LOS ANGELES—The Southwest market continues to be healthy across property types. This week, we saw sales in every property type, plenty of new hires and new groundbreakings. Quarterly reports, which have been rolling out over the last few weeks, continue to show strong activity in markets across the Southwest region, including Phoenix, where the multifamily market is beginning to heat up.
BY THE NUMBERS
LAS VEGAS—Question 3, a ballot initiative in Las Vegas to create an open, well-regulated electricity market, could double clean energy jobs, according to a report from Nevadans for Affordable Clean Energy Choices. If the measure passes, according to the report, it could create 38,000 new jobs, up from 25,600 in 2016 to 63,486 in 2033), and each new utility scale renewable energy project will create as many as 10,796 construction phase jobs (2,133 jobs for 100 MW facility, 10,796 jobs for 550 MW facility). Even conservative 5% growth reports show it increasing energy jobs by 63%.
(Source: Nevadans for Affordable Clean Energy Choices)
PHOENIX—A new ABInsight report shows that California investors are buying heading to Arizona, showing that the market is in the early stages of a multifamily investment boom. California investors have acquired 15,265 units in Phoenix and 2,680 units in Tucson. In the 3Q16, the overall Phoenix market saw $3.6 billion in sales volume and the Tucson market had $365 million in total sales volume for the quarter.
(Source: ABInsight)
SANTA MONICA, CA—Macerich Co. has announced strong quarterly results with a net income of $13.7 million or $.09 per share-diluted for the quarter, which ended September 30, 2016, compared to $33.6 million or $.21per share-diluted in net income for the quarter ending on September 30, 2015.
(Source: The Macerich Co.)
NEWS & NOTABLES
LOS ANGELES—Andrew Parker has joined Trammell Crow Co. as a development manager, where he will work closely with the entire team on the vertical construction of a vast array of development projects in the Greater Los Angeles area. He joins the firm from Equity Residential in Los Angeles, where he also served as a development manager. He was part of the team that developed more than 900 multifamily units valued at $200 million.
SAN DIEGO—John Hundley has joined Kidder Mathews San Diego office as a first VP. Hundley specializes in tenant representation, strategic advisory, and portfolio planning for life science, healthcare, and technology clients. He brings 14 years of experience to the firm and most recently worked at CBRE, serving on the Life Science Practice and served on their Global Life Science Advisory Committee.
LOS ANGELES—NGKF has promoted Daniel Chiprut as senior managing director. Chiprut is a specialist in landlord and tenant representation with a focus on the medical and technology sectors. He has more than a decade of experience, and joined the firm as a market analyst. He has worked with Marcus & Millichap and Commercial Asset Group.
SAN DIEGO—David Crabb has Kidder Mathews as a SVP, where he will specialize exclusively on tenant advisory and corporate services in the San Diego and Southern California region. He has 30 years of experience and joins the firm from CRESA. His clients include AECOM, American Express, Boeing Corporation, Comerica Bank, and Sprint.
LOS ANGELES—Ocean Avenue South has received a 2016 Global Awards for Excellence from the Urban Land Institute. It is the only Los Angeles property to receive the award. Related California developed the property, while Moore Ruble Yudell and Koning Eizenberg served as designers.
DEALTRACKER
SAN DIEGO—Developer Premier Residential has secured a $145 million loan to refinance two class-A apartment properties in the UTC submarket of San Diego. The properties are the 400-unit La Jolla International Gardens, which secured a $77.5 million loan; and the 354-unit La Scala Apartment Homes, which secured a $67.5 million loan. The new loans will replace the existing CMBS loans and were funded by Prudential Mortgage Capital Company. Both loans have a 12-year fixed rate. Barry Petro of CBRE secured the funds on behalf of the borrower. Located at 3417 Lebon Drive, La Jolla International Gardens features a state-of-the-art fitness center, clubhouse with a billiards room, volleyball court and barbeque area. La Scala Apartment Homes is located at 3845 Nobel Drive and offers luxury amenities including a resort-style pool and spa, clubhouse with Internet lounge and complimentary coffee bar. Both properties have occupancies exceeding 98%.
