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Tuesday, May 28, 2024

Former NoHo Tear Downs Ready for Rehab

Brokers are trying a new tactic to move a group of six North Hollywood properties valued at $9.2 million that have remained largely vacant over the last four years. Initially marketed as a portfolio of tear-downs to developers who might want to build high-rises, the properties owned by the estate of a late attorney are now aimed at individual investors. “It was under contract with a large REIT for a year and it never happened. So we’re looking at individual owners now,” said Martin Agnew, a senior associate at Marcus & Millichap’s Encino office, who took over the listing last month. The properties total 94,000 square feet and comprise three office buildings, two mixed-use buildings and a 12-unit apartment building, all clustered around the NoHo Arts District. The three office properties at 5249 Bakman Ave., 5263 Bakman Ave. and 11313 Weddington St. are being eyed by owner-users, who will need to do some renovations, according to Agnew. The apartments at 5245 Bakman Ave. also need work. Half occupied, they were being remodeled when the portfolio’s owner died four years ago and work stopped. The properties are owned by the estate of Joseph Hurley, a prominent personal injury attorney. Since his death, estate executors have tried several methods of marketing the portfolio, including negotiating with developers. But that was before the construction boom in the area stalled amid the recession. Agnew sees the market turnaround as reflective of the neighborhood’s improvement. Now would-be owners don’t necessarily feel the need to tear down existing buildings. “Most of the potential buyers are looking to rehab them,” he said. Jessica Kelley, an associate in Marcus & Millichap’s Encino office, is also a broker on the offering. Timely Investment A seven-building portfolio of properties in Chatsworth and Canoga Park was saved from bankruptcy this month following a $10 million investment. Woodland Hills real estate investor and property manager Adler Realty Investments Inc. acquired majority equity in the 150,000 square-foot portfolio from Chatsworth Industrial Park LP and began immediate improvements, said Adler Realty President Mike Adler. The buildings were constructed in the late 1970s, and were only about 70 percent occupied at the time of Adler’s investment. The largest tenant, which Adler declined to name, also was threatening to leave unless improvements were completed. “One of the issues was that the lease was up on the biggest tenant, but we got them to stay and stabilized the property,” Adler said. The properties at 21026 -21040 Nordhoff St. in Chatsworth, and 9035 Independence Ave. and 21019-21051 Osborne St. in Canoga Park are receiving new roofs, facade upgrades, new asphalt in parking areas and landscaping. Adler has taken over management of the properties. Tenants include ViaQuest Inc., and CPFilms Inc. Adler Realty’s local portfolio includes the Agoura Business Park in Agoura Hills, Soledad Circle Estates in Santa Clarita and Corteen Village in Valley Village. Sailing Along Malibu developer Richard Weintraub is moving forward with a planned 600-unit mixed-use development at the site of the former Catalina Yachts Inc. plant in Woodland Hills. The project at Victory Boulevard and Variel Avenue was first announced in 2011, and since then Weintraub Real Estate Group has paid to extend an option on the property as it sought entitlements, sources tell the Business Journal. The project received backing from the Woodland Hills Warner Center Neighborhood Council in December, and was reviewed by the city’s planning commission at a Dec. 18 meeting. Weintraub is now waiting on written approval, and will then file detailed plans with the Department of Building and Safety. Once building permits are secure, Weintraub should close escrow and Catalina will vacate the property. Building could start in the fall, said Encino land use attorney Fred Gaines, who is representing the developer. Catalina moved its boat production facilities to Florida in 2009, but has kept sales offices at the property, which it has occupied since 1974. Staff reporter Kelly Goff can be reached at (818) 316-3135 or by email at [email protected].

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