El Royale Multifamily Fetches $526,000 Per Unit
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LOS ANGELES-A locally based family trust that had owned the property for more than 50 years has sold the 56-unit El Royale apartment community to a team composed of New York-based developer and investor Kamran Hakim and Farhad Eshaghpour, a real estate professional who spearheaded the acquisition locally. The property, built in 1929 and located at 450 North Rossmore Ave., sold for $29,500,000, or $526,786 per unit, with an in-place cap rate at the time of sale at 3.5%. Ron Harris, an EVP investments; Stewart I. Weston, a SVP investments; and Joseph Smolen, a director—all with Institutional Property Advisors, a multifamily brokerage division of Marcus & Millichap—represented the seller.
LOS ANGELES-Archstone-sponsored partnerships have made two multifamily acquisitions in the Los Angeles area. The Frank, a LEED-Platinum certified 70-unit apartment community in Venice, CA, was acquired for $56.2 million and has been renamed Archstone Venice on Rose; and the Bay Club, a 205-unit apartment community located on the west shore of the marina on Tahiti Way in Marina del Rey, CA, was acquired for $43.95 million. The sellers for both properties were not disclosed. Over the next year, the Bay Club will undergo a comprehensive renovation and be renamed Archstone Marina Bay.
NATIONAL CITY, CA-H.G. Fenton Co. has acquired four industrial projects here totaling 610,000 square feet from Collins Development Corp. for an amount undisclosed to GlobeSt.com. The properties include Southland Industrial Park on W. 35th St.; Southport Industrial Park, adjacent to I-5 at Mile of Cars Way; Southport Commercial Park; and Southport Office Park on Hoover Ave. and Mile of Cars Way. The acquisition brings H.G. Fenton’s portfolio to more than 4 million square feet.
COSTA MESA, CA- Penwood Select Industrial Partners III L.P., Penwood Real Estate Investment Management LLC’s third value-added investment vehicle, has closed on the acquisition of a 345,000-square-foot industrial building at 1683 Sunflower Avenue here for an amount undisclosed to GlobeSt.com. The two-tenant building was acquired with a 112,000-square-foot vacancy. Mitch Zehner of Voit Real Estate Services’ Anaheim Metro office and Michael Hartel of Voit’s Irvine office represented Penwood as the buyer on the property and have been named the exclusive leasing representatives for it. Penwood and Voit will improve the landscape and vacant space to position the property.
LOS ANGELES-King’s Arch Capital has acquired 6515 W. Sunset Blvd., a vacant four-story office building located in prime Hollywood, for an amount undisclosed to GlobeSt.com. The Beverly Hills, CA-based investment office has begun a full-scale renovation of the property. Marketing for the leasing program is expected to begin early next quarter with delivery of spec and build-to-suit space in the following quarter.
HENDERSON, NV-An international logistics company is in the process of purchasing 35 acres of land for a new facility at the South 15 Airport Center here. Dan Doherty, SIOR, SVP for Colliers International – Las Vegas, is representing the buyer. The unnamed company is expected to begin building a 200,000-square-foot facility at the 150-acre master planned industrial and office park by early 2013. When operational, the location will employ approximately 280 workers, providing much-needed jobs in Southern Nevada.
LOS ANGELES-MPG Office Trust Inc., a Southern California-focused REIT, has held a trustee sale with respect to Two California Plaza here. As a result of the foreclosure, the company was relieved of the obligation to repay the $470-million mortgage loan secured by the property as well as accrued contractual and default interest on the mortgage loan. In addition, the company received a general release of claims under the loan documents pursuant to an in-place agreement with the special servicer of the mortgage loan.
SAN JOSE, CA-W3 Partners and Ridge Capital Partners LLC have acquired a three-building, class-A, R&D office complex on approximately 11 acres at 51, 77 and 145 Rio Robles Dr. here. The parties involved were unable to reveal the sale price, but an industry source tells GlobeSt.com that the price was $34 million. Two of the three buildings within the property are fully occupied by SunPower Corp. Trevor Wilson, managing partner of Ridge Capital, will focus on releasing the building for the ownership. The seller, Lane Partners and Walton Street, was represented by Newmark Knight Frank Cornish & Carey Commercial Capital Group; the buyers represented themselves.
BRENTWOOD, CA-Ridge Capital Investors LLC has acquired TownCentre Commons Apartments, a 137-unit apartment community here, for $19.625 million. Over time, the company will invest an additional $1 million to renovate the 97% leased property and its amenities. FPI Management Inc. will manage day-to-day property operations on behalf of the owner. This is the third investment for RCI in the last 12 months and represents the first investment it has made with capital partner Redwood Real Estate Partners of Rancho Santa Margarita, CA.
REDMOND, WA-Panos Properties LLC has purchased Overlake Village Shopping Center here from Sato Corp. for $18,200,000. The 112,680-square-foot retail center is anchored by Safeway, and tenants include Big 5 Sporting Goods, Starbucks and RiteAid and was 100% leased at the close of the sale. Reynolds Haas of Colliers International Seattle brokered the sale for both the buyer and seller. Haas originally leased the center when it was first constructed in 1976.