LOS ANGELES—Shops on Hill in Pasadena has traded hands for $13.4 million between an entity controlled by Engine Real Estate and Greenbridge Investment Partners. The 32,685-square-foot property has 12 single apartments on the second floor and ground floor retail space. It sits on a great intersection at E Washington Boulevard and N Hill Avenue in Pasadena, and has strong surrounding demographics. CBRE'S Ken McLeod, Alex Vasquez, and Tim Kuruzar represented the seller in the transaction.
RIVERSIDE—KB Homes has acquired 383 home lots in Spring Mountain Ranch, the first new master plan community from iStar in the greater Riverside area in more than 20 years. The purchase accounts for 90% of the projects first phase. KBHomes began purchasing the lots in 2014, and the project began in 2013. Demand for the single-family homes has been consistently strong, with more than 295 closed home purchases since residents began moving in during early 2015. The strong sales pace has helped to set the tone for the still-rebounding Inland Empire housing market. The Spring Mountain Ranch community spans nearly 785 acres and will ultimately be developed with more than 1,400 single-family homes. iStar will develop the community in phases over the next several years.
ORANGE COUNTY—Hacienda Plaza, a 77,610-square-foot mixed-use retail/medical office property in Santa Ana, has traded hands for $16.4 million between two unnamed buyers. The property traded hands in a 1031 exchange. Hacienda Plaza's tenants include Northgate Market, Don Roberto Jewelers and Hacienda Restaurant, a historic ranch estate that has been operating as a restaurant and wedding party venue since 1989. Michael Lawrence, senior vice president investments, and Michael Woolbright, vice president investments, both in Marcus & Millichap's Newport Beach office, represented the seller. Ron Duong, vice president investments, also in Newport Beach, represented the buyer.
LOS ANGELES—Revere Capital funded a $15,750,000 loan to continue tenant-related construction and carrying costs on the historic Mayer Building in Hollywood. The project, a 4-story, 45,826-square-foot office and retail property, is an architectural gem developed by Louis B. Mayer. The loan enables the owner and borrower of the art deco-era property to rebuild the offices into market-driven creative office space, improve ground-floor retail areas and build out a subterranean restaurant and lounge.
LAS VEGAS—Strategic Storage Trust has acquired a two-property self-storage portfolio in Las Vegas for $28.1 million from Silverado Mini Storage LLC. The portfolio includes Storage Direct- Silverado and Storage Direct- Bermuda. Storage Direct –Silverado is an 89,400-square-foot state-of-the art self-storage facility with 436 air-cooled and 335 drive-up self-storage units. The sister facility totals 90,038 square feet with 871 total units. Both properties offer clients a gated entrance with key code access, 24-hour video surveillance cameras, and wide asphalt drive aisles for easy access. CBRE's SVP Nick Walker represented both buyer and the seller in this transaction.
BUILDING BLOCKS
LA JOLLA, CA—HV Cos. and Rialto Capital have partnered to build Muse, and 16-unit condo development in the luxury market of La Jolla. Muse is the redevelopment of a former office building, which was originally designed by Thornton Ladd and John Kelsey of Ladd & Kelsey in 1967. Matrix Design Studio and AVRP Studios will design the new project. The first model unit is scheduled to open in November, while the building will officially open in the spring of next year. Prices for each unit will start at $2,000 per square foot.
SAN DIEGO—Lowe Enterprises, La Salle Investment Management and IDEA Partners are developing IDEA1, the first new mixed-use building in the 35 block I.D.E.A District, located in downtown San Diego's East Village. The $91 million project includes a mid-rise, six-story complex with 13,000 square feet of commercial space, 295 apartments, 25 ground floor live/work lofts and eight luxury penthouse units, all designed by Miller Hull Architects. CBRE has already been hired to lease the retail space at the property.
