CT/Artemis JV Lands Industrial Asset

HUNTINGTON BEACH, CA-A joint venture between CT Realty Investors and Artemis Real Estate Partners has purchased a 102,700-square-foot industrial building at 17311 Nichols Lane here for $10.6 million from the previous owner/user of the property. The transaction was made on behalf of New York State Common Retirement Fund's $300-million real estate emerging manager program. The facility is located approximately 2 miles from I-405 and 12 miles from the ports of Los Angeles and Long Beach within the Orange County West submarket. Features include an onsite rail spur, 24-ft.-26-ft minimum warehouse clearance, five dock-high loading doors and six ground-level doors, as well as 7,600 square feet of first- and second-story office space. In addition, the JV has signed a 10-year lease for the property valued at approximately $9.1 million with Driessen Aircraft Interior Systems Inc. Darin McDonald and Ted Sawyer with Lee & Associates' Newport Beach Office represented the buyer, while Jeffrey Read and Scott Read of Newmark Grubb Knight Frank's Newport Beach office represented the seller. McDonald and Sawyer also represented Driessen in the lease transaction.

SAN DIEGO-ASB Real Estate Investments, in a joint venture with Blatteis & Schnur, has acquired three adjacent buildings in San Diego's historic Gaslamp Quarter neighborhood from Federal Realty Investment Trust for $15.25 million. The purchase was made on behalf of ASB's Allegiance Fund, a $2.7-billion core real estate vehicle. The three buildings—643-653 and 665 Fifth Ave.—are located at the intersection of Fifth Ave. and G St. The property is fully leased to Urban Outfitters, Ghirardelli Chocolate Co. and the Lime, a popular restaurant.

TACOMA, WA-Jones Lang LaSalle has completed the sale of the former Birds Eye Foods facility on South 35^th St. here. The 22-acre site, which includes 400,000 square feet of improvements, was sold to local investor Puget Sound Industrial LLC. Terms of the transaction were not disclosed. Chris Spofford and Casey Trees of JLL's Seattle office and JC Giordano III of JLL's New Jersey office advised the owner, Pinnacle Foods Inc., on the sale.

DEVELOPMENT

SAN JOSE, CA-Westgate Center here is nearing completion after an extensive $15-million renovation. The updated 52-year-old shopping center, which remained open during the construction and remodeling work, will include new shops and restaurants, including Nike Factory Store and Smashburger—both to open in time for the holidays. New amenities at the center include a 670-square-foot soft-play area for children, updated restrooms and several comfortably furnished common areas. New tile flooring and painting in a contemporary color palette will be showcased throughout the center's interior. Exterior renovations include a new façade design theme, monument signs at site entrances with lighting and landscaping and an enhanced central plaza with café tables and fountains.  A grand re-opening of the 645,000 square foot shopping center is planned for Saturday, November 2.

LEHI, UT-Perry & Associates Inc. has broken ground on Traverse Ridge Center I. The center is a 70,000-square-foot, class-A office building, and the first phase of a 22-acre, mixed-use office campus. Located at the intersection of Triumph Blvd. and SR-92 here, the location offers direct connectivity to the area's existing trails system. In anticipation of the area's growth, there is also a future TRAX stop planned just north of the site. The building is expected to be completed by April 2014. Build-to-suit and ground lease options are currently available. Eric Smith, Kreg Peterson, James Mecham and Jessmine Kim of CBRE's Salt Lake City office are managing the listing.

LEASES

SUN VALLEY, CA-Objects Fine Set Decorations has signed a 10-year, 40,000-square-foot industrial lease with landlord Howard Industrial JV at 10635 Stagg St. here. David Young and Chad Gahr, SVPs of NAI Capital's Encino office, represented the tenant, while Howard was represented by Dave Maron, SVP of NAI Capital's Pasadena office. The value of the lease transaction was not disclosed.

PORTLAND, OR-KBS Real Estate Investment Trust II has renewed a 41,750-square-foot lease with longtime tenant law firm Ball Janik at its One Main Place office building, a 20-story, 315,133-square-foot property in Portland's Central Business District at the intersection of SW Main St. and SW 1^st Ave. The tenant has occupied the property since 2003. One Main Place is a class-A asset that attracts corporate tenants that depend on proximity to the county or federal courthouses, both of which are within walking distance. The property currently is 89% leased.

FINANCING

BOTHELL, WA-HFF has arranged a $21-million refinancing for Nexus Canyon Park Research Center, a 152,050-square-foot biotech and data center facility here, on behalf of San Diego-based Nexus Properties Inc. The arrangement was for an interest-only, fixed-rate loan. The building is located within the Canyon Park Business Center just north of I-405, approximately 15 miles northeast of downtown Seattle. Situated on 6.96 acres, the two-story property is 97% leased to tenants including T-Mobile, Epoch Pharmaceuticals and Acucela. HFF's debt-placement team representing the borrower was led by senior managing director Tim Wright and associate director Zack Holderman.

SAN DIEGO-Commercial real estate finance and advisory firm Quantum Capital Partners has negotiated $19.3 million in financing on behalf of a private investor for its 183-unit, seven-property multifamily portfolio here. The financing package is composed of seven separate loans featuring an interest rate of 3.97%. The self-liquidating loans are fixed for five years before floating over LIBOR for the remainder of the 30-year term. The portfolio is composed of a mix of multifamily property types including garden-style, low-rise and luxury properties, and currently averages 96% occupancy.

TACOMA, WA-Stuart Oswald, SVP and managing director of NorthMarq's Seattle regional office, has arranged first-mortgage refinancing of $19.5 million for the Weatherly Inn, a 140-unit senior-housing complex here. The borrower is a Washington-based LLC; NorthMarq arranged the loan through its seller-servicer relationship with Freddie Mac. The transaction was an early refinance of an existing Freddie Mac loan with a new Freddie Mac loan. A portion of the loan proceeds will be used to convert several independent and assisted living units to memory care units. The borrower will also be able to utilize Freddie Mac's acuity mix conversion program which allows for further changes to the level-of-care unit mix as market demand changes over the term of the loan.

BELLEVUE, WA-Berkadia Commercial Mortgage LLC has originated $10.1 million in financing through the US Department of Housing and Urban Development's (HUD) 232/223(a)(7) program for Mission Healthcare, a skilled-nursing and healthcare facility at 2424 156th Ave. NE here. VPs Heidi Brunet and Rob Affleck worked with Careage Inc. to secure the 35-year, fixed-rate financing. The borrower will use the loan, which features a 3.35% interest rate, to refinance existing debt on the property.

EXECUTIVE MOVES

IRVINE, CA-Snyder Langston has promoted Andy Gerlach to technical services manager. In his new role, Gerlach is responsible for overseeing the use and implementation of technology at the firm with the aim of streamlining processes and increasing communication with the firm's clients, trade partners and design colleagues. Gerlach has been with Snyder Langston for six years and previously served as senior project engineer.