California

San Francisco East Bay Industrial Market Soars to New Highs

by Jeff Shaw November 29, 2021

By Steve Kapp, Executive Managing Director, Newmark Strong tenant demand, coupled with a limited supply of Class A industrial product, has pushed industrial rents in the San Francisco East Bay industrial market to new highs. Also known as the I-880 corridor, vacancy rates stood at 6 percent, down slightly from a year ago on a building base of 189 million square feet. Some submarkets like Fremont and Union City, as well as certain building types like new construction Class A warehouse, have performed even better than average. Warehouse rental rates now average above $1 per square foot, per month, in most East Bay markets. These show no signs of slowing down based on strong tenant demand. This demand goes beyond the typical ecommerce giants. Large lease deals were signed by Wine.com, Applied Materials, Home Depot and Chef’s Warehouse in the second quarter alone. Another trend is the rise of the life sciences sector. These firms have traditionally gravitated to research-oriented campuses in South San Francisco, Emeryville or Palo Alto. However, the I-880 corridor is chalking up a number of deals for pilot plants and good manufacturing practices (GMP) facilities. Sana Bio recently leased a 164,000-square-foot advanced manufacturing facility in Fremont, while Senti Bio …

November 29, 2021

California Development Multifamily Student Housing Western

Construction Underway on 1,600-Bed P3 Project at the University of California, Davis

by Amy Works November 23, 2021

DAVIS, CALIF. — Construction is underway on Orchard Park, a 1,600-bed student housing community located on the University of California, Davis campus. The property will target graduate students, offering units at below-market rates. The community is scheduled for completion in fall 2023. Orchard Park is Phase II of a larger development named The Green at West Village, which is being built through a public-private partnership between the university and Michaels. Phase I of the project delivered 1,000 beds in fall 2020, and included nine four-story buildings with shared amenities including a fitness center, multipurpose room and student support services. The property was fully leased ahead of the 2020-2021 academic year. “Michaels is honored to be the university’s private-sector partner for both of these beautiful, amenity-rich, energy-efficient housing developments,” says Ned Williams, senior vice president of Michaels Student Living. “We understand that great housing, along with a great education, represents the door to opportunity not just for success today, but success for tomorrow and beyond.”

November 23, 2021

Build-to-Rent California Development Multifamily Single-Family Rental Western

Tricon Residential Breaks Ground on Bacara Single-Family Rental Property in Wildomar, California

by Amy Works November 22, 2021

WILDOMAR, CALIF. — Tricon Residential, Foremost Pacific Group and Woodbridge Pacific Group Cos. has broken ground on Bacara, a townhome single-family rental community in Wildomar. Located at 24808 Preilipp Road, Bacara will feature 170 rental townhomes with one-, two- and three-bedroom options with solar power, attached one- or two-car garages, keyless front-door entry and forecourt patios. Community amenities will include a dog park, lap pool and spa, gym and community center. Completion is slated for late 2022. Tricon Residential will operate Bacara upon completion. Foremost Pacific Group is serving as project developer and Woodbridge Pacific Group Cos. is serving as project contractor.

November 22, 2021

Acquisitions California Healthcare Retail Western

La Maestra Family Clinic Buys Vacant Retail Center in El Cajon for Community Health Center Conversion

by Amy Works November 22, 2021

EL CAJON, CALIF. — La Maestra Family Clinic has purchased a multi-tenant retail center located at 1242-1248 E. Main St. in El Cajon. Main Street Trust sold the asset for $6.4 million. The buyer plans to convert the vacant, 22,694-square-foot retail center into a community health center. Mike Conger and Brian Jenkins of Commercial Asset Advisors represented the seller, while Keith Edwards of Keller Williams Realty Metro represented the buyer in the deal.

November 22, 2021

California Market Reports Office Western Western Market Reports

Sacramento’s Office Market is Eager for Stability

by Jeff Shaw November 22, 2021

By Cole Sweatt, Brokerage Manager, Sacramento Region, TRI Commercial Now that we’ve had the chance to analyze the data from the first two quarters of 2021, it seems that consumers and businesses are experiencing positive trends throughout Northern California. However, the initial recovery has come with challenges, including semiconductor shortages, supply chain disruptions and increased commodity prices due to a confluence of demand from consumers. We have seen relief in some of these sectors, which has led to increased production and the stabilization of commodity pricing. Although inflation should curb a bit this year, this would seem to be a temporary activity as average inflation over the next couple years is projected to be higher than the average of the prior decade. How is the office sector reacting, particularly in the capitol region near Sacramento? Office sales have been lukewarm in the first part of 2021. Investment strategies continue to change due to economic uncertainty and the long-term goals of companies occupying real estate. Employees have continued to trickle back into the office, but many employers have extended their stay-at-home and/or part-time policies through the fourth quarter of this year. As a result, the market is trending toward a flight to …

