Despite the upcoming holiday, sales velocity did not slow down this week. Investors purchased property across asset classes, including some notable multifamily transactions in the Phoenix market, where investors have been heading to get stronger returns. There were also some notable deals in Los Angeles, including the sale of the DoubleTree in Downtown Los Angeles. 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
BEVERLY HILLS, CA—Taylor Design, McCarthy Building Companies, Inc., SmithGroupJJR, and Los Angeles Department of Public Works received a design excellence award at the 47th Annual Los Angeles Architectural Awards hosted by the Los Angeles Business Council for The Don Knabe Wellness Center & Plaza. A winner in the Healthcare New Construction category, the Don Knabe Wellness Center & Plaza is only the first phase of a $460 million state-of-the-art renovation at Rancho Los Amigos National Rehabilitation Center, one of the nation’s top hospitals for rehabilitative medicine. The Rancho Los Amigos community is appreciative of what this wellness center symbolizes — a place where miracles happen and hope is revitalized. Aimed to increase both the patients’ and community’s accessibility to advanced rehabilitative technologies and wellness practices, this center was recently recognized by state legislators and was officially dedicated and named after Donald R. Knabe, former member of the Los Angeles County Board of Supervisors, Fourth District.
ONTARIO, CA—Dean Krieger has joined Kidder Mathews’ Inland Empire office as a SVP. In the role, he will specialize in tenant representation, with an emphasis on industrial users, throughout the Inland Empire and Orange County. Krieger has been in the commercial real estate business for over 30 years. During his career, he has leased and sold more than 8.9 million square feet of industrial and office properties exceeding $980 million in transaction value, and he has sold over 260 acres of land to both owner/users and developers. His notable clients include Sub-Zero, Husqvarna, and Test Rite Products.
PHOENIX—Institutional Property Advisors’ Steve Gebing and Cliff David, senior managing directors, closed five multifamily property transactions totaling $217 million and 1,699 units between May 30 and June 15 in the Phoenix metropolitan statistical area. The properties include: Village Green, a 112-unit property that traded hands for $7.7 million; Onnix, a 659-units property that traded hands for $77.05 million; Broadstone Gateway, a 240-unit property that traded hands for $30.75 million; Green Leaf Promontory Pointe, a 424-unit property; and Pinnacle at Union Hills, a 264-unit property that traded hands for $47.5 million.
PHOENIX—CBRE Group has hired Holly Unck, JD as Vice President of Transfer and Sales Tax Services. In her new role, Unck will focus on expanding the firm’s transfer tax service offering across the country, advising sellers and buyers of real estate on managing and minimizing their transfer and property tax liabilities. She will sit in the Phoenix office. Unck has nearly 30 years of real estate taxation experience, most recently serving as Senior Managing Consultant for Paradigm Tax Group. Beyond advising clients in the Western U.S. on reducing real estate transfer taxes, sales and use taxes, Unck has experience assisting clients with property tax refunds, tax audits and Arizona speculative builder tax protection. Unck holds a law degree from the University of Illinois College of Law.
VICTORVILLE, CA—Stirling Development completed a three-year 195,508-square-foot industrial lease with Newell Brands for Distribution Centre 18 in Victorville, CA. The 370,023-square-foot facility is located at Southern California Logistics Airport, an 8,500-acre multimodal freight transportation hub, which includes a 2,500-acre commercial and industrial complex entitled for 60 million square feet of development. The facility was completed ahead of schedule on June 22, despite its large size and the excess rains this year. This lease with Newell brings DC 18 to 100% occupancy. The remainder of the building will be occupied by Plastipak Packaging, Inc., which signed a five-year 174,515-square-foot lease in late 2016 prior to construction. Jay Dick of CBRE handled leasing on behalf of Stirling Development and Ryan Athens of CBRE represented Newell Brands in the transaction.
PHOENIX—CBRE Group has arranged the sales of two multifamily communities located in Tempe, Arizona for a total of $10 million. 1133 West Fifth, a 44-unit community with two-bedroom units individually metered for electricity, traded hands for $7.5 million between Trimark West Fifth Apartments/Trimark-2016 Arizona Investments and Treasure Star. Arbor, which is located at 1548 W. University Drive is a 26-unit, traded hands between Paul Adams Palms and The Tides at Tempe for $2.6 million. Brian Smuckler, Jeff Seaman and Derek Smigiel with CBRE’s Phoenix office represented the buyers and sellers.
LOS ANGELES—CBRE Group has brokered the sale of Carmenita Square Business Park, a multi-tenant industrial campus located in Norwalk, California, to a private 1031-exchange buyer, for $14.1 million. CBRE’s Gary Stache, Anthony DeLorenzo, and Doug Mack represented the seller Davis Partners LLC, an investment and property-management firm. An outside broker represented the buyer. The three-building park, located at 14701-14799 Carmenita Road, is 98 percent leased to a variety of different tenants, including Ford Motors. The property strategically sits in the mid-counties submarket, adjacent to the I-5 freeway.