COMPTON, CA-Prologis has acquired a 132,926-square-foot industrial property at 175 East Manville St. here from Felix Family Trust for $9.1 million. Peter D. Bacci and Jack Cline of Lee & Associates, who had originally sold the 1954-built property to Felix Manufacturing in 1996, represented the buyer and seller in the recent transaction. Prologis, who already owns two adjacent industrial properties, plans to begin rehab work on the site’s existing building immediately.
SEATTLE-Harbor Urban LLC has completed the topping out of Kavela apartments, a new mixed-use transit-oriented development project at 6521 Roosevelt Way NE here. Kavela tells GlobeSt.com that total anticipated construction costs for the project are $17 million. Adjacent to the future North Link Light Rail Roosevelt Station, Kavela is the first multi-family project in the neighborhood that will provide housing for Seattle residents who want to utilize mass transit and the future station. Kavela features 63 apartments that include studios, one- and two-bedroom homes and two live-work spaces with more than 4,000 square feet of ground-floor retail space.
SAN DIEGO-The dome topping-out for the $185-million San Diego New Central Library has been completed. The dome is the only customized dome structure in California. Designed by architect Rob Quigley, the library features bay view terraces, roof gardens, flexible meeting space, a state-of-the-art auditorium and a three-story reading room under the lattice dome. With 294,673 square feet, nine stories, and an energy-efficient design, the library is designed to achieve LEED Silver certification.
LAGUNA HILLS, CA-Vintage Real Estate has acquired 4 acres immediately adjacent to its Moulton La Paz Shopping Center at the intersection of Moulton Parkway and La Paz Rd. from the City of Laguna Hills as part of its $17-million expansion and redevelopment plan for the center. According to Vintage’s Fred Sands, the firm will be doing a major remodel of the center to give it a contemporary look and transform it into an attractive destination with an array of quality shopping and dining options. The design includes new façades, storefronts, refreshed landscaping and attractive outdoor gathering spot. The center will be re-envisioned as the Village at Nellie Gail Ranch, with the style and ambience of a European market. Construction will begin this fall with completion estimated for Spring 2014.
POWAY, CA-Affirmed Housing Group has completed a $15.3-million renovation of Orange Garden Apartments here. Formerly a market-rate apartment community, AHG purchased the property in 2009, completed extensive renovations and is reopening the property as a 100% affordable community. Apartment homes will be available to those who earn 30%-60% of the area median income and will be rented for $419 to $1043 per month.
PORTLAND, OR-Eastern Real Estate LLC is renovating its newly acquired historic office building, US Custom House. The four-story building sits on a full block in the Pearl District, between NW Broadway and Eighth, and Everett and Davis here. The renovation will retain the building’s historic elements, such as arched windows, columns and 12-foot ceilings, while installing modern finishes and lighting. Plans call for bike parking, a shower/locker-room area, an entertainment zone, open collaborative areas and a European style plaza.
SANTA FE SPRINGS, CA-Porteous Fastener Co. has signed a 211,236-square-foot long-term lease in an industrial building with locally based Golden Springs Development Company LLC. Built in 2000 and situated on 9.78 acres, the building is located at 13113 Adler Dr. Clyde Stauff and Steve Calhoun of Colliers International represented the landlord; the tenant was represented by Andy Zimbaldi of Alden Management Group.
CHICO, CA-The Group has negotiated a 51,585-square-foot office lease at 402 Otterson Dr. here to Build.com Inc., an online home-improvement retailer. Brandon Harris of the Group was the listing broker and negotiated the lease on behalf of the lessor, and Frank Ross, also of The Group, represented the lessee. Build.com’s approximately 350 employees will be joining Hewlett Packard in the 75,075-square-foot facility, which is situated on more than 6 acres in South Chico, west of Highway 99.
LOS ANGELES-City Club has signed a new 27,243-square-foot lease on the top floor of City National Plaza at 555 S. Flower St. downtown. The premier private business club is relocating from 333 S. Grand Ave. Jones Lang LaSalle Los Angeles team members Darren Eades and Josh Wrobel represented ClubCorp., City Club's operator. The landlord, Thomas Properties Group, was represented in-house by Lalo Diaz.
HUNTINGTON BEACH, CA-Argent Retail Advisors Inc. has been awarded the exclusive leasing assignment for the retail portion of Elan Huntington Beach, a new development of 274 luxury-apartment units and 8,500 square feet of high-profile retail at Beach Blvd. and Ellis here. Developer Charleston, SC-based Greystar recently closed escrow on the site, which currently contains an old office/retail building and a gas station. Demolition has begun, and construction is scheduled to begin in December 2012, with completion and delivery in mid-2014.
