Phoenix continues to dominate the construction market. This week, developers announced several new starts and completions in the Phoenix area and surrounding market, which falls in line with recent research reports. The developments include multifamily, single-family and senior living. Deal activity also remains vibrant with multiple acquisitions and financing deals competed across asset classes and throughout the Southwest region. Industrial activity remains the most prominent, followed by multifamily; however, retail deals—including both leases and sales—seemed strong this week as well. Here's a look at this week's trends, announcements and deals that you may have missed in Southern California, Utah, Arizona and Nevada.

NEW & NOTABLE

LOS ANGELES—Alina Mardesich has joined George Smith Partners as SVP. Mardesich's career includes key positions with firms such as Archon Group, Fremont Investment & Loan, and U.S. Bank, among others, Mardesich possesses a disciplined and proficient ability to understand and navigate complex opportunities in order to secure competitive financing for assets of all product types. Prior to joining George Smith Partners, Mardesich served as a Senior Advisor to Oaktree Capital Management, where she arranged financing for value-add and transitional assets throughout the West Coast. During her career, she has arranged more than $2.5 billion in financing. Mardesich holds a Bachelor of Science degree in Real Estate and Finance from the University of Southern California.

IRVINE, CA—WNC has promoted Anil Advani to EVP of originations and finance. In his new role, Advani will lead WNC's growing originations team and oversee the development of the firm's strategic relationships with key lenders. He joined WNC in 2011 and most recently has been responsible for oversight of the firm's proprietary funds, investor due diligence and originations/syndication team. Prior to joining WNC, Advani served as managing director with Red Capital Group, working in the company's tax syndication group. He was responsible for originating and underwriting tax credit investments for placement into corporate tax credit funds. Advani also served as manager of tax credit investment advisory services of Ernst & Young, performing due diligence on tax credit funds. He began his career in 1996 with the Reznick Group.

LOS ANGELES—CBRE has named Mike Ruppert as managing director of the firm's Asset Services business line for the Los Angeles region. Ruppert is rejoining the firm after a 2-year hiatus, and will be responsible for developing and implementing strategic direction and day-to-day leadership for the team's 40 million square feet of space they manage on behalf of building owners and investors. In this role, Ruppert will work with his team to build distinct advantage for clients by reducing operational costs, streamlining operations, increasing leasing velocity, maximizing tenant retention, and enriching the tenant experience at properties. He will be responsible for building a cohesive, diverse team dedicated to ongoing improvement of services and client relationship. Ruppert will be based at CBRE's Downtown Los Angeles headquarters office.

ORANGE—The Orange office of Lee & Associates has promoted Phillip DeRousse to Principal. DeRousse specializes in industrial real estate and become an expert in the southeast Los Angeles, mid-counties market. As an industrial property specialist, DeRousse has completed over 80 transactions for nearly $56 million in total consideration. Clients include Polycoat Products, Venn Corp., Cailyn Cosmetics, Damac Products, Premier Packaging, Lane Seven Apparel, and Conquest Industries.

DEALTRACKER

RANCHO CUCAMONGA, CA—The Perris Marketplace has reached 100% occupancy with the recent signing of deals with Baskin Robbins, Jamba Juice and Daniel's Jewelers. The 225,000 square-foot Super Walmart anchored center is located at 1700 North Perris Boulevard in Perris, CA less than quarter mile from the heavily traveled I-215 freeway. Progressive Real Estate Partners brokers Paul Galmarini, Senior Vice President, and Gretchen Lastra, senior retail specialist, represented the owner/developers Trachman Indevco and Evergreen in the recent transactions and lease-up of the new center.

LOS ANGELES—6565 Fountain Avenue, a two-story 42-unit apartment building constructed in 1962 in the Hollywood neighborhood of Los Angeles has traded hands for $10.75 million, or nearly $256,000 per unit. Marcus & Millichap's Ron Harris and Bryan Schellinger represented the seller, Ness Holdings, a local private investment company, and procured the buyer, NNC Apartment Ventures. The apartment building is located just south of Sunset Boulevard between Highland Avenue and Cahuenga Boulevard on the DASH bus line in Hollywood. With a 92 Walk Score, the property places residents within walking distance of popular destinations along Sunset Boulevard, Hollywood Boulevard and Vine Street. Tenants can also walk to access the Metro Red Line, which provides service from Downtown Los Angeles, Studio City, and North Hollywood.

LOS ANGELES—Construction is complete on three new state-of-the-art industrial buildings totaling in 254,722 square feet at the Valencia Gateway V project in Valencia, California. The buildings are being offered for lease, and vary is size from 60,923 square feet to 105,047 square feet in size. CBRE's Craig Peters and Doug Sonderegger are the leasing agents for the project. Valencia Gateway V—part of the largest master-planned industrial project and center for business technology and industry in Los Angeles County—is a state-of-the-art development, featuring glass and concrete tilt-up structures. One of the three structures, a 60,923 square-foot building, is located at 27909 Hancock Parkway and is now leased to Vision Media Management. CBRE's Peters and Sonderegger represented the landlord, AEW Capital Management L.P and Sheridan Ebbert Development. Dean Krieger at Savills Studley represented the tenant. The 88,752 square-foot and a 105,047 square-foot building are available for immediate occupancy.

