Koll Completes Sale of Commercial Unit

Koll Real Estate Group Inc. completed the sale of its commercial development unit, Koll Development Co. in Newport Beach, to real estate investment trust NorthStar Capital Investment Corp. for $33.4 million plus the assumption of debt. The development business, started by Donald M. Koll in 1962 to build landmark commercial properties, was acquired by Koll Real Estate’s predecessor, Bolsa Chica Co., at the height of the real estate slump in 1993. But since the Southern California real estate market has rebounded, the company has been building office, industrial and retail projects. It currently employs about 100 people in 13 offices across the country and is constructing 40 projects valued at more than $1.2 billion. The deal severs Koll’s connection with the beleaguered Bolsa Chica housing development planned for the mesa overlooking the coastal wetlands near Huntington Beach. The project has been stalled for more than eight years. Koll Real Estate said it will change its name to California Coastal Communities Inc.