California

San Diego’s Retail Investment Market Outlook

by Jeff Shaw January 23, 2024

— By Jeff Lefko, Executive Vice President, Hanley Investment Group Real Estate Advisors — Hanley Investment Group is expanding and opening its newest office in San Diego in early 2024. San Diego, the eighth most populous city and the fifth largest county in the United States, ranks second only to Los Angeles County in California, boasting a population nearing 3.28 million. With a substantial GDP of $206 billion, San Diego holds the 17th largest metropolitan area position in the U.S. and the fourth largest in California. The city’s economy thrives on defense, tourism, international trade and research/manufacturing sectors. Notably, in 2022, San Diego experienced an 8 percent growth in life science employment, reinforcing its position as a premier life science research destination. Attracting 28.8 million annual visitors, it stands as a prominent U.S. travel destination, generating approximately $13.6 billion in yearly spending and employing 214,000 San Diegans directly and indirectly. San Diego’s robust economy, diverse population, quality education, and prime location render it a desirable hub for commercial retail investment. The business-friendly climate further enhances its allure, while the limited supply of new retail construction helps maintain stable real estate fundamentals. The changing economy and rising interest rates have caused …

January 23, 2024

Acquisitions California Industrial Western

JLL Brokers $11.2M Sale of Distribution Facility in Santa Fe Springs, California

by Amy Works January 22, 2024

SANTA FE SPRINGS, CALIF. — JLL Capital Markets has arranged the sale of a warehouse and distribution facility, located at 10329 Painter Ave. in Santa Fe Springs, a suburb southeast of Los Angeles. An affiliate of Zurich Alternative Asset Management sold the asset to Sterling Investors LP for $11.2 million. The 42,725-square-foot property features 30-foot clear heights, six dock-high doors, one grade-level door and an 82-foot truck court. At the time of sale, the building was fully leased to a single tenant. Mark Detmer, Chad Solomon, Makenna Peter, Cameron Driscoll and Luke McDaniel of JLL Capital Markets represented the seller and procured the buyer in the deal.

January 22, 2024

Acquisitions California Office Western

CBRE Brokers $8M Sale of Office Building in San Diego Tech Park

by Amy Works January 19, 2024

SAN DIEGO — CBRE has arranged the sale of an office building located at 17075 Camino San Bernardo within Rancho Bernardo’s Tech Park in San Diego. Dominguez Channel LLC, an overseas private buyer undergoing a 1031 exchange, acquired the asset for $8 million, or $314 per square foot. Matt Pourcho, Anthony DeLorenzo, Matt Harris and Chris Williams of CBRE Investment Properties represented the San Diego-based private seller, while George Rehab represented the buyer in the transaction. The remodeled modern office building features 115 parking spaces and an outdoor patio on the corner of Rancho Bernardo Road and Camino San Bernardo. The building is fully gross leased with no pass-throughs. Situated on two acres, the two-story building offers 25,475 square feet of office space.

January 19, 2024

California Loans Retail Western

Gantry Arranges $8.6M Loan for Oak Hills Shopping Center in Pleasanton, California

by Amy Works January 19, 2024

PLEASANTON, CALIF. — Gantry has arranged an $8.6 million permanent loan to refinance Oak Hills Shopping Center, located at 5410-5480 Sunol Blvd. in the Bay Area city of Pleasanton. Raley’s grocery, BMO Bank, Mountain Mike’s Pizza, Jim’s Country Restaurant, Gymboree and Brick Fitness are tenants at the 120,000-square-foot retail center. Mitch Zeemont, Tony Kaufmann and Alex Poulos of Gantry arranged the financing for the borrower, a private real estate entity. One of Gantry’s correspondent life company lenders provided the 12-year, fixed-rate loan with a 20-year amortization.

January 19, 2024

Acquisitions California Restaurant Retail Western

Hanley Investment Group Negotiates $3.2M Sale of Starbucks-Occupied Property in Los Angeles

by Amy Works January 19, 2024

LOS ANGELES — Hanley Investment Group Real Estate Advisors has arranged the sale of a single-tenant restaurant property with a drive-thru at 1789 W. Jefferson Blvd. in Los Angeles. A private investor based in Los Angeles sold the asset to a Southern California-based private investor for $3.2 million. Starbucks Coffee occupies the 1,486-square-foot building, which was built in 2017. Jeff Lefko and Bill Asher of Hanley Investment Group represented the seller, while Ryan Sharpe of Kidder Mathews represented the buyer in the deal.

