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K2LA


This Week's LA Deal Sheet

June 21, 2016
By: Karen Jordan, Bisnow, LA


Century West Partners has completed K2LA, transit-oriented apartments at the corner of Berendo Street and New Hampshire Avenue in Koreatown. The community has three buildings totaling 476 units. The units, which include micro-studios, studios, junior one-bedroom, one-bedroom and two-bedroom, are smart units and include electronic keyless entrances, Nuvo Streaming devices and Harman Kardon Revel in-wall or in-ceiling speakers. The development has a bike-sharing program for residents, 24-hour concierge service, free WiFi, swimming pools, fitness centers and conference rooms.

 


K2LA

The property features 467 units, making it the largest apartment complex in Koreatown.


LOS ANGELES—Century West Partners opens the third and final building of the highly amenitized K2LA apartment complex with tremendous interest that is proving out this emerging market.

June 16, 2016
By: Kelsi Maree Borland, Globest


LOS ANGELES—Century West Partners has completed construction of the final building of K2LA, a new multifamily complex that has been hailed the largest and most amenitized complex in Koreatown.

Already, the property has seen enormous success. The second building opened in March and is already 60% leased. Century expects building three to experience similar success, with a goal of leasing 40 units per month.

“The K2LA community features smart residences situated within three contiguous buildings. Great measures were taken to ensure the buildings fit into the surrounding neighborhood through the use of materials, scale, design and landscaping,” Kevin Farrell, president of Fifield Realty Corp. and a partner at Century West Partners, tells GlobeSt.com. “The lease up is going quickly. We opened the second building in the K2LA campus in March 2016 and are 60 percent leased. Our third and final building opened this week and the interest has been tremendous. We are expecting to lease 40 units per month, as we enter summer months.

Rent for a studio apartment in the community runs $1,800 to $2,100, while one-bedroom apartments are $2,300 to $2,640 and two-bedrooms are $3,100 to $3,475. The building is very highly amenitized, starting with a 24-hour concierge as well as fitness centers, business centers, resort-style swimming pools and rooftop decks. These amenities help to attract the young professional demographic that is migrating to the area. Our renters tend to be professionals who are part of the growing class of tech-savvy, sophisticated and discerning renters who want to live in this up and coming neighborhood but also want a suite of luxury amenities not commonly found in rentals,” adds Farrell. “We are creating a community here, with services and events that bring residents together like rooftop yoga and rooftop lounge areas, with amazing views of Downtown L.A., by the way.”

In addition to the quality of the property, K2LA is also in a great location. The 476-unit property is walking distance to the Wilshire/Vermont Metro station, in close proximity to the 110 and 10 Freeways, adjacent to the Downtown market and in an incredibly walkable area with access to restaurants, nightlife and retail. These factors aren’t only fueling the success of K2LA, but evolution of the Koreatown market. “Koreatown is a core area near downtown that is in the midst of a redevelopment renaissance right now,” explains Farrell. “This area is a vibrant up and coming hot spot in Los Angeles. K2LA fits in as the largest luxury apartment development in the area. As such, it is meeting really high demand for an upscale living experience. With Beverly Hills, Downtown Los Angeles, and Hollywood only minutes away, K2LA establishes a logical home-base for renters to access major employment centers and pursue a multitude of citywide attractions.”

 


 


Next on Lex


Largest LA Multifamily Project Breaks Ground

June 13, 2016
By: Jeffrey Steele, MHN


Next On Lex is a Killefer Flammang Architects-designed $280 million mixed-use transit-oriented development in Glendale, Calif.

Santa Monica, Calif.—Southern California architectural firm Killefer Flammang Architects (KFA) has announced the groundbreaking of Next On Lex, a KFA-designed $280 million mixed-use multifamily project in Glendale, Calif. The transit-oriented development at 201 Lexington Drive is the largest apartment project launched in the Los Angeles area this year. It is part of $1.3 billion in new developments by Century West Partners, which is among the most active L.A. metropolitan area apartment developers.

Slated for a partial opening with available units in fall of 2018, Next On Lex will be fully completed in the fall of 2019.

“In order for this project to come about our client, Century West, requested that entitlements had to be completed within three months,” Barbara Flammang, KFA co-founder and principal, told MHN. “This is an extraordinarily short time frame, especially when this also requires city council approval. We also needed to provide large open spaces to obtain incentives for height and FAR increases from the city, yet still maintain the total number of units to make the financial structure work. We were challenged with creating four separate and distinct buildings, each with an individual design and impression, and yet still cohesive and complementary throughout the site. One unique aspect of this project was factoring in an elevated, competitive-sized swimming pool.

“We are working closely with the general contractor and lender to coordinate the construction and demolition of two temporary lots. This is important to managing the phasing of construction to meet a tight building schedule. By doing this, we were able to eliminate almost two months of the construction, realizing tremendous savings.”

Next On Lex includes four six-story buildings that include a mix of studio-, one-, two- and three-bedroom units, as well as 39 studio lofts and 10 live-work units. Occupying a full block bordered by Central Ave., Lexington Dr., Milford and Orange Sts., the development includes three levels of underground parking with spaces for 753 cars, 152 bicycles and secured storage for all units.

