Santee Court Sold to Michigan Pension Fund
Santa Monica, Calif.–based MJW Investments has sold the first phase of its Los Angeles Fashion District property Santee Court to the Michigan Teachers’ Fund for $44.7 million, said MJW Chief Executive Officer Mark J. Weinstein.
The property, located at 716 Los Angeles St., includes 165 residential units and ground-floor retail that features a Rite Aid store. Dallas-based real estate firm Trammell Crow Co. will take over the property management responsibilities for Santee Court, which is 95 percent leased.
“It’s a good time to exit. We have other things we want to do,” Weinstein said.
The developer is overseeing the construction of the second phase of Santee Court, which will include 64 for-sale condominiums located southeast of the first phase. Those units should begin coming online in December and another 216 units, for which MJW is currently wrapping up demolition, should be ready next year, said the company.
The property is all part of a package deal MJW acquired from Arthur Gerry in 1998. Part of that deal also included the Gerry Building, near Ninth and Los Angeles streets. The Gerry was sold to Le Roc Partners, headed by Kim Benjamin, Weinstein said. Escrow closed on July 22. The building is now managed by Morlin Management Co. of Los Angeles. Morlin will retain Larry Hudson, formerly of MJW, to oversee leasing and general management of the Gerry. “They’re excited about this and are looking to invest in the branding of the building,” Hudson said.
In addition, MJW is embarking on an ambitious 1.8 million-square-foot redevelopment project in the East Los Angeles neighborhood of Boyle Heights. There, it is planning 772 units on top of the historic Sears, Roebuck & Co. building, as well as 700,000 square feet of retail space.
“Good retail is very much needed there. We want to create a neighborhood and sense of place for the people there and the new residents it will bring. It’s only two miles from downtown,” Weinstein said.
The Sears project is under environmental review but has received support from Mayor Antonio Villaraigosa, Weinstein said. —Robert McAllister
