Every day, The Real Deal rounds up Los Angeles’ biggest real estate news. We update this page at 9 a.m. and 4 p.m. PT. Please send any tips or deals to tips@therealdeal.com
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Apartment tower by iconic Fonda Theatre gets the green light. The Los Angeles City Council approved the 220-unit development from an LLC tied to Metropolitan Life Insurance Company. The Council struck down three appeals against the project at 6100 Hollywood Boulevard. Construction could start next year. [Curbed]
From left: Brian Hecktman, founder and CEO of Graymark Capital and Lone Star Funds founder John P. Grayken with the building
Graymark Capital bets big in Pasadena. The San Francisco-based firm paid $30 million to acquire Eaton Canyon Tech Center, a two-building campus that is less than half-leased. It spans 219,000 square feet, and LoneStar Funds was the seller. [TRD]
From left: CREXi’s Courtney Ettus, Allen Matkins’ Mark Nicoletti and Compass’ Justin Alexander
Compass adds another team to its L.A. roster. The firm recruited Justin Alexander from Hilton & Hyland, where he was one half of the Alexander Patridge Team. Alexander is bringing two team members, but not his longtime partner Mick Partridge. Meanwhile, CREXi added three executives and Allen Matkins hired two new partners. [TRD]
IMT Residential shrinks its plans for the former Sunkist HQ. The L.A.-based developer has reduced the scope of the Sherman Oaks apartment project by 50 units. A final environmental impact report reveals the three buildings built at the site will include 249 apartments and 27,400 square feet of retail space. It will preserve and restore the 127,000-square-foot Sunkist Building as office space. [Urbanize]
WeWork has acquired New York-based co-working rival Spacious. The firm, co-founded in 2016 by SL Green Realty and Fortress alum Preston Pesek, turns empty restaurants and retail spaces into co-working spaces during the day. The startup had raised $9 million prior to the acquisition. [WeWork, TechCrunch]
Home-price growth has been slowing for the longest stretch since 2008. Average home prices nationwide grew 3.1 percent for the year ending in June, down from 3.3 percent a month prior. Mortgage rates, which have fallen by about one percentage point since November, have so far not helped the housing market pick up speed. [WSJ]
With redesign, La Brea Tarpits’ kitschy charm may go the way of the dinosaur. L.A. County officials are considering three competing designs for the Hancock Park attraction. All would see significant redesigns of the grounds and new structures. Diller Scofidio + Renfro’s proposal entails moving the iconic fiberglass mammoth that has been in the tar pits for decades into a gallery. [LAT]
Ex-church official in Huntington Beach charged with siphoning money from sale of church property. Charles Thomas Sebesta allegedly stole $11 million from the bank accounts of Fifth Church of Christ following the 2008 sale of church property. Investigators allege he used $2 million to buy a home for himself and sometimes impersonated an unnamed “prominent real estate executive” to cover up his fraud. [KTLA]
Transwestern acquires 22-acre Inland Empire site for big industrial development. The Texas-based developer plans to build two warehouses with a total of around 340,000 square feet of space. The Inland Empire has an industrial vacancy rate of 1.9 percent. Demand is being driven by what has remained a tight L.A. County industrial market. [TRD]
Michael Sorochinsky, Steven Fifield, Mike Parrell, and Next on Sixth
Equity Residential buys Koreatown resi complex for $189 million. The seller, Century West Partners, completed the 398-unit Next on Sixth apartment complex last year. It was one of the priciest projects of the year. [TRD]
Famed “Dynasty” mansion has a new owner. The Pasadena estate, known for its starring role in the “Dynasty” television show, sold for $15.6 million. That’s about 44 percent less than its original asking price of $28 million back in 2017. Dubbed the Arden Villa, it was built in 1913. [LAT]
One of WeWork’s key backers is also a landlord to the company. Rhone Group co-founder Steven Langman was an early investor and oversees executive pay and succession at the co-working firm. Langman also runs a funds that leases properties to the company, raising conflict-of-interest concerns similar to those that founder Adam Neumann has faced in the past. [WSJ]
The hotel branding boom could get messy in a downturn. Market demands have pushed hotel management companies to launch more and more brands over the past several years, but given the complexities of the hotel industry, discontinuing a brand in a recession can easily result in a legal and logistical mess, analysts say. [NYT]
Chinese real estate portal Juwai has struck partnerships with several top North American firms. The partners include Berkshire Hathaway HomeServices, Surterre Properties, and Engel & Völkers Americas. The website (whose name means “live overseas”) claims 2.8 million listings from 91 countries and more than 3.3 million monthly Chinese-speaking users. [Inman]
FROM THE CITY’S RECORDS:
A developer wants to build a 50-unit apartment building at 1047 S. Fedora Street in Pico-Union. The TOC project would be six stories and five units would be set aside for “extremely low-income” renters. [LADCP]