The Next On Lex entrance is graced by wide, welcoming paseos with spreading trees, flagstone pavers and steel planters.

Residents will also appreciate a range of luxury amenities that includes outdoor living areas, pools, landscaped courtyards that include a landscaped rooftop deck and sky lounge, multiple sun decks, and ample community space. They will be able to access an onsite business center, yoga studio and fitness center, hot tubs and the aforementioned competition-sized pool. A media room, game room, private massage room and party room with kitchen are among other luxury amenities.

“Next On Lex is a stellar example of a transit-oriented development of the highest quality that looks to the future,” said Wade Killefer, AIA, and co-founder and partner of KFA. “We are very pleased to have created this model for mixed-use multifamily projects with more upscale, luxury finishes. “With its gracious paseos and lush landscaping, Next On Lex helps meet the increasing demand for rentals that meet higher lifestyle standards, located in the more sought-after neighborhoods of the Los Angeles metropolitan area.”

Added Flammang: “Flexibility was key to keeping the project under budget and making sure we met each of the tightly-scheduled milestones.”

 


 


Next On Lex

Next on Lex construction continues on an entire block, surrounded by Orange St. on the east, Central Ave. on the west, Milford St. on the north and Lexington Dr. on the south, in downtown Glendale on Friday, June 10, 2016. (Raul Roa / Staff Photographer)


Next On Lex
Builders, financial backers and architect representatives take part in the ceremonious groundbreaking as Next on Lex construction continues in downtown Glendale on Friday, June 10, 2016. (Raul Roa / Staff Photographer)


Next On Lex
With Fifield Companies president Kevin Farrell looking on, company chair Randy Fifield, right, speaks at the groundbreaking ceremony for the Next on Lex project on Friday, June 10, 2016. (Raul Roa / Staff Photographer)


Glendale City Council skips groundbreaking for 'Godzilla of all development projects'

June 11, 2016
By: Arin Mikailian, Glendale News Press


Like many groundbreaking events, the one for Glendale’s largest mixed-use project had ceremonial shovels to kick off construction, but no one from the City Council showed up to scoop the first clump of dirt. Construction of the 494-unit Next on Lex project officially commenced on Friday and, despite it winning support from the council two years ago, none of the elected officials attended the event. Councilman Ara Najarian has been vehemently opposed to the project since the beginning, saying it’s part of the 3,500 units in downtown Glendale that were approved too quickly. At a council meeting on Tuesday, he described Next on Lex as the “Godzilla of all development projects” and said he would be boycotting the groundbreaking. He voted against the development in 2014.

While none of his colleagues went to the event, they said their absences weren’t influenced by Najarian. Mayor Paula Devine said she had “no vested interest” in the project. She wasn’t a council member when Next on Lex was approved, but voted in favor of its design in November 2014. Councilwoman Laura Friedman said she didn’t attend because she had to tend to paperwork regarding her campaign for state Assembly. Next on Lex will take up most of the block bounded by Orange Street, Lexington Avenue, Central Avenue and Milford Street. The project is comprised of three, six-story apartment buildings that will have ground-floor retail. The structures will open in phases.

 

Kevin Farrell, a senior vice president with developer Century West Partners, said the firm wanted to be in downtown Glendale so people can live closer to where they work – an approach that should address concerns about additional traffic. “[Traffic] is a legitimate concern. What we found in studies and even the Downtown Specific Plan is that if we build housing near jobs, it reduces peak-hour demand, but office space increases it,” Farrell said. The project will also be bisected by a pedestrian paseo to serve as open space for everyone. Farrell said it will be a space where people can congregate or to just sit and read while enjoying a cup of coffee. Najarian said all that would have played out better perhaps five or 10 years down the road, but not now.

 

In 2006, the city council adopted the Downtown Specific Plan, which was designed to promote growth within downtown’s borders. But new units are popping up way too fast, Najarian said. He pins the blame on planning staff — at the time led by former Community Development Director Hassan Haghani — for processing mixed-use development applications too hastily and not making an effort to slow things down. “Although the Downtown Specific Plan permits [mixed-use projects] and that type of density, it’s all been happening way too quickly in my opinion,” he said. “There’s probably six buildings under construction or on the cusp of being opening … I think we’re dumping too many residential units, and it’s going to choke the city.” However, current Community Development Director Philip Lanzafame said, according to the models his department has used, the development boom should be sustainable. Part of the specific plan’s goal was to generate more nightlife in the city and that’s been happening, he said. As for other implications, he admits that, for some things, the city is going to have to wait and see. “It’s got to play out over time … Time is going to tell when all the units are built whether we have put in place the right improvements and policies,” Lanzafame said.

 


 


Next On Lex

Next on Lex is a $280 million, mixed-use multifamily development located in the Los Angeles suburb of Glendale.


Century West Partners to Break Ground on $280M Multifamily Development in Metro Los Angeles

June 10, 2016
Author: Katie Sloan, RE Business Online


GLENDALE, CALIF. — Century West Partners will break ground today on Next on Lex, a $280 million, mixed-use multifamily development located in the Los Angeles suburb of Glendale.

