It looks like there’s more under the surface with Cedars-Sinai’s recent Beverly Connection buy.
The Real Deal previously reported Ben Ashkenazy sold his Beverly Connection to Cedars-Sinai for about $270 million. It now appears that Cedars-Sinai doled out another roughly $34 million for some of the land below the mall, records reveal.
The grant deed is signed by K&M Properties’ Robert Kazdan. More than a decade ago when Ashkenazy Acquisitions purchased the shopping center from Vornado Realty Trust, it entered into a ground lease agreement with K&M Properties. Ashkenazy assumed the 1987 ground lease, as Vornado had earlier. The agreement was signed by Ashkenazy Acquisitions’ former president Daniel Levy.
Beverly Connection is located at 100 North La Cienega Boulevard. The south side of the center is on West Third Street, where the ground lease was.
A Cedars-Sinai representative said it acquired two parcels of land but did not provide further details. Representatives for Ashkenazy Acquisitions did not immediately respond to a request for comment, and Kazdan could not be immediately reached.
In any case, records indicate Cedars-Sinai’s Beverly Connection purchase amounted to more than $300 million via two separate deals.
The real estate, despite having Beverly in its name, is in the City of Los Angeles, which means the two deals were exposed to Measure ULA (the “mansion tax” that places a special 5.5 percent tax on sales of more than $10.5 million). The transfer tax came out to around $2 million for the Cedars-Sinai and K&M deal — and $16 million for the Ashkenazy one.
Cedars-Sinai announced the acquisition but did not disclose a price tag after TRD’s story. Cedars-Sinai’s CEO Peter Slavin, who is a managing member of the purchasing entity named on all the records, said the buy provides a long-term option for Cedars-Sinai to revitalize its medical campus, which isn’t far, at 8700 Beverly Boulevard. The nonprofit hospital said it didn’t anticipate any changes in the near future. Newmark’s Jay Luchs handled leasing for Ashkenazy Acquisitions, and Cedars-Sinai has kept him on.
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Ben Ashkenazy sells Beverly Connection mall to Cedars-Sinai for $270M