PHOENIX—Winlee Development has broken ground on Chandler Viridian PRIMEGATE at Fashion Square, a 24,000-square-foot restaurant and retail section in the 25-acre Chandler Viridian mixed-use project being developed by the consortium of Hines, Alliance Residential, Concord Hospitality and WINLEE. Panera Bread has already signed on as a tenant, and the developer is set to make more tenant announcements in the coming weeks.
LOS ANGELES—The Southwest market continues to be healthy across property types. This week, we saw sales in every property type, plenty of new hires and new groundbreakings. Quarterly reports, which have been rolling out over the last few weeks, continue to show strong activity in markets across the Southwest region, including Phoenix, where the multifamily market is beginning to heat up.
BY THE NUMBERS
LAS VEGAS—Question 3, a ballot initiative in Las Vegas to create an open, well-regulated electricity market, could double clean energy jobs, according to a report from Nevadans for Affordable Clean Energy Choices. If the measure passes, according to the report, it could create 38,000 new jobs, up from 25,600 in 2016 to 63,486 in 2033), and each new utility scale renewable energy project will create as many as 10,796 construction phase jobs (2,133 jobs for 100 MW facility, 10,796 jobs for 550 MW facility). Even conservative 5% growth reports show it increasing energy jobs by 63%.
(Source: Nevadans for Affordable Clean Energy Choices)
PHOENIX—A new ABInsight report shows that California investors are buying heading to Arizona, showing that the market is in the early stages of a multifamily investment boom. California investors have acquired 15,265 units in Phoenix and 2,680 units in Tucson. In the 3Q16, the overall Phoenix market saw $3.6 billion in sales volume and the Tucson market had $365 million in total sales volume for the quarter.
(Source: ABInsight)
SANTA MONICA, CA—Macerich Co. has announced strong quarterly results with a net income of $13.7 million or $.09 per share-diluted for the quarter, which ended September 30, 2016, compared to $33.6 million or $.21per share-diluted in net income for the quarter ending on September 30, 2015.
(Source: The Macerich Co.)
NEWS & NOTABLES
LOS ANGELES—Andrew Parker has joined Trammell Crow Co. as a development manager, where he will work closely with the entire team on the vertical construction of a vast array of development projects in the Greater Los Angeles area. He joins the firm from
SAN DIEGO—John Hundley has joined Kidder Mathews San Diego office as a first VP. Hundley specializes in tenant representation, strategic advisory, and portfolio planning for life science, healthcare, and technology clients. He brings 14 years of experience to the firm and most recently worked at CBRE, serving on the Life Science Practice and served on their Global Life Science Advisory Committee.
LOS ANGELES—NGKF has promoted Daniel Chiprut as senior managing director. Chiprut is a specialist in landlord and tenant representation with a focus on the medical and technology sectors. He has more than a decade of experience, and joined the firm as a market analyst. He has worked with Marcus & Millichap and Commercial Asset Group.
SAN DIEGO—David Crabb has Kidder Mathews as a SVP, where he will specialize exclusively on tenant advisory and corporate services in the San Diego and Southern California region. He has 30 years of experience and joins the firm from CRESA. His clients include AECOM,
LOS ANGELES—Ocean Avenue South has received a 2016 Global Awards for Excellence from the Urban Land Institute. It is the only Los Angeles property to receive the award. Related California developed the property, while Moore Ruble Yudell and Koning Eizenberg served as designers.
DEALTRACKER
SAN DIEGO—Developer Premier Residential has secured a $145 million loan to refinance two class-A apartment properties in the UTC submarket of San Diego. The properties are the 400-unit La Jolla International Gardens, which secured a $77.5 million loan; and the 354-unit La Scala Apartment Homes, which secured a $67.5 million loan. The new loans will replace the existing CMBS loans and were funded by Prudential Mortgage Capital Company. Both loans have a 12-year fixed rate. Barry Petro of CBRE secured the funds on behalf of the borrower. Located at 3417 Lebon Drive, La Jolla International Gardens features a state-of-the-art fitness center, clubhouse with a billiards room, volleyball court and barbeque area. La Scala Apartment Homes is located at 3845 Nobel Drive and offers luxury amenities including a resort-style pool and spa, clubhouse with Internet lounge and complimentary coffee bar. Both properties have occupancies exceeding 98%.