 

The transit-oriented development, located at 201 Lexington Drive, will occupy a full block and will feature four, six-story buildings that include a mix of one-, two- and three-bedroom units and studio lofts. The property will also offer 10 live-work units, as well as three levels of underground parking with space for 753 cars and 152 bicycles.

 

Next on Lex will include 8,140 square feet of retail space, which will be occupied by a Citibank branch alongside other tenants.

 

Amenities at Next on Lex will include outdoor living areas; pools and hot tubs; landscaped courtyards including a rooftop deck and sky lounge; multiple sun decks; and a variety of community spaces. The property will also feature an onsite business center; yoga studio and fitness center; a media room; game room; private massage room; and party room and kitchen.

 

Demolition on the existing office building on-site took place in April, according to reports by the Los Angeles Times.

 

Santa Monica, Calif.-based Killefer Flammang Architects (KFA) designed the project. Chicago-based W.E. O’Neil Construction is the contractor. “Next On Lex is a stellar example of a transit-oriented development of the highest quality that looks to the future,” says Wade Killefer, co-founder and partner of KFA. “We are very pleased to have created this model for mixed-use multifamily projects with more upscale, luxury finishes.”

 

The development is slated for a partial opening with units available in the fall of 2018. Full completion is expected for fall 2019. Century West Partners is currently developing $1.3 billion worth of new projects.

 


 


Next On Lex

Century West Partners’ $280M Mixed-Use Breaks Ground

June 10, 2016
Author: Daniella Soloway, Connect Media


Century West Partners’ $280 million mixed-use multifamily development, Next on Lex, broke ground on Friday, June 10 in Glendale, CA. Designed by Santa Monica-based Killefer Flammang Architects (KFA), the complex (the largest apartment project being launched this year in L.A.) features four, six-story buildings, 3 levels of underground parking, and will be embellished with flagstone pavers, steel planters and large trees. Wade Killefer, AIA, KFA Co-Founder and Partner said, “With its gracious paseos and lush landscaping, Next On Lex helps meet the increasing demand for rentals that meet higher lifestyle standards, located in the more sought-after neighborhoods of the Los Angeles metropolitan area.

 

Partial opening is in fall of 2018, with full completion slated for fall 2019.

 


 


Next On Lex

Next on Lex is a $280 million, mixed-use multifamily development located in the Los Angeles suburb of Glendale.


Century West Partners to Break Ground on $280M Multifamily Development in Metro Los Angeles

June 10, 2016
Author: Katie Sloan, RE Business Online


GLENDALE, CALIF. — Century West Partners will break ground today on Next on Lex, a $280 million, mixed-use multifamily development located in the Los Angeles suburb of Glendale.

 

The transit-oriented development, located at 201 Lexington Drive, will occupy a full block and will feature four, six-story buildings that include a mix of one-, two- and three-bedroom units and studio lofts. The property will also offer 10 live-work units, as well as three levels of underground parking with space for 753 cars and 152 bicycles.

 

Next on Lex will include 8,140 square feet of retail space, which will be occupied by a Citibank branch alongside other tenants.

 

Amenities at Next on Lex will include outdoor living areas; pools and hot tubs; landscaped courtyards including a rooftop deck and sky lounge; multiple sun decks; and a variety of community spaces. The property will also feature an onsite business center; yoga studio and fitness center; a media room; game room; private massage room; and party room and kitchen.

 

Demolition on the existing office building on-site took place in April, according to reports by the Los Angeles Times.

 

Santa Monica, Calif.-based Killefer Flammang Architects (KFA) designed the project. Chicago-based W.E. O’Neil Construction is the contractor. “Next On Lex is a stellar example of a transit-oriented development of the highest quality that looks to the future,” says Wade Killefer, co-founder and partner of KFA. “We are very pleased to have created this model for mixed-use multifamily projects with more upscale, luxury finishes.”

 

The development is slated for a partial opening with units available in the fall of 2018. Full completion is expected for fall 2019. Century West Partners is currently developing $1.3 billion worth of new projects.

 


 


Next On Lex

Century West Partners scores $126M construction loan for Next on Lex

Mar. 28, 2016,
Author: Katherine Clarke, The Real Deal


The $280M project in Glendale is slated to have 494 units

 

Century West Partners, the developer of a 494-unit luxury apartment development in downtown Glendale, has landed a $126.4 million construction loan from Citizens Bank for the project, The Real Deal has learned. The $280 million mixed-use project, at 201 West Lexington Drive, is known as Next on Lex and is slated to be completed by 2019. The terms of the loan were not disclosed. “We are seeing a lot of interest in multifamily development in urban areas for projects with great amenities that are convenient to transportation,” said Patrick Burns, managing director of institutional real estate at Citizens. The project will include 8,140 square feet of ground floor retail space, a business center, a yoga studio and fitness center, a pool, a landscaped rooftop deck and a courtyard. Century West Partners, owned by the Fifield Companies and Cypress Equity Investments, has been extremely active in the multifamily space in L.A. in recent months. It’s $1.3 billion pipeline totals 2,300 units.

