Commercial Real Estate

Office sale lease back in LA



November 14, 2011

LOS ANGELES, CA – A national magazine publisher has sold one of its two Los Angeles office buildings at 2417 Beverly Boulevard for $1,750,000 to a local investor and owner/user janitorial company which will occupy half of the building and the seller will lease back the other half for three years.

“This was a rare purchase opportunity near Downtown with both user potential and investment income.” Michael Rojas said. The building size is 10,720 Square Feet and sits on a 30,632 Square Foot lot. And Mr. Rojas added “Additionally, the land size allows for future development of the property.”

The team of Michael Rojas, William Althouse, and T.C. Macker, CCIM of Coldwell Banker Commercial WESTMAC represented the Seller, 2401 Beverly LLC. Brian Rhie of AB Real Estate represented the buyer, Sun Kee Hong.

Commercial Real Estate

Midas touch in Santa Monica

Rumor has it that the office building at 501 Colorado and the Midas site are in escrow with a hotel developer. What’s astonishing is the rumored price $35MM+ price for both sites (two – 22,500 SF land parcels across the street from one another) which is at least $777/SF per land foot! We’ll see if it closes… Please see Curbed story:

Commercial Real Estate

Not a "Bear Market"?

The stock market tumbled with the Dow giving up 512 points today or 4.31% of its value (Nasdaq 5.08%), the worst since December of 2008. The upside to this, interest rates also came down. Now is probably a good time to refinance your house especially if your loan amount is below $729,750. I got a quotation today of 4.00% fixed for 30 years with ARMs as low as 2.5%.

With news like today, we may have a movement of cash out of equities into more tangible assets like real estate. Some areas have been wrecked by this recession while others have held their values at nearly 2007/2008 pricing and fetching very low yields. Recent sales that support this include, a Trader Joe’s in Manhattan Beach at 1821 Manhattan Beach Blvd. which recently sold at a 5% cap rate, a New Balance store at 26th and Wilshire in Santa Monica had multiple offers and sold around a 4% cap rate in May and a long term leased El Pollo Loco on Vernon and Crenshaw in Los Angeles that sold at a 5.49% cap rate in February of 2011.

Commercial Real Estate

Roger Vincent Article

This is a good article published on July 17, 2011 and written by Roger Vincent at the L.A. Times about apartments.,0,6536545.story The highlights (Cliff’s notes version) are as follows: 1. Apartments are favored class for commercial real estate buyers and builders. 2. Most active construction is likely an apartment building. 3. The sluggish economy has put homeownership out of favor thereby making apartments a more desirable abode for many. 4. Average rents in L.A. and Orange Counties is more than $1,500 per month with expcted 4% per year increases. 5. Very little influx of new renters from foreclosed homes (interesting?)