Private Investor Snags 52,438-SF Office Property for $20M
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SILICON VALLEY, CA-Metzler Real Estate, a Seattle-based real estate investment firm, has sold a 52,438-square-foot property located at 10381-10443 Bandley Dr. in Cupertino, CA to a private investor for $20.4 million. Metzler acquired the property in 2007 on behalf of its sponsored fund, Metzler North America Partners LP, which represents German and US high net-worth investors. The property’s location on Bandley Drive is a well-known area of Silicon Valley that is adjacent to the Apple Inc. campus. The City of Cupertino is also home to high-tech giants Oracle, Hewlett Packard and Symantec. The property consists of two single-story office buildings. Aggressive pricing for the property reflects strong interest from investors seeking quality, stable assets leased by AAA credit tenants in top tier markets. The property is 100% occupied. Metzler secured a long-term lease with Apple, which occupies 75% of the property. Ducati occupies the balance. Matthew Paddock, managing director with Metzler, managed the sale of the property. Joe Moriarty and Bob Steinbock with CBRE, were the listing brokers and Michael Kendall, also with CBRE, represented the buyer.
NORTHRIDGE, CA-Marcus & Millichap Real Estate Investment Services has brokered the sale of Varsity Club Apartments, a 50-unit, 63,406-square foot apartment building in Northridge. Reza Ghobadi, a senior associate in Marcus & Millichap’s Encino office, represented the seller, a Southern California real estate developer. Thomas McCartin, a senior associate in the firm’s San Diego office, represented the buyer, a private investor. Built by the seller in 1990 on 0.84 acres, the property is located at 10020 Zelzah Ave. in Northridge. Varsity Club Apartments is a three-story building featuring 44 two-bedroom/two-bath units and six one-bedroom/one-bath apartments. Amenities include a quiet courtyard with a heated swimming pool and Jacuzzi, an on-site laundry room, leasing office, controlled-access entry, central air conditioning, balconies and 110 parking spaces.
SAN JOSE, CA-Barker Pacific Group and Artemis Real Estate Partners have formed a new joint venture to acquire self-storage assets throughout the Southwestern US. The first investment for the venture, King Road Self-Storage, was purchased for $8.45 million. The 112,590-square-foot, three building complex in San Jose sits on 3.24 acres and features 1,039 storage units along with surface parking for boat and RV storage. The new acquisition will be branded as a Storage Solutions facility. King Road Self-Storage was lender-owned. The brokers for the seller were Chico LeClair and Nicolas Walker of Marcus & Millichap. Barker Pacific Group represented itself.
LAS VEGAS-Oro Capital Advisors expanded its national real estate portfolio by acquiring two class A flex industrial assets in the Las Vegas airport submarket. The assets are located on Pama Lane and are formerly known as “Equipment Management Technology Center.” Oro is actively pursuing “mid market” fee, debt, and jv equity opportunities in target markets throughout the US to add to its existing portfolio of approximately 2.2 million square feet.
LAGUNA HILLS, CA-Dan Vittone and Alan Pekarcik of Voit Real Estate Services’ Irvine office have been selected to market a 72,928 square-foot medical office property at 24012 Calle De La Plata here. The property, which is adjacent to Saddleback Memorial Medical Center, is currently 57% occupied by medical, financial, and professional office tenants. Formerly known as Saddleback Financial Center, the four-story, class B building has recently been updated to include a new roof, HVAC units, and a chiller; in addition to upgraded common areas, restrooms and elevators. The property for sale also includes an interest in the attached, six-level parking structure.
INLAND EMPIRE, CA-Although they tell GlobeSt.com they cannot divulge a purchase price, Hillwood Investment Properties, in a partnership with Brookfield Asset Management, has acquired the 328,691-square-foot South Rialto Logistics Center (formally Franzman Ranch) in California’s Inland Empire. South Rialto Logistics Center is a class A, state-of-the-art industrial building located on more than 26 acres in Rialto, CA. The property also has about nine acres available for construction of an additional building or for housing 220 trailer parking stalls. This marks the first property Hillwood and Brookfield have acquired since announcing the creation of a partnership to invest up to $1 billion in industrial properties over the next three years. California Public Employees' Retirement System was the seller of the property. Brian Wilson represented Hillwood and Brookfield and Darla Longo and David Consani of CB Richard Ellis and Rick John of Daum Commercial represented CalPERS
LOS ANGELES-Carroll Organization has formed a partnership with Reliance Capital Partners to source, acquire, and operate multifamily properties on the West Coast. The partnership will operate under the name Carroll-Reliance LLC and will leverage Carroll Organization’s growing platform and existing capital relationships with Reliance Capital’s knowledge of the West Coast markets. Carroll- Reliance will be based in Los Angeles.