 


 


Next On Lex

Bisnow - "Deal Sheet: New Construction"

Mar. 22, 2016,
Bisnow


Century West Partners, owned by the Fifield Cos and Cypress Equity Investments, began construction on Next On Lex (200 block of Lexington), a $280M mixed-use multifamily project in Glendale. The new six-floor community includes 494 rental units above 8,140 SF of ground-floor retail with services anchored by Citibank. On-site amenities will include bike parking, storage space, a business center, a yoga studio, a fitness center, a competition-sized pool, a private massage room, a sky lounge, and a landscaped rooftop deck and courtyard. Each unit will have its own washer/dryer. A $126.4M construction loan was secured for the project through Citizens Bank. The project should be completed by fall 2019.

 


 


Next On Lex

The property at West Lexington Drive and North Orange Avenue has been fenced off, next to the Citibank building on the 400 block of North Central Avenue. Construction on the Next on Lex development has begun. (Raul Roa / Staff Photographer)


Mixed-use Next on Lex project breaks ground

Mar. 18, 2016,
By: Arin Mikailian - Contact Reporter
LA Times/Glendale News-Press


At nearly 500 units, one of the largest projects of downtown Glendale's development boom has started construction.

Spread across a trio of six-story apartment buildings, the Next on Lex will take up most of a block bounded by Orange Street, Lexington Avenue, Central Avenue and Milford Street. Developer Century West Partners garnered approvals from the City Council two years ago to move forward with the $280-million, mixed-use apartment project with 494 units. The buildings are scheduled to be constructed in phases with the first opening in 2018 and the third and final the following year, said Kevin Farrell, the firm's chief operating officer.

More than 20 developments are in various phases throughout downtown, and 3,100 units are on the way over the next several years. Opponents who stress overdevelopment have long voiced concerns about increased traffic, but Farrell said he thinks residential projects can actually trim congestion. "We found offices generate a lot of demand at peak traffic hours, rush hour in the morning and at night," he said. "When we replace office use with residential, especially residential that's close to jobs, it can actually have the effect of reducing the peak-traffic hour."

However, Mayor Ara Najarian strongly disagrees, saying Farrell's reasoning is something that's been repeated by other developers along Central Avenue, and there's an oversaturation underway in downtown. He was the only council member to vote against the Next on Lex project, and said cumulatively, upcoming developments will increase traffic and have other impacts, such as raising police and fire response times.

"It's not just about supply and demand at this point. It's about how much can the infrastructure handle, and I think we're past the point of what we can handle to maintain our quality of life so that we can enjoy it," Najarian said. A traffic-impact study conducted by an outside consultant found there would be 215 outbound trips generated by the Next on Lex during the peak morning-rush hour. The report concluded that the traffic impacts on nearby intersections wouldn't be significant.

Farrell said for those working downtown, the commute will likely be a walk or use of one of the bicycles the Next on Lex will have on site to lend its residents. In 2006, the City Council — with then newly elected Najarian — adopted the Downtown Specific Plan, which established planning and zoning regulations exclusive to downtown to attract projects. The applications, however, came in too fast through City Hall and the planning department, Najarian said. The Downtown Specific Plan also requires developers to include community benefits, such as open space. With the Next on Lex, that will come in the form of a public paseo that bisects the parcel.

"It'll be landscaped with benches and allow people to hang out and have lunch, and the city could host certain functions in that space," Farrell said. For now, Century West Partners will relocate Citibank ATM machines on its property. Demolition is expected to take place next month with the tearing down of an existing office building on the site, Farrell said. The existing Citibank at 414 N. Central will be relocated into the Next on Lex development. There will be other commercial components as well as restaurants and a coffee shop, Farrell said. Construction will take place Mondays through Saturdays, and there could be occasional lane closures to accommodate construction, he added.

All of the units — ranging from studios to two bedrooms — will be rentals. Pricing, though, has yet to be set, Farrell said. At the Modera project down the street on Central, a 1,200-square-foot studio leases for $3,340 a month at the top end. The going rate for an 800-square-foot, one-bedroom unit at the AMLI Lex on Orange around the corner from Next on Lex is $2,824 a month. Philip Lanzafame, the city's economic development director, said some of the developments that are already online are almost fully occupied. For example, he said 90% of the apartments at the Lex on Orange are rented. Some say the development boom is having adverse effects in Glendale, outside the downtown area.

Councilman Vartan Gharpetian said he's noticing landlords in other parts of the city are raising rents because the newer downtown units are charging more. "People who are paying $1,700 to $1,800 now have to pay $2,500 [a month]," he said. "It's affecting the rental market, and it's pushing rents up." However, there are some schools of thought that may point to a price drop at some point, possibly after the time all the development boom units are ready for leasing, Lanzafame said.

"If somebody is charging more than they can get, the market is going to correct that," he said.


 

 

 


Next On Lex

The property will have 494 apartment units and 8,140 square feet of ground floor retail.


