Changing of the Guard at the CMC
Jamison Property inc. officials hope to make a smooth and quiet transition to becoming the new owners of the California Market Center when escrow closes in one to two weeks.
The Los Angeles–based real estate company, which is purchasing the center for a reported $135 million from Hertz Investments and DMG World Media, had expected to close by the end of March but is wrapping up terms of its financing, said CMC General Manager John Kim. When the company does officially take over the three connecting Los Angeles Fashion District buildings, the transition is expected to be smooth, Kim said. “We’re making plans to accommodate everyone’s needs,” he said.
Jamison officials have already stepped in to smooth out several situations. They, along with other property owners in The intersection which includes the Gerry Building, the Cooper Design Space and The New Mart— moved to unify market dates this fall after having split them in March. The company also helped to negotiate a lease with sports/fashion brand Puma to open a showroom in the C wing of the CMC’s fourth floor.
“They appear to understand the magnitude of what it takes to run a fashion building. They’ve been as cooperative as possible,” said Larry Hudson, director of asset management for MJW Investments, owner of the Gerry Building, which is also on the market.
Kim agreed that the company faces a challenge in running the CMC. Jamison’s portfolio is largely made up of office and medical buildings concentrated in the mid-Wilshire and Koreatown sections of Los Angeles. “It’s a different challenge in that you have to market the industry for the benefit of the tenants,” he said.
The CMC acquisition gives Jamison a bigger stake in downtown. Over the past few years, the company has acquired the World Trade Center; the 811 Wilshire Building; and the MCI Center, home of Macy’s.
The level of the personnel shift at the CMC is not yet known, although a number of CMC staffers have left and Jamison employees have trickled in. And contrary to published reports, Kim said the buildings will not be renamed the Jamison California Market Center.
Gerry still on the block
While the shift of ownership at the CMC is almost complete, the adjacent Gerry Building is still on the market, with a price tag of $15 million. The building is being marketed as a showroom mart, not as a potential condo conversion project, said MJW officials. The building is 70 percent leased and has taken on a number of new permanent and temporary tenants, including some high-profile lines.