PHOENIX—Newmark has secured $151 million in new permanent financing for a 30 property, multi-tenant Arizona industrial portfolio totaling more than 4 million square feet and in excess of 1,000 tenants. Tim Storey, Principal, and Chad Metzger, Associate Vice President, with Newmark’s Phoenix production office worked with the borrower to arrange the 15 year, sub 4% rate, non-recourse financing with one of Newmark’s correspondent life company lenders, VOYA. Other terms were not disclosed. All loans will be serviced Newmark. The portfolio is a mix of light industrial / manufacturing buildings with small to medium size bay depths located in Phoenix, Tempe, Mesa, Chandler, Gilbert, Glendale, Goodyear, Surprise and Peoria, Arizona. The properties were constructed between 1966 and 2008 with approximately 25% of the tenants on month-to-month leases and range in size from 52,500 to 260,000 square feet.
PHOENIX—Camelback Commons, a 322,406-square-foot office campus located at 4722 and 4742 N. 24th St. in Phoenix, has traded hands for $66.4 million. The property is a two building, class-A office asset. Barry Gabel and Chris Marchildon with CBRE’s Phoenix office represented the seller, a joint venture between California‐based McCarthy Cook & Co. and New York‐based Morgan Stanley Real Estate Investing. The buyer is Los Angeles-based Regent Properties. Additionally, Bruce Francis, Dana Summers, Shaun Moothart, Bob Ybarra and Doug Birrell with CBRE Capital Market’s Debt & Structured Finance team secured the financing for the buyer.
LOS ANGELES—An industrial property located in Anaheim, California, has sold for approximately $12.2 million. CBRE’s Gary Stache, Anthony DeLorenzo, and Doug Mack represented the seller, Makena Properties. The buyer, an unidentified private owner, was represented by an outside broker. Located at 5065 East Hunter Avenue, the building totals 81,836 square feet. The property is 100% leased to Discount Dance Supply, a dancewear retailer.
LOS ANGELES—The Hillpointe, a 30-unit apartment property located in the Hollywood Hills neighborhood of Los Angeles, has traded hands for $13.4 million. Avison Young Principal Peter Sherman, who is based in the company’s West Los Angeles office, represented the seller, Inco Monterra, LLC of Beverly Hills, and the buyer, Woodland Hills-based Sussex Capital Group, LLC. The transaction closed at a price per unit of nearly $450,000. Built in 1987 and located at 2330 North Cahuenga Boulevard, The Hillpointe is nestled among multi-million-dollar homes. The property includes 12 one-bedroom units and 18 two-bedroom units, 55 parking spaces, a gym, business center and community laundry room.
PHOENIX—A joint venture between Overton Moore Properties and PCCP LLC has sold the Phoenix Logistics Center to Colony Northstar for $18.4 million. JLL Managing Directors Bo Mills and Mark Detmer, and Vice President Ryan Sitov represented the property sellers. Phoenix Logistics Center totals 245,890 square feet in two buildings located at 420 S. 53rd Ave. and 1002 S. 56th Ave. in Phoenix’s Southwest submarket. Both buildings have been recently refurbished with $1.75 million in capital improvements, including new roofing, HVAC, T-5 lighting, paint, landscaping and power and plumbing upgrades. The buildings sit on 13.8 acres, including two acres of excess land that can be developed, paved or used to expand the 53rd Avenue building.
IRVINE, CA—Talonvest Capital has negotiated $11 million of financing for Mountain Pacific Properties on two properties located in Grand Junction, CO as well as a $15 million loan secured by SoCal Self Storage’s Sawtelle property in Los Angeles, CA. All three loans were procured from the conduit lending division of a national bank. The 10-year loans with interest only payments for the full loan term were arranged for two of A Storage Place’s Colorado self storage facilities totaling 201,000 square feet. These loans are uncrossed, non-recourse, and allowed for cash out to the ownership. The Talonvest team involved in the financings included Eric Snyder, Kim Leslie, and Jim Davies.
SAN DIEGO—Torrey Hills Medical Plaza, a 44,091-square-foot, class-A medical office building in the Del Mar Heights/Carmel Valley submarket of San Diego, has traded hands for $28 million between Torrey Pines Enterprises and Torrey Hills MOB. Torrey Hills Medical Plaza is located on a 2.59-acre site at 4765 Carmel Mountain Road within the Von’s-anchored Torrey Hills Center. This location is accessible to the 5 and 805 Freeways as well as US Route 56, providing connectivity to all areas of San Diego. Additionally, the property is within minutes of UCSD’s Thornton Hospital, Scripps Research Institute, Scripps Memorial Hospital, The Salk Institute San Diego and the VA Medical Center. Completed in 2005, the two-story building is 92% leased and anchored by Fresenius Medical Care. HFF marketed the property on behalf of the seller. Additionally, HFF worked on behalf of the buyer in arranging a joint venture with an institutional equity investor and negotiating the assumption and modification of the existing life insurance company loan. The HFF investment sales team representing the seller was led by managing director Evan Kovac, director Nick Frasco, associate Andrew Milne and real estate analyst Trent Jemmett. HFF director Zack Holderman led the efforts in arranging the joint venture, as well as working with the current life company lender on the assumption and loan modification.
