Middle Market Digest: This Week in Southwest

Here's a look at this week's trends, announcements and deals that you may have missed in Southern California, Utah, Arizona and Nevada.

NEW & NOTABLE

SAN DIEGO—Dan Henry has joined CBRE as VP and will be part of the Healthcare team in San Diego, headed by Lars Eisenhauer. Prior to joining CBRE, Henry held several leadership positions at Pfizer Pharmaceuticals, Sanofi Aventis, Boehringer Ingelheim, and LipoScience. While at these companies, he was honored with three President Club Awards for ranking as one of the top producers nationally. As an industry leader, he worked throughout the San Diego region with many of the largest health systems in UC San Diego, Scripps Health, Sharp HealthCare, Palomar Health, and Kaiser Permanente. Henry earned his Bachelor of Science degree in Business Marketing and a Master's in Business Administration in Finance from the Eller College of Management at the University of Arizona.

PHOENIX—Karl Abert, has joined Kidder Mathews' Phoenix office where he has been named a senior vice president. Abert specializes in multifamily investment sales in the Phoenix market. Abert has over 25 years of commercial real estate experience. Before joining Kidder Mathews, he was a top producer with Newmark Knight Frank, ARA Newmark. Over the past 60 months, he has facilitated transaction sales in excess of $250 million. Clients he has represented include Birtcher Anderson, Brookhill Corporation, First Financial Bank and Interurban Communities.

IRVINE, CA—Ware Malcomb has named Anita Makwana director of corporate Accounts in the firm's Irvine, Calif.-based headquarters office. In her new role, Makwana assumes responsibility for managing Ware Malcomb's Corporate Accounts program, which comprises nearly 20% of its business. Ware Malcomb has completed projects for one in five companies listed on the Fortune 100. Ware Malcomb's Corporate Accounts program spans a variety of industries including office, financial, retail, industrial, education and restaurant across multiple markets. The program facilitates the delivery of consistent, integrated design services for clients, with both local, specialized staff and the vast companywide resources of a North American platform.

LOS ANGELES—James Malone has been named to the post of senior managing director for Colliers International and will oversee the firm's South Bay and West Los Angeles offices. A former vice president with developer Brookfield Properties and broker with JLL, Malone will partner with Hans Mumper in expanding Colliers' presence in both of those pivotal Los Angeles markets as the brokerage firm continues driving toward its stated goal of doubling the size of its business by the year 2020. The GLA Region includes Colliers' flagship office in Downtown Los Angeles, as well as offices in West Los Angeles, South Bay (El Segundo), Los Angeles North (Encino), Inland Empire (Ontario), Orange County (Irvine), Santa Clarita Valley (Valencia), and in the cities of Industry and Commerce.

PASADENA, CA—Alexandria Real Estate Equities has elevated Joel S. Marcus, chairman, chief executive officer and founder, to full-time executive chairman. Marcus co-founded Alexandria in 1994 and as CEO guided the company to its initial public offering (IPO) in 1997. Following his completion of two decades as the company's longstanding CEO, he achieved the uncommon industry milestone of seeing the company he founded reach its 20th anniversary as a New York Stock Exchange listed company.

LOS ANGELES—Hodges Ward Elliott has hired Samantha Fisher as a SVP. In her new role, Fisher will focus on securing new listings, executing on dispositions and developing new business for HWE as well as strengthen the HWE brokerage platform by further developing new and existing client relationships. A fifteen-year veteran of the hospitality investment sales profession, Fisher joins HWE after serving in a similar role with Jones Lang LaSalle in Los Angeles for nearly seven years. Throughout her career, she has overseen over $2 billion in hotel real estate transactions, including several high-profile deals in the Southern California region. Fisher is currently based in Los Angeles but will be relocating to the South Florida area in the fall and will focus will on securing and closing deals within the highly desirable Southeast Coastal hospitality market.

DEALTRACKER

TUCSON, AZ—Alpha Wave Investors has acquired Orange Tree Village, a 110-unit townhome-style multifamily property in the Casas Adobes neighborhood of Tucson, Arizona. The property, which is currently 85% occupied, was acquired in an off-market transaction at a significant discount to replacement cost, according to Jordan Fisher, a Founding Partner of Alpha Wave Investors. Alpha Wave will invest more than $2 million in capital upgrades at the property, including new paint and roofing, an upgraded pool and clubhouse, a new fitness center and children's playground, interior unit renovations, as well as a dog park.

LOS ANGELES—Charles Dunn Company has successfully negotiated a full-floor, 17,655-square-foot, five-year office lease on behalf of two non-profit organizations, APAIT and TransLatin@Coalition, at Wilshire Centre, a 12-story office building in the Mid-Wilshire submarket of Los Angeles. Senior Managing Director Chris Runyen of Charles Dunn Company represented the tenant. The landlord, Jamison Properties was self-represented by Jamie Park. APAIT/TransLatin@ recently moved its 40 employees into a full floor at Wilshire Centre, relocating from 14,000 square feet at 1730 West Olympic Boulevard. Built in 1974, Wilshire Centre is located at 3055 Wilshire Boulevard, which is just three miles west of Downtown Los Angeles and is near the intersection of Vermont and Wilshire Boulevard adjacent to the Vermont Metro station. The Class A property totals 215,582 square feet and features an on-site café and bank. With this most recent lease, the property is 94% occupied.

