Middle Market Digest: Southwest

LOS ANGELES— Our bi-weekly update on the middle markets throughout the Southwest region. Here's a look at the latest news, announcements and deals that you may have missed in Southern California, Nevada, Arizona and Utah.

NEW & NOTABLE

SAN DIEGO—Zephyr has promoted Amber Frankhuizen to VP of sales and marketing. In this new role, Frankhuizen will continue to communicate the firm's projects and achievements with the public, while also promoting Zephyr's unique brand attributes. She formerly served as director of marketing and has extensive experience in real estate sales, marketing and project management, and oversees the sales and marketing efforts for several of Zephyr's new developments, including The Park, Bankers Hill, 60 luxury condos and townhomes being built adjacent to Balboa Park in Bankers Hill; SummerHouse Carlsbad, high-end ocean and lagoon view condos; and South Cove, a premier barefoot community of 168 luxury residences under construction in Dana Point.

SAN DIEGO—Sudberry Properties' West Park at Civita was honored with one of the nation's top architectural awards:  the Gold Award for Best Architectural Design of an Attached Community” at The Nationals, a competition sponsored by The National Association of Home Builders and presented at the organization's convention in Orlando, Florida, last week. Sudberry Properties, the master developer of the 230-acre urban village of Civita, developed West Park at Civita with design and construction team consisted of architects Newman Garrison + Partners, landscape architects Lifescapes International, Inc., and general contractors Coyle Residential and Reno Contracting. The 612-unit West Park community, which opened in 2015, has been lauded for its resort-style amenities, sustainable features and stylish architecture.

LOS ANGELES—Coldwell Banker Commercial WESTMAC has promoted Timothy C. Macker, Jr., from EVP and Managing Director to President and Managing Director. Concurrently, Timothy C. Macker, Sr. will become CEO. Macker, Jr., Macker, Sr. and Jim Bailey, Senior Vice President and General Manager, comprise the three-person executive team that manages the company.

DEALTRACKER

LOS ANGELES—The Deccan Villas, a 39-unit multifamily investment real estate asset located in West Hollywood, California, has traded hands for $15.6 million, which equates to $400,000 per unit. The apartment building is located within one of Los Angeles' trendiest areas at 1533 North Martel Ave., just north of Sunset Boulevard between Fairfax Avenue and La Brea Avenue. There are many dining, shopping, and entertainment destinations within walking distance and Century City, Beverly Hills, Hollywood and Downtown Los Angeles are within a short commute. Tony Azzi, along with Jordan Asheghian and Adi Mizrahi of Azzi Advisors, represented the seller and procured the buyer, both of whom are private investors.

NORTHRIDGE, CA—Michael S. Tanner, EVP of PSRS, recently closed a deal to refinance a $25M loan for Lassen and Northridge Garden Associates, sponsored by Garden Communities, for two apartment complexes originally built in 1985 with 252 units which are nearly 100% occupied, and include close to 2 parking spaces per unit. Aside from being next to California State University Northridge, the property is located in one of the densest residential areas, with a large student population, in the San Fernando Valley. The 5-year loan amortizes in 30 years and was priced at 1.95% over LIBOR.

PHOENIX—Bethany Towne Center, located at the northeast corner of Bethany Home Road and 35th Avenue in Phoenix, sold for $41.3 million to an entity formed by Manhattan-based Goldman Sachs & Co. Cushman & Wakefield Executive Managing Directors Michael Hackett and Ryan Schubert represented the seller, PDG America Shopping Centers, LLC of Irving, Texas. Bethany Towne Center consists of 305,742 square feet of retail space, which was 92.3% leased at the time of sale to a complimentary collection of retailers. Walmart Supercenter anchors the shopping center, and makes up 67.5% of the gross leasable area. The remaining tenants, 95% of which are national/credit tenants, include Denny's Wendy's, Sonic, YouFit Health Clubs, Payless Shoes and Starbucks, among others.

SAN DIEGO—Vista Investment Group LLC has acquired the 80-unit La Mesa Palms multifamily community at 4300 Echo Court for $18.97 million from a family investor. The sale marks the Los Angeles-based real estate investment firm's entry into the San Diego market. The garden-style apartment complex consists of 20 four-plex buildings with spacious two- and three-bedroom units that average 1,100 sf.  The property was 92.5 percent occupied at the time of closing. The current low in-place rents, large unit size, and its location, makes this project has tremendous upside potential and represents an excellent value-add opportunity.

LONG BEACH, CA—Stepp Commercial has completed the $9.7 million sale of Ocean Plaza, a 44-unit apartment property within the East Village Arts District of Downtown Long Beach. The property closed at a 4.2 percent cap rate and a price per unit of $220,455. Built in 1956 and located at 633 E. 1st Street on just over one-half acre, the property consists of three, two-story buildings with a pool in its center courtyard and offers 18 one-bedroom units and 26 studio units. The property recently underwent light renovations, including remodeled kitchens. Robert Stepp, principal of Stepp Commercial, represented the seller, Santa Monica-based Joda Investments, as well as the Westchester, Calif.-based private buyer.

