NAI Capital Completes Sale of West Hollywood Adjacent Retail Storefront Property for $852 per Square Foot
Los Angeles, CA, Tuesday, September 27, 2016– Executive Vice President Ian Strano with NAI Capital’s Westside office represented the seller San Francisco based Hamilton Partners and buyer Los Angeles investor Arash Danialifar on the sale of a retail storefront building in West Hollywood, Calif. The sale price was $7,500,000 or $852 per square foot.
The property located at 8126 Beverly Blvd. in Los Angeles was previously occupied by Environment Furniture. The 8,800 square foot freestanding retail building is in a prime West Hollywood adjacent location, with its own parking lot, on the southwest corner of N. Kilkea Drive and Beverly Boulevard, one block west of Crescent Heights Boulevard. The property is centered on Beverly Boulevard between the Beverly Center and the Grove in a swanky design district.
Strano said, “The key aspect to this deal was the large adjacent parking lot with 24 parking spaces. Most buildings like this along Beverly Blvd have no parking at all. The buyer is considering various options including redeveloping the property.”
Pasadena, CA, Tuesday, September 20, 2016 – Executive Managing Director Carl E. Anderson, Senior Vice President Sheri McCanless and Vice President Jodi Shoemake with NAI Capital’s Pasadena office were instrumental in negotiating the sale of a multi-tenant office campus in South Pasadena. The transaction totaled $11,632,000 or $269.85 per square foot. Carl E. Anderson, Jodi Shoemake and Sheri McCanless represented both buyer, Kota Commercial Assets affiliated LDW Pico Properties and seller, EFG-Arroyo Gateway LLC.
Arroyo Gateway Business Park is located at 143-161 Pasadena Avenue, South Pasadena, CA. The property was completely renovated in 2014, restoring the original bow truss ceilings and converting the office buildings to a modern creative design. Arroyo Gateway Business Park is approximately 43,317 square feet in size situated on 2.2 acres of land along Pasadena Avenue in a highly accessible north/south thoroughfare adjacent to the historic I-110 Freeway. The Arroyo Gateway Business Park connects South Pasadena to the city of Pasadena to the north and Downtown Los Angeles to the south. The property was 93.7% occupied at the time of the sale.
Anderson said, “The property offered the new owner a unique opportunity to acquire a newly renovated, creatively designed, multi-tenant investment with stable cash flow.”
“Carl, Sheri and I worked on this project for 3 years. We advised the ownership on the renovation plan, leased up 94% of the space and then put the property on the market for sale this past February. This was a real team effort to add value for our client.” added Shoemake.
Senior Vice President Fariba Kavian with NAI Capital represented the seller Harrison Coachella 26 LLC on the sale of Coachella Plaza, an 85,035 square foot community retail center. The sale price was $10,600,000 or $124.65 per square foot.
The property located at 50249 Harrison Street, Coachella, CA was 78% leased at the time of the sale. Coachella Plaza was originally built in 1991 and was fully renovated in 2008 and again in 2014. It is anchored by 99¢ Only, Planet Fitness, and WSS Shoes. The center is also shadow anchored by Cardenas Market, Carl’s Jr., Little Caesars, Payless Shoes and Fred Loya Insurance. The property is situated on 6.46 acres of land. The site is located on the main retail thoroughfare in Coachella at the corner of Westerfield Way and Harrison Street. Coachella is located 134 miles east of Los Angeles at the crossroads of the I-10 Freeway, State Highway 111 and State Highway 86 (NAFTA Highway).
Kavian said, “This investment provided the buyer the opportunity to acquire a dominant well-leased center at substantially below replacement value. With below market leases this investment translates into substantial residual value, diminished risk, and upside for the new owner through additional lease up while allowing the seller to move on to other projects.”
Rancho Mirage, CA, Tuesday, August 30, 2016– Senior Vice President Jeffrey Simonds with NAI Capital represented the buyer FM 111, LLC on the purchase of a 15,000 square foot retail showroom in Rancho Mirage, Calif. The seller was Thomas Realty Company. The sale price was $5,300,000 million or $353.00 per square foot. The per square foot price was inflated because of the large land parcel which is ideal for the buyer’s business.
