ORANGE COUNTY

Feldspar LLC of Newport Beach has acquired a 15,195-square-foot multi-tenant retail and office strip center called The Shops at Pacific Park at 22912 Pacific Park Dr. in Aliso Viejo for $3.7 million in a receivership sale. Built in 1999 and situated on 1.18 acres, the property was 88% occupied at the time of the sale. Dennis Vaccaro and Rich Walter of Faris Lee Investments represented Overland Park KS-based Key Bank and the receiver for the property. Vaccaro and Matt Mousavi of Faris Lee represented Feldspar, which paid all cash. The property generated 10 offers, and "despite the lender offering financing, our buyer chose to pay all cash for the asset,” Vaccaro points out. He added that the buyer was attracted to the asset as it presented a rare South Orange County ownership opportunity as well as significant upside potential through rental increases and new tenanting options.

2929 E. Imperial Hwy.

Entertainment and communications company IMS has renewed and expand its lease at 2929 E. Imperial Highway in the Saturn Business Park in Brea, where it will now occupy 27,794 square feet, according to a UGL Services team that represented IMS. The team was led by VP Drew Netherton, SVP Justin Hodgdon and senior associate Courtney McManaway. IMS initially hired UGL to reduce its occupancy costs. At the time, the client was paying an above-market rate as it continued to win new business. Netherton and his team negotiated an additional 9,000 square feet of space and termination options to allow IMS the flexibility to alter its real estate as the company continues to grow and expand. The ownership group, Triple Net Properties, was represented by Scott Lovell, director of real estate projects for Trigild Inc. Terms of the lease were not disclosed.

INLAND EMPIRE

A 5,479-square-foot US Bank in La Quinta has sold for $3.3 million at a 5.42% cap rate on the current NOI at 80.3% occupancy, according to Jon Selznick and Chris Rodriguez of Irvine-based Pacific Commercial Investments, who represented the seller. The property, at the signalized corner of Washington Street and Calle Tampico, was built in 2011 and is surrounded by private golf courses and the La Quinta Country club. It is an outparcel to La Quinta Village, a neighborhood center anchored by a Ralphs supermarket. US Bank occupies 4,400 square feet on a new long-term lease featuring 3% annual increases. There was a 1,079-square-foot end cap vacancy at the time of sale. The buyer was represented by James DeVincenti of Marcus & Millichap. Selznick points out that the property "provided the stability and security of a credit-backed income stream while also offering upside potential through the leasing of the vacant end cap." The seller was a Southern California-based developer. The buyer was a private investor based in Northern California.

1975 E. Locust St.

Sky Tech Worldwide Inc. has signed a lease for 50,000 square feet at 1975 E. Locust St., a 90,000-square-foot industrial building owned by Los Angeles-based Western States Technologies Inc. near Ontario International Airport. Sky Tech, which is now headquartered in Chino, plans to move its headquarters to the new Ontario space, which will also be used for the company’s distribution and warehouse operations. Sky Tech manufactures high-performance cables that connect audio/video components for homes, automobiles and professional uses, in addition to cables for computers and computer games. Walt Arrington and Jeff Linden of the Ontario office of CB Richard Ellis represented Western States, with Mitch Fisher of Jones Lang LaSalle in Santa Clarita representing Sky Tech. According to Todd Miller, vice president of Western States, Sky Tech was attracted to the Locust Street building because it offered a 50,000-square-foot property in the Ontario submarket along with the clear height, number of docks and proximity to the airport desired by the company.

LOS ANGELES COUNTY

Buyers have acquired three apartment complexes in Los Angeles totaling 131 units for more than $19 million in three separate deals, according to KW Commercial, which brokered the sales. The properties are a 38-unit complex at 616-632 N Plymouth Blvd. that sold for $6.1 million at a 5.1% cap rate, 51 units at 504 S La Fayette that sold for $7.125 million at a 5.3% cap rate and a 42-unit complex at 5105-5115 Melrose Ave. that sold for $6.2 million at a 7.76% cap rate. Roxbury Lane acquired the Plymouth Boulevard property from Scarsdale Palisades Investment, with Brett Boston of Prudential representing the buyer and Henry Garcia of KW repping the seller. The property was built from 1923 through 1928. Wilmington Harbor Properties LP acquired the La Fayette Lane property from Scarsdale Palisades Investment, with Bradley Gibbons of Commercial Property Group representing the buyer and Garcia representing the seller. The property was built in 1979. Lion Melrose LLC bought the Melrose Avenue complex from Melrose Studio Apts, with Garcia representing both the buyer and the seller. The property was built in 1923.

Meta Housing Inc. has acquired a stalled, two-building, 152,127-square-foot affordable housing conversion project called Chinatown Metro Apartments at 808 S. Spring St. in Los Angeles for $9 million from the KOR Group as a short sale through the lender, Bank of America. Albert Shilton of Charles Dunn Co., who represented the buyer, reports that the project, which is adjacent to Chinatown and a Metro Rail station, will be converted into affordable housing units under the City of Los Angeles’ Adaptive Reuse Ordinance. Shilton says that Meta Housing plans to complete the conversion of the former office property to 123 affordable housing units. Meta will start work on the project by the end of the year and anticipates opening Chinatown Metro Apartments in early 2013. Charles Dunn Co. has been involved in the project since 2004, when John Anthony of Dunn listed the building and Shilton represented the buyer, KOR Group, who intended to convert the building into live/work lofts. Beginning in 2004, the building underwent a complete interior demolishment. KOR conducted a million-dollar lead and asbestos abatement. Due to parking issues and a turn in the market, KOR decided to sell the property in 2008. “Meta Housing proceeded to secure financing for the project, but due to state budget cuts was not able to secure funding through tax credits, LAHD the CRA and other sources,” said Shilton. “It took two and a half years to pull the funds together. However, during the term of the escrow KOR and its equity partner were overloaded by carrying costs. Eventually, KOR's lender, Bank of America worked to conduct a short sale.”

