CBRE Secures $88M Loan for Madison Park

ANAHEIM, CA—CBRE Capital Markets Group has secured an $87.8-million, fixed-rate, Fannie Mae loan for the acquisition of Madison Park Apts., a 768-unit multifamily community here, on behalf of Boston-based Intercontinental Real Estate Corp. and San Diego-based MG Properties Group. CBRE's debt and structured-finance team, led by vice chairman Brian Eisendrath, arranged the financing, which incorporated an open prepayment window toward the latter years of the loan. In addition, Mark McGovern and Scott Peterson of CBRE Capital Markets' San Diego-based debt and structured-finance team have  arranged a $70-million loan for the acquisition of a two-building, 311,305-square-foot office campus at 6420 and 6450 Sequence Dr. in the Sorrento Mesa submarket in San Diego. The team worked on behalf of Invesco Real Estate and San Diego-based developer Cruzan to secure a four-year, variable rate loan through Cornerstone Real Estate Advisers Inc. that allows for the acquisition, reposition and potential development of the vacant parcel.

INLAND EMPIRE, CA—Mike Thorp and Daniel Thorp of Pacific Southwest Realty Services have arranged a $34.8-million loan secured by a luxury apartment complex containing over 300 units here. The property was built in 2006 and is 97% occupied. The PSRS team arranged the rollover refinancing through the existing lender, a correspondent life insurance company. The fixed-rate loan has a 13-year term with a 30-year amortization schedule, an interest rate based on a spread of 151 basis points and a loan-to-value ratio of 65%. In addition, there was a heavily discounted prepay to allow for an early refinance.

TACOMA, WA—HFF's debt-placement team led by managing director Tom Wilson and real estate analyst Charlie Watson has arranged $34.1 million in construction financing for the development of the second phase of Point Ruston, a mixed-use retail and multifamily project located along the Puget Sound here on behalf of borrower Point Ruston. HFF secured the loan through Bank of the Ozarks. Development plans include a 175-key Four-Star Silver Cloud Hotel, a neighborhood grocery store, more than 500,000 square feet of class-A office and lifestyle retail space and more than 50 acres of public parks, plazas and trails. 

SALES

SAN BERNARDINO, CA—Rancon Realty Fund IV & Rancon Realty Fund V have sold the Tri-City Corporate Centre, a 17-building mixed-use, master-planned business park here, to a joint venture formed by Hines and funds managed by Oaktree Capital Management L.P. The transaction represents the largest office sale by square footage in recorded history for the Inland Empire. Financial terms were not disclosed. The office complex totals more than 1 million square feet and is located on 153 acres near the intersection of the I-10 and I-215 freeways. CBRE's Kevin Shannon, Brad Burton, Ken White, Michael Kendall, Michael Longo and Phil Woodford brokered the transaction on behalf of the sellers. Rancon was the original developer of the park, which began construction in 1986 and continued development through 2008.

SEATTLE—Thomas Co. has arranged the sale of a portfolio of eight CVS/pharmacy stores totaling 108,525 square feet in Washington State and Texas on behalf of an institutional investment fund to high-net-worth private investors for an aggregate price of $49.4 million. The stores are all brand-new, unlevered properties with 25-year leases in place, and each store was offered free and clear of debt.

SANTA FE SPRINGS, CA—A private partnership from Orange County, CA, has sold a $3.65-million ground lease of a single-tenant retail property occupied by Jack in the Box here to an Orange County-based buyer who paid all cash. The per-square-foot price of $1,270 is a record high for a fast food property sale in Los Angeles County for the past 12 months in excess of $1.5 million, according to CoStar records. Matthew Mousavi and Joe Chichester of Faris Lee Investments represented both parties in the transaction. The property closed at a 4.01% cap rate.

