(Save the date: RealShare Apartments comes to the Westin Bonaventure, Los Angeles, October 24.)
GREENWOOD VILLAGE, CO-Griffin Capital Corp., on behalf of Griffin Capital Net Lease REIT Inc., has acquired the three-story, roughly 131,000-square-foot office property here that is fully occupied by the Travelers Indemnity Co. for $16.1 million from an undisclosed seller. The property serves as the tenant’s Denver regional headquarters facility and is subject to a recently executed 12-year lease extension. The new, triple-net lease extension provides 4% average annual increases over the 12-year lease term; Travelers has occupied the property since 2005. The building, located within the Denver Technology Center master-planned community, has had more than $5 million of capital improvements during the past seven years, including the addition of a two-level parking structure.
SUNNYVALE, CA-Terreno Realty Corp. has acquired three multi-tenant industrial buildings containing approximately 172,000 square feet for approximately $33.7 million from an undisclosed seller. Two R&D buildings aggregating approximately 101,000 square feet are at 904 East Caribbean Dr. and 1339 Moffett Park Dr. and one distribution building of approximately 71,000 square feet is at 914-918 East Caribbean Dr., within Silicon Valley’s Moffett Park submarket. The properties are adjacent to Highways 237 and 101 and are 100% leased to two tenants: Cepheid Inc. and RAE Systems Inc. The estimated stabilized cap rate of the property is 7.1%.
SANTA ROSA, CA-A closely held limited partnership has sold Oak Creek Apartments, a 100-unit apartment complex, for $15 million to a local family partnership. Marcus & Millichap Real Estate Investment Services brokered the sale, which equates to $150,000 per unit and $189 per square foot. Brad Pennington, a first VP investments in M&M’s San Francisco office, represented both parties in the transaction. Built in 1988, the 79,256-square-foot complex is located at 174 South Boas Drive in the Rincon Valley neighborhood.
DENVER-George Smith Partners has arranged $10.9 million in financing on behalf of Bruckal Properties Inc., for the acquisition and rehabilitation of Wellshire Arms Apartments, a 107-unit, upscale multifamily high-rise in here. GSP’s VP Malcolm Davies was assisted by VP Michelle Lee in the transaction, which included $10.9 million in debt and $4.3 million in equity. Bruckal intends to modernize the well-known building with new elevators, roofing, and exterior paint, as well as renovate the building’s units and common area spaces using a portion of the financing secured by GSP. The senior, non-recourse loan closed at one-month LIBOR +575 with a 6.5 percent floor for 36 months, and included an amortization of 25 years with a two year IO and a 74 percent loan-to-close ratio. On the purchase, Bruckal is partnering with Pathfinder Partners LLC, a San Diego-based firm specializing in opportunistic investments in distressed real estate assets and defaulted loans. Pathfinder also recently purchased Le Park Apartments, a group of six two-story buildings built in 1948 in a spacious, garden-style setting on 1.25 acres in Long Beach, CA. The property will be renamed “Bixby Park Apartments,” and a $600,000 ($15,000/unit) renovation program will supplement the original hardwood floors and tile in kitchens and bathrooms with modern appliances and fixture. Additionally, Pathfinder will replace selected roofs and repaint the building’s exteriors.
LA JOLLA, CA-KBS Real Estate Investment Trust II, a non-traded real estate investment trust based in Newport Beach, CA., has sold an A-note and B-note collateralized by the Northern Trust Building here to an undisclosed buyer for approximately $85.8 million, resulting in an economic gain of $24.8 million after closing costs. KBS REIT II had purchased the A-note for $58.1 million in December 2008 and had acquired the B-note for $2 million on June 26 of this year. The Northern Trust Building was constructed in 1987 as a 10-story office tower offering 188,918 square feet of class-A space. Located within the Plaza at La Jolla Village, a master-planned office complex within the University Town Center/Golden Triangle submarket of San Diego, the building includes a restaurant on the ground floor and a 124-stall underground parking garage.
SEATTLE-624 Yale, a seven-story, 220,000-square-foot, fully entitled office project in the South Lake Union region, is predicted to break ground in early August with completion slated for January 20, 2014, according to Bruce Blume, founder of development firm Blume Co., which is in charge of the project. A wealth of technology, education, and biotech firms are looking to locate to South Lake Union, say CBRE brokers Jesse Ottele and Cavan O’Keefe, exclusive leasing agents for the development venture. The brokers report strong activity from these growing sectors, recently qualifying up to six firms to kick-off the project.
SAN DIEGO-Locally based West Coast Retail Management Inc., a boutique, full-service, women-owned real estate company, has been awarded the project-management contract to oversee the $2-million re-imaging construction project at the Beach Garfield Shopping Center in Huntington Beach, CA. The re-imaging project includes major renovations to the building facades, including raised signage to give the stores better visibility from the street, replacement and expansion of small and mid-size storefronts to provide a more open concept, addition of tile wall bases and trellis accents, new building colors and updated accent and canopy lighting throughout the center. Located on the southwest corner of the intersection of Beach Blvd. and Garfield Ave., the 92,000-square-foot shopping center has a tenant roster that includes Stein Mart, CVS/pharmacy and several restaurants, retail shops and service tenants. All stores will remain open during the renovation. San Diego Construction Solutions Inc. and Norm Wilson & Sons Inc. of Long Beach, CA, will serve as general contractors.
LOS ALTOS, CA– Sares Regis Group of Northern California has received City Council approval on Colonnade, a new luxury apartment community being developed on 2.6 acres at 4750 El Camino Real here. The four-story building will consist of 167 luxury rental homes built over two levels of parking for 319 vehicles. There will be a mix of 101 one-bedroom units and 66 two-bedroom apartments ranging from 625 to 1191 square feet. Colonnade will also include 17,260 square feet of retail/commercial space including the existing 5,000 square foot Vitamin Shoppe.
CONCORD, CA-Locally based ServiceMaster Restoration Services and its ServiceMaster Recovery Management division is expanding into a new location at 2121 Diamond Blvd. Representing the largest industrial lease in Concord this year, ServiceMaster leased the entire, 53,000 square-foot mixed-use complex. The firm will relocate existing Concord and Hayward operations that are located at 2350 Whitman Rd. and 2220 West Winton Ave., respectively, into this larger facility. Cornish & Carey Commercial Newmark Knight Frank’s Jeff Fritch and Tyler Epting represented ServiceMaster in its lease with property owner Diamond Galaxy Partners.
REDWOOD SHORES, CA-LiveOps Inc., a global leader in cloud contact center and customer-service solutions, will relocate its global corporate headquarters here in the fall to support the firm’s growth. The company will relocate all of its current Santa Clara operations to 555 Twin Dolphin Dr. by the end of this year. The new space is being redesigned and configured to celebrate and inspire creativity, open collaboration and out-of-the box thinking, according to the firm. LiveOps signed a lease for approximately 42,000 square feet in a neighborhood that includes many Silicon Valley tech leaders such as Oracle Corp., Electronic Arts, NetSuite and Salesforce.com. 555 Twin Dolphin is owned and managed by Equity Office, one of the largest owners of commercial office space in the US. LiveOps is currently located at 5425 Stevens Creek Blvd. in Santa Clara, CA. In the lease transaction, SABRE Real Estate Group represented LiveOps and Cornish & Carey Commercial Newmark Knight Frank represented Equity Office.