The property located at 71441 Highway 111 was used by the seller/user for its business, Electric Car Distributors, at the time of the sale. The overall property sits on 165,528 square feet of land. The property is on a prime thoroughfare; Highway 111 at Indian Trail Road. Over 31,213 vehicles pass by the property daily.
Simonds said, “This investment provided my client the rare opportunity to purchase prime retail on Highway 111, ideal for his business which will use the 2 acres of excess land.”
Ontario, CA, Tuesday, August 30, 2016– Senior Vice President Nicholas Chang, CCIM, Senior Vice President Richard Lee and Associate, Justin Kuehn with NAI Capital’s Ontario office completed the sale of a 77,749 square foot manufacturing facility in Ontario, Calif. The transaction totaled $5,000,000 or $64.31 per square foot. Nicholas, Richard and Justin represented both buyer, T&C Exchange Accommodators, Inc and seller VHW Properties No. 2 LLC.
The property is located at 1720 E. Locust Street. It is an industrial metal building with 22 foot clear height ceilings. Built in 1965, it sits on 158,735 square feet of land. The manufacturing facility is situated in one of the hottest industrial markets in the country within Ontario’s’ Airport submarket. It is approximately 2 miles south of the Ontario International Airport between the 60 and 10 freeways.
At the time of the sale the building was 100% occupied by MD Barnmaster. MD Barnmaster is the leader in custom designed barns, horse housing, professional equestrian facilities, horse stalls and modular buildings. The vacancy in the Inland Empire for manufacturing facilities of similar size is extremely low due to heightened demand, which has contributed to escalating rents and outstanding sales prices with exceptionally low cap rates.
Chang said, “This property was priced significantly below replacement cost and features a tenant with a track record of over 30 years in this facility. This property has 100% historical occupancy, never vacant. The property offers a tremendous long term hold potential for the buyer.”
“The Inland Empire is one of the most dynamic industrial markets in the nation due to low available inventory, increasing demand, low vacancy rates, and high level of space absorption. This property is in a prime in-fill location,” Lee added.
Bisnow honored our President/CFO, Rachel Howitt, as one of the fifty most influential women in business!
Read more about Rachel at Bisnow.
VP of Marketing, Research and Communications, J.C. Casillas, spoke to GlobeSt.com about the multifamily market. From the article:
The market continues to amaze people…The vacancy only went up 20 basis points in the face of all of this new delivery. I was looking back to the last time that we had huge deliveries in the marketplace, and that was prior to the last downturn.
Read more at GlobeSt.com.
NAI Capital’s Multifamily Market Outlook reports show demand for multifamily housing continued rising in the first half of 2016, absorbing much of the newly completed supply in most markets. The vacancy rates remained low and rents continued to rise in all markets. As more supply enters the market in the second half 2016, multifamily housing fundamentals will moderate in markets with high levels of new construction. Sale transactions, albeit at a lower volume due to limited supply for sale, demonstrated strong demand from investors.
Los Angeles County
- Average asking rental rate registered $1,647 per unit, up 5.2% over last year
- Vacancy increased by 20 basis points over the quarter and the year to 3.5%
- 12,497 units sold this quarter in 960 transactions at an average price of $218,788 per unit, which is 8.8% higher than last year
According to Kevin Kawaoka, CCIM, Vice President, NAI Capital, “The Los Angeles multifamily housing market continues to show strength supported by steady job growth, increasing rents and attractive financing. As cap rates continue to compress and interest rate hikes loom on the horizon, we are in an ideal market for sellers.”
- Average asking rents at $1,770 are up 3.6% from a year ago
- Vacancy ended at 3.6%, up 20 basis points from the prior quarter and up 80 basis points from a year ago
- 1,500 units sold in 71 transactions with average unit selling for $255,490, represented a 7.2% increase from a year ago
Steve Gim, Vice President, NAI Capital said, “The multifamily market continues to show very high demand with little supply due to increased amount of buyers being in the marketplace, including foreign capital. This demand is driven by an abundance of capital with very low interest rates. Cap rates have been compressed to the 4-5% range in Orange County for C-Class product. Investor demand has never been higher, with multiple offers on every apartment building that hits the market. We are also seeing more off market transactions taking place.”
