1285 Sutter St.

Gerding Edlen of Portland, OR has acquired two California development sites as part of its urban infill strategy in this week’s roundup of sales, leases, development and other commercial real estate news in the West. The two properties are 1285 Sutter St. in Downtown San Francisco and 512 Rose Ave. in the Los Angeles seaside community of Venice, both of which Gerding Edlen intends for LEED Gold certification. The company paid $9.25 milllion for 1285 Sutter St., which is a fully entitled on the Van Ness corridor, just south of the Pacific Heights neighborhood. Construction is expected to begin in May on the project, which will be a ground-up, mixed use development that includes 107 residential rental units, approximately 10,000 square feet of retail and approximately 127 parking stalls. The company paid $8.6 million for 512 Rose Ave., which comprises approximately 62,000 square feet of vacant land on what was the Pioneer French Bakery from 1920 to 2006. The project, now under construction with an expected completion date of March 2012, will be a mixed-use building including three levels: 70 apartments, with 10% designated as below-market rate, retail space and an intended restaurant; and two levels of subterranean parking. Gerding Edlen president Kelly Saito, in an announcement regarding the acquisitions, commented: “As we continue to reinforce our belief in the concept of 20-minute living and the creation of transformative buildings, these properties represent investment quality assets in central city locations within close proximity to public transit options.”

SEATTLE

Promenade 23

Weingarten Realty Investors has acquired the 97,017-square foot Promenade 23 Shopping Center at 303 and 323 24th Ave. S and 2309 South Jackson St. from Promendade 23 Associates LP for $18.4 million. Weingarten plans to explore options for improving the center, according to associate VP Dino Christophilis of the Seattle office of Marcus & Millichap, who represented the buyer. “Local zoning permits heights of up to 65 feet, which creates some intriguing possibilities,” Christophilis observes. The property is located due east of the downtown business district and one of Sound Transit’s light rail stops. It consists of Promenade North at the northeast corner of 23rd Ave. S and Jackson St., and Promenade South the southeast corner of 23rd Ave. S and Jackson St. It is anchored by a freestanding Starbucks, a freestanding Walgreens and local food chain, Red Apple Grocery. 

Wallingford Center

The 42,177-square-foot Wallingford Center mixed-use project has been financed with a $4.2 million loan at 60% LTV for eight years that presented a number of challenges, according to EVP Mike Wood of NBS Financial Services, who arranged the loan through Symetra Financial, one of NBS Financial’s correspondent life insurance companies. Wood explains that one challenge to obtaining financing was that Wallingford Center sits on land that is leased from the Seattle School District, and some lenders avoid lending on buildings with ground leases. However, the property’s desirable location in the densely populated Wallingford area, as well as its solid occupancy, made a strong case. “While the unsubordinated ground lease made the loan request more challenging, the lender was ultimately able to get comfortable with the real estate and the operator, which resulted in the borrower receiving very competitive loan terms,” Wood said. The Wallingford Center, which is listed on the National Register of Historic Places, was constructed in 1904 as Interlake Elementary School and served as a school until the 1970s, when it closed. The building then sat vacant for a number of years. The current owners purchased the building in 1984 and renovated it, with two floors of retail and 24 studio apartments on the top floor. The retail portion is more than 90% leased. 

SAN DIEGO