Westside commercial property scene dominated by financial reshuffling.Commercial real estate owners reshuffled their finances on a number of major Westside properties in the second quarter, and sources said the dynamic Westside market may soon be the site of a major new office development - which would be the first such development for L.A. County in more than five years. Nearly three years after first seeking Chapter 11 bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most protection, a partnership led by the Held family received approval in late May on a capital restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). plan for its 15-story Westwood Place tower at 10866 Wilshire Blvd. Built in 1987, the 206,000-square-foot Westwood Place is one of Westwood's newest office buildings. On a similar note, developer Westside Associates Ltd. restructured more than $100 million in outstanding debt in April on its Westside Towers - two office towers with a combined 400,000 square feet of space at 11835 and 11845 W. Olympic Blvd. in West Los Angeles
Meanwhile, the partnership that owns Marina Marina “a piece of virtue.” [Br. Lit.: Pericles] See : Virtuousness del Rey's biggest apartment house portfolio and is the Marina's largest groundlease holder sought Chapter 11 bankruptcy protection in June, just as lenders were about to take possession of its half-dozen multi-family and commercial properties. The partnership, controlled by a wealthy Saudi Arabian sheik, owed lenders about $50 million in defaulted mortgages on the properties. And in June, the 605,657-square-foot Century City North building at 10100 Santa Monica Santa Monica (săn`tə mŏn`ĭkə), city (1990 pop. 86,905), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1886. Tourism and retailing are important, and the city has motion-picture, biotechnology, and software industries. Blvd. - one of Century City's biggest office towers - changed ownership, with an affiliate of Aetna Life Insurance Co. taking title to the property through a "deed in lieu of foreclosure A Deed in lieu of foreclosure is a deed instrument in which a mortgagor (i.e., the borrower) conveys all interest in a real property to the mortgagee (i.e., the lender) to satisfy a loan that is in default and avoid foreclosure proceedings. ." While office property owners reshuffled their finances, the Westside as a whole continued to post some of the lowest vacancy VACANCY. A place which is empty. The term is principally applied to cases where an office is not filled. 2. By the constitution of the United States, the president has the power to fill up vacancies that may happen during the recess of the senate. rates in all of L.A. County during the second quarter. The overall vacancy rate for Westside office space at the end of the quarter was 15.9 percent, up slightly from 15.7 percent at the end of the first quarter but down sharply from the 17.5 percent figure a year ago, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. real estate brokerage Grubb & Ellis Co. The market posted a slight negative net absorption of 52,000 square feet for the quarter, meaning Westside office tenants moved out of that much more space than they moved into. Second-quarter office vacancies for Westside submarkets ranged from a low of 8.3 percent in Santa Monica to 20.8 percent in Marina del Rey/Culver City, Grubb & Ellis reported. Submarkets with low second-quarter vacancy rates included Brentwood (11.6 percent) and Century City (13.6 percent), while the weakest markets were West Hollywood West Hollywood A community of southern California northeast of Beverly Hills. It is mainly residential. Population: 36,600. (20.6 percent), and Westwood (19.9 percent). New development Financial shuffling may have taken center stage on the Westside in the second quarter, but the prospect of new office development there seemed to have real estate sources most excited. If and when it comes, the new development is expected to occur at the second phase of the Water Garden office project in Santa Monica, at the comer com·er n. 1. One that arrives or comes: free food for all comers. 2. One showing promise of attaining success: a political comer. Noun 1. of Colorado Avenue and Cloverfield Boulevard. Cliff Goldstein, a partner at Miracle Mile-based developer J.H. Snyder Co., predicted the Water Garden's second phase, entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to include 600,000 square feet of new office space, would break ground within the next 12 months. The project is being jointly developed by a partnership between J.H. Snyder, Korean developer K. Young Inc., and Transaction Financial Corp. of Berkeley, Calif. "We've decided to accelerate the marketing program (for the second phase of the Water Garden) because of high interest levels from both tenants and brokers," said Goldstein. He noted that broker enthusiasm for the new development was expected, but the Water Garden partnership was particularly surprised by the strong tenant interest in the new complex. Most sources said small firms - particularly entertainment firms - continue to dominate the Westside office market, and their dominance explains the absence of major new Westside leases in the second quarter. "The Westside is a market where average tenant size is between 5,000 and 10,000 square feet, so large tenant transactions don't take place a lot there," said Rosey Miller, senior vice president at the West L.A. office of brokerage Grubb & Ellis. Retail boom The Westside office market was relatively quiet during the second quarter, but the market for retail space there was bustling bus·tle 1 intr. & tr.v. bus·tled, bus·tling, bus·tles To move or cause to move energetically and busily. n. Excited and often noisy activity; a stir. with new activity during the three-month period. At least five new supermarkets either are preparing to break ground or are currently under construction in various Westside sub-markets, each designed with an average floor space of 50,000 square feet. The new or proposed stores are all projects of either Vons Cos. Inc. or Ralphs Grocery Cos., and the projects are located in Marina de Rey, West L.A., West Hollywood and Santa Monica. In addition, electronics specialist Best Buy is building a new superstore su·per·store n. A very large retail store that stocks highly diversified merchandise, such as groceries, toys, and camera equipment, or a wide variety of mechandise in a specific product line, such as computers or sporting goods. in West L.A., and Toys 'R' Us is building a new store in Santa Monica, while West L.A. developer Champion Development Group is gearing up to build 100,000 square feet of new retail space - to be anchored by Linens 'N Things Linens 'n Things, Inc., headquartered in Clifton, New Jersey, is the second-largest large-format retailers of home textiles, housewares and decorative home accessories in the United States, behind Bed Bath & Beyond. and clothing retailer Marshall's Department Store - in West L.A. "Right now interest from (big-name) retailers is hotter than it's ever been for the Westside," said Goldstein of J.H. Snyder Co. He explained that big-name retailers are rushing to set up Westside locations while land prices are at some of the lowest levels in recent memory. According to Goldstein and other sources, land prices are as much as 40 percent lower in some Westside locations than they were a decade ago. |
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