10721 Jasmine St.
INLAND EMPIRE
Investment group 10721 Jasmine LLC has acuired a 410,000-square-foot class A industrial warehouse at 10721 Jasmine St. in Fontana from BlackRidge Real Estate Group for $25 million in this week’s roundup of commercial real estate news in the West. Anna’s Linens, headquartered in Costa Mesa, CA, signed a long-term lease for the entire building, which will serve as the national retailer’s new, centralized distribution center for the Western US. The facility also includes 20,000 square feet of office space. The buyer was represented by Jeff Cannon, corporate managing director, and Paul Jones, associate, of Studley’s Southern California Industrial Services Group. Said Cannon: “This was an opportunity to buy a building at below replacement costs and secure a long-term lease for the tenant at very favorable rents. The Inland Empire submarket is on the cusp of a monumental shift due to increased demand, and we anticipate significant rental rate increases over the next 12 to 24 months.” Scott Gladstone, COO of Anna’s Linens, said that the space will support the company’s long-term business and customer fulfillment goals. “By repositioning and expanding our distribution facility on the West Coast, we can significantly improve inventory allocation and fill rates at the store level,” Gladstone explained. “This represents a material change in Anna’s Linens’ operations, with the goal of enhancing customer service and increasing customer satisfaction.” BlackRidge Real Estate Group was represented in the transaction by Tom Taylor and Steve Bellitti of Colliers International.
8720 Rochester Ave.
Cabot Properties Inc. bought a 59,510 square-foot industrial building at 8720 Rochester Ave. in Rancho Cucamonga from Nichirin Flex USA for $3.75 million, a price 25% higher than the property would have traded for a year ago, according to Juan Gutierrez, a senior associate in the Inland Empire office of Voit Real Estate Services. “We know the market is improving steadily, and this sale is demonstrative of that improvement,” Gutierrez said. Gutierrez, along with Walt Chenoweth, Frank Geraci and Patrick Wood of Voit’s Inland Empire office represented the seller, a company that manufactures hoses for the automotive industry. Nichirin, an owner-user, had owned the building since it was built in 1989. Gutierrez said there is much pent-up demand from investors who are looking to purchase industrial assets in the Inland Empire, but many of them have been priced out of the class-A, big-box market and are starting to spend more time looking for value-add acquisitions in the smaller size ranges. According to Gutierrez, there has been a slight increase in rental rates in the Inland Empire, a trend that is contributing to improving cap rates, which is ultimately helping some of these recent acquisitions work out. Cabot Properties was represented by Barrett Woods of Lee & Associates.
COLORADO
Briarglen Apartments
Advenir, a provider of multifamily investment and management services, has acquired the 220-unit Briarglen Apartments in Colorado Springs for $16.35 million in the firm’s first acquisition in Colorado. Todd Linden, Advenir’s chief acquisition officer, said in announcing the deal: “We are attracted to the Colorado Springs market because of its high barriers to entry, affluent renter base and anticipated job growth. Briarglen Apartments presented a clear value-add opportunity to improve unit interiors and property amenities in order to significantly drive revenue growth.” Linden went on to say that Advenir is committed to growing its Colorado operation and is looking to acquire value-add multi-family properties in Denver and the surrounding areas. Advenir will implement a $1.1 million capital improvement program focused on beautifying the exterior, as well upgrading unit interiors. Advenir represented itself in the transaction. Doug Andrews of Apartment Realty Advisors represented the seller, Denver-based RedPeak Properties. Built in 1986 and partially renovated in 2007, Briarglen Apartments is 97% leased. It features 88 one bedroom/one bathroom units, 24 two bedroom/one bathroom units and 108 two bedroom/two bathroom units. Rents average $800-$1,200.
NORTHERN CALIFORNIA
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2700 Mitchell Dr.
Solar products manufacturer BNC Holdings Group LLC, dba Quick Mount PV, has acquired a 133,600-square-foot office and industrial building at 2700 Mitchell Dr. in Walnut Creek from Agilent Technologies Inc. that will serve as Quick Mount’s new headquarters. Agilent will lease back the building on a short-term basis while the company finalizes its relocation, according to Cornish & Carey Commercial Newmark Knight. Tyler Epting of Cornish & Carey’s Walnut Creek office represented BNC Holdings Group in the transaction. Mike Zylstra of Cornish & Carey’s Walnut Creek office, together with Steve Kapp of the firm’s Hayward office, represented Agilent. Terms of the deal were undisclosed, but industry sources peg the sales price at about $7.5 million. Quick Mount is a manufacturer of waterproof mounting systems for rooftop solar systems. In May of this year, Agilent acquired scientific-equipment maker Varian, Inc. As a part of this transaction, Agilent also acquired 2700 Mitchell Dr., which proved to be excess space and was prepared for sale. Quick Mount PV currently has operations in Concord, CA. Founded in 2006, the company has grown by more than 70% each year to meet the rising demand of high quality, cost-effective, waterproof solar mounting systems.