Largest Project of the Year Breaks Ground

Mar. 18, 2016,
By: Kelsi Maree Borland, Globest.com


LOS ANGELES—Century West Partners has broken ground on Next On Lex, a $280 million mixed-use development and the largest project to break ground so far this year. Located in Downtown Glendale, the six-story property has 494 apartment units and 8,140 square feet of ground floor retail space, which will be anchored by a Citibank. The developer will deliver the first units in the fall of 2018 and the project will be completed in the fall 2019.

“Our goal is to build the ‘biggest, baddest’ project in Glendale,” Steve Fifield, co-founder of Century West Partners, tells GlobeSt.com. “We want to build a ‘fortress’ community that’s so amenity laden as to give our renters a complete community to live the California lifestyle. We are accomplishing this with a robust amenity package that includes an oversized gym, yoga, pool, dog park, media rooms, demonstration kitchen in the party and entertainment room, multiple roof decks and sunning areas as well as the best finished apartments of any project in the area.”

Residents of Next On Lex will enjoy a wealth of onsite amenities, including bicycle parking, onsite storage space, underground parking, robust business center, yoga studio and large fitness center, competition-sized pool and hot tubs, media room, game room, private massage room, party room and kitchen, sky lounge, landscaped rooftop deck and courtyard and multiple sun decks. The interior units also exude luxury with stainless steel appliances, plank flooring, quartz countertops, luxury bathrooms features and washer/dryer in each unit. KFA is the lead architect on the project.

Glendale has gone through a recent revitalization, and has seen plenty of multifamily development. The market is also home to the Disney and Dreamworks campuses. “It’s in the heart of the entertainment employers from Hollywood to the tri cities,” adds Fifield. “Downtown Glendale is another WEHO/Grove area in number of retailers and entertainment options, all of which are walking or bike distance from Next.”

Fifield expects the property will attract a broad range of demographics. “We’ll get singles, couples and even some empty nesters as we see more rent by choice tenants looking for not just an apartment, but a lifestyle and greater sense of community,” he explains.

Century West Partners secured a $126.4 million loan for the development of the project as well as equity from Essex Partners. Union Bank, MidFirst, and Manufacturers Bank funded the debt, which CBRE’s Brian Eisendrath and Brandon Smith secured on behalf of the borrower.

 

 

 


Next On Lex

Century West Partners Begin Construction on Next on Lex

Mar. 17, 2016,
By: Joshua Weekley, Costar Group


Century West Partners has begun construction on the Next on Lex, a $280 million, mixed-use multifamily project set to rise at 201 Lexington Dr. in Glendale, CA.

This will be the largest apartment development of the year, and will consist of six floors encompassing 494 rental units and 8,140 square feet of ground-floor retail space.

The building will total approximately 450,000 square feet, with an initial delivery set to occur in fall 2018 and final completion slated for fall 2019.

Amenities will include bicycle parking, on-site storage space, underground parking, business center, yoga studio and large fitness center, competition-sized pool and hot tubs, media room, game room, private massage room, party room with kitchen, sky lounge, landscaped rooftop deck and courtyard with multiple sun decks.

This is one of seven community projects Century West Partners is working on, totaling almost $1.3 billion in the pipeline.

 

 


Next On Lex

Construction Begins on One of LA Area’s Largest Transit-Oriented Developments

Mar. 17, 2016,
Rentv.com


Century West Partners has broken ground on Next On Lex, a $280 mil, mixed-use multifamily project in Glendale, and the largest apartment development to commence in Los Angeles County so far in 2016. Century West, an LA-based developer of upscale, transit-oriented apartment communities, is owned by the Fifield Companies and Cypress Equity Investments.

The new six-floor community includes 494 rental units set above 8.1k sf of ground-floor retail space and services to be anchored by Citibank. Located in the 200 block of Lexington, Next On Lex is strategically located in thriving downtown Glendale, just steps from major employers and premier retail destinations including The Americana at Brand and The Glendale Galleria. A $126.4 mil construction loan was secured for the project through Citizens Bank.

“Next On Lex redefines the typical rental experience by offering modern luxury finishes and amenities that are more commonly found in for-sale upscale homes,” said Steven Fifield, co-founder with Century West Partners. “This new development reflects our bullish stance on multifamily as we seek to meet increasing demand among a growing segment of sophisticated renters foregoing the for-sale market while seeking higher quality rentals in hot regions of Los Angeles.”

Residents of Next On Lex will enjoy an impressive array of amenities including bicycle parking, onsite storage space, underground parking, robust business center, yoga studio and large fitness center, competition-sized pool and hot tubs, media room, game room, private massage room, party room and kitchen, sky lounge, landscaped rooftop deck and courtyard and multiple sun decks. Each unit features luxury finishes that push well beyond typical apartment unit offerings and include stainless steel appliances, plank flooring, quartz countertops, luxury bathrooms features and washer/dryer in each unit. Distinctive tech features in each unit are designed to appeal to the tech-savvy millennial and telecommuter professional renter demographics and include high-speed Internet.

Next On Lex is one of seven active new community projects currently part of Century West Partners’ robust $1.3 bil, 2,300-unit development pipeline. The venture is now one of the most active multifamily developers operating in Los Angeles. Two of the firm’s additional projects, Next on Sixth, a 380-unit mixed-use multifamily development, and K2LA, a 476-unit apartment community, are located in LA’s popular Koreatown area.

