Middle Market Digest: Southwest

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—Fidelity National Title Agency has promoted assistant VP Jodi Ayala to the position of Escrow Branch Manager of the newly formed Biltmore Lakes branch office, 2720 E. Camelback Rd., Suite 100, in Phoenix. Ayala, who has been with Fidelity National Title Agency for nine years, most recently served as Assistant Branch Manager of Fidelity's Scottsdale Kierland office. Ayala is responsible for the day-to- day operations of the branch, overseeing the overall profitability of the branch, as well as training and coaching her team. As an escrow officer, she specializes in the residential segment of real estate, focusing on resale, refinance, investor, and builder transactions.

LOS ANGELES—Tangram Interiors has hired Ricky Wolter as a new sales executive for the Inland Empire territory out of the firm's Riverside office. Wolter brings 15 years of experience in the commercial furniture industry to Tangram, including the position of Furniture Sales Executive for Business Interiors by Staples, serving lower Los Angeles and the Inland Empire. He also served as a Strategic Furniture Group Account Executive in the Riverside office of KI, a manufacturer of furniture and movable wall systems for the education, healthcare, government and corporate markets. The addition of Wolter to the operation is part of a strategic expansion by Tangram in the Inland Empire region. The expansion plan includes a focus on healthcare and educational facilities, based on successful project engagements with customers such as Kaiser Permanente, Riverside Community College and the Corona-Norco Unified School District.

DEALTRACKER

SANTA MONICA—Douglas Emmett has acquired 9665 Wilshire Boulevard, a 171,000 square foot Class-A office property for $177 million.  The 85% leased property is located in the heart of the Beverly Hills golden triangle, immediately adjacent to world class restaurants and retail amenities.  This acquisition increases Douglas Emmett's ownership share of the Beverly Hills Class-A office market to over 25%.  The property will be held by an existing consolidated joint venture with institutional investors including Qatar Investment Authority.  The same consolidated joint venture also acquired 1299 Ocean Avenue and 429 Santa Monica Boulevard in April 2017.  A portion of the purchase price was provided by a $77.5 million secured, non-recourse interest only loan to the joint venture that matures July 2019 and bears interest at Libor plus 1.55%.  Douglas Emmett provided 20% of the equity capital and manages the joint venture.

LOS ANGELES—Lion Real Estate Group has sold a two building, 54 unit apartment community located at 118-124 Westmoreland Blvd. in Los Angeles, California.  Los Angeles-based RVT Capital acquired the property for $9.1 million. Lion Real Estate Group acquired the property in 2015 for approximately $130 per square foot as part of a portfolio acquisition.  Following the acquisition, the company's renovation included new exterior paint, new paint in common area hallways, new common area flooring, upgraded lights fixtures and updated landscaping.

PHOENIX—A Colorado investor has purchased the Raintree apartment community at 6450 E. Golf Links Rd. for $12.5 million. The company acquired the property as an expansion of its existing Arizona real estate portfolio. Colorado-based SPL Real Estate and Management Company purchased the community from Summit Raintree, LLC, a Delaware limited liability company. Koskovich, Bill Hahn and Jesse Hudson of Colliers International in Greater Phoenix handled the sale transaction. Raintree was built in 1983 and was 96 percent occupied at the time of the sale. Situated on 10.18 acres of land, the community features 20 two-story buildings of apartment homes. The property contains 364 units ranging from 327-square- foot studios to 928-square-foot two-bedroom apartments. Raintree offers a total of 145,456 square feet of space.

LOS ANGELES—Continental Partners has successfully secured $9.7 million in permanent financing for Ten38 Lofts, a 32-unit, American Institute of Architects award-winning multifamily property in the Koreatown submarket of Los Angeles, California. The financing was arranged by Continental Partners Director Zalmi Klyne. The sponsor, a private multifamily investor, had requested a permanent loan to refinance an existing construction loan for the property. Constructed in 2016, the multifamily community offers spectacular 360° views from its rooftop garden, granting visibility to the downtown skyline as well as the Westside, according to Klyne. Continental Partners provided a number of comps to justify market demand and net absorption for luxury units in the area. At the time of application, the property was 75% occupied; at the time of close, it was nearly fully-leased at 95% occupancy.

SAN DIEGO—Marcus & Millichap has brokered the sale of Rodeway Inn San Diego, near Qualcomm Stadium, a 63-room hospitality property located in San Diego, CA, according to James Brian Markel, regional manager of the firm's Encino office. The asset sold for $7.5. Joshua Yammer, an associate, Sarhan Mheni, a VP of Investments and Walter Brauer, VP of Investments in Marcus & Millichap's Encino office, had the exclusive listing to market the property on behalf of the seller, a partnership.

LOS ANGELES—George Smith Partners has successfully secured $21.6 million in ground-up construction financing for the development of 35 for-sale condominium units and 2,000 square feet of ground-floor retail space in the Silver Lake neighborhood of Los Angeles, California. The financing was arranged by George Smith Partners' Managing Director Jonathan Lee. The project, developed by a joint-venture between Barth Partners and Barry Leddy Developments, will be the first new luxury condominium development built in the Silver Lake submarket since the Recession, according to Lee.

PHOENIX—Luke Donahue, SVP and senior director of NorthMarq Capital's Phoenix regional office, provided the $13.3 million refinance for Azul Apartments, a 227-unit multifamily property located at 8111 N. 19th Avenue Phoenix, Arizona. The full term interest-only loan was funded by NorthMarq's Fannie Mae platform.

