OCEANSIDE, CALIF. — Marcus & Millichap has arranged the sale of 1210 South Nevada Street, an apartment property in Oceanside. Matt Vessell sold the asset to Matt Pace for $3.3 million. The apartment building features eight two-bedroom/one-bath units and three one bedroom/one-bath units. Community amenities include 11 single-car garages and 12 offsite parking spaces. Adrian Grobelny and Conor Brennan of Marcus & Millichap’s San Diego Del Mar office represented the seller and procured the buyer in the deal.
LOS ANGELES — Southern California Gas Co. (SoCalGas) has signed a long-term lease for 198,553 square feet of office space at City National 2CAL in downtown Los Angeles. CIM Group owns the 1.4 million-square-foot, 52-story office building at 350 S. Grand Ave. in downtown’s Bunker Hill district. SoCalGas will relocate to City National 2CAL from its namesake downtown Los Angeles building, Gas Company Tower, where it has been located since the building’s opening in 1991. At its new space, SoCalGas will have project and building top signage at the property. Geno St. John from CIM Group’s in-house office leasing team, in partnership with Peter Hajimihalis and Hayley Blockley of JLL, represented the owner in the lease negotiations. Clay Hammerstein and Danny Rees of CBRE represented the tenant.
CHULA VISTA, CALIF. — Walker & Dunlop has arranged $66 million for the refinancing of Boardwalk at Millenia, a multifamily property in Chula Vista. Aaron Appel, Jonathan Schwartz, Keith Kurland, Adam Schwartz, Mo Beler, Michael Ianno and William Herring of Walker & Dunlop’s New York Capital Markets team arranged the transaction on behalf of the borrower, Barings Core Property Fund. The team also identified the lender, Kohlberg Kravis Roberts & Co. LP. Located at 1660 Metro Ave., Boardwalk at Millenia offers 309 apartments, a resort-style pool and spa, outdoor fireplaces and lounges, upscale fitness studio, children’s play area and coworking spaces with private conference rooms. The property was built in 2018. In 2019, Barings purchased the property from Trammell Crow Residential and recently secured the new financing, a five-year, floating-rate loan, to refinance the previous loan.
SAN DIEGO — MIG has completed the disposition of Four Governor Park, a two-building office property in San Diego. Cast Capital Partners acquired the asset for $11 million. Situated on 2.7 acres, Four Governor Park includes a 21,715-square-foot building at 5080 Shoreham Place and a 28,521-square-foot building at 5090 Shoreham Place that are connect by a courtyard. At the time of sale, the property was 96 percent occupied by a mix of office tenants. The buyer plans to sell the individual units. Matt Pourcho, Anthony DeLorenzo and Matt Harris of CBRE represented the seller, while Bret Morris of Cast Capital Partners and Ryan King of Voit represented the buyer in the transaction.
— By David Nelson, regional president of brokerage for Northern California and Nevada, Kidder Mathews — After record figures across most U.S. industrial markets in 2021 and 2022, key fundamentals cooled in 2023 and have been recalibrating ever since. Total net absorption has been negative in recent quarters, sublease space is on the rise, vacancy and availability rates have been steadily inching up, and average asking lease rates are relatively flat. Furthermore, the recent surge in development activity due to the rise in ecommerce penetration has been slowly drying up with construction starts dropping by more than 60 percent in 2023 and 2024. Core industrial markets in the Bay Area experienced notable increases in both vacancy and availability. Silicon Valley vacancy rose from between 1.5 percent and 2.5 percent last year to 3 percent and 4 percent in 2024. Meanwhile, East Bay rose from 3.5 percent and 4 percent in 2023 to 5.5 percent and 6.5 percent in second-quarter 2024. During the first half of the year, an increase in sublease space has been a major contributor to the higher rates. They have increased from the pre-COVID average of 9 percent of total available space to 19 percent at the end …
PALO ALTO, CALIF. — Presidio Bay Ventures has broken ground on 388 Cambridge, an office resort in Palo Alto. The three-level office development will combine hospitality-level design, a focus on wellness and a commitment to sustainability, including all-electric, net-zero operations. Slated for completion by third-quarter 2025, the 36,000-square-foot 388 Cambridge will feature 3,418 square feet of ground-floor retail space, spa-style steam showers, cold-plunge pools, landscaped outdoor balconies and concierge service. The project team includes Brereton Architects, Adean Studios and JETT Landscape Architecture + Design. Newmark is handling leasing of the commercial space, while CBRE is overseeing leasing of the retail space.
