LOS ANGELES—2017 continues to be active, riding off momentum from the end of the year and with expectation that the first quarter will show strong performance. Some of the highlights this week include new executive hires, especially in the architecture and design sectors. Reports coming out of the Phoenix market also continue to show stable and steady activity in the home and multifamily sectors, while the industrial sector in Southern California has remained the most active in the first part of the year. Read on to find the deals and news you may have missed in the Southwest this week.

BY THE NUMBERS

PHOENIX—The housing market in the greater Phoenix area maintained its pace of steady improvement in the last six months of 2016, which encouraged an acceleration in land sales. Total land activity was nearly identical to 2015 and projections indicate continued performance throughout 2017. Permitting for both single-family and multifamily housing rose from 2015 to 2016 with the strongest activity in the first half of the year, and developers pulled approximately 18,600 single-family permits and more than 9,400 multifamily permits during the year. While residential land sales spiked in the first six months of 2016, land prices dipped in the second half of the year. Overall, the median price in 2016 was up more than 30% from the median figure of 2015. Sales of land parcels for residential use were up more than 55% in the second half of the year over the first six months. The surge caused total transaction activity in 2016 to outpace 2015 by 5%.

Multifamily also remained strong in the market, however, the vacancy rate did elevate in the final months of the year, closing 2016 at 6%. It is expected to rise more in 2017.As a result, permitting for multifamily is forecasted to slow by approximately 30% in 2017 after several years of robust construction. Land sales for commercial uses dipped by 19% in the second half of 2016. The median price for commercial use land in 2016 was $4.08 per square foot, down 11% from the 2015 median price. The commercial real estate market improved in 2016 with vacancies trending lower and rents rising. New spec development has been modest, but there have been large build-to-suit projects in both the office and industrial sectors.

(SOURCE: COLLIERS INTERNATIONAL)

NEW & NOTABLE
LAS VEGAS—JLL's Michael Shohet, president of NAIOP Southern Nevada, was named Chapter President of the Year at the annual NAIOP Chapter Leadership and Legislative Retreat in Washington. He was selected from among 51 chapter presidents and 18,000 members in the organization. The Chapter Merit awards also honored 18 NAIOP chapters throughout the country.

IRVINE, CA—Taylor Design has added three key industry leaders to its Irvine team: John Gresko as senior project manager, Todd Yamanouchi as architect and Alesha Arp as senior strategist. Gresko, is an integrative design specialist with extensive experience in the firm's core markets of healthcare, education and science and technology, and will help propel Taylor Design forward in its pursuit of design excellence by focusing on design quality and integrating user-based research into built environment projects. Yamanouchi is an exacting architect with a technical eye for detail, and will be responsible for integrating building systems and reinforcing design concepts through the entire project process. Arp will utilize her extensive experience in user research methods and processes to conduct client end-user research. The company will use her findings to guide the project's design strategy and deliver a user-focused space that deliberately contributes to the client's business initiatives.

ALISO VIEJO, CA—Seabreeze Management Co. has acquired a creative office building at 26840 Aliso Viejo Parkway from Kelemen Caamaño Investments for $11.8 million. The two-story, creative office building is 30% occupied with two tenants and recently received a $1 million renovation.
SAN DIEGO—The Burnham-Moores Center for Real Estate, at the University of San Diego, has announced the appointment of five new senior real estate executives to its Policy Advisory Board: Willy Ayyad, Chris Bourassa, Tim Meissner, Heather Riley and Dan Ryan. The PAB provides policy guidance and financial support to the BMC and real estate students at USD. Willy Ayyad is president & CEO of United Development Group (UDGI), and his current portfolio includes 20 communities consisting of 2,463 units in cities throughout California. Chris Bourassa is president of U.S. Construction of the Ledcor Group of Companies, and is responsible for strategic planning and the overall vision for the US construction program. His executive activities include shaping the company's brand through hands-on involvement with project development, operations, and corporate initiatives; building and maintaining alliances with key industry partners and professionals; and providing leadership to Ledcor's regional offices throughout the US. Tim Meissner is principal of Meissner Jacquét Real Estate Services. His firm has been in operation for twenty-five years and manages a billion dollar commercial real estate portfolio in San Diego. Daniel Ryan is executive vice president, regional market director of San Diego, and strategic operations for Alexandria Real Estate Equities, Inc., and is responsible for the management of the Alexandria's San Diego region asset base and operations. He is involved with developments, redevelopments, ventures, financing, leasing, and other strategic opportunities outside of the San Diego region.

IRVINE, CA—Ware Malcomb has hired Tom Myers to Regional VP in the firm's Irvine, Calif.-based headquarters office. In this role, Myers will continue to oversee Ware Malcomb's Commercial Architecture group in addition to becoming a member of the firm's Executive Team. Myers joined Ware Malcomb in 2004 as a director of commercial architecture in the Irvine office, and was promoted to Principal in 2007. He oversees the Commercial Architecture group, the largest studio within Ware Malcomb, which incorporates office, industrial, retail, restaurant, hospitality, healthcare, science & technology, and government/public projects, as well as international projects in Europe, Asia and the Middle East.

