LOS ANGELES— Here's a look at this week's trends, announcements and deals that you may have missed in Southern California, Utah, Arizona and Nevada.

BY THE NUMBERS

LOS ANGELES—Employment gains, particularly from the government and healthcare fields, have boosted demand for office space. As a result, office vacancy has tightened, prompting builders to expand the slate of construction for the year ahead. The focus will be on premier product in and around downtown Los Angeles, highlighted by the Wilshire Grand and 801 Broad-way, which account for more than 1.3 million square feet collectively. Outside of the downtown Los Angeles submarkets, completions will remain benign with the lone exception of the Westside Cities, where technology firms such as Youtube and Snapchat are piling into well-located spaces. While supply pressures are growing, absorption has outpaced development, triggering declines in the vacancy rate. Tighter vacancy has supported tremendous improvement in the average asking rent, which will advance for a sixth straight year in 2017. Improving operations boost asset appeal among wider range of buyers. As the metro vacancy rate has declined, the number of active investors in the market expanded, even as deal flow has dwindled due to limited seller participation. The result has been higher average selling prices and surging dollar volume as buyers compete to deploy capital . In particular, investors have been seeking well-located assets with upside potential in the Greater Downtown Los Angeles area as revitalization efforts increase, while institutions have stuck mostly to the Westside Cities and South Bay where space demand is growing rapidly. Market participants seeking more affordable properties offering repositioning opportunities have ventured north to the San Fernando Valley, where cap rates can be more than 100 basis points above the metro average near 5%.

(SOURCE: MARCUS & MILLICHAP)

NEW & NOTABLE

CARLSBAD, CA—The North San Diego County office of Lee & Associates has named Daniel Knoke and Peter Merz as the newest company principals and shareholders. Knoke and Merz specialize in the representation of sellers, buyers, landlords and tenants in the purchase and sale of industrial properties throughout San Diego County. Prior to joining Lee & Associates, the team was part of the industrial division at Colliers International.

DEALTRACKER

IRVINE, CA—Talonvest Capital has negotiated over $28.6 million of financing for Storage Etc. on five separate self-storage facilities. The individual loans were secured by institutional quality self storage facilities with approximately 443,000 combined net rentable square feet in various Southern California locations including Torrance, Diamond Bar, Rosemead, Pomona, and Murrieta. The five loans, structured with the U.S. arm of a global financial services provider, were uncrossed with 10-year terms, fixed rates, and included interest only payments for the full term. Talonvest's successful negotiations maximized the amount of equity recaptured through the refinance while providing an attractive loan structure for the borrower.

LOS ANGELES—Hastings Ranch Shopping Center has disposed of the leasehold interest for Hastings Ranch Shopping Center, located at 3801 E. Foothill Boulevard in Pasadena, California, to Federal Realty Investment Trust, a publically traded REIT.. The property sold for $29.5 million in an all-cash transaction and was 100% occupied at the time of the sale. Bill Bauman, executive vice president, and Kyle Miller, senior managing director, of Savills Studley's National Retail Services Group represented the seller in the transaction, along with Mike Grannis of Highland Partners.

LOS ANGELES—Coronado Island Assemblage has sold to local real estate company Kleege Enterprises in Coronado, San Diego, for approximately $22 million. The transaction represented a rare opportunity for the buyer to purchase an entire city block on Coronado Island. CBRE's Tim Kuruzar, Ken McLeod and Matthew Perlmutter represented the buyer and seller, a private local family, in this transaction. Coronado Island Assemblage sits in the center of Coronado Island's premier dining, nightlife and shopping destination on Orange Avenue and near the Hotel del Coronado. The asset consists of 29,665 square feet of retail buildings, situated on 49,948 square feet of land. Major tenants in the center include Mootime Creamery, Leroy's Kitchen and Costa Azul. Coronado Island Assemblage, which is comprised of nine parcels that have been assembled over the past forty years, is currently 100% leased to an internet-resistant mix of seasoned tenants, demonstrating strong tenant desire to occupy space in the area.

PHEONIX—Bella Solano, a 160-unit multifamily property located at 5656 N. 17th Ave. in Phoenix, Arizona, has traded hands between NBS-Parkwood OPCO and Luna Bear Phoenix. CBRE's Brian Smuckler and Jeff Seaman with CBRE's Phoenix office represented both the buyer and the seller. Total consideration for the deal was $11.55 million. The property was originally constructed in 1971 with a second phase added in 1985. The multifamily property features multiple floor plans and numerous unit types ranging from 420 sq. ft. to 895 sq. ft. Bella Solano is conveniently located within proximity to Christown Spectrum Mall and Valley Metro light rail. The buyer obtained financing through the Phoenix office of Walker & Dunlop.