Construction on Next On Lex commences this month with initial unit deliveries in fall 2018 and final completion in fall 2019. Citizens Bank of Providence, RI, as lead arranger, provided the $126.4 mil construction loan for the project with Union Bank, MidFirst, and Manufacturers Bank as participants. Essex Property Trust invested in the project as part of their preferred equity program. Brian Eisendrath, vice chairman of CBRE Capital Markets, and Brandon Smith, vice president of CBRE Capital Markets, facilitated the financing.

 

 


K2LA


K2LA
Outdoor amenities at the seven-story buildings include roof decks with grills and views of the Hollywood Hills, downtown, and West Los Angeles.


K2LA
The interiors at K2LA boast large windows, energy-efficient HVAC systems, low-flow plumbing fixtures, and no-VOC paints. Shown is the living room of a one-bedroom unit.


L.A. TOD Mid-Rise Targets Unmet Need

Mar. 17, 2016,
Barbara Ballinger, Multifamily Executive

Once completed later this spring, the three-phase K2LA will feature three separate buildings totaling 477 residential units on a two-acre, transit-oriented site. Three-building K2LA, by Century West Partners, appeals to broad, growing population of Korean residents, other ethnic groups, Gen Xers and Yers.

Catering to a Market Developers Randy and Steve Fifield and Michael Sorochinsky recognized an opportunity while working on several projects in Los Angeles for their firm, Century West Partners, which has offices in Chicago and L.A. “We saw how densely populated L.A.’s 2.7-square-mile Koreatown was becoming,” says Randy, a principal of the company. Immigrants had been settling in the neighborhood near Eighth Street and Western Avenue since the 1960s, yet little new construction—and none with amenities and services that would appeal to Korean residents and other demographics—was being built. So in 2011, Century West acquired a 90,000-square-foot, two-acre site, making it a pioneer, says the L.A. architect hired to help, David F. Hibbert of DFH Architects.

Transitioning a TOD site Located at the corner of Berendo Street and New Hampshire Avenue and in the shape of an “L,” the parcel housed mostly surface parking. The developer’s timing was propitious as the area was transitioning and gaining a broader population, including other ethnicities and Gen Xers and Yers.

The neighborhood’s appeal came partly from the increasingly lively and affordable restaurants, karaoke bars, and yoga studios going in, but also from a metro rail stop one block away that ran down Wilshire Boulevard, says Hibbert. The transit-oriented development (TOD) provided fast access to downtown, Beverly Hills, and Hollywood. And the population is now pegged at about 120,000.

Fine-tuning the Package Before breaking ground in 2012, the developer conducted focus groups to decide on amenities and apartment square footage. Among the findings: a desire for views, cross ventilation, sunshine, and outdoor living space; hence the plan to include balconies for almost all units and roof decks with grills, big-screen TVs for al fresco dining, and swimming pools. The equally important interior features in what became three separate buildings are well-equipped gyms, business centers, and attractive lobbies with surround sound. To help the buildings fit contextually in the older neighborhood, DFH designed simple, modern façades with composite panels that resemble wood, to add a traditional edge.

Thinking Green Sans LEED Because green certification adds expense and time for approvals, the decision was made to go green without the hurdles. The buildings, each seven stories high and with underground parking and charging stations, maximize the newly landscaped site. Stucco exteriors with large windows provide views of downtown, the Hollywood Hills, and West L.A., says Hibbert.

The interiors include energy-efficient HVAC systems; low-flow plumbing; no-VOC paints and adhesives; and deep, wide tubs to appeal to this market, says Steve Fifield, co-founder with Sorochinsky. Units range from 400-square-foot microstudios for $1,875 a month to 1,200-square-foot, two-bedrooms for $3,400 monthly.

Building Shared Buzz Although Century West knew some residents might shy away from socializing, the team encourages mixing by orchestrating events such as wine and cheese get-togethers, cupcake decorating parties, and omelet- and sushi-making parties. “We draw 50 to 60 at many of these events,” Randy Fifield says.

To make daily life easier, the developer hired staff who speak English and Korean, and the team designed the building’s website to enable leases to be completed online if desired. The décor (by L.A. designer Nadia Geller), black staff uniforms, and a 24/7 concierge evoke a hip, boutique- hotel vibe. Phase 1, with 130 units, was finished in December 2014 and is fully occupied; phase 2, with 176 units, is scheduled to be completed in March. The 171-unit phase 3 will be done by May.

K2LA’s success, coupled with a state report detailing the demand for metropolitan living near mass transit, jobs, and entertaining, encouraged the firm to break ground for its next building, the mixed-use Next on Sixth, with 398 residences and a small Target store.