PHOENIX—Clear Sky Timberline LP has sold 102 units within Timberline Place Condominiums. Timberline Place Apartments, LLC, a partnership formed by Phoenix based Edgehill Investments and The Tanbic Company purchased the Flagstaff property for $18.6 million, $182,107 per unit. Executive managing directors Steven Nicoluzakis and David Fogler of Cushman & Wakefield Phoenix represented the seller in the transaction.

LAS VEGAS—Hamilton Zanze in a joint venture with Cantor Fitzgerald L.P. has acquired the 426-unit Arrow Canyon apartment community in Las Vegas, Nevada. Located north of the city, the $60 million purchase marks HZ's 11th investment in the Las Vegas metro area. The property has been rebranded Norterra Canyon Apartments and also transitioned to new management under Mission Rock Residential, an HZ property management affiliate. The acquisition was financed with a $30 million, ten-year, fixed rate loan from Cantor Commercial Real Estate in collaboration with Berkeley Point Capital. In addition to the Cantor Fitzgerald equity investment, affiliates of Cantor brokered and financed the acquisition, while affiliates of Hamilton Zanze co-invested in the equity.

SCOTTSDALE—DPC Companies has purchased 7 Thousand Shea, a mixed-use 145,000 square foot development in Scottsdale, Arizona, adjacent to beautiful Paradise Valley. ORION Investment Real Estate facilitated the sale for $16,000,000, or $110 per square foot. Well-situated on over 8.3 acres, 7 Thousand Shea sits near the premier Scottsdale Road and Shea Boulevard intersection. The property is located around some of the most expensive housing in the state with average home values in excess of $1M. It is adjacent to Paradise Valley and the highest concentration of million dollar homes and estates in the Southwest.

Los Angeles, CA—Agora Realty & Management has acquired a 6,857-square-foot property occupied by Citibank. The building is located at 13657 Van Nuys Blvd. at the corner of Van Nuys Blvd and Amboy Ave in Pacoima. Agora purchased the property from Citibank. The financial firm has entered into a 10-year sale-leaseback with Agora. The acquisition further builds on Agora's investment in the submarket. CBRE EVP Sterling Champ and senior associate Kyle Barrat represented Agora and Citibank in the transaction.  The two-story property features three drive-thru lanes. The Citibank branch is located on the first floor with additional private offices on the second floor. The property benefits from high visibility passed by nearly 30,000 vehicles per day.

LOS ANGELES—Berkadia today announced the $18.1 million sale of Artiste Portfolio, three multifamily properties located in Los Angeles, California. Senior Managing Director Brent Sprenkle of Berkadia's Los Angeles office led the portfolio sale on behalf of the seller, New York-based Urban Smart Growth. The buyer was Los Angeles-based Prana Investments, and the deals closed on March 7. Properties sold include: 5406 Lexington Ave. sold for $7.6 million at a per-unit price of $180,952, representing $303 per square-foot, a 4.55 percent cap rate and 12.81 GRM; 109 S Normandie Ave. sold for $5.75 million at $249 per-square-foot, $159,772 per-unit, a 4.55 percent cap rate and 12.07 GRM; 245 N Kenmore Ave. closed at $4.75 million with a 4.76 percent cap rate and 12.11 GRM. The buyer received a per-unit price of $158,333 at $308 per square-foot. Totaling 108-units, all three properties in the portfolio are conveniently located in northeast Los Angeles. Each offer convenient access to Route 101, Route 10 and Route 110.

PALM DESERT, CA—The Boulder Group has completed the sale of a single-tenant net leased Albertsons property located at 74590 CA-111, Palm Desert, CA for $15.1 million. The 62,462 square foot Alberstons is positioned along CA State Route 111.  The property is well situated on the primary east-west thoroughfare, which experiences more than 40,000 vehicles per day.  The property is located near a number of national retailers such as Target, Whole Foods, CVS, Best Buy, Westfield Palm Desert Mall and numerous country clubs.  The property is also located within close proximity to multiple residential communities, local businesses, and schools. There are over 44,666 people living within a three-mile radius of the property with an average annual household income in excess of $100,000. Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; a private real estate investment company based in the southwest. The buyer was a high net worth repeat 1031 investor.

LOS ANGELES—Bellwether Enterprise Real Estate Capital LLC has closed a $22.5 million refinancing loan on behalf of MDR Truss Campus located in the Marina Del Rey area of Los Angeles. After extensive renovations, the existing industrial buildings were converted into a unique collection of creative office space with a campus-like environment. The MDR Truss Campus consists of six separate buildings spread across 2.75 acres of land, featuring a total of 68,693 square feet of creative office space. The property boasts a central location within “Silicon Beach” that is walking distance from housing, entertainment, dining, and shopping options, including Villa Marina Shopping Center. Designed by an architect who has designed space for leading tech companies including Google, Apple, HBO, and LinkedIn, the campus features open floor plans with extensive glass, operable windows; large, glass roll-up doors; exposed bow-truss ceilings; and polished concrete floors. Two of the buildings also feature rooftop decks and the entire campus includes 179 parking spaces—an uncommon feature in the neighborhood. Thanks to the campus' prime location and top-notch design, the property was 100 percent pre-leased to its current three tenants during construction.