LOS ANGELES—The DoubleTree by Hilton Los Angeles Downtown has traded hands between the unnamed seller and Han’s Group USA. The purchase price was not disclosed for the 434-key property. International Director John Strauss, Executive Vice President Tony Muscio, and Vice President Willis Cheng led the JLL team on the transaction. The DoubleTree by Hilton Los Angeles is located in downtown Los Angeles at the center of a rapidly developing live, work, play neighborhood, adjacent to a significant corporate demand base, growing resident population, ever-evolving entertainment scene, and well-established concentration of government agencies and courts. The hotel features three food and beverage outlets, approximately 18,000 square feet of flexible event space, and fitness center. Unique to the property is the outdoor Kyoto Gardens, an idyllic, Japanese-inspired, half-acre of manicured greenery, cascading waterfalls, and tranquil ponds, ideal for weddings, corporate events, and social gatherings.
PHOENIX—Fox Creek Village, located at 1611 Pace Street in Longmont, has traded hands between Retail Properties of America and an unnamed buyer for $24.8 million. Cushman & Wakefield Managing Director Jon Hendrickson and Executive Managing Directors Michael Hackett and Ryan Schubert represented the seller.
Anchored by King Soopers and Walgreens, Fox Creek Village is a trophy grocery and drug anchored neighborhood shopping center totaling of 107,533 square feet of retail space. The center, spanning 11.84 acres, is currently 97% occupied to a complimentary collection of national/credit tenants including Wells Fargo, Subway and Starbucks.
PHOENIX—CBRE Group has completed the sale of Enclave at Arrowhead, a 240-unit, class-A multifamily community located at 8092 W. Paradise Lane in Peoria, Arizona, for $39.25 million. Tyler Anderson, Sean Cunningham, Asher Gunter and Matt Pesch with CBRE’s Phoenix office represented the seller, Denver-based Baron Properties. The buyer was a partnership between Tom Wermers, Gerry Ranglas, and the Loma Linda University Endowment. The partnership was advised by Mike Dow of San Diego-based Impact Multifamily Advisor. Built in 2006, the community consists of one-, two-, and three-bedroom residences with 45 percent of the units featuring townhouse-style floor plans with direct access garages. Amenities include a resort-style pool and spa with a shaded lounge area, a fully equipped fitness center, picnic areas with barbecue grills, children’s tot lot and a dog park.
SALT LAKE CITY— SALT Development has begun construction of the Hardware District, a $275 million mixed-use, four building development featuring 466 luxury multifamily units and 260,000 square feet of office space on 400 West between North Temple Street and 200 North in Salt Lake City. The seven-story Hardware West building features 265 residential units including 48 studios, 134 one bedroom units and 83 two bedroom units ranging from 450 to 1,800 square feet . The ground floor will feature 37 two-story brownstone townhomes averaging 1,400 square feet. Completion of the Hardware West building is scheduled for February 2018. The seven-story Hardware East building features 144 residential units, all with 10 foot ceilings, includes 32 one bedroom units and 107 two bedroom units ranging from 500 to 1,800 square feet. The ground floor will feature five three bedroom, two-story brownstone townhomes averaging 1,500 square feet. Completion of the Hardware East building is scheduled for August 2018. The 10-story 200,000 square feet Hardware Station commercial building will be seven floors of Class A office space above a three-story 800 stall parking podium. Hardware Station will connect to the historic Salt Lake Hardware Building via a pedestrian plaza that will also connect to the North Temple Viaduct serving TRAX and Frontrunner light rail.
CHANDLER, AZ—The Statesman Group has hired Polaris Pacific to lead the sales and marketing for its $90 million dollar luxury condominium community, The Cays at Downtown Ocotillo. The Cays is a 278-unit condominium property with one- and two-bedroom units priced from the mid $200,000s. The first phase of 76 homes was completed in August of last year and is now 85% sold. After breaking ground in February of this year, the second phase of 70 homes is already 30% sold and completion is expected in early 2018. Two additional phases are planned. At the heart of The Cays is an expansive 9,500-square-foot clubhouse with a gourmet community kitchen, two-sided fireplace, a media center and social lounge, yoga studio, billiards, shuffleboard and a 1,800-square-foot fitness center with locker rooms and private steam showers. The amenities continue outside with a resort-style heated swimming pool surrounded by private cabanas, an outdoor kitchen with gas BBQs and a bar, fireplaces and lush landscaping.