Middle Market Digest: Southwest

LOS ANGELES— 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

PHOENIX—X Team International has voted Dave Cheatham as president. In the new role, Cheatham will lead the nine-member Board of Directors team to provide increased opportunities for the partner offices to grow their business development platforms and expand client relationships throughout the network. Cheatham also serves as the president of X Team International partner Velocity Retail Group headquartered in Phoenix, a commercial real estate brokerage firm providing a full range of services to owners and occupiers of retail real estate throughout the west. With more than 30 years of experience, Cheatham has transacted more than $3 billion of retail transactions for many nationally known retailers and owners

CALABASAS, CA—Marcus & Millichap Capital Corp., a division of Marcus & Millichap, has broadened its network of lenders through a proprietary preferred correspondent agreement with PGIM Real Estate Finance, the commercial mortgage business of PGIM, the trillion-dollar global investment management business of Prudential Financial, for the purpose of originating agency eligible and other types of multifamily loans on a nationwide basis. A key objective of the two companies working together is to provide middle-market and institutional multifamily clients, serviced by Marcus & Millichap's senior brokers and its institutional division, IPA, access to PGIM's full scope of capital options.

PHOENIX— Valley Partnership has named Brett Hopper, Development Consultant at The OPUS Group, as its 2017 Chair. The commercial real estate industry group also named new board members representing Pederson Group, Land Advisors, Hines, City of Phoenix, and Macerich.

DENVER—Mission Rock Residential continues to accelerate company growth in 2017 within Colorado and Arizona, adding to the established presence in those submarkets. Mission Rock Residential has been named property manager of Covington Ridge Apartments (Thornton, Colorado), Sienna at Cherry Creek Apartments (Denver, Colorado), and Fairways at Cave Creek Apartments (Phoenix, Arizona) on behalf of Starwood Capital Group. In addition to these three properties, Mission Rock also manages Downtown Belmar in Lakewood, Colorado for Starwood. The properties consist of 812 units collectively and offer one-, two-, and three-bedroom spacious floor plans. Both Covington Ridge and Sienna at Cherry Creek include a washer and dryer with each apartment as well as gas fireplaces and a private patio or balcony. Fairways at Cave Creek includes recent renovations such as wood-style flooring, walk-in closets, and golf course views. Each community features a swimming pool, fitness center, and a BBQ/picnic area.

DEALTRACKER

INLAND EMPIRE, CA—Newcastle Partners has started construction on two industrial facilities totaling 570,000 square feet in the Inland Empire cities of Riverside and Chino. Meridian Distribution Center II totals 503,500 square feet and is situated on a 26.93-acre land parcel at 22000 Opportunity Way in Riverside. Completion is anticipated for summer 2017 and its value upon build-out is estimated to be approximately $38 million. The Class A industrial facility will include 88 dock high doors, two ground-level doors, 150 trailer parking stalls, and 217 car parking spaces. It offers immediate access to the 215 freeway and corporate neighbors include Sysco Corp., Kia Motors, UPS, and Kraft Foods. Phil Lombardo, Chuck Belden, and Andrew Starnes of Cushman & Wakefield's Ontario office are responsible for marketing the asset for lease. The second facility totals 71,000 square feet and is situated on approximately 3.6 acres of land at 5490 Schaefer Avenue in Chino. Completion is anticipated for fall 2017 and its value upon build-out is estimated to be approximately $10.3 million. The facility will consist of a state-of-the-art concrete tilt-up, high cube warehouse/distribution building and is convenient to the 71 and 60 freeways. Patrick Bogan and Steve Coulter of Lee and Associates are responsible for marketing the asset for lease.

PHOENIX—BKM Capital Partners has acquired Northwest Business Center, an 11-building  multi-tenant light industrial business park totaling 227,603 square feet in Phoenix, Arizona for $17.2 million. This is BKM's 12th acquisition in the Phoenix metro bringing its holdings to more than 2.1 million square feet in the area.

LOS ANGELES—George Smith Partners has secured $30 million in refinancing on behalf of Optimus Properties for Plaza de Hacienda, a 156,000 square-foot grocery-anchored retail center in the La Puente submarket of Los Angeles. The financing was arranged by George Smith Partners Principal and Managing Director Shahin Yazdi. George Smith Partners was successful in attracting competitive refinancing for this center, which is anchored by Food 4 Less, and boasts national and credit tenants such as Ross, Big 5 and Jack in the Box, among others. The sponsor had requested a fixed-rate loan with the goal of refinancing its maturing loan for this regional retail center.

NEWPORT BEACH, CA—An unnamed borrower has secured $81.337 million in acquisition/bridge financing for Fairmont Newport Beach, a 444-room, full-service, AAAA-Diamond award-winning hotel in the Southern California community of Newport Beach, California. HFF worked on behalf of the borrower to place the three-year, floating-rate loan with Aareal Bank. Loan proceeds will be used to purchase the hotel and implement a property improvement plan that will include rebranding it as a Marriott Renaissance Hotel, Marriott's upscale lifestyle hotel brand. The HFF debt placement team representing the borrower was led by managing director James Fowler.
IRVINE, CA—Toshiba America has signed a lease for 96,000 square feet at University Research Park, owned by the Irvine Company. Toshiba America will move its electronics components, information systems and logistics companies to the campus, which is in the midst of a significant reinvestment. With Broadcom's plans to move from University Research Park in 2018, companies have a once-in-a-generation opportunity to lease space next to the world-renowned research university in the region's tightest and most tech-focused submarket. The 185-acre office park is currently home to more than 75 companies and more than 8,000 employees. The park, along with the 5,000-acre Irvine Spectrum, are quickly becoming known as the next emerging innovation hub where research, technology, funding, STEM graduates and inventions converge.

