This Week's LA Deal Sheet
Law firm Mayer Brown moved into 55K SF of office space in Brookfield Properties’ Wells Fargo Center in Downtown LA. The 11-year lease was signed in 2021, but the move-in date was this month. The new space features just fewer than 100 individual offices, almost double the total of Mayer Brown’s previous location. The new digs also feature a two-story atrium and indoor/outdoor terrace.
Mayer Brown was represented by CBRE’s Todd Lippman, Clay Hammerstein and Danny Rees. Brookfield Properties was represented in-house, with support from Todd Doney, John Zanetos and Chris Penrose of CBRE.
PEOPLE
Office leasing specialists Shaun Stiles, Katie Cowan and Hayden Clegg left Cushman & Wakefield for Newmark. The three are now based in Newmark’s downtown LA office and focus on agency leasing and tenant representation, especially within the life sciences industry. Stiles, a 30-year industry veteran, joined Newmark as an executive managing director and leads Newmark’s Life Science Practice Group in the greater LA area. Cowan joined as a managing director, and Clegg joined as a director.
SALES
Stepp Commercial completed the $9.325M sale of a 24-unit apartment property at 1867 Temple Ave. in Signal Hill. The sale price translates to approximately $388.5K per unit. Stepp Commercial principal Robert Stepp and Senior Vice President Michael Toveg represented the LA-based seller, VMG Properties. Stepp also represented the buyer, a Long Beach-based family office.
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Christina Development Corp., through its private equity real estate company, Christina Real Estate Investors 4, and in partnership with Silver Creek Development, bought a fully occupied six-unit apartment building at 1128 Larrabee St. in West Hollywood for $2.45M. The apartment building sits just north of Sunset Boulevard on the Sunset Strip and adjacent to the strip of storefronts that house the Viper Room. Silver Creek bought those storefronts in 2018 and plans a mixed-use project with a five-star hotel and retail.
LEASES
The Irvine Co. inked 92K SF of new leases in its 2121 Avenue of the Stars tower in Century City. Law firm Katten leased about 46K SF and was represented by CBRE’s Clay Hammerstein. Accounting firm Gursey Schneider leased 23K SF and was represented by Hammerstein and CBRE's Danny Rees. Immigration law firm Gondim Law Corp. leased 22K SF and was represented by Commercial Realty Partners’ Carol Roth.
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IDI Logistics locked in a tenant for 48K SF at 1700 Walnut Parkway in Compton. The tenant is Pilot Air Freight, a Maersk company and full-service global transportation and logistics provider. The Klabin Co.’s Frank J.H. Schulz III, Nick Buss and Todd N. Taugner represented IDI Logistics in the 62.5-month lease transaction, which is valued at almost $7M. Pilot was represented by JLL's John Gorczyca.
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Acra Lending leased 24K SF at 3 Ada, a two-story office building at Lakeview Business Center at the Irvine Spectrum. Avison Young Senior Vice President Oliver Fleener represented Acra. Jeff Shaw represented the landlord, Irvine Co. Acra will consolidate four of its local offices into its space at 3 Ada by the spring of 2023. Acra Lending’s lease brings 3 Ada back to 100% occupancy.
FINANCING
JLL Capital Markets arranged $20.6M in acquisition financing and joint venture equity for a multitenant industrial building at 2425 Auto Park Way in Escondido. The 89K SF building serves as both a corporate headquarters and distribution facility. JLL represented the borrowers, a joint venture between Stos Partners and a private investor. It secured the short-term, floating-rate loan through an insurance company.
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DivcoWest got a three-year, floating-rate acquisition loan for $40M for Northridge Summit, a 130K SF, Class-A office building in San Diego. The loan came from a regional bank and was arranged by JLL Capital Markets. The property at 12220 Scripps Summit Drive is fully leased to an AA+ credit technology tenant. JLL Capital Markets' debt advisory team was led by Senior Managing Directors Chris Collins and Aldon Cole and Managing Director Alex Witt.
