Commercial Real Estate

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. http://www.latimes.com/business/la-fi-commre-quarterly-apartments-20110717,0,6536545.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?)

Commercial Real Estate

Silicon Beach


If you read this week’s Los Angeles Business Journal (LABJ), you will note the “Real Estate Quarterly” focuses on a bright spot within our local economy, technology, and it positive impact on commercial office space. It’s nice to have some good news! Santa Monica has been compared to Silcon Valley with the influx and growth within the tech sector. Recent large leases include Riot Games (2400 Broadway) for 88,000 SF, eHarmony (2400 Broadway) for 60,000 SF, Hooky Interactive (2415 Michigan) for 10,500, Beachmint for 14,000 SF (1411 5th Street) and Google in Venice for 100,000 SF (340 Main). Additionally, the area is home to Yahoo, Demand Media, Edmunds.com, Cornerstone OnDemand, Vevo and Activision Blizzard. Of all the office space submarkets tracked in greater Los Angelesin this week’s LABJ, Santa Monica has the only single digit vacancy of 9.6% compared to the average vacancy rate across all of L.A. at 16.5%. Perhaps Santa Monica has finally ditched its nickname “People’s Republic of Santa Monica” for it’s new nickname, “Silicon Beach”.

Commercial Real Estate

Portfolio raises $10.5 million


FOR IMMEDIATE RELEASE

COLDWELL BANKER COMMERCIAL WESTMAC ANNOUNCES $10.5 MILLION OFFICE AND RETAIL SALE IN SANTA MONICA

July 5, 2011

SANTA MONICA, CA– A Northern California based owner has sold its portfolio of 16,585 SF in three commercial buildings at 1415-1433 5th Street for $10,500,000 to local investor and developer.

The property comprised of one-story and two story retail and office buildings, was owned by the same family for over 50 years.   At one time the property served as the Greyhound bus depot.  The property was fully leased at time of sale with Comerica Bank as the anchor tenant.

Tim Macker and T.C. Macker, CCIM of Coldwell Banker Commercial WESTMAC represented both Buyer and Seller.

“There is great buyer demand for core first class locations like Santa Monica.” T.C. Macker said.   And he added “There were multiple offers on the property”.

Commercial Real Estate

Investor buys in Beverly Hills


FOR IMMEDIATE RELEASE

COLDWELL BANKER COMMERCIAL WESTMAC ANNOUNCES $2 MILLION RETAIL SALE IN BEVERLY HILLS

May 25, 2011

BEVERLY HILLS, CA – A private owner has sold its 3,800 SF building at 209 South Robertson Boulevard for $2,150,000 to an overseas investor.

The one-story free-standing retail building was built in 1952 and was vacant at time of sale. The building is a former showroom for a classic car reseller.

“There is great buyer demand for street retail in first class locations.” James Stanfill said.

James Stanfill, Patrick Sheekey and T.C. Macker, CCIM of Coldwell Banker Commercial WESTMAC represented both Buyer and Seller.

Commercial Real Estate

Tanning Company buys in West Hollywood


For Immediate Release – March 7, 2011

Owner-User Purchases West Hollywood Property

WEST HOLLYWOOD, CA – A private owner has sold its 3,000 SF building at 8756 Holloway for $1,950,000 to a prominent tanning and skin care company.

The three-level building was built in 1946 and completely renovated in 2009. The building included extraordinary finishes and unparalleled views of the city from the roof top.

“There is great buyer demand for quality owner-user properties” William Althouse said.

T.C. Macker, CCIM and William Althouse of Coldwell Banker Commercial WESTMAC represented the Seller. Daniel Chiprut of Beitler Commercial and Jacques-Henri of Munro Commercial represented the Buyer.

Commercial Real Estate

Sale in Venice


For Immediate Release – February 11, 2011

Production Company Purchases Venice Property

LOS ANGELES – A private owner has sold its 3,600 SF building at 533 Venezia Avenue for $1.8 million to a production company.

The one-story creative office building was built in 1948 and was vacant at time of sale. The building is a former warehouse that has been converted to creative office space.

“There is great buyer demand for creative buildings in Venice” Craig Newlands said.

T.C. Macker, CCIM and Craig Newlands, CCIM of Coldwell Banker Commercial WESTMAC represented the Seller. Steven Rood of Century 21 represented the Buyer.