Pacific Sells Interest in ABC Center
Pacific Financial Group has sold its interest in Century City’s ABC Entertainment Center to an investment group led by City Center Group partners Juri Ripinsky and Malcolm Kingston for about $55 million, local brokers report.
ABC Entertainment Center Associates acquired an exclusive leasehold interest in the 580,000-square-foot complex for a term set to expire in a little more than 12 years.
When the lease runs out, both the property and two office buildings at 2020-2040 Century Park East revert to affiliates of JMB Realty Corp. and the Prudential Insurance Corp., which own the land through Delta Towers Joint Venture.
As Century City’s biggest landlord, JMB may extend the lease beyond the year 2002 or pursue the site’s original master plan, which would mean replacing the current six-story office/retail/theater center with two high-rise office buildings. Name tenant ABC’s master lease for 186,000 square feet is set to end in 12 years too.
Owner Ripinsky declined repeated requests for comment on his Feb. 1 purchase, but brokers close to the deal report that he and his fellow investors assumed an estimated $49-million note originally executed by seller Pacific Financial of Beverly Hills with a Japanese lender.
Pacific Financial has been selling most of its Los Angeles office portfolio amid speculation that its four partners are splitting up after 10 years in business. Other properties sold within the last several months by the partners include 9000 Sunset Blvd. and 9107 Wilshire Blvd. in Beverly Hills.
Real estate brokers familiar with Ripinsky describe him as a very private deal maker who has collected his commercial real estate portfolio with little money down.
Other City Center-related assets include an office building with the same name at 3810 Wilshire Blvd., another at 6380 Wilshire and the former Ohrbach’s department store site at Wilshire and Fairfax Avenue, which is set to become a new retail center.
With just a few million dollars, noted Robert Sonnenblick, managing director of Sonnenblick-Goldman of California, Ripinsky now has his name associated with one of L.A.’s most recognized buildings. Sonnenblick, who represented both sides in the transaction, added that “it has given the buyer a much higher profile in Los Angeles, and that’s already leading to more good deals.”
With the Century City complex 99% leased, Ripinsky hopes to have no problem keeping up with his loan payments. A downturn in occupancy, however, could place the lender at risk, said finance experts familiar with such deals.
Separately, Northrop Corp. announced last month it was selling two nearby Century City towers to the Sacramento-based California State Teachers’ Retirement System for an estimated $200 million. Northrop, however, will continue to lease office space in its headquarters building.
SALES Huntington Beach Office Towers Sold Bentall Development Co. of Vancouver, B.C. paid FIMSA Inc. $34 million for the 12-story One Pacific Tower and the six-story One Pacific Plaza II office buildings in Huntington Beach. The buildings encompass 285,000 square feet and are a little more than half occupied.
The U.S. Postal Service plans to build a north Los Angeles County distribution center on 62.4 acres being purchased from the Newhall Land & Farming Co. in Valencia for $26.8 million. Close of escrow is set for April 1. Projected completion is slated for 1991.
Developer Neil Senturia is offering 26 acres in Pacific Palisades’ Las Pulgas Canyon for $10.5 million after his plan to build 50 homes there hit a wall of opposition from nearby residents. Senturia bought the canyon in 1987 for $1.6 million and cut a road into it without permission from the California Coastal Commission.
Zellner Housing Corp. of Costa Mesa is now known as Zellner Communities L.P., after its acquisition by NVR L.P., a Virginia-based home builder with Los Angeles and San Francisco operations through H.R. Remington Properties L.P.
Zellner Communities has 1,200 homes under development, including nine new Inland Empire projects.
LEASES PacTel Cellular Signs on at Irvine Jamboree PacTel Cellular Inc. ended months of speculation in January by signing a lease for 204,000 square feet of office space at Irvine’s Jamboree Center in a $65-million deal.
PacTel relocated its corporate offices temporarily to Newport Beach last fall to relieve overcrowding at its offices in Irvine. A late-summer relocation is planned.
Mason Electric Co. has committed itself to a 20-year, $18-million lease in a 67,000-square-foot industrial facility under construction at 12900 8th St. in Sylmar. Completion is expected this fall.
Fremont Compensation Insurance Co. signed a 10-year, $14-million lease for 54,000 square feet of office space in the soon-to-be-completed 500 North Brand Building in Glendale.
Apparel maker American Marketing Works is moving from Gardena to 267,000 square feet of leased space at Carson’s Watson Industrial Center South building.
The 10-year deal with Watson Land Co. is valued at more than $10 million.
DEVELOPMENT Japanese Investors Buy 18 Acres in Santa Ana Japanese investors have plans to develop 18 acres in Santa Ana as an office, retail, hotel and condominium project that will include Orange County’s tallest building at 32 stories. Municipal approval of the project, tentatively named Main Street Concourse, has yet to be obtained.
Orifa America of Los Angeles, a subsidiary of the Japan-based consumer finance giant Orient Corp., is working through Shimizu America Corp. of Los Angeles and Laguna Niguel-based Birtcher Equities on the $400-million project across from Main Place mall.
Siemens-Pacesetter Inc. plans to consolidate operations at a new 206,000-square-foot headquarters building under construction in Sylmar. Employees at the medical technology company currently work in six separate buildings in the area.
Work has begun on Sepulveda Place, a $12-million, 40,000-square-foot El Segundo shopping center. Segundo Associates is the project’s developer.