JP Original, a designer of women’s shoes, has acquired a 131,420-square-foot industrial property at 19161 E. Walnut Dr. in the City of Industry from Unilver for $9 million. JP Original was represented by VP Adam Dzierzynski and senior associate Dennis Keane of Lee & Associates’ City of Industry office. Unilever was represented by Erik Larsen and Robin Dodson of Cushman & Wakefield. “This purchase puts JP Original in an excellent position to conduct its manufacturing and distributing business,” Dzierzynski said. “The property coincides well with this plan because of its location in a prime industrial region. In addition JP Original owns a 170,000-square-foot distribution facility next door.”

Los Angeles-based Lever Apartments LP has acquired a 29-unit apartment complex called The Kester House at 5421 Kester Ave. in Sherman Oaks for $5.45 million from a private investor based in L.A. at a cap rate of 5.4%. The buyer was represented by senior managing director Paul Kenworthy of Charles Dunn Co., and the seller represented itself. According to Kenworthy, since the close of escrow early this month, the buyer has increased the rents by over 10% and has been offered over $200,000 per unit from other investors, although the buyer has no plans to flip the property, which is non-rent-controlled. Kenworthy describes the property as well-maintained and well-located, adding that it "offered the buyer the opportunity to add value by bringing the rents up to market rates.” He says the buyer plans to keep the property long-term for its promising year-over year-returns and value appreciation. The unit mix consists of 16 one-bedroom/one-bathroom units, 12 two-bedroom/two-bathroom units and one three-bedroom/two-bathroom unit with monthly rents ranging from $1,100 to $1,800.

A private REIT has acquired a vacant 25,998-square foot former Ralphs supermarket at 24911 Western Ave. in Lomita from two family trusts for $5.1 million. Alex Kozakov and Patrick Wade, senior associates in Marcus & Millichap’s Los Angeles office, represented the buyer and the seller. The Ralphs lease expired earlier this month without options to renew. Kozakov and Wade also negotiated the $1.275 million sale of an NNN-leased Albertsons supermarket at 7676 Firestone Blvd. in Downey to a local 1031-exchange buyer. The seller was a prominent Southern California-based developer. In the Ralphs sale, an all-cash buyer closed in 30 days with a 21-day due diligence period. The Albertsons sale involved a complex leasehold interest component and a challenging CMBS loan assumption process, Kozakov notes. The Albertsons property has almost 20 years remaining in its initial term lease with five five-year options to renew. There are 10% rental increases for Albertsons every five years during the initial term and options periods.

A Los Angeles-based private investor has acquired a 4,860-square-foot retail building at 1310-1312 Abbott Kinney Blvd. in Venice from a private individual for $4.275 million in an all-cash transaction, according to Jeffrey Resnick and Gabriel Brown of First Property Realty Corp., who represented the seller. The property, which was built in 1956, "attracted a great deal of attention from private investors, equity groups, local and out-of-state and international buyers," Brown reports. The buyer plans to reposition the property, which is storefront retail in the prime blocks of Abbott Kinney Boulevard, which is "one of the most desirable strips of retail real estate in all of Los Angeles, with tremendous barriers to entry," Brown says. "This is a rare asset to own."

The owner of a 71-unit apartment complex in Torrance has refinanced the property with a $4 million Fannie Mae DUS Small Loan at a 4.57% interest rate and a 15-year fixed-rate term with 15-year amortization. The loan was arranged by Don Frankman, national director of small loan origination in the City of Orange office of Alliant Capital LLC. Commenting on the loan, Frankman said, “No other lenders other than other GSA’s offer this product in the multifamily lending world at this rate.”

Cypress Equity Investments LLC has acquired 24,650 square feet of land at 684-690 South Berendo St. in the Wilshire/Koreatown Redevelopment Area in Los Angeles from a family trust for $3.4 million. The sale was negotiated by Investment Real Estate Associates, which reports that the parcel's intended use is for a luxury high-rise condominium project.

Hong Kong-based Logistics Worldwide Ltd. has leased an 86,000-square-foot industrial building in Rancho Dominguez for its area headquarters, announces The Klabin Company/CORFAC International. The company recently occupied the new headquarters, which is located at 2120 University Dr. David Grote and Todd Taugner, partners in the Torrance office of Klabin/CORFAC, represented the building ownership. Arnold Ng of RE/MAX Commercial represented the tenant. Consideration for the 33-month lease was $1.4 million.

Cirrus Asset Management Inc. of Calabasas, CA has been awarded the management of the 134-unit Sherman West Apartments in Reseda on behalf of a family trust and the management of the 204-unit Westgate Courtyards in Santa Maria on behalf of Hunt Development Co. of El Paso, TX. Sherman West is at 19050 Sherman Way, was built in 1974 and consists of one building that is 95% occupied. Units range from studio to two-bedroom, two-bath apartments that range from 700 to 1,100 square feet. Westgate Courtyards is at 1240 Bethel Lane, was built in 2003, and comprises 32 buildings that are 99% occupied. The units range from 979 to 1,221 square feet.

WYOMING