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—Fidelity National Title Agency has promoted assistant VP Jodi Ayala to the position of Escrow Branch Manager of the newly formed Biltmore Lakes branch office, 2720 E. Camelback Rd., Suite 100, in Phoenix. Ayala, who has been with Fidelity National Title Agency for nine years, most recently served as Assistant Branch Manager of Fidelity's Scottsdale Kierland office. Ayala is responsible for the day-to- day operations of the branch, overseeing the overall profitability of the branch, as well as training and coaching her team. As an escrow officer, she specializes in the residential segment of real estate, focusing on resale, refinance, investor, and builder transactions.

LOS ANGELES—Tangram Interiors has hired Ricky Wolter as a new sales executive for the Inland Empire territory out of the firm's Riverside office. Wolter brings 15 years of experience in the commercial furniture industry to Tangram, including the position of Furniture Sales Executive for Business Interiors by Staples, serving lower Los Angeles and the Inland Empire. He also served as a Strategic Furniture Group Account Executive in the Riverside office of KI, a manufacturer of furniture and movable wall systems for the education, healthcare, government and corporate markets. The addition of Wolter to the operation is part of a strategic expansion by Tangram in the Inland Empire region. The expansion plan includes a focus on healthcare and educational facilities, based on successful project engagements with customers such as Kaiser Permanente, Riverside Community College and the Corona-Norco Unified School District.

DEALTRACKER

SANTA MONICA—Douglas Emmett has acquired 9665 Wilshire Boulevard, a 171,000 square foot Class-A office property for $177 million.  The 85% leased property is located in the heart of the Beverly Hills golden triangle, immediately adjacent to world class restaurants and retail amenities.  This acquisition increases Douglas Emmett's ownership share of the Beverly Hills Class-A office market to over 25%.  The property will be held by an existing consolidated joint venture with institutional investors including Qatar Investment Authority.  The same consolidated joint venture also acquired 1299 Ocean Avenue and 429 Santa Monica Boulevard in April 2017.  A portion of the purchase price was provided by a $77.5 million secured, non-recourse interest only loan to the joint venture that matures July 2019 and bears interest at Libor plus 1.55%.  Douglas Emmett provided 20% of the equity capital and manages the joint venture.

LOS ANGELES—Lion Real Estate Group has sold a two building, 54 unit apartment community located at 118-124 Westmoreland Blvd. in Los Angeles, California.  Los Angeles-based RVT Capital acquired the property for $9.1 million. Lion Real Estate Group acquired the property in 2015 for approximately $130 per square foot as part of a portfolio acquisition.  Following the acquisition, the company's renovation included new exterior paint, new paint in common area hallways, new common area flooring, upgraded lights fixtures and updated landscaping.

PHOENIX—A Colorado investor has purchased the Raintree apartment community at 6450 E. Golf Links Rd. for $12.5 million. The company acquired the property as an expansion of its existing Arizona real estate portfolio. Colorado-based SPL Real Estate and Management Company purchased the community from Summit Raintree, LLC, a Delaware limited liability company. Koskovich, Bill Hahn and Jesse Hudson of Colliers International in Greater Phoenix handled the sale transaction. Raintree was built in 1983 and was 96 percent occupied at the time of the sale. Situated on 10.18 acres of land, the community features 20 two-story buildings of apartment homes. The property contains 364 units ranging from 327-square- foot studios to 928-square-foot two-bedroom apartments. Raintree offers a total of 145,456 square feet of space.

LOS ANGELES—Continental Partners has successfully secured $9.7 million in permanent financing for Ten38 Lofts, a 32-unit, American Institute of Architects award-winning multifamily property in the Koreatown submarket of Los Angeles, California. The financing was arranged by Continental Partners Director Zalmi Klyne. The sponsor, a private multifamily investor, had requested a permanent loan to refinance an existing construction loan for the property. Constructed in 2016, the multifamily community offers spectacular 360° views from its rooftop garden, granting visibility to the downtown skyline as well as the Westside, according to Klyne. Continental Partners provided a number of comps to justify market demand and net absorption for luxury units in the area. At the time of application, the property was 75% occupied; at the time of close, it was nearly fully-leased at 95% occupancy.

SAN DIEGO—Marcus & Millichap has brokered the sale of Rodeway Inn San Diego, near Qualcomm Stadium, a 63-room hospitality property located in San Diego, CA, according to James Brian Markel, regional manager of the firm's Encino office. The asset sold for $7.5. Joshua Yammer, an associate, Sarhan Mheni, a VP of Investments and Walter Brauer, VP of Investments in Marcus & Millichap's Encino office, had the exclusive listing to market the property on behalf of the seller, a partnership.

LOS ANGELES—George Smith Partners has successfully secured $21.6 million in ground-up construction financing for the development of 35 for-sale condominium units and 2,000 square feet of ground-floor retail space in the Silver Lake neighborhood of Los Angeles, California. The financing was arranged by George Smith Partners' Managing Director Jonathan Lee. The project, developed by a joint-venture between Barth Partners and Barry Leddy Developments, will be the first new luxury condominium development built in the Silver Lake submarket since the Recession, according to Lee.

PHOENIX—Luke Donahue, SVP and senior director of NorthMarq Capital's Phoenix regional office, provided the $13.3 million refinance for Azul Apartments, a 227-unit multifamily property located at 8111 N. 19th Avenue Phoenix, Arizona. The full term interest-only loan was funded by NorthMarq's Fannie Mae platform.