Next On Lex

Century West Kicks-Off $280M Mixed-Use Multifamily Development

Mar. 17, 2016,
Connect Commercial Real Estate


Los Angeles-based Century West Partners initiated construction on Next On Lex, the largest apartment development to commence in Los Angeles County so far this year. The $280-million mixed-use multifamily project is located in downtown Glendale, near major employers and such popular retail destinations as The Americana at Brand and The Glendale Galleria. The new six-floor community, located on the 200 block of Lexington, includes 494 rental units set above 8,140 square feet of ground floor retail space and services anchored by Citibank. Citizens Bank provided a $126.4-million construction loan for the project, which is slated for initial unit deliveries in fall 2018. CBRE Capital Markets’ Brian Eisendrath and Brandon Smith facilitated the financing. Century West Partners is owned by Fifield Companies and Cypress Equity Investments.

 

 


Next On Lex

Century West's Next On Lex Underway in Glendale

Mar. 16, 2016,
By: Steven Sharp, Urbanize.LA


Three-building development rising from 2.75-acre site in Downtown Glendale.

Century West Partners, a Los Angeles-based real estate developer, has started construction on Next On Lex, a $280-million mixed-use complex in Downtown Glendale. The project, located at the corner of Central Avenue and Lexington Drive, will feature 494 rental apartments and 8,140 square feet of ground-floor commercial space. Citibank has signed on as an anchor retail tenant.

Plans call for a wide range of residential amenities, including an underground parking garage for cars and bicycles, a business center, a gym, a yoga studio, a competition-sized pool, a sky lounge and a landscaped rooftop deck. Interior features will include stainless steel appliances, quartz countertops, high-speed internet and washer-dryer units in each apartment.

Designs from Killefer Flammang Architects call for the construction of three contemporary six-story buildings, centered around a pedestrian paseo.

Next On Lex, which is billed as the largest multifamily development to break ground in Los Angeles County this year, is part of a $1.3-billion development pipeline for Century West Partners. The company is also in the midst of construction on two similar residential developments in Koreatown.

 

Next On Lex

Next On Lex

Next On Lex

Next On Lex

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Next On Lex

Next On Lex

 

 


Michael Sorochinsky

Michael Sorochinsky Speaks With Connect Media

Feb. 23, 2016,

 


Michael Sorochinsky

Exclusive Q&A: Cypress Equity CEO Michael Sorochinsky On The Future Of Multifamily Development

Jan. 28, 2016,
By: Karen Jordan, Bisnow, LA

Through his career in law, Cypress Equity Investments CEO Michael Sorochinsky developed a great understanding of real estate. And now, he's turned that into a career in the industry, with a partnership list that's a who's who of commercial real estate. We chatted this week with Michael, who's among the all-star panelists at Bisnow's LA Multifamily and Mixed-Use Forum, Feb. 24, at the Montage Beverly Hills.

Bisnow: Why did you stop practicing law?
Michael Sorochinsky: In my legal practice, I learned a lot about real estate, representing both lenders and borrowers in distressed real estate situations from the savings & loan crisis in the early '90s through a recovering real estate market in the late '90s. While the practice of law was intellectually rewarding, it did not fulfill my entrepreneurial goals. Running Cypress Equity Investments allows me to use my dealmaking and legal skills in a vibrant entrepreneurial setting. Toward the end of my legal career, I was just bored—going through the motions. Now, I wake up every morning and can’t wait for the day to start.

Bisnow: What has been the strategy for your company?
Michael Sorochinsky: Cypress prides itself on making opportunistic investments in prime locations around the country (primarily the top 10 MSAs) in quality product, with the focus on Class-A multifamily developments. Locally, we develop and acquire our own deals. In other cities, we partner with best-in-class developers and operators.

Bisnow: Tell us about some of your other partnerships.
Michael Sorochinsky: When the right opportunity presents itself, we partner with best-in-class developers in their local markets. Some of our strategic partnerships include: Century West Partners (LA), the Calida Group (Las Vegas), the Fifield Cos (Chicago), Magellan (Chicago), UAA (Portland), New Equities (LA), and other strategic partners in key cities around the country.

Bisnow: Tell us about Gibson Santa Monica.
Michael Sorochinsky: The Gibson was Cypress’s first ground-up development site purchase in this cycle back in 2010 when few groups were considering ground-up development as a viable business plan. It has been a tremendous success, representing a prime example of modern luxury living in a relaxed Santa Monica environment—close to work, shopping, restaurants and public transportation. We’re very proud to say that nearly three-quarters of our residents either walk, bike or take public transportation to work.

Bisnow: There's a lot of talk right now about the next recession and when it may come. What do you think the future of our industry looks like?
Michael Sorochinsky: In our industry, we always need to adapt to the changes in the markets and adjust to the realities of the cycles. In the near-term, as we complete this mature cycle, we (and others) are focusing more and more on quality assets in core urban markets. We are also being more careful about our capital structures, gravitating toward longer-term hold strategies, as opposed to merchant-build capitalizations.

Bisnow: To what do you attribute your success?
Michael Sorochinsky: A lot of hard work and focusing on the process. If you are good at what you do, and thoughtful about your overall business plans, you will generally get good results. Our track record and reputation in the real estate community has allowed us to expand relationships with our existing co-development and equity partners, as well as our lenders.