LOS ANGELES— 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

PHOENIX—X Team International has voted Dave Cheatham as president. In the new role, Cheatham will lead the nine-member Board of Directors team to provide increased opportunities for the partner offices to grow their business development platforms and expand client relationships throughout the network. Cheatham also serves as the president of X Team International partner Velocity Retail Group headquartered in Phoenix, a commercial real estate brokerage firm providing a full range of services to owners and occupiers of retail real estate throughout the west. With more than 30 years of experience, Cheatham has transacted more than $3 billion of retail transactions for many nationally known retailers and owners

CALABASAS, CA—Marcus & Millichap Capital Corp., a division of Marcus & Millichap, has broadened its network of lenders through a proprietary preferred correspondent agreement with PGIM Real Estate Finance, the commercial mortgage business of PGIM, the trillion-dollar global investment management business of Prudential Financial, for the purpose of originating agency eligible and other types of multifamily loans on a nationwide basis. A key objective of the two companies working together is to provide middle-market and institutional multifamily clients, serviced by Marcus & Millichap's senior brokers and its institutional division, IPA, access to PGIM's full scope of capital options.

PHOENIX— Valley Partnership has named Brett Hopper, Development Consultant at The OPUS Group, as its 2017 Chair. The commercial real estate industry group also named new board members representing Pederson Group, Land Advisors, Hines, City of Phoenix, and Macerich.

DENVER—Mission Rock Residential continues to accelerate company growth in 2017 within Colorado and Arizona, adding to the established presence in those submarkets. Mission Rock Residential has been named property manager of Covington Ridge Apartments (Thornton, Colorado), Sienna at Cherry Creek Apartments (Denver, Colorado), and Fairways at Cave Creek Apartments (Phoenix, Arizona) on behalf of Starwood Capital Group. In addition to these three properties, Mission Rock also manages Downtown Belmar in Lakewood, Colorado for Starwood. The properties consist of 812 units collectively and offer one-, two-, and three-bedroom spacious floor plans. Both Covington Ridge and Sienna at Cherry Creek include a washer and dryer with each apartment as well as gas fireplaces and a private patio or balcony. Fairways at Cave Creek includes recent renovations such as wood-style flooring, walk-in closets, and golf course views. Each community features a swimming pool, fitness center, and a BBQ/picnic area.

DEALTRACKER

INLAND EMPIRE, CA—Newcastle Partners has started construction on two industrial facilities totaling 570,000 square feet in the Inland Empire cities of Riverside and Chino. Meridian Distribution Center II totals 503,500 square feet and is situated on a 26.93-acre land parcel at 22000 Opportunity Way in Riverside. Completion is anticipated for summer 2017 and its value upon build-out is estimated to be approximately $38 million. The Class A industrial facility will include 88 dock high doors, two ground-level doors, 150 trailer parking stalls, and 217 car parking spaces. It offers immediate access to the 215 freeway and corporate neighbors include Sysco Corp., Kia Motors, UPS, and Kraft Foods. Phil Lombardo, Chuck Belden, and Andrew Starnes of Cushman & Wakefield's Ontario office are responsible for marketing the asset for lease. The second facility totals 71,000 square feet and is situated on approximately 3.6 acres of land at 5490 Schaefer Avenue in Chino. Completion is anticipated for fall 2017 and its value upon build-out is estimated to be approximately $10.3 million. The facility will consist of a state-of-the-art concrete tilt-up, high cube warehouse/distribution building and is convenient to the 71 and 60 freeways. Patrick Bogan and Steve Coulter of Lee and Associates are responsible for marketing the asset for lease.

PHOENIX—BKM Capital Partners has acquired Northwest Business Center, an 11-building  multi-tenant light industrial business park totaling 227,603 square feet in Phoenix, Arizona for $17.2 million. This is BKM's 12th acquisition in the Phoenix metro bringing its holdings to more than 2.1 million square feet in the area.

LOS ANGELES—George Smith Partners has secured $30 million in refinancing on behalf of Optimus Properties for Plaza de Hacienda, a 156,000 square-foot grocery-anchored retail center in the La Puente submarket of Los Angeles. The financing was arranged by George Smith Partners Principal and Managing Director Shahin Yazdi. George Smith Partners was successful in attracting competitive refinancing for this center, which is anchored by Food 4 Less, and boasts national and credit tenants such as Ross, Big 5 and Jack in the Box, among others. The sponsor had requested a fixed-rate loan with the goal of refinancing its maturing loan for this regional retail center.

NEWPORT BEACH, CA—An unnamed borrower has secured $81.337 million in acquisition/bridge financing for Fairmont Newport Beach, a 444-room, full-service, AAAA-Diamond award-winning hotel in the Southern California community of Newport Beach, California. HFF worked on behalf of the borrower to place the three-year, floating-rate loan with Aareal Bank. Loan proceeds will be used to purchase the hotel and implement a property improvement plan that will include rebranding it as a Marriott Renaissance Hotel, Marriott's upscale lifestyle hotel brand. The HFF debt placement team representing the borrower was led by managing director James Fowler.
IRVINE, CA—Toshiba America has signed a lease for 96,000 square feet at University Research Park, owned by the Irvine Company. Toshiba America will move its electronics components, information systems and logistics companies to the campus, which is in the midst of a significant reinvestment. With Broadcom's plans to move from University Research Park in 2018, companies have a once-in-a-generation opportunity to lease space next to the world-renowned research university in the region's tightest and most tech-focused submarket. The 185-acre office park is currently home to more than 75 companies and more than 8,000 employees. The park, along with the 5,000-acre Irvine Spectrum, are quickly becoming known as the next emerging innovation hub where research, technology, funding, STEM graduates and inventions converge.