Las Vegas

Local housing statistics released today by the Greater Las Vegas Association of Realtors show fewer home sales but higher prices in August compared to the previous month and year. GLVAR president Rick Shelton, a longtime local Realtor, said the association’s statistics continue to indicate that the local housing market is “bouncing along the bottom.” He said the expiration of the federal tax credit for homebuyers was a major contributor to the 12.7% decline in single-family home sales in Southern Nevada between August 2009 and August 2010. The tax credit sparked home sales last summer and until it expired April 30, but he said it also led to slower sales since then. “This decrease in sales from 2009 to 2010 is relative to the spike in sales we saw during this same time of year between 2008 and 2009, when the tax credit was available,” he says. Meanwhile, the median single-family home price in Southern Nevada during August rebounded to $140,000, up 3.7% from July, up 3.3% from August 2009 and matching the price from June 2010. The median price of local condominiums and townhomes sold in August was $67,000, down 1.5% from $68,000 in July, but up 1.1% from one year ago. Like last month, GLVAR reported a slight decrease in short sales and an increase in sales involving foreclosed homes. In February, 22% of all existing homes sold in Southern Nevada were short sales. That rose to 25% in March to 27% in April to 29% in May to a high of 34% in June to 31% in July to 30 % in August. Bank-owned homes accounted 53% of all local home sales in February, falling to 50% in March to 43% in April to 40% in May to 38% in June before inching back up to 42% in July and 43% in August. Shelton says that buyers are also benefiting from increases in the total number of homes listed for sale and the number of homes listed without any sort of pending offer. August marked the fourth straight month that both inventory categories showed an increased number of homes listed for sale.

Vancouver, WA

Vancouver’s Evergreen neighborhood will soon get another local landmark: a 95,000-square-foot outpatient medical center. Construction of the three-story first phase of the new Evergreen Health Center is scheduled to begin during the first quarter of next year, with completion slated for Q1 2012. A future second phase would roughly double the size of the facility, which will be affiliated with Southwest Washington Medical Center in Vancouver. San Diego-based Pacific Medical Buildings will develop, own, lease and manage the new building. SWMC will retain ownership of the underlying land and will lease part of the facility. The rest of the space will be leased by multiple physician practice groups. Situated on a 12-acre site about 5-1/2 miles from SWMC’s 360-bed flagship hospital campus, Evergreen Health Center is part of the medical center’s “hub and spoke” strategy for making ambulatory care more convenient and accessible throughout the Vancouver area, according to SWMC. Phase one plans for Evergreen Health Center call for one-third of the facility to be used for a comprehensive 18-bay Emergency Department including two trauma rooms, plus imaging, physical therapy and a drive-through pharmacy. The freestanding ED will help to lighten the load at the main SWMC hospital campus, which operates one of the busiest EDs on the West Coast, handling more than 100,000 annual visits. Another third of the new Evergreen Health Center will house Southwest Medical Group, an SWMC-affiliated multi-specialty physician group, with the final third available for lease to complementary third-party medical practices. PMB emerged as SWMC’s choice to develop the satellite facility as part of a competitive request for proposals (RFP) process that included 20 respondents. “Although we have owned and managed seven medical office buildings for SWMC since 2007, it was still a competitive selection process,” notes PMB President Mark Toothacre. “So it is especially gratifying that SWMC has once again placed its trust in PMB—relying on us to help make quality healthcare more available and convenient for Evergreen residents.” The architect for Evergreen Health Center is Seattle-based NBBJ and the general contractor is Andersen Construction Co. Inc. of Portland. Nationwide Health Properties Inc. of Newport Beach, CA, will provide or guarantee the construction loan and provide permanent financing, if needed.

San Jose, CA

Caltrans, Green Earth Engineering Corp. and Earth Electric revealed a new photovoltaic power system at the Caltrans maintenance facility in Monterey, CA went live yesterday and began producing renewable energy. The 9.6 Kilowatt system was installed in early July and completed final inspections last week. “We are thrilled to be a part of the green energy movement,” says Caltrans District 5 Director Rich Krumholz, who added that more solar panels on buildings in Santa Cruz, San Luis Obispo, Santa Maria, Buellton and Santa Barbara are forthcoming. “Our small business outreach was an important aspect of the effort. Supporting the California green economy not only helps our state but the success of this project encourages further growth.” The system contract was awarded to a local partnership between Green Earth Engineering Corp. and Earth Electric, both of San Jose, CA, who successfully completed the Caltrans bidding process. “There is a great deal of planning and preparation with every solar project,” says Angelo Perez, a California licensed civil engineer and CEO of Green Earth Engineering Corp. “Every bid that is awarded to local business not only supports the local economy but serves to educate and improve the process for everyone involved, including engineers, installers and inspectors. This was a well executed project and we are extremely proud of the effort and opportunity to work with Caltrans.” Despite a state law that allows public agencies to forego the bidding process for energy-related contracts, Caltrans opted to take the project out to bid. Many consultants and industry experts agree that the process can be complicated but well worth the effort when dealing with public money. “As a solar instructor and installation vendor, projects like this provide a wealth of experience,” says Matthew Welch, president of Earth Electric and solar instructor at San Jose City College. “My company is stronger, local installers gain experience and my students benefit from first-hand knowledge of the solar bid and installation process. The positive effects of local government agencies supporting local green businesses are felt long after the project is complete.”

