LOS ANGELES— This week in the Southwest region, the year is off to a great start. Several deals in Southern California markets, as well as several financing deals that have closed in the first week of the year. Additionally, some research reports are showing a strong end to the year in some secondary markets, like Las Vegas. Check out all of the highlights from the week below.
BY THE NUMBERS
LAS VEGAS—The Las Vegas market ended 2016 on a high note. According to a report published by Xceligent and the Commercial Alliance Las Vegas more than 2.4 million square feet of local retail space was leased throughout 2016. Areas around the Galleria at Sunset mall in Henderson and in the southwest part of Las Vegas have been in especially high demand, as reflected by their below-market average vacancy rates of 5.2 and 6.2%, respectively. Year-over-year vacancy rates declining from 8.8 to 8.2%.
(SOURCE: Xceligent and the Commercial Alliance Las Vegas)
NEW & NOTABLE
PHOENIX—Kidder Matthews has expanded its healthcare team in Phoenix. Michael Dupuy joins the firm at SVP, Fletcher Perry joins the firm as SVP and Rachel Thompson joins as VP.
PHOENIX—Jesse Blum has been promoted to senior associate at CBRE in the Tucson office. Blum specializes in utilizing market research and database implementation to create proprietary, market-specific knowledge. These strategies are designed to solve regional and national location needs and create local competitive advantages. Blum joined CBRE in 2013 and has become a rising leader and valuable asset to the Tucson office.
DEALTRACKER
SAN DIEGO—CBRE Group has arranged the sale of Scripps Mesa Retail Center, located at 9801-9841 Mira Mesa Boulevard for $11 million between Hendricks Commercial Properties, a Wisconsin-based investor, and the locally based buyer Shah Family Trust. Scripps Mesa Retail Center is approximately 25,721 square feet and was recently renovated in 2015 at a cost of $1.7 million. The center has 18 tenants and recently leased the premises to 100% occupancy. CBRE retail experts Reg Kobzi, Joel Wilson, and Michael Peterson represented both sides of the transaction.
THOUSAND OAKS, CA—Oak Park Shopping Center has traded hands between New Oak Park and a private local investor for approximately $28.28 million. The 74,300-square-foot center is currently 98% occupied. Tenants include UPS, Goodwill, a national coffee chain and other daily-needs retailers. CBRE's Alex Kozakov, Patrick Wade and CBRE'S local market experts Larry Tanji and Scott Siegel represented the seller, while Paley Commercial Real Estate represented the buyer.
LOS ANGELES—Walker & Dunlop SVP Mark Plenge has structured a $15 million refinance loan with Freddie Mac for The Harvey, an early 1920s vintage, mid-rise multifamily building in Los Angeles, California. The rent-controlled property qualified as 100% “affordable” by Freddie Mac's metrics, which provides cost-effective rents for moderate- and low-income tenants in this high cost area. Walker & Dunlop could provide aggressive financing in the form of overall loan proceeds and a lower rate. The loan has a seven-year, adjustable-rate mortgage with two years of interest-only payments and a 30-year amortization schedule. In the first year of ownership, the client made interior renovations and exterior restorations, which enabled the loan to recapitalize over 90% of the owner's basis in the property. Last month, the mayor of Los Angeles publicly recognized the property's sponsors for their proactive and thorough renovations to another one of their rent-controlled assets in nearby Echo Park.
ORANGE COUNTY, CA—Berkeley Partners has secured a $10.3 million acquisition loan for the Yorba Linda Business Park, a four-building flex industrial park totaling 115,760 square feet in Yorba Linda, California. HFF placed the 10-year, non-recourse loan with Michael McCool at Chase Commercial Mortgage Lending. The loan will have a fixed-rate for the first five years before converting to a floating-rate loan for the remaining five years. Loan proceeds were used to pay off a line of credit that was used to acquire the property 60 days before the loan closed.
PHOENIX—The Opus Group has acquired a mixed-use development in Tempe, AZ, for $15.2 million. The 115,325-square-foot development site, yet to be named, will include two high-rise apartment towers in Phase I. The 20-story and 12-story towers will have a total of 407 apartment units and more than 31,000 square feet of space for retail and restaurants that will front University Drive. Phase I project costs will total $160 million. Construction on the two high-rise apartment towers is underway on the former downtown Tempe parking lot. The apartments are scheduled to open to renters in the summer of 2018. The second phase of the mixed-use project and land sale is being designed to include a hotel that will be developed by a separate group on the remaining 25,000-square-foot corner parcel. Cushman & Wakefield team of Brent Moser, Mike Sutton and Brooks Griffith represented the seller in the deal.