LOS ANGELES — EBSC Lending has arranged $31.2 million in construction financing for a new luxury senior living community under development in Los Angeles. The undisclosed borrower operates senior living facilities in the Southeast, with a primary focus on Florida. Brian Stark, manager of information technology at EBSC Lending, led the transaction. The 172,163-square-foot facility will offer a total of 198 catered living, assisted living and memory care units in three buildings spread over a 7.8-acre campus. It will also feature gourmet restaurant-style dining, boutique hotel décor and a variety of luxury amenities. “This deal had tremendous headwinds, given the rising interest rates,” says David Palmer, vice president, special assets at EBSC Lending. “Working together with the sponsor, we were able to structure the deal with favorable terms and sizing parameters that allowed us to preserve millions of dollars. We regard healthcare as highly strategic. We are committed to the future of this growing sector and to supporting our healthcare clients.” Based in Irvine, Calif., EBSC is a private lender that offers customized solutions to real estate investors and developers. The company has emerged as a provider of senior financing to alternative real estate bridge lenders.
SYLMAR, CALIF. — Hunt Capital Partners (HCP), in partnership with Alliance Property Group (APG) and Community Bible Community Development Corp. (CBCDC), has provided $37 million in federal Low-Income Housing Tax Credit (LIHTC) equity and $15.1 million in state LIHTC financing for the redevelopment and expansion of Valley Pride Village. The affordable seniors housing property is located in Sylmar, a city northwest of Los Angeles in the San Fernando Valley. The development project will preserve its 88 existing homes and introduce 92 new housing options. Valley Pride Village’s rehabilitation and expansion will help alleviate the need for affordable housing as the senior population in Los Angeles is projected to increase by 24 percent and surpass 1 million by 2030, making up nearly one in four Los Angeles residents. The project qualified for a density bonus under the City of Los Angeles’ Executive Directive 1, which is the city’s latest move to advance affordable housing within the county. Valley Pride Village will offer a mix of studio, one-, and two-bedroom homes for seniors who earn up to 30 to 80 percent of the area median income (AMI). The existing buildings within the community will undergo extensive renovations, including upgrades to cabinetry, countertops, …
SAN JOSE, CALIF. — JLL Capital Markets has arranged joint venture equity for the $95 million acquisition of The Plant, a regional power center located at 1 Curtner Ave. in San Jose. Geoff Tranchina, Gleb Lvovich, Eric Katherin, Daniel Tyner and Conor Quinn of JLL’s Investment and Sales Advisory team worked on behalf of the operator, Milan Capital Management, to arrange the equity investment through Arc Capital Partners. Spanning 35.5 acres in Silicon Valley, the 367,869-square-foot shopping center was built in 2008. At the time of sale, the property was 64 percent occupied. Current tenants include Best Buy, Ross Dress for Less, PetSmart, Ulta Beauty, Off Broadway, Starbucks Coffee, IHOP, McDonald’s, Panda Express, El Pollo Loco, Chase Bank and Five Guys.
SIMI VALLEY, CALIF. — USA Properties Funds has completed the disposition of The Landing at Arroyo, a multifamily property in the Los Angeles suburb of Simi Valley. A private multifamily investor purchased the 212-unit community for $95 million, or $448,113 per unit. Kevin Green, Joseph Grabiec and Gregory Harris of Institutional Property Advisors (IPA), a division of Marcus & Millichap, represented the seller and procured the buyer in the deal. Built in 2022 on 10 acres, The Landing at Arroyo offers apartments spread across seven buildings, a swimming pool, spa, game room, fitness center, coworking space and central package lockers for deliveries. Apartments feature washers/dryers, stainless steel appliances, quartz countertops and designer plumbing and lighting fixtures.