L.A. Investors Acquire Commerce Buildings; Renovations Planned

CTTY OF COMMERCE- Los Angeles investors have acquired an industrial building complex totaling 172,000 sq. ft. in the city of Commerce and have plans for project renovation, according to a spokesman for Los Angeles-based Investment Development Services Inc.

Suleman Mohammed, real estate manager for IDS, said that the four IDS buildings located on seven acres of land at the southeast comer of Atlantic Boulevard and Sheila Street were acquired by an investment group advised by IDS.

Mohammed said that Unified Western Grocer and a newspaper-related firm lease a portion of the project. The new ownership plans to renovate and upgrade a portion of the common areas and interiors of the project. The total project value will be approximately $14.5 million when work is completed, Mohammed said.

The Commerce buildings include a 126,800-sq.-ft. warehouse, a three-story, 36,480-sq.-ft. office building fronting Atlantic Boulevard and additional office space of some 8000 sq. ft. The buildings comprise both concrete tilt-up and poured-in-place concrete construction.

John Privett of CB Richard Ellis is representing the buyers. John Repstad and Brett Dedeaux of Binswanger Realty Advisory Group represented the Sanchez Trust, the sellers. Purchase price was not disclosed.

Bay Area Consultants Broker $32 Million Kansas Building

WALNUT CREEK-- Clients of 1031 Exchange Options have acquired The Village at Lions Gate in Overland Park, Kan., a tenancy-in-common investment.

The co-owners acquired the property for $32.275 million, including reserves. The 360-unit multifamily community is located in Kansas' second largest city, approximately 15 mi. southwest of Kansas City. The scenic lakefront community's private setting features many community amenities, including resident business and conference centers, a resort style pool and community clubhouse.

"This is another quality acquisition for our investor clients," said Christian Mirner, senior vice president/real estate for 1031 Exchange Options, an investment consultancy headquartered in the San Francisco Bay Area.

"The Village at Lions Gate is a top-tier multifamily property with a truly ideal location. Overland Park is home to two large medical centers, St. Luke's and Menorah, as well as telco giant Sprint's World Headquarters Campus," he added. "Lions Gate offers a beautiful setting combined with easy access to the job drivers in the Kansas City Metro area."

US Advisor acquired the property from Lions Gate Investors on behalf of the co-ownership group of TIC investors. 1031 Exchange Options represented over 40 percent of the total equity placed by individual investors, including many who completed 1031 exchanges with the acquisition of their undivided fractional interest in this property.

Perini Corp. to Acquire Cherry Hill Construction

Framingham, Mass.-based Perini Corp., a building, civil construction and construction management company, has signed a letter of intent to acquire Cherry Hill Construction Co Inc., a privately held construction company.

Jessup, Md.-based Cherry Hill Construction is a civil construction company in the Mid-Atlantic and Southeast regions, with 2003 revenues and pretax earnings of $119 million and $3.6 million respectively. Cherry Hill Construction specializes in excavation, foundations, paving and construction of civil infrastructure.

Under the terms of the proposed transaction subject to due diligence, Perini agreed to acquire 100 percent of the company's stock for $20 million in cash, subject to terms and conditions, including lender approval.

Under the terms of the agreement, Cherry Hill Construction will operate as a wholly owned subsidiary of Perini Corp. and will be managed by its current senior management team.

"This proposed transaction will expand our civil construction market presence in the Mid-Atlantic and Southeast regions," said Ronald N. Tutor, Perini's chairman and CEO. "It expands our physical footprint and brand in a marketplace that is rich with opportunities for growth."

Cherry Hill Construction employs 300 people in the Mid-Atlantic and Southeast regions.

Perini Corp. expects that the transaction will be financed through the use of cash on hand and existing capacity under Perini's credit agreement.

Established in 1894, Perini Corp. provides diversified general contracting, construction management and design-build services to private clients and public agencies throughout the world. The firm's extensive portfolio includes some of the nation's largest hospitality and gaming industry, sports and entertainment, educational and healthcare facilities.