DEVELOPMENT

BRECKENRIDGE, CO—Meriwether Cos. is expecting the first phase of new homes at the Shores at Breckenridge, an 11-acre luxury residential community on the banks of the Blue River here, to be completed in June. The six semi-custom homes are the first of 40 re-imagined designs in the community since the firm acquired the property in partnership with San Diego-based Pathfinder Partners in June 2014. Among the features are open-concept floor plans, vaulted ceilings and large windows. Craftsman-style finishes include natural stone accents, oak flooring and knotty alder shaker style cabinetry. State-of- the-art kitchens will be outfitted with subway-tile backsplashes, slab granite countertops and high end stainless steel Bosch appliances.

LEASES

IRVINE, CA—United Scope LLC, an online supplier of microscopes and accessories, has subleased 50,318 square feet at 14370 Myford Rd., a 100,152-square-foot light manufacturing and distribution facility on the campus of Jamboree Business Center at the Irvine Business Complex here. Newmark Grubb Knight Frank managing director Byron Foss, senior managing director Wade Tift and managing director Nick Carey represented the tenant in the transaction with La Jolla Group LLC, a multi-brand apparel licensing company that held a long-term lease for 200,000 square feet of space at the complex. Additionally, the NGKF team obtained a substantial concession package with multiple months of free rent and a tenant-improvement allowance. United Scope previously occupied 25,000 square feet in the Irvine Spectrum office and industrial park. The NGKF team located a tenant, Oceania International Inc., to sublet United Scope's space before its relocation. Gregg Haley and Chip Wright from CBRE represented La Jolla Group in the sublease transaction.

IRVINE, CA—HCP and HCR ManorCare Inc. have amended their master lease encompassing a portfolio of 333 post-acute, skilled-nursing and assisted-living facilities owned by HCP. HCP will provide an annual net rent reduction of $68 million, which equates to initial lease year rent of $473 million, compared to $541 million that would have commenced April 1, 2015 prior to the amendment. The contractual rent will increase by 3% annually during the initial term. In exchange, HCP will receive fee ownership in nine new post-acute facilities valued at $275 million with a median age of four years, currently owned and operated by HCRMC; a second lease receivable with an initial amount of $250 million, payable by HCRMC upon the earlier of the end of the initial term of the first renewal pool under the amended master lease or certain capital or liquidity events of HCRMC, including an IPO or sale; and extension of the initial lease term by five years, to an average of 16 years.

SAN DIEGO—Accumen has signed a five-year, $142,615 lease for a 1,201-square-foot space at the Alvarado Medical Plaza III at 6719 Alvarado Rd., Suite 203, in the College Area here. Accumen operates medical-lab draw stations and patient service centers in conjunction with Sharp Laboratory Services. Dan McCarthy and Kyle Clark, senior directors at the Heritage Group, represented Accumen in securing the lease. The owner, Alvarado Road 6719 LLC, was represented by Voit Real Estate Services.

EXECUTIVE APPOINTMENTS

SAN DIEGO—Sunrise Management has promoted Melissa Deen to VP of marketing. Deen, who has worked in the company's marketing department for nearly five years, most recently as director of marketing, now takes charge of all corporate marketing strategies and initiatives for Sunrise. In her new role, she will oversee all promotions, publicity, website development, advertising and social media for a broad portfolio of Sunrise clients, troubleshooting properties that may be under-performing owner expectations.

IRVINE, CA—RealtyTrac has hired industry veteran Michael Sawtell as EVP and general manager of consumer solutions. In this role, Sawtell will expand the company's suite of consumer products while increasing consumer awareness and demand. Most recently, he worked at Local Corp., a local search and advertising technology company, where he served as president and COO.

MANHATTAN BEACH, CA—Arbor Commercial Mortgage LLC has appointed multifamily loan originator Ana Ramos as VP in the local office. An 18-year commercial real estate finance veteran with an extensive underwriting background, Ramos will be responsible for originating loans under all of Arbor's multifamily and commercial product lines, including Fannie Mae, Freddie Mac, FHA, bridge, CMBS and mezzanine.