MTA swaps Venice lot for construction of new facility.

A 3.1-acre parcel in Venice that has been a lowly bus yard is about to get a facelift as part of a land-swap deal worked out between a local developer and the Metropolitan Transportation Authority.

As part of the deal, RAD Jefferson LLC will gain title to the 3.1-acre parcel bordered by Main Street, Thornton Place and Pacific and Sunset avenues, which has operated as an MTA bus yard for decades and is valued at $12.9 million, according to the MTA. In exchange, RAD Jefferson will build a new bus facility on a 4.7-acre site on Jefferson Boulevard near National Boulevard.

RAD Jefferson is led by real estate investor Robert D'Elia, principal of GTO Hampton LLC, which is putting the finishing touches on the 51-unit Venice Art Lofts across the street from the bus yard. D'Elia is also a partner in the entity that bought the 255,000-square-foot building at 1100 Wilshire Blvd. last year for a reported $36 million and is planning on redeveloping the empty building into luxury apartments.

While financial terms of the Venice deal were not available, RAD Jefferson is scheduled to complete the Jefferson Boulevard facility and get title to the Venice yard by June 30, 2006, according to Denise Longley, deputy executive officer at the MTA. D'Elia did not return calls.

"I would think (he would develop) either residential or commercial, but he hasn't approached us yet," said Sandy Kievman, senior field deputy for Councilwoman Cindy Miscikowski, whose district includes Venice

Next Wave?

The city of Santa Monica is taking steps toward developing the former site of the Sand and Sea Club on Santa Monica State Beach.

This month, the city will send out a request for qualifications to 144 individuals and entities that have expressed interest in the five-acre site at 415 Pacific Coast Highway. The site, owned by the state but overseen by the city, was designed by noted architect Julia Morgan and originally built by William Randolph DANNY Hearst for actress and KING paramour Marion Davies in the 1920s. More recently home to the Sand and Sea Club, it has been empty since being damaged by the Northridge earthquake a decade ago.

"The city's priority is to preserve the historic buildings on the site and create visitor-serving public space," said Barbara Stinchfield, director of community and cultural services for Santa Monica. "But there also needs to be a revenue-generating component."

In 1999, the city proposed a plan that would include a public beach club, a park and banquet facilities. In 2001, that redevelopment plan was estimated at $t6.7 million.

Santa Monica restaurateur Michael McCarty proposed a hotel and community center at the site but those plans were quashed by a citywide referendum in 1990.

Recipients, including Santa Monica-based developers Palisades Development Group (Hollywood Equitable building) and JS Rosenfeld & Co. (Brentwood Country Mart) as well as McCarty, will have until April to respond to the RFQ.

Holiday Shopping

Bascom Group finished off 2003 by purchasing two L.A. County apartment complexes for a combined $43.6 million.

Bascom bought the Belford Park Apartments in Westchester from longtime owner Westchester Investment Co. for $16.9 million. The 160-unit property at 8809 Belford Ave., built in 1949, sold for about $105,000 a unit in a Westchester market where third quarter 2003 vacancies were just 1 percent, versus 4 percent for the county, according to RealFacts.

"We found that tenants like low-density properties that seem to be a disappearing entity in LOS Angeles," said Scott McClave, vice president at Irvine-based Bascom. The complex, made up of 13 two-story buildings, is situated on eight acres. "It's a rock solid market."

Bascom also purchased the 336-unit Fountains Apartments in Palmdale from Oasis Palmdale Apartments LLC for $26.8 million, or about $80,000 a unit. Bascom will spend an additional $500,000 in improvements to the complex at 38300 30th St. East, built in 1987.

Marcus & Millichap's Steward Weston and Martin Ensbury represented both sides of the Westchester deal while Hendricks & Partners' Dean Zander, Joe Leon, Paul Runkle and Dave Casper represented both sides of the Palmdale sale.

Divesting From the West

Equity Office Properties Trust has sold Marina del Rey's Marina Business Center and Sepulveda Center in Palms for a combined $70.5 million.

Hankey Investment Co. purchased the 267,000-square-foot Marina Business Center for $42.5 million. The complex, on about 12 acres just north of the Marina (90) Freeway, is 90 percent occupied, including primary tenants CancerVax Corp. and Nike Inc.

"I like the Westside," said Don Hankey, chairman at L.A.-based Hankey Investment, which bought a 35,000-square-foot building on Main Street in Santa Monica in 2002 and whose sister companies include Midway Car Rental. "You put a (for rent) sign up on the Westside and you get a call every day. In the San Gabriel Valley, you get a call a week."

Meanwhile, EOP sold the 171,000-squarefoot Sepulveda Center near Sepulveda and Palms boulevards to Younan Properties Inc. for $28 million.

Both properties were put on the market last summer. EOP had acquired both sites as part of its $7.3 billion acquisition of Spieker Properties Inc. in 2001.

LAX News

REMC Executive Suites signed a 10-year lease for 33,000 square feet at 5959 W. Century Blvd., worth more than $5 million. The site had been operated by Arden Mini Suites, which was bought by REMC about two years ago.

The deal marks the second in less than six months at the 224,000-square-foot building on the LAX corridor. Last summer, 24 Hour Fitness signed a 15-year lease for 22,000 square feet on the ground floor of the building.

PM Realty Group's Chris Strickfaden represented the landlord, GE Capital/Jupiter Realty, while Studley's Dave Gordon and Corey Davidson represented REMC.

Staff reporter Danny King can be reached at [phone] ext. 230, or at [e-mail].