PHOENIX—WWC Holdings has acquired the Marble Creek apartments at 5601 W. McDowell Rd. in West Phoenix from Marble Creek LLC for $16.8 million. This asset expands the buyer's portfolio of Greater Phoenix properties to more than 20. Koskovich, Bill Hahn and Jeff Sherman of Colliers International in Greater Phoenix negotiated the sale transaction. Marble Creek LLC, an Arizona limited liability company formed by a local, private investor sold the property to WWC Holdings, LLC, an Arizona limited liability company. Brandon Harrington and Matt Steffan with Walker & Dunlop arranged financing for the sale. WWC intends to normalize rents and bring them to market average; and invest in washer/dryer installs and interior upgrades to units.

PHOENIX—1201 Partners LLC, a company formed by Barker Pacific Group in Los Angeles, purchased Mesa Financial Plaza for $23.95 million from Mesa Financial Plaza LLC. A landmark office tower, Mesa Financial Plaza is a 16-story, class-A office building located in the heart of the Fiesta District in Mesa, Arizona. The neon-trimmed, 306,571-square-foot office, located at the southeast corner of Southern Avenue and Alma School Road, is currently 66% occupied. Palmer Capital Inc. of Roseville, Calif. and Matt Nebeker of Cushman & Wakefield in Phoenix brokered the deal.

SANTA MONICA—Chelsea Santa Monica, a rare, core, 53-unit mixed-use asset with 5,988 square feet of retail space in downtown Santa Monica, California, has traded hands between a joint venture partnership between Century West Partners and BlackRock Realty Advisors Inc. and Platinum Acquisitions LLC, a subsidiary of Kort & Scott Financial Group, for an unnamed price. Greg Harris, Ron Harris, Green and Joseph Grabiec, senior director, represented the seller and the buyer. Platinum Acquisitions has acquired nearly $350 million in multifamily product over the last 18 months and plans to continue this acquisition trend in Los Angeles, Orange and San Diego counties.

INLAND EMPIRE—HFF has secured a $55 million refinancing for a 507,000-square-foot, state-of-the-art, LEED-certified cold storage facility at 1001 Columbia Avenue in Riverside, California. The HFF team worked on behalf of an advisor, to secure the 10-year, fixed-rate loan with Allianz Real Estate of America. Loan proceeds are being used to refinance an existing loan. Originally developed in 2011, the building is 100 percent leased to an investment grade credit tenant. The property is situated on 25.35 acres within Hunter Park, a prominent industrial district strategically located within the Inland Empire East submarket, one of the fastest growing markets in the country. The HFF debt placement team representing the borrower consisted of senior managing director Kevin MacKenzie and associate AJ Manas.

CHANDLER, AZ—A 14,715-square-foot Walgreens in Chandler, AZ, has traded hands for $6,782,000. Jamie Medress, Mark Ruble and Chris Lind, investment specialists in Marcus & Millichap's Phoenix office, had the exclusive listing to market the property on behalf of the seller, a limited liability company. The buyer, a limited liability company, was secured and represented by Armond Aivazyan, Yannis Papadakis and David Berookhim, investment specialists in Marcus & Millichap's Los Angeles office.

LOS ANGELES—A 75,711-square-foot office property in Torrance, CA, has traded hands between Continental Development Corp. and Miramar Property Group for $251 per square foot. The asset is fully occupied by Unify Financial Credit Union, which uses the space as its headquarters and recently signed a 10-year lease. NKF's Capital Markets President, West Coast Kevin Shannon, Executive Managing Director Ken White, and Managing Director Scott Schumacher represented the seller. The buyer was in a 1031 exchange and was self-represented. Built in 2004 and situated on 4.44 acres, the four-story institutional quality asset is located at 1899 Western Way. It is adjacent to the 116-acre former Toyota campus, which is currently under contract with an investor that plans to redevelop the site; the 2.3-million-square-foot newly renovated Del Amo Fashion Center; and the 405, 110, and 91 freeways.

SANTA MONICA—MDC Realty Advisors has 1315 Lincoln Blvd., a 23,551-square-foot creative office building, for $30.5 million from JOSS Realty Partners. At $1,296 per square foot, the sale of this Santa Monica property illustrates the growing demand for class-A office space in Greater Los Angeles and is among the highest prices per square foot recorded for a commercial office building outside of New York City. In 2015, JOSS Realty Partners purchased the property for $1,004 per square foot, one of the highest prices paid in Greater Los Angeles at that time. Its rise in value reflects new building management, operational and aesthetic upgrades, a strong tenant roster and the increasingly competitive commercial market in Santa Monica. Santa Monica is one of the few established markets in the country offering a desirable mix of entertainment, housing and office options – a mix that spurs consistent demand for commercial space.

