Ashwill Acquires Fullerton Center; Granite Buys Apartment Complex
COMMERCIAL
The Casa Laguna Inn, once known as a hideaway to Hollywood stars, is about to get a major face lift.
Former Montreal entrepreneur Francois Leclair, now a resident of Corona del Mar, has purchased the 20-room bed and breakfast inn for $2.4 million.
“He wanted something close to where he lived and a business that interested him,” said Vache Darakdjian of Atlas Hospitality Group, who represented Leclair in the deal.
The new owner of the landmark inn, on PCH about two miles south of downtown Laguna Beach, had been involved in business ventures related to antique cars and real estate when he lived in Canada, according to Darakdjian.
“But he had never been an owner of a bed and breakfast,” said Darakdjian.
The Casa Laguna Inn had been controlled by Casa Laguna Partners of Portola Valley in Northern California since 1984, he added.
“The property is not run down,” said Darakdjian. “But he (Leclair) wants to take a different approach.”
Once a preferred getaway for celebrities such as Rock Hudson and Tab Hunter, the inn has been marketed as more of a mainstream hotel in recent years. Leclair plans to try to attract more high-profile LA types, advertising in entertainment-industry trade publications and putting on more special events such as vintage car shows.
The new owner also will begin a 1 1/2-year renovation project estimated to cost more than $500,000 to complete. Fourteen rooms will receive face lifts. In addition, four suites, as well as The Cottage , which is rented to large families , will be completely redesigned.
The inn’s Mission House, which has been used as a multi-bedroom area also leased to large families, will be converted into a common area for receptions and as a place for guests to gather.
The inn’s ocean-view gardens also will continue to be used for weddings and other receptions, according to Darakdjian.
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Gene Ashwill, a longtime local developer, has purchased the Fullerton Airport Commerce Center for $2.35 million.
The seller is an Appleton, Wis.-based insurance firm, the Aid Association for Lutherans.
“It was a property that was taken through foreclosure and AAL didn’t want to keep it,” said Ken Johnson, associate vice president of Grubb & Ellis in Newport Beach.
Ashwill acquired the 47,053-square-foot multi-tenant industrial park at 3517 W. Commonwealth Ave. in Fullerton to add to his portfolio.
“It’s the type of product he likes to buy,” said Johnson, who helped broker the deal with Michael Finley of Grubb & Ellis’ Anaheim office.
The cost to develop a new multi-tenant industrial park would be significantly greater than the $50 a square foot Ashwill wound up paying for the Fullerton facility, he added.
“There is some immediate upside in the tenant (rental) rollover this year,” said Johnson. “It’s about a 12-year-old facility in a mature, older location in Fullerton. But it’s a stable location in a very tight market.”
RESIDENTIAL
Granite Investment Group of Irvine, which has been an active investor in apartment markets around Southern California and Arizona, is on the move again.
The privately held firm has purchased the 110-unit Emerald Gardens Apartments at 8720 Valley View St. in Garden Grove.
The seller was a group of local investors that had owned the complex, built in 1964, for years.
“They decided that they wanted to get out of the real estate market,” said Jay Skenderian of Morgan Skenderian Investment Real Estate Group in Newport Beach, who helped broker the deal.
Three other members of the firm also represented both parties in the transaction. They were Ken Morgan, Gary Tolfa and Guy Torelli
“The units are pretty clean , they don’t need much in the way of renovations,” said Skenderian. “The previous owners kept them in good shape.”
In many apartment deals around Orange County, he added, investors prefer to purchase apartments needing refurbishing.
“That’s how they add value to a portfolio,” said Skenderian.
In the case of Granite Investment Group’s acquisition of the Emerald Gardens, he said, the new owners believe that they can use their management experience to generate more cost savings. Skenderian said the new owners also plan to increase cash flow through higher rents.
“The rents when they bought it were about $100 to $150 (a month) per unit under the going market rate,” he added.