LAS VEGAS—Security Properties purchased Orchard Club, a 342-unit affordable multifamily property in Las Vegas, NV, for $27.2 million. Orchard Club is a garden-style community comprised of a mixture of family and senior, income restricted units. The property was originally developed in 2001 utilizing a combination of Low-Income Housing Tax Credits (LIHTCs) and HOME funds from the Nevada Housing District (NHD). A Regulatory Agreement tied to those original sources of financing ensures that the affordable housing restrictions will remain in-place for the next 15 years. JLL Capital Markets provided a 15-year term fixed rate loan on the property and utilized Fannie Mae's Green Rewards program, which will provide funding for energy efficiency upgrades throughout the property.

SAN DIEGO—Aaron Beck, VP, and Steve Hollister, SVP, of NorthMarq Capital's San Diego office, have arranged a $13.4 million bridge loan for a 200+ room hotel located in Phoenix, Arizona. The property will be reflagged in the upcoming months. The loan was structured with a floating rate, and interest-only payments.

LOS ANGELES—Mission Capital Advisors arranged a $20.75 million ramp loan for the Hotel Karlan, a 174-key, soft-branded DoubleTree by Hilton located in northern San Diego. The Mission Capital team of Gregg Applefield, Alex Draganiuk and Lexington Henn represented property owner SD Carmel Hotel Partners, LLC in securing the three-year loan from a private equity fund.  The first-mortgage financing will replace the property's renovation loan and a preferred equity loan. After acquiring the property in 2014, the sponsor implemented comprehensive renovations to the property, enhancing guestrooms, common areas, food and beverage outlets, and meeting and spa facilities.
PHEONIX—The Highlands, a 272-unit multifamily community located at 15255 N. Frank Lloyd Wright Boulevard in Scottsdale, Arizona, has traded hands between Tyler Anderson, Sean Cunningham, Asher Gunter, and Matt Pesch and Olen Properties. CBRE Multifamily Institutional Properties in Phoenix represented the seller. Total consideration for the transaction was $48.5 million.

SAN DIEGO—HighBrook Investors has sold a multi-asset portfolio in San Diego for nearly $20 million. Selling in two separate transactions in December, the disposition consisted of the Torrey Hills Corporate Center in the exclusive Del Mar Heights submarket and the Scripps Collection located in the prestigious Scripps Ranch submarket. Cushman & Wakefield San Diego's Peter Curry and Duncan Dodd, SIOR of the firm's Private Client Advisors team and Brad Tecca and Rick Reeder of the firm's Capital Markets Group represented both sides in both transactions.

BUILDING BLOCKS

UPLAND, CA—GPI Companies and LStar Communities have started construction on a new 365 by Whole Foods Market located at Sycamore Hills Plaza. The 80,000-square-foot shopping center is located in the master planned community of Sycamore Hills in Upland and Claremont, California. The Upland store will be the first 365 store in Southern California's Inland Empire and among the first locations in the United States. GPI Companies and LStar Communities started construction on Sycamore Hills Plaza in early 2016. Completion is planned for the fourth quarter of 2017. Thus far, the center has received commitments for 72 percent of the space from several popular retailers including CVS Pharmacy, Starbucks, MOD Pizza, Orange Theory Fitness, Arby's, Supercuts and Lee Spa Nails. JLL's Scott Kaplan, Erik Westedt and Blake Kaplan, along with Dan Samulski and Ryan Gast of CBRE, are handling leasing at the center.

SAN DIEGO—Smith Consulting Architects has completed the design, entitlements, construction documents and construction administration for the new Shea Center Carlsbad, a 114,522-square- foot, class-A industrial complex located at 6131-6133 Innovation Way, Carlsbad, Calif., within the exclusive master-planned community of Bressi Ranch. Smith Consulting Architects performed the project on behalf of Shea Properties, with Shea's Development Manager Steve Perales providing oversight. Situated on an 8.27-acre lot, the new industrial facility encompasses two identical 57,261-square- foot buildings. Each offers a high-bay warehouse comprising approximately 51,372 square feet of space, together with two-story move-in- ready office space. Each building features four loading docks, three grade-level doors, 30-foot clear-height, ESFR sprinkler systems, 40-foot by 60-foot column spacing, and a 2.9/1,000-square-foot parking ratio.