DEALTRACKER

PHOENIX—Riva Ridge Development has purchased CBIZ Plaza, located at 3101 and 3111 N. Central Avenue in Phoenix, from LNR Property Corporation for $26 million. Cushman & Wakefield executive managing director Eric Wichterman and senior director Mike Coover negotiated the sale. The 266,231-square-foot office property is 78% occupied, and consists of a 16-story tower, a two-story low-rise building and a six-level parking structure. The class-B project was constructed in 1980 and is located in the prime stretch along Central Avenue, opposite Park Central Mall, within Phoenix's Midtown office submarket. The office vacancy rate in the area is currently just over 23%. Midtown houses a total of 80 buildings and an overall asking rate of $22.06 per square foot. Investors and tenants are actively pursuing these office properties because of the attraction towards urban, infill investments and Central Phoenix's resurgence in residential development, new restaurants and demand for office space.

SAN DIEGO—Renovate America has closed a $200 million credit facility with Bank of America N.A. to support the continued expansion of the HERO Program, the nation's largest form of Property Assessed Clean Energy (PACE) financing. The credit facility will provide Renovate America with enhanced liquidity and will further diversify the company's funding profile. Renovate America now has five warehouse lenders in aggregate, up from three last year.

LAS VEGAS—Agora Realty and Management has acquired a 100,856-square-foot grocery-anchored shopping center for $10.2 million. The property is located on 9.26 acres in Las Vegas and is 71% occupied. It also sits at a high traffic intersection at 1941 N. Decatur Blvd. Anchored by Smart & Final the center is also home to Carl's Jr., Little Caesers Pizza, and Cricket Wireless. Agora is currently under contract with Metro PCS to occupy 1,229 square feet of space.

SAN DIEGO—Developer K&K Veritas LP has secured a $12.7 million in construction financing for the development of Driftwood, a to-be-built class-A mixed-use building with 81 luxury multi-housing units and 3,137 square feet of retail in San Diego's Point Loma/Midway district. HFF's senior managing director Aldon Cole, director Bryan Clark and associate director Chris Collins placed the two-year construction loan with Pacific Western Bank. Driftwood will be situated on a two-acre lot at the corner of Kemper and Kenyon in San Diego's Point Loma/Midway district, a thriving commercial and residential district. The site is currently an empty lot adjacent to the new $18 million West City community college campus, and two major outpatient healthcare facilities, Sharp Healthcare and Kaiser Permanente, are in the vicinity. Two grocers, a 24-Hour Fitness, Target, Home Depot and Dick's Sporting Goods are within walking distance from the property, which is two miles from the Liberty Station master-planned community and Ocean Beach. Once completed, Driftwood will consist of stacked flats within a three-story, elevator-serviced building with interior common hallways and stairwells. Units will feature a full stainless steel appliance package, soft-close drawers, granite or quartz countertops with undermount sinks, stained concrete or ceramic tile floors and carpet in the bedrooms, and most units will have private balconies. Community amenities include a communal courtyard with hot tub, barbeques, lounge areas and on-grade parking with 109 stalls.

IRVINE, CA—Pendulum Property Partners, a real estate firm that opened seven months ago, has acquired its first property since inception, a 156,305-square-foot office building located at 5 Peters Canyon in Irvine for $41.67 million. The three-story, Class A office property is located directly between The Market Place and The District, two of Orange County's preeminent lifestyle retail centers that provide tenants with a wealth of amenities. It is also at the desirable intersection of Jamboree Road and the 261 Toll Road junction, providing convenient transportation access and high visibility.

PHOENIX—BKM Capital Partners has acquired Northwest Business Center, an 11-building multi-tenant light industrial business park totaling 227,603 square feet in Phoenix, Arizona for $17.2 million. This is BKM's 12th acquisition in the Phoenix metro bringing its holdings to more than 2.1 million square feet in the area, according to Brian Malliet, CEO and Co-Founder of BKM Capital Partners. BKM plans to implement a $3.5 million capital improvement program to the property, according to Brett Turner, Director of Acquisitions at BKM Capital Partners. Planned improvements include a new roof, new parking lot, an improved HVAC system and upgrades to the exterior including, paint, landscaping, and new signage, among others.

SANTA MONICA, CA—1015 3rd St., a 25-unit apartment building in Santa Monica, California, has traded hands for $12 million, or $480,000 per unit. Azzi and Rabbie Banafsheha represented the seller and procured the buyer, which are both private clients. The property is located north of Wilshire Boulevard, a few blocks from the beach and within walking distance of Santa Monica's Third Street Promenade, a three-block, open-air shopping, dining and entertainment area that is closed to cars. The building is completely composed of one-bedroom/one-bath apartments with hardwood floors. Community amenities include a landscaped courtyard, laundry room and parking area.

BUILDING BLOCKS

CAMARILLO, CA—C&C Development and Orange Housing Development have completed the construction of Adagio Apartments in Camarillo, CA. Adagio is a 60-unit workforce housing property developed on behalf of Comstock Homes to fulfill the city's inclusionary zoning requirements for Comstock's master-planned community, Springville elacora. Adagio is a public/private partnership between Comstock Homes, the City of Camarillo's Planning and Housing staff, C&C, Orange Housing, and KTGY Group architecture and planning. As part of the joint venture agreement, Comstock Homes also served as the project's general contractor.

SAN DIEGO—RAR Hospitality has completed its ground-up project and first property in San Marcos, Fairfield Inn & Suites San Diego North/San Marcos. The 60,252 square-foot property jointly developed with Sea Breeze Properties will feature four floors, two meeting spaces and a total of 116 total rooms and suites. Ledcor Group built the property, while JWDA served as architect.

BY THE NUMBERS

(SOURCE: COLLIERS INTERNATIONAL)

DEALTRACKER

BUILDING BLOCKS

Instant Insights /

Middle Market Digest: This Week in Southwest

Related Stories

Recommended For You