Real Estate Investment

The former West Hollywood headquarters of noted architect Charles Luckman was sold Wednesday for a near-record price per square foot in Los Angeles County, accentuating a run-up in local office values over the last few years. Los Angeles-based Mani Bros. Real Estate Group bought two Sunset Boulevard office buildings on the eastern border of Beverly Hills for undisclosed terms, said Chief Executive Simon Mani.

Invitation Homes bought one of its first fixer-uppers in the San Fernando Valley just last May, a three-bedroom steps from a sought-after school in north Granada Hills. More than 200 homes later, the company's Dodger Blue "for rent" signs are a fixture in the Valley -- markers for a massive Wall Street wager on the housing recovery. Created last year by private equity titan Blackstone Group, Invitation Homes has spent about $3.5 billion buying 20,000 houses in nine U.S. markets, including Southern California.

An asking price of $78.8 million will make a splash in any neighborhood. And the fact that this one includes a temperature-controlled trout pond with a two-story waterfall doesn't hurt. Donald Abbey , the founder of a commercial real estate investment and management firm bearing his name, has listed a recently completed estate in Bradbury, in the San Gabriel Valley. More than nine years in the making, the Palladian-style compound occupies an 8-acre promontory with city and ocean views.

MPG Office Trust Inc., the largest office landlord in downtown Los Angeles, turned a profit in the third quarter as it continued to shrink its property portfolio. The Los Angeles real estate investment trust, which also owns buildings in Glendale and Cerritos, continued to sell heavily indebted properties while hanging on to most of its trophy buildings in L.A.'s financial district. MPG reported third-quarter net income of $88 million, or $1.57 a share, up from $25.6 million, or 51 cents, in the same period last year.

Two Rodeo, a well-known Beverly Hills shopping center that houses some of the world's biggest names in luxury goods, has been bought by Irish investors for $275 million. Sloane Capital's purchase of the complex at Rodeo Drive and Wilshire Boulevard demonstrates how choice real estate is still in demand even though the recent credit crunch related to sub-prime home loans is sending jitters through the financial and residential real estate markets. Tiffany & Co.

From the eager anticipation and lively conversations emanating from the crowd in Anaheim's Marriott Hotel ballroom, it seemed like a rock star was en route. But when a side door opened, controversial TV real estate investment adviser Tom Vu bounded toward the podium. "Hi! You ready to make big money?" Vu, 34, asked as the crowd of about 1,000 people leapt to their feet in applause. "Motivating folks is in my blood. You wanna be rich don't you? Well if you make no money with me, you a loser!"

The California Assn. of Real Estate Investors, a 370-member organization of investors, will hold its first meeting in South Orange County on July 27 at the Irvine Marriott in Irvine. The longstanding North Orange County CAREI meeting will be held July 25 at the Anaheim Plaza Resort Hotel. Both meetings are scheduled for 7 p.m. and will deal with "How to Find and Buy Foreclosed Properties."

Real estate investment trusts have been snapping up Orange County apartment complexes for some pretty extravagant sums. But these high prices aren't so outrageous, industry experts say, considering where the apartment market is headed. Multifamily construction starts are expected to drop off this year after a whirlwind of activity last year at Irvine Ranch and in south Orange County, according to a research report by Marcus & Millichap.

Xerox Corp. today reported a first-quarter loss of $254 million, or $2.93 per share, stemming from its interest in a struggling Chicago-based real estate investment firm. Otherwise, the company reported "good growth" in its document-processing business and a slump in earnings from its financial services division that it attributed to the weak market for property and casualty insurance.

Real estate investment trusts bought a record $11.3 billion of commercial properties amid a strong economy in the third quarter, up from $6.6 billion a year earlier, according to a study released Wednesday. REITs are on pace to scoop up $35 billion of real estate this year, topping the $20-billion mark set in 1996, according to the joint study by Los Angeles-based broker CB Commercial Real Estate Services Inc. and money manager Alliance Capital Management.

Colorado apartment landlord Archstone broadened its Southern California empire this month by spending more than $100 million on seaside properties in Venice and Marina del Rey. Archstone, which operates upscale apartments in coastal markets, bought the Frank, a 70-unit complex on Rose Avenue in Venice, for $56.2 million. It also purchased the Bay Club, which has 205 units -- and 207 boat slips -- on Tahiti Way in Marina del Rey for $43.95 million. The Frank, which was renamed Archstone Venice on Rose, is a complex completed this year by the seller, Portland, Ore., developer Gerding Edlen Development Inc. Los Angeles landlord Decron Properties Corp.