Iron Point Business Park
KBS Strategic Opportunity REIT of Newport Beach, CA has foreclosed on and gained ownership of two business parks totaling more than 324,000 square feet in the metropolitan area of Sacramento and has initiated leasing efforts at each property. One property is the 113,342-square-foot Roseville Commerce Center in Roseville, which comprises five flex industrial buildings and an additional six acres of partially developed land 18 miles northeast of Downtown Sacramento. KBS acquired the non-performing loan secured by the property, which had an outstanding principal balance of $14.7 million at acquisition, for a purchase price of $5.9 million in September 2010. As of June 30, the completed buildings in the Roseville Commerce Center were 39% occupied. The other property is the 211,056-square-foot, five-building Iron Point Business Park, which KBS foreclosed on. The property is in the northeastern Sacramento suburb of Folsom. KBS Strategic Opportunity REIT acquired the non-performing loan, which was secured by the by Iron Point Business Park and had an outstanding principal balance of $25.6 million at acquisition, for a purchase price of $19.8 million in March 2011. As of June 21, Iron Point was 37% occupied
A private investor has acquired a 42-unit apartment complex at 2091 California St. in Berkeley from another private investor for nearly $4.43 million. The property sold for above the list price, according to VP of investments David Wolfe and Eli Davidson in Marcus & Millichap’s Oakland office, who were the listing agents. The complex, built in 1928 and seismically retrofitted in 2010, consists of studio and one-bedroom units, plus common area amenities including a bike room on the first floor, laundry facilities, rentable storage space and an owner workspace. There is also a gated parking area in the interior courtyard that has 16 parking spaces.
The Dowling-Bracco Team of Cushman & Wakefield has hired Tony Sarno of Petaluma as a new broker. Sarno joins Cushman & Wakefield from the Petaluma office of Keegan & Coppin, where he spent the last four years specializing in landlord and tenant representation assignments in the Sonoma County office and industrial markets. Before working at Keegan & Coppin, he spent four years as leasing manager for local developer and property manager Basin Street Properties. At Cushman & Wakefield, he will be working with Dowling-Bracco Team members Sean Heaton, Glen Dowling and Chris Neeb, covering the office and industrial markets of Sonoma and Marin counties.
LOS ANGELES COUNTY
In a long-term lease transaction of 43,000 square feet, Newport Beach, CA-based Redwood Partners Inc. has converted a former grocery store space in the NoHo Commons retail center NoHo Commons retail center at 5300 Lankershim Blvd. in North Hollywood to a 24 Hour Fitness-Super Sport. The spaces was previously occupied by HOWS Market, which closed the location in April. The Super Sport gym includes a swimming pool, a full-size basketball court, and a child-care facility. “The loss of HOWS was a tough blow to the community,” said Redwood principal Scott McCarter. “It is missed, but 24 Hour Fitness, in many ways, is a better fit for the project and the very active community.”
SAN DIEGO COUNTY
Cypress Office Properties of San Diego has named CB Richard Ellis for leasing at the 103,000-square-foot Anaheim Crossroads, formerly Orangethorpe Plaza, after acquiring the property in an off-market, loan-to-own transaction. Cypress bought the note for the two-building office plaza for $5.1 million from a special servicer and immediately took possession of the property through a deed-in-lieu with the previous ownership. CBRE's Paul Jones and Louay Alsadek represented the buyer in the note purchase. Cypress is now under way with its plans to renovate and reposition the class B atrium-style property, which is 15% leased. It is situated off the 91 Freeway at the Southwest corner of Orangethorpe and Raymond avenues. CBRE's Justin Hill, Tom Abel and Rick Warner will handle leasing for the two buildings on behalf of Cypress.
HAWAII
The Howard Hughes Corp., the MacNaughton Group and Kobayashi Group are evaluating the potential development of a luxury condominium tower at Ala Moana Center, a shopping center between downtown Honolulu and Waikiki Beach. David R. Weinreb, CEO of Howard Hughes Corp., notes that the company owns the rights to develop a residential condominium tower over a parking structure at Ala Moana Center. The parking structure is designed to accommodate the construction of a condominium tower and is located adjacent to Hawaii’s only Nordstrom store.
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