LOS ANGELES— Our bi-weekly update on the middle markets throughout the Southwest region. Here's a look at the latest news, announcements and deals that you may have missed in Southern California, Nevada, Arizona and Utah.

NEW & NOTABLE

SAN DIEGO—Zephyr has promoted Amber Frankhuizen to VP of sales and marketing. In this new role, Frankhuizen will continue to communicate the firm's projects and achievements with the public, while also promoting Zephyr's unique brand attributes. She formerly served as director of marketing and has extensive experience in real estate sales, marketing and project management, and oversees the sales and marketing efforts for several of Zephyr's new developments, including The Park, Bankers Hill, 60 luxury condos and townhomes being built adjacent to Balboa Park in Bankers Hill; SummerHouse Carlsbad, high-end ocean and lagoon view condos; and South Cove, a premier barefoot community of 168 luxury residences under construction in Dana Point.

SAN DIEGO—Sudberry Properties' West Park at Civita was honored with one of the nation's top architectural awards:  the Gold Award for Best Architectural Design of an Attached Community” at The Nationals, a competition sponsored by The National Association of Home Builders and presented at the organization's convention in Orlando, Florida, last week. Sudberry Properties, the master developer of the 230-acre urban village of Civita, developed West Park at Civita with design and construction team consisted of architects Newman Garrison + Partners, landscape architects Lifescapes International, Inc., and general contractors Coyle Residential and Reno Contracting. The 612-unit West Park community, which opened in 2015, has been lauded for its resort-style amenities, sustainable features and stylish architecture.

LOS ANGELES—Coldwell Banker Commercial WESTMAC has promoted Timothy C. Macker, Jr., from EVP and Managing Director to President and Managing Director. Concurrently, Timothy C. Macker, Sr. will become CEO. Macker, Jr., Macker, Sr. and Jim Bailey, Senior Vice President and General Manager, comprise the three-person executive team that manages the company.

DEALTRACKER

LOS ANGELES—The Deccan Villas, a 39-unit multifamily investment real estate asset located in West Hollywood, California, has traded hands for $15.6 million, which equates to $400,000 per unit. The apartment building is located within one of Los Angeles' trendiest areas at 1533 North Martel Ave., just north of Sunset Boulevard between Fairfax Avenue and La Brea Avenue. There are many dining, shopping, and entertainment destinations within walking distance and Century City, Beverly Hills, Hollywood and Downtown Los Angeles are within a short commute. Tony Azzi, along with Jordan Asheghian and Adi Mizrahi of Azzi Advisors, represented the seller and procured the buyer, both of whom are private investors.

NORTHRIDGE, CA—Michael S. Tanner, EVP of PSRS, recently closed a deal to refinance a $25M loan for Lassen and Northridge Garden Associates, sponsored by Garden Communities, for two apartment complexes originally built in 1985 with 252 units which are nearly 100% occupied, and include close to 2 parking spaces per unit. Aside from being next to California State University Northridge, the property is located in one of the densest residential areas, with a large student population, in the San Fernando Valley. The 5-year loan amortizes in 30 years and was priced at 1.95% over LIBOR.

PHOENIX—Bethany Towne Center, located at the northeast corner of Bethany Home Road and 35th Avenue in Phoenix, sold for $41.3 million to an entity formed by Manhattan-based Goldman Sachs & Co. Cushman & Wakefield Executive Managing Directors Michael Hackett and Ryan Schubert represented the seller, PDG America Shopping Centers, LLC of Irving, Texas. Bethany Towne Center consists of 305,742 square feet of retail space, which was 92.3% leased at the time of sale to a complimentary collection of retailers. Walmart Supercenter anchors the shopping center, and makes up 67.5% of the gross leasable area. The remaining tenants, 95% of which are national/credit tenants, include Denny's Wendy's, Sonic, YouFit Health Clubs, Payless Shoes and Starbucks, among others.

SAN DIEGO—Vista Investment Group LLC has acquired the 80-unit La Mesa Palms multifamily community at 4300 Echo Court for $18.97 million from a family investor. The sale marks the Los Angeles-based real estate investment firm's entry into the San Diego market. The garden-style apartment complex consists of 20 four-plex buildings with spacious two- and three-bedroom units that average 1,100 sf.  The property was 92.5 percent occupied at the time of closing. The current low in-place rents, large unit size, and its location, makes this project has tremendous upside potential and represents an excellent value-add opportunity.

LONG BEACH, CA—Stepp Commercial has completed the $9.7 million sale of Ocean Plaza, a 44-unit apartment property within the East Village Arts District of Downtown Long Beach. The property closed at a 4.2 percent cap rate and a price per unit of $220,455. Built in 1956 and located at 633 E. 1st Street on just over one-half acre, the property consists of three, two-story buildings with a pool in its center courtyard and offers 18 one-bedroom units and 26 studio units. The property recently underwent light renovations, including remodeled kitchens. Robert Stepp, principal of Stepp Commercial, represented the seller, Santa Monica-based Joda Investments, as well as the Westchester, Calif.-based private buyer.