CERRITOS, CA-Stream Realty Partners L.P has been selected by Winthrop Realty Trust to provide leasing services for Cerritos Tower, a 191,939-square-foot, class-A office building located at 18000 Studebaker Rd. here. Leasing of the property will be led by co-managing partners Colby and Blaine Annett, as well as Mike Adams and Aseel Danan. The tower is currently 55% leased, with key tenants including Premiere Business Centers and Marina Medical Billing Services. Cerritos Tower is the first assignment to come out of Stream Realty’s Los Angeles office, which recently opened.
LOS ANGELES-Sprinkles, Mendocino Farms and THE MELT are set to open new locations in downtown here at FIGat7th. The new lessees join other culinary-based tenants Juicy Lucy by Paul Shoemaker, Loteria Grill by Jimmy Shaw, Oleego by Jenee Kim of Park’s Korean Barbeque, Morton’s The Steakhouse, California Pizza Kitchen and Starbucks at FIGat7th. These tenants will open in December 2012, with several high-fashion retailers to follow in spring 2013. Charles Dunn’s senior managing directors Kevin Dee and Ted Slaught, the exclusive retail-leasing agents for FIGat7th, represented Brookfield Office Properties in the lease agreement.
ESCONDIDO, CA-Realty Income Corp. had priced $350 million of five-year, 2% fixed-rate notes, due January 31, 2018, and $450 million of 10-year, 3.25% fixed-rate notes, due October 15, 2022. The public offering price for the five-year notes was 99.910% of the principal amount for an effective yield to maturity of 2.017%. The public offering price for the 10-year notes was 99.382% of the principal amount for an effective yield to maturity of 3.323%. The net proceeds from the offering will be used to repay borrowings outstanding on the company’s $1.0 billion acquisition credit facility, and any remaining proceeds will be used for general corporate purposes, which may include additional property acquisitions.
LOS ANGELES-CBRE’s capital markets group has secured financing on behalf of Capital Foresight, a privately held real estate company in Southern California, for the acquisition of Santa Fe Lofts downtown here. Brian Eisendrath with CBRE’s debt and equity finance group arranged a floating rate loan of $23,800,000, which was priced at an interest rate of 2.5% with two years interest only, through Fannie Mae. Capital Foresight purchased the 132-unit live/work building from a partnership including the Kor Group for $35 million.
MILPITAS, CA-HFF has secured joint-venture equity on behalf of Shea Properties for an amount undisclosed to GlobeSt.com for the development of 1201 S. Main St., a 200-unit, class-A multi-housing community to be built here, on which GlobeSt.com previously reported. The HFF team led by directors Mark Erland and Charles Halladay worked to arrange the equity through the Resmark Cos. The firm was unable to release construction costs for the project.
IRVINE, CA-Johnson Capital has promoted Cliff Carnes, the firm’s longtime COO, to president. Guy Johnson, the company’s founder and current president, will continue with the company as its CEO. Carnes joined the firm in 2007 as its SVP of operations and in 2008 became COO. He will continue to have operational and oversight responsibilities of the firm while exploring ways to grow the company by opening new offices and locating new business and financing opportunities.
NEWPORT BEACH, CA-Marcus & Millichap Real Estate Investment Services has named Matthew Kipp sales manager in its local office. This is Kipp’s second stint with this office; he was an office- and industrial-property investment specialist from April 2003 to December 2010. Prior to rejoining the firm, Kipp was an account representative for medical device sales for 3M.
SAN DIEGO-CBRE has recruited Steven Shupp as the firm’s Southern California director of project management for the San Diego and Orange County areas. Shupp has more than 25 years of architectural, property- and project-management, and construction experience, with specific expertise in development management and build-to-suit project representation. Previously, he was director of project management for Cushman & Wakefield in San Diego for the past 15 years.
BOISE, ID-A10 Capital, a nationwide lending business specializing in small to middle-market mini-perm commercial mortgage loans, has hired Jim Conway as its chief credit and risk officer. Conway was formerly Goldman Sachs’s commercial-mortgage capital co-CEO and chief credit officer.
NEWPORT BEACH, CA- Zachary Niles, SVP at Jones Lang LaSalle, and Kevin MacKenzie, senior managing director at HFFLP, have been named as two of the recipients of the 2012 Developing Leaders Award, presented by NAIOP. Niles provides advisory and brokerage expertise to industrial property owners and occupiers throughout Southern California. He has served as the current vice-chair of the young professionals group for NAIOP SoCal, and he will serve as chair/president for 2013. McKenzie has served on the chapter’s board of directors and as a judge for the 2011 NAIOP Real Estate Challenge as well as vice chairman for the 2012 Night at the Fights; he will serve as the chairman for the 2013 Night at the Fights.
IRVINE, CA-Shorenstein Properties LLC has received LEED Gold certification, Existing Building Operations and Maintenance, for Main Plaza, a 614,000-square-foot, class-A office complex at 1920/2010 Main St. here. This brings to eleven the number of properties that have successfully achieved LEED certification at the Silver level or higher under Shorenstein’s ownership and management this year. The company currently owns twenty LEED-EBOM certified properties.
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