LOS ANGELES— Here's a look at this week's trends, announcements and deals that you may have missed in Southern California, Utah, Arizona and Nevada.

BY THE NUMBERS

LOS ANGELES—Employment gains, particularly from the government and healthcare fields, have boosted demand for office space. As a result, office vacancy has tightened, prompting builders to expand the slate of construction for the year ahead. The focus will be on premier product in and around downtown Los Angeles, highlighted by the Wilshire Grand and 801 Broad-way, which account for more than 1.3 million square feet collectively. Outside of the downtown Los Angeles submarkets, completions will remain benign with the lone exception of the Westside Cities, where technology firms such as Youtube and Snapchat are piling into well-located spaces. While supply pressures are growing, absorption has outpaced development, triggering declines in the vacancy rate. Tighter vacancy has supported tremendous improvement in the average asking rent, which will advance for a sixth straight year in 2017. Improving operations boost asset appeal among wider range of buyers. As the metro vacancy rate has declined, the number of active investors in the market expanded, even as deal flow has dwindled due to limited seller participation. The result has been higher average selling prices and surging dollar volume as buyers compete to deploy capital . In particular, investors have been seeking well-located assets with upside potential in the Greater Downtown Los Angeles area as revitalization efforts increase, while institutions have stuck mostly to the Westside Cities and South Bay where space demand is growing rapidly. Market participants seeking more affordable properties offering repositioning opportunities have ventured north to the San Fernando Valley, where cap rates can be more than 100 basis points above the metro average near 5%.

(SOURCE: MARCUS & MILLICHAP)

NEW & NOTABLE

CARLSBAD, CA—The North San Diego County office of Lee & Associates has named Daniel Knoke and Peter Merz as the newest company principals and shareholders. Knoke and Merz specialize in the representation of sellers, buyers, landlords and tenants in the purchase and sale of industrial properties throughout San Diego County. Prior to joining Lee & Associates, the team was part of the industrial division at Colliers International.

DEALTRACKER

IRVINE, CA—Talonvest Capital has negotiated over $28.6 million of financing for Storage Etc. on five separate self-storage facilities. The individual loans were secured by institutional quality self storage facilities with approximately 443,000 combined net rentable square feet in various Southern California locations including Torrance, Diamond Bar, Rosemead, Pomona, and Murrieta. The five loans, structured with the U.S. arm of a global financial services provider, were uncrossed with 10-year terms, fixed rates, and included interest only payments for the full term. Talonvest's successful negotiations maximized the amount of equity recaptured through the refinance while providing an attractive loan structure for the borrower.

LOS ANGELES—Hastings Ranch Shopping Center has disposed of the leasehold interest for Hastings Ranch Shopping Center, located at 3801 E. Foothill Boulevard in Pasadena, California, to Federal Realty Investment Trust, a publically traded REIT.. The property sold for $29.5 million in an all-cash transaction and was 100% occupied at the time of the sale. Bill Bauman, executive vice president, and Kyle Miller, senior managing director, of Savills Studley's National Retail Services Group represented the seller in the transaction, along with Mike Grannis of Highland Partners.

LOS ANGELES—Coronado Island Assemblage has sold to local real estate company Kleege Enterprises in Coronado, San Diego, for approximately $22 million. The transaction represented a rare opportunity for the buyer to purchase an entire city block on Coronado Island. CBRE's Tim Kuruzar, Ken McLeod and Matthew Perlmutter represented the buyer and seller, a private local family, in this transaction. Coronado Island Assemblage sits in the center of Coronado Island's premier dining, nightlife and shopping destination on Orange Avenue and near the Hotel del Coronado. The asset consists of 29,665 square feet of retail buildings, situated on 49,948 square feet of land. Major tenants in the center include Mootime Creamery, Leroy's Kitchen and Costa Azul. Coronado Island Assemblage, which is comprised of nine parcels that have been assembled over the past forty years, is currently 100% leased to an internet-resistant mix of seasoned tenants, demonstrating strong tenant desire to occupy space in the area.

PHEONIX—Bella Solano, a 160-unit multifamily property located at 5656 N. 17th Ave. in Phoenix, Arizona, has traded hands between NBS-Parkwood OPCO and Luna Bear Phoenix. CBRE's Brian Smuckler and Jeff Seaman with CBRE's Phoenix office represented both the buyer and the seller. Total consideration for the deal was $11.55 million. The property was originally constructed in 1971 with a second phase added in 1985. The multifamily property features multiple floor plans and numerous unit types ranging from 420 sq. ft. to 895 sq. ft. Bella Solano is conveniently located within proximity to Christown Spectrum Mall and Valley Metro light rail. The buyer obtained financing through the Phoenix office of Walker & Dunlop.