LOS ANGELES—Shops on Hill in Pasadena has traded hands for $13.4 million between an entity controlled by Engine Real Estate and Greenbridge Investment Partners. The 32,685-square-foot property has 12 single apartments on the second floor and ground floor retail space. It sits on a great intersection at E Washington Boulevard and N Hill Avenue in Pasadena, and has strong surrounding demographics. CBRE'S Ken McLeod, Alex Vasquez, and Tim Kuruzar represented the seller in the transaction.
RIVERSIDE—
ORANGE COUNTY—Hacienda Plaza, a 77,610-square-foot mixed-use retail/medical office property in Santa Ana, has traded hands for $16.4 million between two unnamed buyers. The property traded hands in a 1031 exchange. Hacienda Plaza's tenants include Northgate Market, Don Roberto Jewelers and Hacienda Restaurant, a historic ranch estate that has been operating as a restaurant and wedding party venue since 1989. Michael Lawrence, senior vice president investments, and Michael Woolbright, vice president investments, both in Marcus & Millichap's Newport Beach office, represented the seller. Ron Duong, vice president investments, also in Newport Beach, represented the buyer.
LOS ANGELES—Revere Capital funded a $15,750,000 loan to continue tenant-related construction and carrying costs on the historic Mayer Building in Hollywood. The project, a 4-story, 45,826-square-foot office and retail property, is an architectural gem developed by Louis B. Mayer. The loan enables the owner and borrower of the art deco-era property to rebuild the offices into market-driven creative office space, improve ground-floor retail areas and build out a subterranean restaurant and lounge.
LAS VEGAS—Strategic Storage Trust has acquired a two-property self-storage portfolio in Las Vegas for $28.1 million from Silverado Mini Storage LLC. The portfolio includes Storage Direct- Silverado and Storage Direct- Bermuda. Storage Direct –Silverado is an 89,400-square-foot state-of-the art self-storage facility with 436 air-cooled and 335 drive-up self-storage units. The sister facility totals 90,038 square feet with 871 total units. Both properties offer clients a gated entrance with key code access, 24-hour video surveillance cameras, and wide asphalt drive aisles for easy access. CBRE's SVP Nick Walker represented both buyer and the seller in this transaction.
BUILDING BLOCKS
LA JOLLA, CA—HV Cos. and Rialto Capital have partnered to build Muse, and 16-unit condo development in the luxury market of La Jolla. Muse is the redevelopment of a former office building, which was originally designed by Thornton Ladd and John Kelsey of Ladd & Kelsey in 1967. Matrix Design Studio and AVRP Studios will design the new project. The first model unit is scheduled to open in November, while the building will officially open in the spring of next year. Prices for each unit will start at $2,000 per square foot.
SAN DIEGO—Lowe Enterprises, La Salle Investment Management and IDEA Partners are developing IDEA1, the first new mixed-use building in the 35 block I.D.E.A District, located in downtown San Diego's East Village. The $91 million project includes a mid-rise, six-story complex with 13,000 square feet of commercial space, 295 apartments, 25 ground floor live/work lofts and eight luxury penthouse units, all designed by Miller Hull Architects. CBRE has already been hired to lease the retail space at the property.
PHOENIX—Winlee Development has broken ground on Chandler Viridian PRIMEGATE at Fashion Square, a 24,000-square-foot restaurant and retail section in the 25-acre Chandler Viridian mixed-use project being developed by the consortium of Hines, Alliance Residential, Concord Hospitality and WINLEE. Panera Bread has already signed on as a tenant, and the developer is set to make more tenant announcements in the coming weeks.
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