The Anschutz Co. expects its sports and entertainment empire to sell for at least $5 billion, two people familiar with the sale process told the Los Angeles Times. The so-called "bid books" for the AEG sale have not been distributed to potential investors, said the people, neither of whom was authorized to comment publicly. The book lists the assets for sale and provides confidential financial information about them. A sale is not expected to be completed until next year. Colony Capital, a Santa Monica-based real estate investment firm, is interested in exploring a bid for AEG, a person familiar with the process said Wednesday.

Here is a roundup of alleged cons, frauds and schemes to watch out for. Credit card interest - The Federal Trade Commission is sending refunds to more than 4,400 consumers who were defrauded by a telemarketing firm that promised to reduce their credit card interest rates in exchange for an upfront fee. The FTC sued Economic Relief Technologies and several related firms and individuals in 2010, accusing them of a massive telemarketing fraud....

A Torrance office building called South Bay Tower was sold for $52 million Tuesday to real estate investment firm Bixby Land Co. The purchase is part of a strategy by Bixby to acquire underperforming or financially troubled commercial properties during a low point in the real estate cycle. In the last two months, the Irvine company also bought two office buildings in Silicon Valley. "Given the downturn that we have just had, there are throughout California a number of good-quality assets that either have a broken capital structure or have occupancy that is substantially lower than would be attractive to many investors," said Bill Halford, chief executive of Bixby.

MPG Office Trust Inc., the largest office landlord in downtown Los Angeles, turned a profit in the second quarter as the company settled some large debts. The Los Angeles real estate investment trust — which also owns buildings in Glendale, Pasadena and Cerritos — continued to let go of properties that were heavily encumbered with debt while hanging on to most of its trophy buildings in L.A.'s financial district. MPG finished the quarter ended June 30 with net income of $67.3 million, or $1.32 a share, down 43% compared with $118.4 million, or $2.42, in the same period of 2011.

Newport Beach real estate investment management firm Buchanan Street Partners bought a Rancho Cucamonga office building for $10.6 million. Buchanan bought a 75,000-square-foot building in HavenPark, a master-planned office campus, from Dallas-based Thackeray Partners. The three-story building at 9680 Haven Ave. was completed in 2007 during the last real estate boom and is 89% leased. “We are pleased to acquire this building at a significant discount to replacement costs,” said Kimberly Stevenson, a Buchanan vice president.

He's the money man behind St. Louis' bid to land the Rams, but to many in Los Angeles and even St. Louis, Stan Kroenke might as well be The Invisible Man. Unlike Peter Angelos, the colorful Baltimore Orioles owner who has spoken openly about his attempts to purchase a minority share of the Los Angeles Rams, Kroenke's pursuit of the team has been as private as the twin-engine jet he owns. The Columbia, Mo.

Many investors chase hot returns, buying assets that have recently performed well, but experts have long maintained that you'd be better off putting your money in sectors that are down in the dumps. That's why it might make sense to take a look at real estate investment trusts -- publicly traded investment pools that typically buy commercial properties such as shopping centers and medical buildings. Although REITs have outperformed stocks over the last decade, they have been slammed this year.

MPG Office Trust Inc., the largest office landlord in downtown Los Angeles, eked out a first-quarter profit propelled by property sales and debt forgiveness. The Los Angeles real estate investment trust — which also owns buildings in Glendale, Pasadena and Orange County — stuck to its strategy of letting go of properties that were heavily encumbered with debt. MPG finished the quarter that ended March 31 with a profit of $5.2 million, or 10 cents a share, compared with a loss of $39.5 million, or 81 cents a share, in the same period of 2011.

MPG Office Trust Inc., the largest office landlord in downtown Los Angeles, narrowed its loss in the fourth quarter even as occupancy in its buildings continued to slip. The Los Angeles real estate investment trust also faced rising costs of office space improvements required to keep and attract tenants. "The downtown L.A. market continues to bounce along the bottom, and MPG faces considerable leasing challenges," said analyst Michael Knott of Green Street Advisors. "Tenants hold the upper hand, as MPG's leasing costs increased to even higher levels, and its occupancy is now below 80%. " MPG, which also owns buildings in Orange and San Diego counties, finished the quarter with a net loss of $31.5 million, or 62 cents a share.