LOS ANGELES—Cushman & Wakefield announced today the signing of two new tenants, Formosa Group, and Rethink Leisure & Entertainment, to 250 E Olive Ave 'Hanhai Civic Plaza' in Downtown Burbank. Cushman & Wakefield director, Katie Bernhisel, and senior associate, Dillon Moscone, represented the landlord, Creative International Investment, Inc., in both transactions. Formosa Group was represented by Cushman & Wakefield Executive Vice Presidents Mark Robinson, and Arlene Sommer. Executive Vice President, Chris Keller and Partner, Chris DuMont, of Madison Partners represented Rethink Leisure & Entertainment. Formosa Group is a full service post-production sound company serving independent and studio filmmakers and content creators. The company has signed a seven-year lease for 8,834 rentable square feet.

LOS ANGELES, CA—Bridge Development Partners, LLC has sold three industrial properties totaling 224,000 square feet at Bridge Point Santa Fe Springs in Los Angeles County, California. Two of the buildings were completed as build-to-suit developments for the companies that acquired them, while the third was sold to a real estate investment firm. The site's long history as an abandoned dairy and the area's transition into an active industrial market attracted numerous developers who had attempted to purchase and redevelop the site. However, at least three other developers who put the site in escrow were unable to overcome the site's existing environmental history, design complexities, and lack of development entitlements. Bridge was able to remediate environmental concern on the site, which had operated as a dairy farm for sixty-five years, and creatively design an efficient, three-building site-plan that maximized coverage and created an efficient use of space that unlocked the value of the challenging site. Along the way they forged an excellent working relationship with the City of Santa Fe Springs. Bridge Point Santa Fe Springs offers immediate access to Interstate 5 and Interstate 605, which is the most efficient route from the Ports of Los Angeles and Long Beach, to the City of Commerce BNSF intermodal facility, as well as adjacency to CA-91 and Interstate 105, major east/west freeways.

LOS, ANGELES, CA—Amazon has signed a lease with Hackman Capital Partners, LLC for a 75,000-square-foot office portion of its new, mixed-use development, The Culver Steps. The dynamic, four-story project is situated at 9300 Culver Boulevard in downtown Culver City, California, directly adjacent to The Culver Studios, the iconic television and movie studio, where Amazon Studios has already begun moving into the historic mansion and bungalows. The company soon will expand into newly developed office space at The Culver Studios, occupying a total of approximately 280,000 square feet by 2020. Both The Culver Steps and The Culver Studios are owned by affiliates of Hackman Capital Partners.

BUILDING BLOCKS

GILBERT, AZ—Nationwide Realty Investors has completed two new 60,000-square- foot, two-story, class-A office buildings at Rivulon, the expansive master planned, mixed-use development located at the corner of Gilbert Road and the AZ 202. Morgan Stanley Smith Barney Financing LLC, an affiliate of the global financial services company, will move in July. Additional leases for the buildings at 111 and 161 E. Rivulon Blvd have been signed by Fairway Independent Mortgage Corporation, Security Title Agency, and Miller Financial Group.

CHANDLER—The Statesman Group has completed the second phase of construction at The Cays at Downtown Ocotillo that will be unveiled during an opening event at the $90 million community located within the sought-after Ocotillo neighborhood in Chandler. The second phase includes the expansive 9,500 square-foot clubhouse and two new model homes. Already 50 percent of the 70 homes in the second phase, priced from the mid-$200Ks, are sold and owners started moving in earlier this month. Just seven of the 76 homes in the first phase remain before sell-out. Two additional future phases are planned to include 64 more residences for a total of 278 homes. Residents have access to an expansive offering of resort-style amenities at The Cays including the brand-new clubhouse that features a gourmet community kitchen, two-sided fireplace, a media center and social lounge, yoga studio, billiards and shuffleboard located at the heart of the property. Other amenities include an 1,800 square-foot fitness center with locker rooms and private steam showers, year-round heated swimming pool surrounded by private cabanas, an outdoor kitchen with gas BBQs and a bar, fireplaces and lush landscaping.

PHOENIX—Cushman & Wakefield and ViaWest Group have announced that PODS Moving and Storage will be moving into the 106,000-square-foot, build-to-suit at AZ 202 Commerce Center. PODS purchased the land in 2017 from ViaWest Group for $2.15 million. ViaWest Group developed the building, with Alexander Building Company as the general contractor. ViaWest and Alexander have formed a company, Konstruct Design˖Build for office, industrial and retail build-to-suits.  Mike Haenel, Andy Markham, Will Strong and Phil Haenel of Cushman & Wakefield brokered the transaction on behalf of ViaWest Group and Aric Adams of Kidder Matthews represented PODS.