Bisnow: Outside of work, what kinds of things do you like to do in your personal life?
Michael Sorochinsky: I have a passion for travel, particularly with family and friends. Whether skiing in Colorado or Utah, lounging on the beaches of Bali, Australia or Hawaii, boating in southern Italy and France, or navigating the density of China, our family is always on the move. I love flying small airplanes (honing my piloting skills), sailing boats, driving cars—fast…pretty much any machine that allows me to travel. I’m a basketball fan—and yes (painfully) still a Lakers fan. But most importantly, I really get a kick out of spending quality time with my family and friends.

You can hear more from Michael and the rest of LA's commercial real estate luminaries at Bisnow’s LA Multifamily and Mixed-Use Forum, Feb. 24, at the Montage Beverly Hills, starting at 7:30 am. Sign up here!




Michael Sorochinsky

Top Five Predictions for 2016

Jan. 28, 2016,
By: Michael Sorochinsky, Multi-Housing News

What can we expect to see in the capital markets crystal ball?

Among real estate property types, multifamily has been strong and the outlook is positive for 2016. Investment dollars are still flooding into the apartments sector, although investment is more focused than ever on core strategies (new construction in urban infill) and will continue to be more conservative and careful. What can we expect to see in the capital markets crystal ball? Here are my top five predictions for 2016.

1. I believe that construction lenders will likely remain conservative in their underwriting of new multifamily development deals. In this cycle, they have not over-leveraged construction projects and in 2016 are likely going to stay in the 60 to 70 percent to cost range.
2. Based on the headwinds we are experiencing from global economies and the current strength of the dollar, I don’t believe our economy will go into “overdrive” anytime soon. More likely we will see a flat domestic economy with little inflation and continuing demand to rent versus buy. Interest rates will likely stay low through the end of the year.
3. A lot of capital is being raised in the mezzanine debt and preferred equity arena. Mezzanine players are a lot more aggressive than they were a couple of years ago, and developers who may be unable to find equity in the latter stages of this cycle are turning more and more to mezzanine debt to finance their deals. Aggressive mezzanine lending is a concern. Due to HVCRE requirements, banks are asking for more equity as well. Properties will need to achieve aggressive growth over the next two to five years in order to meet interim covenants imposed by mezzanine lenders.
4. On the equity side, I am seeing the major institutional players being increasingly discerning with respect to new investments into multifamily development deals. They are raising money, but there’s a general feeling that a lot of the markets across the country are overbuilt with value-add deals too pricey and difficult to justify. So institutional capital is being selective with locations, sponsors and deals. This trend will continue.
5. There is also a growing trend toward core and core plus investments, with capital focused on strategic, high quality assets and long-term (seven- to 10-year) holds. I believe money will continue to flood into quality assets, especially in key locations including highly sought after coastal markets such as San Francisco, Seattle, Portland, San Diego, Boston, Manhattan and Washington D.C., as well as select strong job growth markets like downtown Austin and Chicago.

2016 will be another interesting year for multifamily developers and investors, but as long as we remain focused and strategic, there is still plenty of opportunity to be pursued.

Michael Sorochinsky is the CEO and founder of Cypress Equity Investments. Cypress Equity Investments makes strategic investments with local apartment developers and operators in major U.S. Core cities, such as San Francisco, Portland, Chicago and Manhattan. In 2010, Michael and Steve Fifield of the Fifield Companies formed Century West Partners to build sophisticated, best-in-class apartment communities on urban infill, transit-oriented sites in highly-sought areas of Los Angeles. The firm is currently one of the most active apartment developers in the Los Angeles metropolitan region with a core specialization in tech-friendly and amenity-rich contemporary communities. The current Century West Partners’ development pipeline includes 2300 quality apartments.

 


K2LA

Property Tour: Century West Partners K2LA

Jan. 7, 2016,
Multi-Housing News

Los Angeles—Century West Partners has announced that 350 additional new residences will be delivered in two phases at the upscale K2LA rental community in LA’s Koreatown (“Ktown”). The modern luxury apartment community boasts a highly sought rental location with immediate access to a variety of lifestyle amenities and public transit. When fully complete, K2LA will consist of three buildings housing a total of 476 thoughtfully designed units. Floorplans are designed to appeal to a variety of residents and include micro-studios, spacious studios, as well as junior one-bedroom, one-bedroom and two-bedroom luxury units. Standout apartment features include quartz countertops, ceramic tile backsplashes, stainless steel appliances, sleek plank flooring, large walk-in closets, luxury bathrooms, USB outlets and much more.

The community provides an exceptional amenity package including 24-hour concierge service, state-of-the-art fitness centers, business centers with conference rooms, heated resort style pools and spas, outdoor rooftop decks with barbecue grilling stations and expansive city views, and complimentary Wi-Fi throughout all public spaces. In addition to controlled access entry, K2LA residents also enjoy access to a bike kitchen offering a bike share program and a resident lounge equipped with 80″ televisions, video game systems and karaoke. The K2LA community hosts an active calendar of engaging events, festive gatherings and holiday celebrations throughout the year, encouraging residents to meet, mingle and enjoy the Ktown lifestyle.

 


 

 

 

 

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