November 22, 2021

California Development Mixed-Use Multifamily Retail Western

Begonia Real Estate, C.W. Driver Break Ground on $36.8M Apartment Development in Temple City, California

by Amy Works November 19, 2021

TEMPLE CITY, CALIF. — Begonia Real Estate Development and C.W. Driver have broken ground on a four-story, mixed-use multifamily property located at 5570 Rosemead Blvd. in Temple City. With a total construction value of $36.8 million, the project will feature 74 market-rate apartments in a mix of one-, two- or three-bedroom layouts; 11,000 square feet of commercial space; and a subterranean parking garage. The top floor will include 24 penthouse suites and the first floor will feature three live-work units with storefronts or walk-in office with loft space above. Community amenities will include a two-story fitness center; community room; business center with flex seating and a private conference room; and a podium-level courtyard with fire pits, water features and barbecues. Additionally, each level will have a Zen retreat for residents needing a quiet, private space. Completion of the project is slated for June 2023. C.W. Driver is working with Creative Design Associates on the project.

November 19, 2021

California Loans Multifamily Student Housing Western

CIM Group Provides $150M Refinancing for 1,039-Bed Student Housing Community Near San Jose State

by Amy Works November 18, 2021

SAN JOSE, CALIF. — CIM Group has provided a $150 million refinancing to AMCAL Equities and Star America for The Grad, a 1,039-bed student housing community located near San Jose State University. The 19-story property offers fully furnished studio, two-, three- and four-bedroom units. Shared amenities include 14,889 square feet of ground-floor retail space, study rooms, a computer lab, fitness center, swimming pool and bicycle storage. Bryan Gortikov of Gortikov Capital arranged the financing.

November 18, 2021

Acquisitions California Company News New York Northeast Top Stories Washington Western

Sycamore Partners Management Acquires 30,000-Acre Wine Producer for $1.2B

by Katie Sloan November 18, 2021

NEW YORK CITY — Private equity firm Sycamore Partners Management has acquired Ste. Michelle Wine Estates for $1.2 billion. The transaction is the largest private equity purchase of a wine business in the U.S., according to Bank of the West, which led financing for the acquisition. Altria Group Inc. was the seller, according to reports by Bloomberg. Ste. Michelle Wine Estates is the third-largest premium winery in the U.S. with over 30,000 acres of vineyards spread across three states. Some of the company’s popular brands include Chateau Ste. Michelle, 14 Hands, Patz & Hall, Northstar, Erath and Stags Leap. Chateau Ste. Michelle is one of the largest brands in the Pacific Northwest, located roughly 18 miles northeast of Seattle in Woodinville, Wash. The winery — which produces 60 percent of Washington’s annual wine sales — also owns 3,900 acres of vineyards in the Columbia Valley of Eastern Washington, including Canoe Ridge Estate and Cold Creek. New York City-based Sycamore Partners specializes in consumer, distribution and retail-related investments. The firm has approximately $10 billion in aggregate committed capital. Bank of the West, headquartered in San Francisco, is one of the largest commercial lenders to the wine industry in the U.S. —Katie Sloan

November 18, 2021

Acquisitions California Multifamily Western

CGI+ Buys Alturas Multifamily Community in Oxnard, California for $50.7M

by Amy Works November 17, 2021

OXNARD, CALIF. — CGI+ Real Estate Strategies has acquired Alturas, a multifamily property located in Oxnard, for $50.7 million in an off-market transaction. The company plans to rebrand the 170-unit community as Via Oxnard. Built in 1965, the property features one-, two- and three-bedroom units with 76 percent being two-story townhomes. CGI+ plans to upgrade and renovated the non-renovated units and common areas. Greg Harris, Joe Grabiec and Kevin Green of Institutional Property Advisors, a division of Marcus & Millichap, represented the undisclosed seller and buyer in the deal.

November 17, 2021

California Company News Net Lease Office Western

Realty Income Completes Spin-Off of Orion Office REIT

by Amy Works November 17, 2021

SAN DIEGO AND BALTIMORE — Realty Income Corp. (NYSE: O) has completed the spin-off of substantially all of its office assets into Orion Office REIT Inc. (NYSE: ONL), a new, independent, publicly traded REIT. Orion Office REIT specializes in the ownership, acquisition and management of a diversified portfolio of mission-critical and corporate headquarters office buildings in high-quality suburban markets across the United States. The portfolio is leased primarily on a single-tenant, net-lease basis to creditworthy tenants. Under the terms of the spin-off, Realty Income stockholders received one share of Orion common stock for every 10 shares of Realty Income common stock held as of the record date of Nov. 2, 2021. Wells Fargo Securities served as lead financial advisor, Moelis & Co. served as financial advisor and Latham & Watkins LLP acted as legal advisor to Realty Income in connection with the spin-off. Realty Income is based in San Diego, while the spin-off, according to SEC filings, is based in Baltimore.

November 17, 2021

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