. Negative 19,785 square feet were absorbed during the quarter while 1.3 million square feet were under construction. Rents were flat quarter-on-quarter but increased 9 cents year over year to $3.67 per square foot.
main events
Brookfield Real Estate Investment Trust Inc. purchased the 14.7-acre DreamWorks campus in Glendale for $327 million.
Jonathan Rose Cos. purchased a 313-unit affordable condominium complex known as the Kings Villages Apartments in Pasadena for $223 million.
Brentwood-based Pacshore Partners acquired a 152,834-square-foot office building in the Burbank Media District for $90.5 million from Granite Properties.
Waterford Property Co. and the California Statewide Communities Development Authority bought Westgate Apartments, a 480-unit complex in Pasadena for $280 million with plans to convert it into middle-income housing.
Waterford Property Co. and the California Statewide Communities Development Authority acquired Theo, a 105-unit Pasadena multi-family home, for $67 million from Summerhill Apartment Communities.
Century City’s Cityview and New York’s Clarion Partners acquired a 276-unit multi-family building in Burbank known as Empire Landing for $161 million.
WILSHIRE CORRIDOR
Wilshire Corridor’s office vacancy rate rose 29.4% in the fourth quarter, up from 27.4% in the previous quarter and 23.3% a year ago. A negative 182,441 square feet was absorbed by the market and there was no new office product under construction. Asking rents fell to $2.56 per square foot, down 3 cents sequentially and 36 cents year-on-year. Asking rents in Miracle Mile were much higher at $4.41 per square foot.
main events
Fairfield purchased the 103-unit Broadstone Candara multi-family building in Hancock Park for $60.1 million.
Mosser Capital acquired Wilshire Royale, a 193-unit retail multi-family building in Westlake from MWest Holdings for $45.5 million.
TDI Properties Inc. acquired a portfolio of three multifamily properties known as the Elevate LA Portfolio, which had properties in Central LA, Koreatown and Pico-Union, from a Colorado-based family for an undisclosed sum.
SOUTH BAY
Vacancy in the South Bay industrial market declined to 0.7% compared to 1% in the previous quarter and 2.2% a year ago. Approximately 1.2 million square feet were under construction while 4 million square feet were sold or leased during the quarter. Rents rose to $1.27 per square foot, up 13 cents sequentially and 24 cents year over year.
main events
CenterPoint Properties acquired an industrial property from Signal Hill Petroleum Inc. at 2550 Orange Ave. in Signal Hill with plans to convert the 9-acre property into a 100,147-square-foot warehouse.
The Onni Group of Cos. acquired a 14-acre lot at 6500 E. Pacific Coast Highway in Long Beach, earmarked for redevelopment into a $68 million multi-family home.
The Los Angeles Chargers announced plans to build Continental Development Corp. on a 14-acre site. and Mar Ventures Inc. in El Segundo to build a new headquarters and training center for more than $100 million.
A portfolio of five newly constructed properties owned by Starbucks Corp. businesses. sold in separate transactions in La Palma, Redondo Beach, El Cajon, Rosamond and Modesto for a total of $21.1 million.
Brentwood-based Rexford Industrial Realty Inc. acquired property at 21515 Western Ave. in Torrance for $19 million with plans to redevelop the site.
SAN GABRIEL VALLEY
The San Gabriel Valley fourth-quarter commercial vacancy rate declined to 1.2% from 1.4% in the previous quarter and 2.6% a year ago. Asking rents were $1.03 per square foot, up 9 cents sequentially and 20 cents year-on-year. Approximately 1.9 million square feet were sold or leased during the quarter and 1.4 million square feet were under construction.
main events
Century City-based Standard Communities, the condominium division of Standard Cos., and West Hollywood-based Faring Property Group bought a 349-unit apartment complex in Pomona, known as Monterey Station, from Clear Capital for $130 million.
Duke Realty acquired a 3.2 acre distribution facility at 468 S. Humane Way in Pomona that is 63,265 square feet.
CenterPoint Properties acquired a portfolio of three industrial properties on Via Oro Ave. 4061 in Long Beach, 4250 E. Greystone Drive in Ontario and Palomares Ave. 1300 at La Verne for an undisclosed sum.
Beverly Hills-based Dunleer acquired a $10.6 million commercial lot in Temple City from computing manufacturer McGuire Industries Inc.
Waterford Property Co. and the California Statewide Communities Development Authority bought a 472-unit gated community in Pomona for $149.4 million with plans to convert it into middle-income housing.
For reprint and license requests for this article, CLICK HERE.
Comments are closed.