January 19, 2024

California Development Loans Multifamily Western

Calmwater Capital Funds $32.2M Construction Loan for Multifamily Project in San Gabriel, California

by Amy Works January 18, 2024

SAN GABRIEL, CALIF. — Calmwater Capital has provided Alhambra-based GE Development with a $32.2 million construction loan for the completion of The One, a multifamily community in San Gabriel, a suburb of Los Angeles. The transaction also included an additional $3.7 million in subordinate financing from a Los Angeles-based alternative lender in order to reduce the borrower’s equity commitment. The financing will be used to take out the original construction loan with a portion of the proceeds to be used to fund hard and soft costs needed to bring the project to 100 percent completion. The property was 86 percent completed at loan closing. Located at 101 E. Valley Blvd., The One will feature 81 market-rate studio, one- and two-bedroom apartments in a multi-level, four-story building. Additionally, the property will offer 13,000 square feet of street-level retail space, a three-level subterranean parking garage, interior retail plaza and pedestrian promenade, resident sundeck and a rooftop garden. Completion is slated for second-quarter 2024. Zalmi Klyne and Karl Weidell of Northmarq’s Los Angeles office arranged the financing. Larry Grantham, Zach Novatt and DaJuan Bennett of Calmwater originated the loan.

January 18, 2024

Link-Central-Valley-Logistics-Portfolio-CA

Acquisitions California Industrial Western

DRA Advisors, Rising Realty Partners Buy Six-Building Industrial Portfolio in California’s Central Valley

by Amy Works January 18, 2024

TRACY AND STOCKTON, CALIF. — DRA Advisors and Rising Realty Partners have acquired a six-building industrial portfolio in Tracy and Stockton. Terms of the transaction, including the name of the seller and acquisition price, were not released. Situated on 40.9 acres, the portfolio includes a mix of single and multi-tenant warehouse/distribution buildings, all on triple-net leases. The properties total 531,308 square feet. The buildings offer 14-foot to 26-foot clear heights, concrete tilt-up construction, ample auto parking and a combined 107 dock-high and 39 grade-level doors. The portfolio is 98 percent leased to 14 tenants, including Altium Packaging LP, Southwest Traders Inc. and Allen Distribution, which each lease one of the three single-tenant properties that contribute 85 percent of the portfolio’s rentable square footage. Ryan Sitov and Mark Detmer of JLL Capital Markets’ investment sales and advisory team represented the seller and procured the buyers. Tim Mustin, John Fondale and Courtney Cranston of JLL handle leasing for the portfolio.

January 18, 2024

California Loans Multifamily Western

Colliers Arranges $27.8M Refinancing for Edgeway Apartments in Bellflower, California

by Jeff Shaw January 18, 2024

BELLFLOWER, CALIF. — The Colliers Structured Finance Group (SFG) has arranged a $27.8 million Fannie Mae loan for the refinancing of Edgeway, a 91-unit multifamily property in Bellflower, a suburb south of Los Angeles. The loan features a 5.5 percent interest rate for five years. Jonathan Lee, Bill Hyatt, and Shahin Yazdi of SFG arranged the loan for the borrower, Serrano Development Group. Colliers SFG closed the Fannie Mae loan prior to property stabilization. Built in 2023, the Edgeway luxury apartment community offers one-, two- and three-bedroom units with open floor plans. Unit features include quartz countertops, stainless steel appliances, in-unit washer and dryer, private balconies, modern technology features and ample storage. Community amenities include a resort style pool, spa and cabana lounge; business center and co-working lounge; dog run and pet wash; fitness center with spin studio; and multiple outdoor lounges with BBQs. Located near the intersection of highways 91 and 605, Edgeway is centrally located with ready access to Los Angeles, Long Beach and Orange County.

January 18, 2024

5245-Pacific-Concourse-Dr-Los-Angeles-CA

California Development Loans Office Western

Gantry Arranges $28.5M Loan for Office Redevelopment in Los Angeles

by Amy Works January 17, 2024

LOS ANGELES — Gantry has arranged a $28.5 million construction-to-permanent loan for the redevelopment of an existing office building located at 5245 Pacific Concourse Drive in Los Angeles. The 66,000-square-foot property is 100 percent pre-leased to the U.S. General Services Administration as a new facility for the Executive Office of Immigration Review, a subsidiary agency of the U.S. Department of Justice. Mark Ritchie, Amit Tyagi and Alicia Sabanero of Gantry’s Los Angeles office represented the borrower, a private real estate company. One of Gantry’s correspondent life company lenders provided the multi-decade loan, which features a long-term fixed interest rate.

January 17, 2024

California Loans Multifamily Western

Thorofare Capital Provides $26M Refinancing for Chapman Place Apartments in San Diego

by Amy Works January 17, 2024

SAN DIEGO — Thorofare Capital, an affiliate of asset management platform Callodine Group, has provided a $26 million loan to Chapman Place LLC for the refinancing and lease-up of Chapman Place Apartments. Located in San Diego’s Point Loma submarket, Chapman Place Apartments features 82 units in a mix of 40 studios, 36 one-bedroom units and six two-bedroom units with an average size of 584 square feet. The three-story multifamily property is located at 3910 Chapman St. and was built to condominium-level finishes with a variety of amenities. Southwest Equity Partners manages the community. Thorofare’s floating-rate, short-term bridge loan will provide the borrower, a private investor, with runway to lease up and stabilize occupancy. The property was 25 percent leased at the time of loan closing, with most of the loan proceeds utilized to retire the original construction loan. Andrew Kim, Paul Hachigian and Jacob Yi of Thorofare originated the loan.

January 17, 2024

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