SAN BERNARDINO, CA—Walker & Dunlop has arranged a $26 million combination of bridge loan and joint venture equity financing for the acquisition of Ridgeline Apartments, a 160-unit, class-B apartment complex in San Bernardino, California. The Company's Irvine-based Capital Markets team provided this comprehensive capital stack solution on behalf of repeat borrower, Crystal Asset Management.

The Walker & Dunlop team of Gregory Richardson, Mark Strauss, Scott Watson, and Rob Quarton executed the deal within a tight timeline, strategically exposing the opportunity to the capital markets to obtain the best terms and structure available. The financing solution included $7.6 million of joint venture equity with a California-based private investor and a three-year, interest-only bridge loan for $18.5 million with a regional bank.

BUILDING BLOCKS

SAN DIEGO—Turner Construction Co. and SVA Architects have begun designing the new $10.3 million San Ysidro Public Library after the Turner SVA team received significant community input. The new library will become a cultural beacon for the neighborhood and a source of pride for the local community, who has been promised a new library for many years. On 1.6 acres at 123 East Seawood Avenue, the 15,000-square-foot San Ysidro Public Library will be a transit-friendly development, only two blocks from the Beyer Blvd Trolley Station. The project will feature designated areas for children, teens, and adults; an event space; and a 1,000-square-foot outdoor patio/terrace. The team is seeking LEED Silver Certification in recognition of the project's sustainable features including photovoltaic solar panels, water efficient fixtures, and efficient HVAC systems. Construction is anticipated to commence in early 2018, and be completed in spring of 2019.

SAN DIEGO, CA—RAF Pacifica Group, a San Diego-based owner, operator, and developer of commercial real estate, has broken ground on three new developments in Carlsbad, California totaling more than $75 million. The developments include the first ground-up creative office project in the submarket, according to Adam Robinson, Founder and Principal of RAF Pacifica Group, as well as one of the firm's signature Creative Industrial properties, and a creative build-to-suit for local fashion brand San Diego Hat Company.

WEST HOLLYWOOD, CA—Trammell Crow Residential has completed construction of Domain West Hollywood, a boutique community of 166 designer apartment residences and over 9.000 feet of ground floor retail. Located at 7141 Santa Monica Blvd, West Hollywood, CA 90046, just east of Fairfax Ave., Domain WeHo's coveted location merges the energy and access of LA with a walkable neighborhood in the charming tree-lined streets of early Hollywood. Designed for creative professionals, cosmopolitan singles and couples, and anyone seeking outstanding lifestyle choices and urban attractions, Domain WeHo features dramatic architecture with signature looks and polished interiors, all matched by luxurious amenities, sultry spaces, and a dramatic rooftop retreat overlooking the Hollywood Hills. With a walk score of 93, Domain WeHo is just minutes away from the Hollywood Hills, The Grove, iconic Melrose Ave., West Hollywood Farmers Market, specialty boutiques, delightful cafes and restaurants, fitness studios, art galleries, parks, and endless Santa Monica Blvd. nightlife.

PHOENIX—The Enclave at Anthem Senior Living welcomed its first residents this week. The 160,000-square-foot community is located at 42015 North Venture Drive, near Anthem Community Park in the highly desirable North Black Canyon Corridor. It is one of four senior living communities in the Valley of the Sun managed by Spectrum Retirement Communities, which residents and families rank among the top 10 senior living owners and operators in the United States. The company is making a big investment in Arizona and has an additional four senior communities under construction. On the site's 6.5 acres, residents can choose from 159 well-appointed apartments that vary in size from studios to two-bedroom, two-bath residences. The community offers the full spectrum of care, including Independent Living, Assisted Living and resident-directed Memory Care apartments. With a focus on offering independence and peace of mind, The Enclave at Anthem also features Spectrum's Residence Club, where residents with mild cognitive impairment can stay in an assisted living apartment and receive additional support from a dedicated Life Enrichment Specialist.

PHOENIX—Hines has completed the entitlement process to develop a new gated residential neighborhood in North Scottsdale called Asteria Highlands, marking the firm's first single-family residential project in Arizona. The Scottsdale City Council approved final zoning for the project September 12. The exclusive residential neighborhood will include 40 acres and 31 single-family lots. The project will be located on 128th Street, south of Ranch Gate Road, adjacent to the Sereno Canyon master-planned community and the Storyrock master-planned community. Hines will preserve the scenic views of the lush surrounding area including the McDowell Sonoran Preserve, Pinnacle Peak and Tom's Thumb. Also located nearby is the Scottsdale National Golf Club and numerous hiking and equestrian trails. Construction will begin in 2018 and is expected to be finished later that year or early 2019.

Instant Insights /

Middle Market Digest: This Week in Southwest

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