BUILDING BLOCKS
LA JOLLA, CA—The University of California, San Diego awarded the second phase of construction on UC San Diego Nuevo West, part of the East Campus student housing program to the design-build team of Hensel Phelps | Mithun. The $142 million project is 442,000-square-foot Graduate Student Housing project that will house more than 880 beds and related amenity spaces in two main buildings. The design-build collaboration between Hensel Phelps and Mithun builds on the team's collaboration with the adjacent Mesa Nueva Graduate and Professional Student Housing project to create a new graduate research community. The team's collaborations also include the recently completed Mesa Court Towers for the University of California, Irvine (UCI).
LOS ANGELES— This week in the Southwest region, the year is off to a great start. Several deals in Southern California markets, as well as several financing deals that have closed in the first week of the year. Additionally, some research reports are showing a strong end to the year in some secondary markets, like Las Vegas. Check out all of the highlights from the week below.
BY THE NUMBERS
LAS VEGAS—The Las Vegas market ended 2016 on a high note. According to a report published by Xceligent and the Commercial Alliance Las Vegas more than 2.4 million square feet of local retail space was leased throughout 2016. Areas around the Galleria at Sunset mall in Henderson and in the southwest part of Las Vegas have been in especially high demand, as reflected by their below-market average vacancy rates of 5.2 and 6.2%, respectively. Year-over-year vacancy rates declining from 8.8 to 8.2%.
(SOURCE: Xceligent and the Commercial Alliance Las Vegas)
NEW & NOTABLE
PHOENIX—Kidder Matthews has expanded its healthcare team in Phoenix. Michael Dupuy joins the firm at SVP, Fletcher Perry joins the firm as SVP and Rachel Thompson joins as VP.
PHOENIX—Jesse Blum has been promoted to senior associate at CBRE in the Tucson office. Blum specializes in utilizing market research and database implementation to create proprietary, market-specific knowledge. These strategies are designed to solve regional and national location needs and create local competitive advantages. Blum joined CBRE in 2013 and has become a rising leader and valuable asset to the Tucson office.
DEALTRACKER
SAN DIEGO—CBRE Group has arranged the sale of Scripps Mesa Retail Center, located at 9801-9841 Mira Mesa Boulevard for $11 million between Hendricks Commercial Properties, a Wisconsin-based investor, and the locally based buyer Shah Family Trust. Scripps Mesa Retail Center is approximately 25,721 square feet and was recently renovated in 2015 at a cost of $1.7 million. The center has 18 tenants and recently leased the premises to 100% occupancy. CBRE retail experts Reg Kobzi, Joel Wilson, and Michael Peterson represented both sides of the transaction.
THOUSAND OAKS, CA—Oak Park Shopping Center has traded hands between New Oak Park and a private local investor for approximately $28.28 million. The 74,300-square-foot center is currently 98% occupied. Tenants include UPS, Goodwill, a national coffee chain and other daily-needs retailers. CBRE's Alex Kozakov, Patrick Wade and CBRE'S local market experts Larry Tanji and Scott Siegel represented the seller, while Paley Commercial Real Estate represented the buyer.
LOS ANGELES—Walker & Dunlop SVP Mark Plenge has structured a $15 million refinance loan with
ORANGE COUNTY, CA—Berkeley Partners has secured a $10.3 million acquisition loan for the Yorba Linda Business Park, a four-building flex industrial park totaling 115,760 square feet in Yorba Linda, California. HFF placed the 10-year, non-recourse loan with Michael McCool at Chase Commercial Mortgage Lending. The loan will have a fixed-rate for the first five years before converting to a floating-rate loan for the remaining five years. Loan proceeds were used to pay off a line of credit that was used to acquire the property 60 days before the loan closed.
PHOENIX—The Opus Group has acquired a mixed-use development in Tempe, AZ, for $15.2 million. The 115,325-square-foot development site, yet to be named, will include two high-rise apartment towers in Phase I. The 20-story and 12-story towers will have a total of 407 apartment units and more than 31,000 square feet of space for retail and restaurants that will front University Drive. Phase I project costs will total $160 million. Construction on the two high-rise apartment towers is underway on the former downtown Tempe parking lot. The apartments are scheduled to open to renters in the summer of 2018. The second phase of the mixed-use project and land sale is being designed to include a hotel that will be developed by a separate group on the remaining 25,000-square-foot corner parcel. Cushman & Wakefield team of Brent Moser, Mike Sutton and Brooks Griffith represented the seller in the deal.
BUILDING BLOCKS
LA JOLLA, CA—The University of California, San Diego awarded the second phase of construction on UC San Diego Nuevo West, part of the East Campus student housing program to the design-build team of Hensel Phelps | Mithun. The $142 million project is 442,000-square-foot Graduate Student Housing project that will house more than 880 beds and related amenity spaces in two main buildings. The design-build collaboration between Hensel Phelps and Mithun builds on the team's collaboration with the adjacent Mesa Nueva Graduate and Professional Student Housing project to create a new graduate research community. The team's collaborations also include the recently completed Mesa Court Towers for the University of California, Irvine (UCI).
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