- Average asking rents ended second quarter at $1,204 per unit, a rise of 2.9% over the year
- Vacancy, at 2.8%, held steady over the last quarter and is up 20 basis points over last year
- 3,363 units sold this quarter with an average sales prices per unit of $159,217, up 13% over the year
Senior Vice President, DeLonne Valens with NAI Capital added, “One of the main driving forces fueling this growth in the Inland Empire is the fast paced expansion of jobs. With the tightening of the rental market, sales on Class A and B properties are experiencing compressed cap rates averaging in the 4% cap rate range. Class C properties are also experiencing lower cap rates and higher cost per unit sale prices across the board.”
To access the full Multifamily Market Outlook Q2 2016 reports for Southern California, visit:
NAI Capital Completes $6.6 Million Sale of a Historic Retail Property in Los Angeles’s West Adams Heights Neighborhood
Los Angeles, CA, Tuesday, August 02, 2016 – Senior Vice President Parham Khoshbakhtian with NAI Capital represented the seller Washington-Western LLC on the sale of a historic freestanding 22,400 square foot storefront retail property in Los Angeles’s West Adams Heights neighborhood. The sale price was $6.6 million or $268 per square foot.
The property located 2128-2152 W Washington Blvd was 100% occupied at the time NAI Capital was awarded the listing but was delivered vacant to the buyer as a condition of the sale. It was sold as an investment to an owner-user who plans to occupy the entire building for a senior day care center. The property was built in 1924 and is a single story brick structure siting on a 31,063 square foot land parcel with 230 feet of frontage on W Washington Blvd.
The property is on a prime corner of W Washington and S Oxford and is just one small block off the intersection of W Washington Blvd and S Western Ave. It is in a densely populated market area with over 611,000 residents living within a 3 miles radius.
Khoshbakhtian said, “We are able to obtain a purchase price that was 10% higher than our client’s desired listing price by reaching out to the probable buyers in the market while also proactively working with outside brokers to create a multiple-offer bidding environment. As part of the conditions of the sale, I vacated the fully occupied property and delivered it to the owner-user buyer vacant.”
Anaheim, CA, Tuesday, August 02, 2016 – NAI Capital has completed the sale of a 46,609 square foot lot that consisted of a motel and retail property in Anaheim, CA.
Vice President Steve Liu and Senior Vice President Roger Niez of NAI Capital’s Irvine office in Orange County represented the seller, 99 Motel, LLC. The buyer, Anaheim Express Car Wash LLC, was self-represented. The buyer plans to redevelop a portion of the property into a car wash. Sale price was $3.4 million or $72.95 per square foot.
Located at 924-926 S Beach Blvd – Lyndy’s Motel, the two-story property was built in 1961. It is in a densely populated area along a major thoroughfare on S. Beach Boulevard and W. Ball Road. Strategically located, in a highly visible corner, over 80,000 cars drive by the property per day.
“This location will be an ideal site for Anaheim Express Car Wash as it enables the company to capitalize on the Beach Boulevard Corridor’s huge car traffic,” said Niez. “In today’s competitive environment retailers are jumping at the opportunity to acquire great sites. We had multiple offers – this proved to our client the perfect time to sell,” Liu added.
Hollywood, CA, Friday, July 15, 2016– NAI Capital has completed the lease renewal of a 24,000 square foot creative office in Hollywood, CA. The home of Panavision Hollywood.
Executive Vice President Ian Strano of NAI Capital’s office on the Westside of Los Angeles represented the landlord, Torrance Borders Partners. The tenant, Panavision, was represented by Patrick Amos at CB Richard Ellis and Rich Bright from Jones Lang LaSalle.