Sacramento

California College Career & Technical Education Center has leased a 164,330-square-foot lease of office and R&D space at 890 Embarcadero Dr. in West Sacramento. The non-profit public benefit corporation will use the space for a tuition-free charter high school. “Throughout the economic downturn, education has remained among the top thriving industries nationally,” says Sandoval. “I am thrilled to have assisted California College Career & Technical Education Center in finding the perfect location for their school. This will be a significant boost to the local economy.” John Fondale of Cornish & Carey Commercial represented the landlord, Affymetrix Inc., in the transaction. 

San Francisco

LaSalle Hotel Properties acquired the Hotel Monaco San Francisco for $68.5 million. The company funded the acquisition with borrowings under its senior unsecured credit facility and from available cash, including cash from operations. Hotel Monaco, which Kimpton Hotel & Restaurants will continue to manage, is a AAA Four Diamond urban, upscale full-service hotel. The property features 201 guestrooms, including 35 suites. The hotel’s restaurant, Grand Cafe – Brasserie and Bar, seats 190 and features French inspired and California influenced cuisine. Hotel Monaco’s 9,000 square feet of flexible meeting and function space features eight meeting rooms including the 2,300 square foot Paris Ballroom. Hotel Monaco sits within two blocks of Union Square and is well located relative to the Financial District and Moscone Convention Center. The hotel, surrounded by numerous dining establishments and nightclubs, is also adjacent to San Francisco’s Theater District. “We are excited to make our first investment in this top-tier, high barrier-to-entry market,” says Michael Barnello, president and CEO of LaSalle Hotel Properties. “San Francisco is one of the strongest US hotel markets and is known for its robust and diverse economy with demand drivers coming from both the business and leisure segments.”

San Diego

Colliers International has completed the sale of Genesis Plaza, a 57,685-square-foot office building at 4995 Murphy Canyon Rd. in San Diego, CA, to NetREIT Inc., headquartered in Escondido, CA, and formed in 1999 as a REIT. The sale is valued at $10 million. Mark McEwen, senior vice president in Colliers’ San Diego office, and Fred Cordova, Colliers’ L.A. office with assistance from Tom Wilcox and Ken Kisbert, also with Colliers represented both the buyer and the seller, Mullrock Murphy Canyon LLC, a joint venture between San Francisco-based Rockwood Capital and Laguna Beach, CA-based the Muller Co. Built in 1988, Genesis Plaza is a four-story suburban office building located in the submarket of Kearny Mesa, approximately 10 miles from Downtown San Diego. Major tenants include California State Department of Consumer Affairs, Panasonic and Wachovia/Wells Fargo. “Situated just off the I-15 in Kearney Mesa, Genesis Plaza is an attractive, high-quality asset with great visibility in one of the stronger submarkets in San Diego,” adds McEwen.

A joint venture of Los Angeles-based Kearny Real Estate Co. and TriGate Capital of Dallas has acquired a vacant 74,000-square-foot flex/research and development building at 15330 Ave. of Science in the Rancho Bernardo submarket of San Diego for $6.8 million. The 74,000-square-foot building, which had been sold in 2006 for $11 million, was acquired by Kearny-TriGate Ave of Sci LLC in a short sale transaction at 68% of the loan balance. Kearny plans to immediately invest $1.8 million to renovate and reposition property. Plans call to enhance the parking lots, landscaping and existing facade with reserves for future tenant improvements. Both the buyer and seller were represented by Mickey Morera and James Duncan of Cushman and Wakefield of San Diego. In a separate and unrelated transaction, a partnership of Kearny and Pacific Coast Capital Partners has sold 50 acres of land in Otay Mesa to Dart Container Corporation for $11.3 million. The Kearny led partnership acquired the property in 2005 and was in the final stages of completing the process of subdividing the property into 18 individual parcels when the sale closed.  The property included 40 industrial zoned acres and 10 acres classified as Multiple Habitat Protection Area. Kearny was represented by Darren Mullins and Erik Parker of Cassidy Turley/BRE. Dart Container Corp. was represented by Rob Hixson of CB Richard Ellis.

Cushman & Wakefield revealed the sale of the nine-story, 80,320-square-foot Robert F. Driver Building located at 1620 Fifth Ave., on the east side of the Central Business District in downtown San Diego, on behalf of Robert F. Driver Office Building, LTD. Financial terms were not disclosed. According to Jeff Cole, executive director with Cushman & Wakefield, the buyer recognized the value in purchasing the Driver Building due to its high I-5 freeway visibility, over-standard parking, and close proximity to downtown San Diego’s central business district and related amenities. “With its irreplaceable freeway adjacent location, the building offers small- to mid-level tenants a premier class-A location to do business.” The transaction was facilitated by Jeff Cole, Ed Hernandez, Steve Rowland, Michael Roberts, and Matthew Carlson of Cushman & Wakefield, as well as Bradford Perry of Perry Commercial Real Estate. The buyer is 1620 Fifth Avenue LLC.  Douglas Wilson Cos. has been engaged to lead the reposition, management, and leasing effort to reintroduce this well known downtown office building.

San Francisco

Grubb & Ellis Co. hired Richard Bland and Raul Alcaraz in the investment group as senior vice president and associate, respectively. Bland and Alcaraz join from CB Richard Ellis and will be part of the company’s private capital markets group. “Rick and Raul’s addition brings tremendous strength to our medical, office and industrial investment capabilities in the East Bay,” says Ed Del Beccaro, managing director in Walnut Creek, CA. “Rick is highly regarded throughout the market, having developed a reputation for professionalism and a dedication to client service over his 28-year career.” Since January 2010, 12 professionals, specializing in office, retail and investment, have joined the company’s Walnut Creek office and 32 have joined Grubb & Ellis overall in the Bay Area.