Gerrity Acquires Two Malls for $77M

PORTLAND, OR—The Southern California division of Gerrity, an active Northwest-based retail real estate buyer, has purchased two adjacent shopping centers here from Mall 205 Shopping Center LLC and Plaza 205 Shopping Center LLC for a combined price of $76.5 million. Mall 205 at 9900 SE Washington St. is a 303,876-square-foot center on 22.16 acres of land, featuring major tenants Bed, Bath & Beyond; Home Depot; 24-Hour Fitness; and Famous Footwear. Plaza 205 at 10302-10542 SE Washington St. is a 174,363-square-foot center on 10.99 acres of land, featuring major tenants Dollar Tree and Big Lots. Both centers were built in 1970; Mall 205 was renovated in 2001, and Plaza 205 was renovated in 2003. Capital Pacific represented both parties in the transaction.

CORONA, CA—The New Home Co. Inc. has entered into a joint-venture agreement with Tricon Capital Group Inc., a residential real estate investment company, for the planned acquisition of Arantine Hills, a 276-acre master-planned community site here, for approximately $74 million. The new owners intend to re-plan, re-entitle and develop Arantine Hills into a master-planned community containing over 1,300 homes. The acquisition of the property is expected to be completed in December. “We are thrilled to join with Tricon to bring the Arantine Hills community to Corona, California”The joint venture expects to sell improved lots to homebuilders, including up to 30% to New Home, upon completion of the master site development work. Additionally, Tricon will also have the right to acquire improved lots and engage NWHM in fee-building arrangements for some or all of the remaining lots. The community is expected to begin selling entitled, developed lots in 2016.

DENVER—Advenir has acquired Lowry Heights a 326-unit, class-B multifamily project at 8000 E. 12^th Ave. here from Irvine, CA-based the Bascom Group for $35 million. Advenir represented itself in the property acquisition, while ARA Denver represented the seller. Financing was secured by Charles Foschini of CBRE. The property features 10,000-square-foot clubhouse with a full-court, indoor basketball court, fitness center, movie theater, billiards, a business center and the leasing center; a junior Olympic-sized swimming pool; a splash pool; and a hot tub. It also has a playground, a BBQ grill and picnic area and multiple courtyards. The previous owner made significant capital improvements over the last six years; however, Advenir has plans to make other key enhancements. The firm will further enhance the amenity package as well as upgrade unit interiors.

LEASES

LA JOLLA, CA—Moss Adams LLP has signed a 10-year, $9.5-million lease to relocate its San Diego regional offices to the top, or 13^th, floor of the new La Jolla Commons Tower I at 4747 Executive Dr. here, where it will occupy 18,611 square feet. Duncan Dodd, SIOR, of Cassidy Turley's San Diego office, represented the tenant in the transaction.  The lessor, HSPF La Jolla Commons I Investors LLC, was represented by Matthew Carlson, Eric Northbrook and Chris High of Cushman & Wakefield. The company is relocating from offices it has occupied in Stonecrest in Kearny Mesa for the past 10 years. The move will take place in the first quarter of 2015.

CHINO, CA—Clark's Nutrition and Natural Food Market has leased a 46,134-square-foot anchor space at the 90,000 square-foot Mountain Village Plaza neighborhood center at 12835 Mountain Ave. here. The store is expected to open in this fall. The Progressive Real Estate Partners team of Brad Umansky and Paul Galmarini marketed the property and exclusively represented the lessor in the transaction.

SALT LAKE CITY—Larry H. Miller Megaplex Theatres has signed on as an entertainment anchor at Cottonwood, a 57-acre mixed-use redevelopment near downtown here. The upscale development will feature a Smith's Food & Drug store, shopping, dining, entertainment and offices in a town-square-style setting and multifamily residences when complete.“We are thrilled to offer residents in this area of Salt Lake County easier access to the 'Megaplex Difference.'” Megaplex Theatres, which offers a “dinner and a movie experience,” will open a 10-screen, 2,300-seat movie theater beneath the development's iconic clock tower. Amenities will include a digital 2D/3D IMAX screen, state-of-the-art digital projection and audio systems, along with VIP seating.

DEVELOPMENT

NEWPORT BEACH, CA—Design firm Ware Malcomb has topped off the new corporate headquarters for Mark IV Capital Inc., a privately-held real estate investment and development firm, at 4450 MacArthur Blvd. here. Ware Malcomb serves as architect for the new two-story class-A, office building, which is expected to be completed in November. The developer for the project is Mark IV Capital, and the general contractor is C.W. Driver.

CARLSBAD, CA—Cruzan and its project design team, which includes Rapt Studio and OJB Landscape Architects, are developing make, a 175,000-square-foot office-redevelopment project on the coast here. The project, a community-based, integrated workspace, is expected to be delivered this fall. Housed in an industrial warehouse that was formerly home to the wholesale floral trade, the existing building will be redesigned under the overarching theme of making, to inspire the formation of new ideas and products. Theinterior workspace will spill outside, and the space will include outdoor work and meeting spaces, storage for surfboards and bikes, a café with outdoor seating, rotating food trucks and a cutting-edge, integrated fitness center. An outdoor amphitheater can be used by tenants to host special events and cultivate community.

FINANCING

EVERETT, WA—NBS Financial Services' principal Mike Wood and associate finance officer Austin Johnson have arranged $20.8 million in financing for the Esterline building, a 216,183-square-foot, class-A manufacturing property here, on behalf of Capstone PF LLC. NBS represented State Farm Insurance Co. The borrower was seeking a long-term, fully amortizing loan for a non-investment grade tenant. The deal was also a high loan per square foot at approximately $95. Additionally, the lender's collateral was on an unsubordinated ground lease with Snohomish County, which is a typical deterrent for many lenders. Wood was able to structure the loan with a 20-year term and 20-year amortization and the borrower locked an interest rate in the 4% range.

SACRAMENTO—Scott Meredith, SVP in Johnson Capital's Los Angeles office, has arranged a $14.4-million acquisition loan from a boutique bridge lender, secured by Country Club Plaza, a 430,000-square-foot enclosed mall in Arden-Arcade here, on behalf of a Northern California-based private investment company. The property, which was originally constructed in 1968, features Macy's as an anchor tenant, which is not part of the collateral for the loan. The occupancy at the time of the loan was 30%, with the majority of the in-line space either vacant or soon to become vacant. The owner plans to bring in new tenants and reconfigure the property to better suit today's neighborhood shoppers.

EXECUTIVE MOVES

IRVINE, CA—Auction.com has hired Deep Nishar in an advisory role. The LinkedIn SVP and board member of Internet companies including TripAdvisor and Opower will work with the firm as it makes further enhancements to its Web and mobile user experience. Nishar is the latest high-profile industry leader to associate with Auction.com since Google Capital's investment in the company earlier this year.

SACRAMENTO—The American Council of Engineering Companies of California has appointed Mary Erchul as president of the organization. Erchul, a professional registered engineer and project manager/resident engineer of Ghirardelli Associates, is considered a national expert in pavement engineering and has worked both locally and nationally on major roadway and highway projects. Her term runs from July 1, 2014, to June 30, 2015.

SAN DIEGO—C.W. Driver has hired Ryan Stichler as director of project development in the firm's San Diego office. Prior to joining the firm, Stichler worked at Kitchell as the business development manager, where he expanded business opportunities and maintained relationships with a variety of clients including architects, engineers and subcontractors. Stichler also worked at Balfour Beatty as the director of business development, where he directed firm-wide business development activities covering five satellite offices.