Shorenstein buys development site, adds transactions pro

The San Francisco-based investment company, through a joint venture with Worthe Real Estate, has acquired a 20-acre development site in Southern California on behalf of its ninth real estate fund. Separately, Shorenstein has added a new member to its transactions team.

Shorenstein Properties, in partnership with Santa Monica-based Worthe Real Estate Group, has purchased 13031 Jefferson Boulevard, a 20-acre commercial property located in the affluent Los Angeles suburb of Playa Vista, California. The company did not disclose the terms of the deal but, according to Real Capital Analytics, the partnership bought the property from Wells Fargo Bank for $44 million.

The acquisition was made on behalf of Shorenstein Realty Investors Nine, an investment fund formed in 2008 with more than $2 billion in committed capital, and completes the investment period for that fund, according to Shorenstein. Late last year, the company closed on Shorenstein Realty Investors Ten, which attracted $1.23 billion in equity commitments.

The property, consisting of two existing office and warehouse buildings totaling 380,000 square feet, had served as a distribution center for the US Postal Service until 2005. Both buildings—a 330,000-square-foot facility built in 1971 and a smaller annex added in 1995—are currently vacant. Lionstate Group had purchased the site for $76 million in January 2007, but the firm later defaulted on its loan with Wells Fargo, which foreclosed on the property  last fall, according to Real Capital Analytics. 

“The prime location and fundamentals of this site provide us with the perfect opportunity to create a state-of-the-art, sustainable office campus offering one of the largest contiguous blocks of space in the Playa Vista market with broad appeal to users, especially creative companies such as technology firms as well as digital, arts and media tenants,” said Charlie Malet, Shorenstein’s executive vice president of investments, in a statement. Shorenstein and Worthe expect to begin construction on the site, which has been pre-approved for up to 380,000 square feet of office space, before the end of the year.

Separately, Shorenstein has hired Russell Cooper as a senior vice president on its capital transactions team. Based in San Francisco, Cooper will be part of a team responsible for sourcing, evaluating, negotiating and closing capital transactions in the western US, where Shorenstein’s funds currently have holdings in major markets such as Houston, Los Angeles, Silicon Valley, San Francisco, Portland and Seattle.

Before joining Shorenstein, Cooper was with real estate brokerage and advisory firm Eastdil Secured, executing more than $11 billion of office transactions in the San Francisco Bay Area and the Pacific Northwest.  Prior to that, he served as an investment manager at Hines Interests, working with the firm’s National Office Partners fund, a joint venture with the California Public Employees’ Retirement System.