IRVINE, CA-Voit Real Estate Services’ Irvine office has completed the $4.5 million acquisition of a 34,006-square-foot bank owned office building in the MacArthur Center located at 1420 Reynolds Ave. in Irvine, CA on behalf of the buyer. Originally built as a medical condo project, this property will be used as a church for a non-denominational religious organization, according to Skyler Serrano, a senior associate in Voit’s Irvine office. Serrano worked with Mike Dorsey, an SVP in Voit’s Irvine office, to represent the buyer, Radha Soami Society Beas America Corp. The seller, Redus CA Properties LLC, was represented by Jeff Chiate, Rick Ellison, and John Gallivan of Cushman & Wakefield.
WALNUT CREEK, CA-Clarion Partners has received a $60-million permanent loan for Plaza at Walnut Creek, a two-building, 338,737-square-foot, class A office complex here. The fixed-rate loan was placed with Cornerstone Real Estate Advisers. Plaza at Walnut Creek is located at 1331and 1333 North California Boulevard in downtown Walnut Creek, close to Interstate 680, Highway 24, the Broadway Plaza Shopping Center and the Walnut Creek BART station. The project is leased to tenants including Morgan Stanley, Merrill Lynch, Comerica Bank, Wells Fargo, Mutual of America, US Bank and Lincoln National Life.
SAN FRANCISCO-HFF has arranged a $20 million refinancing for 785 Market St., a 93,000-square-foot, historic office building located near the corner of 4th and Market Street in San Francisco, CA. HFF worked on behalf of Seligman Western Enterprises to secure the fixed-rate loan through J.P. Morgan Chase Bank NA. 785 Market Street, which was originally built in 1906 as the Humboldt Bank Building, is an 18-story office building plus basement and penthouse that has been an “iconic landmark” on the city skyline for more than 100 years. The property boasts a complete ground floor renovation, including a historic lobby restoration and The Men’s Wearhouse flagship store. The HFF team representing Seligman Western Enterprises was led by senior managing director Susan Hill.
RIVERSIDE, CA-Shaun Moothart of the Alison Co. has arranged $4.2 million in permanent financing for three single- tenant properties. Located in Riverside, two of the three properties consisted of retail buildings 100% occupied by Rite-Aid. The Los Angeles based investors were seeking long term financing to payoff maturing debt and take advantage of the favorable interest rate environment. The third loan was arranged for a separate property consisting of a newly constructed office building in Salt Lake City which is 100% occupied by a Government Agency. According to Moothart, “many lenders shy away from Government backed leases because of ‘out’ clauses, which often allow for the tenant to terminate at virtually any point in the lease due to lack of State or Federal funding.” The borrowers locked rate for 90 days on day one and within two weeks we were able to deliver the lenders commitment to fund meeting the targeted construction completion date, according to a prepared statement. The new loan terms ranged from 20 to 25 years and 25 year amortizations with interest rates locked in the low 5% range.
PORTLAND-Guardian Real Estate Services has hired Christopher Laurent to serve as SVP of acquisitions and development. Laurent will oversee Guardian's acquisitions and development business and serve as a member of the company's executive management team. Laurent has been working in the multifamily housing industry for nearly 20 years, most notably in affordable housing.
LOS ANGELES-Peckar & Abramson PC has added a new partner, Alex R. Baghdassarian, to the firm’s Los Angeles office. Baghdassarian brings his experience handling complex, multi-party construction litigation and is well known for significant trial and arbitration recoveries. Baghdassarian has represented contractors, owners, developers, trade contractors and design professionals in connection with claims, defaults, schedule delays and defects. He is also often sought as counsel in connection with construction and development agreements and contract administration.
SACRAMENTO-Voit Real Estate Services’ Sacramento office has added two new brokers, Jon Walker and Tom Bacci. Each of the new commercial real estate professionals has nearly two decades of experience specializing in office leasing and sales, according to Kevin Sheehan, managing director of Voit’s Sacramento office.
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