Located at 6735 Selma Avenue, the building is a two –story single tenant creative office space building that has been 100% leased to Panavision since its completion in 1995. Located in the heart of Hollywood, the building is within walking distance of numerous residential and retail amenities, including the Hollywood and Highland retail complex, the Roosevelt Hotel and the El Capitan Theatre.
Strano said, “We are excited that Panavision has decided to remain in our building. They have been an exceptional tenant, great to work with and they are an institution in the motion picture and TV production industry.”
Alhambra, CA, Tuesday, June 21, 2016– Executive Vice President Scott Martin with NAI Capital represented the seller City of Alhambra Successor Agency on the sale of Fremont Plaza a 151,000 square foot retail power center. The sale price was $24.8 million.
The property located at 2500 – 2588 W Commonwealth Ave was 100% leased to Toys R Us, Party City, and PetsMart. The sale also included two ground leases to El Pollo Loco and Taco Bell. It was purchased by CTF Development NV as an investment. The site was a former Sears department store built in the 1970’s and renovated in 1995. Fremont Plaza consists of three parcels. The first one includes two independent structures. One, with Toys R Us and Party City. The second is a freestanding PetsMart. El Pollo Loco’s ground lease totals 27,247 square feet and Taco Bell is on a 28,036 square feet. The overall site is 7.4 acres of land.
The property is on a prime corner of Fremont and Commonwealth, miles from the terminus of the 710 freeway. Over 40,000 cars pass the by property daily. Surrounded by other national tenant’s such as Costco, Albertsons and the future site for Lowes. Fremont Plaza sits adjacent to the Los Angeles County Assessor office.
“CFT Development NV, owns other assets in Alhambra and they were the best suited Buyer for the City of Alhambra”, Martin stated. “We had nine (9) offers on the property and had to move quickly to meet the City’s strict timeline to close this sale. CFT Development NV, was a pleasure to work with and very timely in their actions.” CFT Development noted, “This property presented us with great potential for a long term investment, future development and credit worthy tenants that reflected our value.”
Valencia, CA, Tuesday, June 14, 2016– Executive Vice President Yair Haimoff, vice presidents Randy Cude and Steve Body, with NAI Capital represented the seller Marquis Valley View, LLC on the sale of a 9,487 square foot Red Lobster restaurant building. The sale price approached $3.6 million with a 6.85% cap rate.
The property located 27524 The Old Road Valencia, CA was 100% leased to Red Lobster at time of the sale. It was sold to Simonian Family 2008 Trust as a single tenant net leased fee interest investment. The single story building situated on 1.15 acres of land prominently located on Valencia’s Restaurant Row under the iconic Six Flags Magic Mountain / Hurricane Harbor sign adjacent to Golden State 5 Freeway. The property is leased to Red Lobster who has occupied the space since 1986.
Red Lobster began as one seafood restaurant in Lakeland, Florida in 1968 by the company founders Bill Darden and Charley Woodsby and is now the world’s largest casual dining seafood restaurant company. It has over 700 restaurants in the United States and Canada with more than 58,000 employees and generates about $2.5 billion of annual revenue. The company is headquartered in Orlando Florida and has international operations in Canada, Malaysia, Saudi Arabia, the United Arab Emirates, Qatar, Mexico, and Japan.
The property is in a bustling and expanding market area. Almost 400,000 cars per day pass the site per day. The Tournament Players Club and Valencia Country Club are within a very close proximity. Planned developments in the immediate market area include Entrada Gateway Center, a 75 acre mixed-use business park which includes Sunkist Office Campus, retail and residential condos. Newhall Ranch has panned a 12,000 acre residential and business development to include 9 million square feet of retail, office space and 21,000 residential units.
Haimoff said, “This property presented the investor with a great potential for long term appreciation and cash flow. The location of the real estate combined with credit worthiness of the tenant was reflected in the tremendous interest in the property which received multiple offers.”
Great article on GlobeSt.com featuring NAI Global President Jay Olshonsky and chief economist Dr. Peter Linneman.
DeLonne Valens and Tim Steuernol of NAI Capital’s Multifamily Services Group represented the buyer and the seller, Chanslor Street LLC, in this transaction. – See more at: Heartland Real Estate Business