LAS VEGAS—Security Properties purchased Orchard Club, a 342-unit affordable multifamily property in Las Vegas, NV, for $27.2 million. Orchard Club is a garden-style community comprised of a mixture of family and senior, income restricted units. The property was originally developed in 2001 utilizing a combination of Low-Income Housing Tax Credits (LIHTCs) and HOME funds from the Nevada Housing District (NHD). A Regulatory Agreement tied to those original sources of financing ensures that the affordable housing restrictions will remain in-place for the next 15 years. JLL Capital Markets provided a 15-year term fixed rate loan on the property and utilized Fannie Mae's Green Rewards program, which will provide funding for energy efficiency upgrades throughout the property.

SAN DIEGO—Aaron Beck, VP, and Steve Hollister, SVP, of NorthMarq Capital's San Diego office, have arranged a $13.4 million bridge loan for a 200+ room hotel located in Phoenix, Arizona. The property will be reflagged in the upcoming months. The loan was structured with a floating rate, and interest-only payments.

LOS ANGELES—Mission Capital Advisors arranged a $20.75 million ramp loan for the Hotel Karlan, a 174-key, soft-branded DoubleTree by Hilton located in northern San Diego. The Mission Capital team of Gregg Applefield, Alex Draganiuk and Lexington Henn represented property owner SD Carmel Hotel Partners, LLC in securing the three-year loan from a private equity fund.  The first-mortgage financing will replace the property's renovation loan and a preferred equity loan. After acquiring the property in 2014, the sponsor implemented comprehensive renovations to the property, enhancing guestrooms, common areas, food and beverage outlets, and meeting and spa facilities.
PHEONIX—The Highlands, a 272-unit multifamily community located at 15255 N. Frank Lloyd Wright Boulevard in Scottsdale, Arizona, has traded hands between Tyler Anderson, Sean Cunningham, Asher Gunter, and Matt Pesch and Olen Properties. CBRE Multifamily Institutional Properties in Phoenix represented the seller. Total consideration for the transaction was $48.5 million.

SAN DIEGO—HighBrook Investors has sold a multi-asset portfolio in San Diego for nearly $20 million. Selling in two separate transactions in December, the disposition consisted of the Torrey Hills Corporate Center in the exclusive Del Mar Heights submarket and the Scripps Collection located in the prestigious Scripps Ranch submarket. Cushman & Wakefield San Diego's Peter Curry and Duncan Dodd, SIOR of the firm's Private Client Advisors team and Brad Tecca and Rick Reeder of the firm's Capital Markets Group represented both sides in both transactions.

BUILDING BLOCKS

UPLAND, CA—GPI Companies and LStar Communities have started construction on a new 365 by Whole Foods Market located at Sycamore Hills Plaza. The 80,000-square-foot shopping center is located in the master planned community of Sycamore Hills in Upland and Claremont, California. The Upland store will be the first 365 store in Southern California's Inland Empire and among the first locations in the United States. GPI Companies and LStar Communities started construction on Sycamore Hills Plaza in early 2016. Completion is planned for the fourth quarter of 2017. Thus far, the center has received commitments for 72 percent of the space from several popular retailers including CVS Pharmacy, Starbucks, MOD Pizza, Orange Theory Fitness, Arby's, Supercuts and Lee Spa Nails. JLL's Scott Kaplan, Erik Westedt and Blake Kaplan, along with Dan Samulski and Ryan Gast of CBRE, are handling leasing at the center.

SAN DIEGO—Smith Consulting Architects has completed the design, entitlements, construction documents and construction administration for the new Shea Center Carlsbad, a 114,522-square- foot, class-A industrial complex located at 6131-6133 Innovation Way, Carlsbad, Calif., within the exclusive master-planned community of Bressi Ranch. Smith Consulting Architects performed the project on behalf of Shea Properties, with Shea's Development Manager Steve Perales providing oversight. Situated on an 8.27-acre lot, the new industrial facility encompasses two identical 57,261-square- foot buildings. Each offers a high-bay warehouse comprising approximately 51,372 square feet of space, together with two-story move-in- ready office space. Each building features four loading docks, three grade-level doors, 30-foot clear-height, ESFR sprinkler systems, 40-foot by 60-foot column spacing, and a 2.9/1,000-square-foot parking ratio.