New York Firm Falls Hard for Valley Rentals

In the year’s largest multifamily sale in Ventura and Los Angeles counties, New York financial service firm TIAA-CREF has acquired Oceano Warner Center for $84 million. The 244-unit property was constructed last year by a joint venture of Thousand Oaks firm Oceano Partners LLC; affiliates of New York real estate investment firm Dune Real Estate Partners LP; and Irving, Texas apartment developer TDI Real Estate Holdings LLC. Brokers involved in the deal said TIAA-CREF will benefit from a slowdown in apartment developments in the area following the city’s adoption of new neighborhood guidelines called the Warner Center Specific Plan. “Our perception is that after the next few projects, everything is going to be different type builds,” said Bob Patterson, vice president in CBRE Group Inc.’s Newport Beach office, who represented the seller. “It’s going to be much harder to build a property like this.” The sale breaks down to $344,057 a unit. The 250,000-square-foot Oceano project was named Best New Construction for 2012 by the California Apartment Association, Los Angeles. Apartments range from one-bedroom, one-bath at 696 square feet to two-bedroom, two-and-a-half-bath and 1,250 square feet. Rents begin at $1,587. The apartments began leasing in August and were 82 percent leased at the time of the sale, according to Patterson. The complex includes a fitness center, swimming pool and sundeck, game room, business center and electric vehicle charging station. TDI and Dune formed a $1 billion joint venture in 2011 to acquire and build apartment buildings throughout the country. The acquisition is the second large apartment complex TIAA-CREF has bought in the Valley in just a few weeks. It also purchased a 276-unit apartment complex in Burbank, Empire Landing, from Los Angeles developer Alan Casden in a deal that closed April 30. Price was not disclosed. TIAA-CREF also has interests in several industrial properties in the area and is a partner of Westfield Group in the Valencia Town Center mall. Laurie Lustig-Bower, executive vice-president at CBRE’s downtown office, and Tyler Anderson, vice chairman and managing director of CBRE’s Phoenix office, also represented the sellers. TIAA-CREF was represented in-house. Brokerage Change-Up Glendale brokerage Coldwell Banker Commercial North County is changing its name to Coldwell Banker Commercial Alliance after being acquired by a company backed by New York investment management firm Waterfall Asset Management LLC. The brokerage will become the fourth office of Coldwell Banker Commercial Alliance, a franchise launched last year by Waterfall, which deals in debt and equity finance and mortgage-backed securities. “This will work for us because it gives us financial backing to expand and grow that we just probably wouldn’t have taken on alone,” said Greg Barsamian, who founded the firm with partners Bill Ukropina and George Issaians in 2006 after the three departed CBRE. The Coldwell Banker name is owned by Realogy Holdings Corp., a Madison, N.J. firm that owns and franchises real estate brands including Sotheby’s International Realty, Century 21 and Better Homes and Gardens Real Estate. As part of the acquisition agreement the Glendale office, which was an independent franchise, will now operate under Waterfall’s franchise agreement. Waterfall, which manages more than $1 billion in assets, formed its brokerage division to service its clients’ portfolios of small- and mid-cap real estate assets. Barsamian declined to give details on the financial arrangement of the new ownership. Under its Commercial Alliance arm, Waterfall has already opened offices in Newport Beach, Denver and New York City. It will back an expansion of the Glendale office, which is in the process of adding 1,200 square feet at 701 N. Brand Blvd., and is looking to open additional offices elsewhere in the county. The firm has 21 brokers in Glendale, but Barsamian said they are looking to hire more. “We’re really going to be in expansion mode now,” he said. “We’re actively recruiting and we’re actively looking for more space.” Staff reporter Kelly Goff can be reached at (818) 316-3123 or [email protected].