California

Orange County’s Office Market Sees Stabilization Signs

by Jeff Shaw August 8, 2023

— By Brian C. Childs, Executive Managing Director, NAI Capital Commercial — Orange County office has historically been last in and first out of any recession or economic setback. That trend continues as an office recovery is in sight in this post-COVID marketplace. The challenge of encouraging workers to return to the office post-pandemic has slowed considerably. The rate of space being vacated in Orange County’s office market slowed to less than a 1 percent increase quarter over quarter in vacant space in the second quarter of 2023. This is compared to the 17 percent year-over-year rise, resulting in a total of 20.9 million square feet of vacant office space. Similarly, the growth rate of available sublease space also experienced a slower pace of 0.2 percent quarter over quarter, compared to a 23.4 percent year-over-year increase, reaching 4.6 million square feet. The second-quarter office vacancy rate sits at 13.3 percent, versus 13.2 percent in the first quarter. Overall office vacancy was at 11.5 percent a year ago. As the availability of office space has begun to stabilize, the average asking rent remained unchanged compared to the previous quarter. There was a minor decline of …

August 8, 2023

California Development Industrial Loans Western

JLL Secures $16.2M Financing for Industrial Development in Fontana, California

by Amy Works August 7, 2023

FONTANA, CALIF. — JLL Capital Markets has arranged $16.2 million in senior financing on behalf of Iconic Equities for the development of a 5.6-acre industrial outdoor storage (IOS) facility located at 8247 Lime Ave. in Fontana. JLL worked on behalf of the borrower to secure the financing through Shelter Growth (SG) Capital Partners. Upon completion, the IOS property will serve as a truck yard and contain an onsite 12,500-square-foot warehouse and distribution building. The property will offer end-users the opportunity to stack metal storage containers while providing ample truck parking.

August 7, 2023

California Loans Retail Western

MMCC Arranges $7.5M Acquisition Financing for Single-Tenant Retail Property in Oxnard, California

by Amy Works August 7, 2023

OXNARD, CALIF. — Marcus & Millichap Capital Corp. (MMCC) has arranged a $7.5 million loan for the acquisition of a 37,500-square-foot single-tenant retail property located in Oxnard. Esporta Fitness occupies the building, which was constructed in 1970 and renovated in 2017. Ron Balys of MMCC secured the financing on behalf of the buyer.

August 7, 2023

Affordable Housing California Development Loans Multifamily Western

KeyBank Provides $46.4M in Financing for Affordable Housing Project in Los Angeles

by Amy Works August 4, 2023

LOS ANGELES — KeyBank Community Development Lending and Investment (CDLI) has provided $46.4 million in financing for the construction of 2111 Firestone, a supportive housing property located in unincorporated Florence-Graham in the Watts neighborhood of Los Angeles. The Prime Co., a giving-focused, vertically integrated multifamily development firm, is the sponsor of the project. KeyBank CDLI provided $19.7 million in federal and state Low Income Housing Tax Credit (LIHTC) equity, a $21.4 million construction loan and a $5.3 million permanent loan to finance the development. Located at 2111 Firestone Ave., the six-story residential complex will feature 85 one- and two-bedroom apartments designed to serve families and individuals exiting homelessness. Forty-two of the units will be designated for individuals exiting homelessness and earning no more than 30 percent of the area median income (AMI) and 41 apartments will be restricted to households earning no more than 50 percent of AMI. Additionally, the property will feature two manager units. The project team includes Prime, Domus Development and Kingdom Development. KeyBanc Capital Markets Group also sold $20.7 million of tax-exempt bonds through a public offering, the proceeds of which will be used to support financing the project. Housing Works will provide supportive services for residents …

August 4, 2023

Acquisitions California Net Lease Retail Western

SRS Brokers $6.9M Sale of Superior Grocers-Anchored Property in Buena Park, California

by Amy Works August 4, 2023

BUENA PARK, CALIF. — SRS Real Estate Partners has arranged the sale of a single-tenant retail property located at 6931 La Palma Ave. in Buena Park. An undisclosed partnership sold the asset to a private, non-1031 investor for $6.9 million. Both the buyer and seller are based in Southern California. Matthew Mousavi and Patrick Luther of SRS’ National Net Lease Group represented the buyer and seller in the transaction. Superior Grocers occupies the 34,199-square-foot property, which was built in 1996 on 1.7 acres. There are seven years remaining on the tenant’s corporate-guaranteed triple-net lease.

August 4, 2023

Acquisitions California Retail Western

Hanley Brokers $4.1M Sale of Retail Pad in Modesto, California

by Amy Works August 3, 2023

MODESTO, CALIF. — Hanley Investment Group Real Estate Advisors has brokered the $4.1 million sale of a retail pad building located in Modesto. Built in 2018 and situated within a Save Mart-anchored shopping center, the multi-tenant building totals 6,402 square feet. Tenants at the property include Pacific Dental Services, Mountain Mike’s Pizza and West Coast Sourdough Deli. Jeff Lefko and Bill Asher of Hanley represented the seller, Covenant Real Estate Group, in the transaction. A California-based buyer acquired the property.

August 3, 2023

Affordable Housing California Development Multifamily Western

Partnership to Open $45M Pasadena Studios Affordable Housing Property in Pasadena, California

by Amy Works August 2, 2023

PASADENA, CALIF. — A partnership between Community Builders Group and Bridge Financial Advisors is opening Pasadena Studios, a $45 million affordable housing property in Pasadena. The six-story community will offer 180 micro-units, ranging from 245 square feet to 270 square feet. Each apartment will feature a private balcony, offering an indoor-outdoor living experience and additional square footage. The 56,000-square-foot asset features free internet service, a fitness center, laundry room, landscaped rooftop deck with seating, two grilling stations, fire features, landscaped courtyard, outdoor seating areas, lobby area seating with a kitchenette and community space, two elevators, secure entrances, security surveillance and bike storage. The project team includes Westport Construction, Natoma Architects and LCRA. WinnResidential, the property management arm of WinnCompanies, will manage the community.

August 2, 2023

Acquisitions California Multifamily Western

CBRE Arranges $6.3M Sale of Multifamily Community in Fontana, California

by Amy Works August 2, 2023

FONTANA, CALIF. — CBRE has brokered the sale of an apartment property located at 8919 Mango Ave. in Fontana. A local private investor acquired the asset from an undisclosed private seller for $6.3 million. Built in 1973, the community features 25 apartments in a mix of one-, two- and three-bedroom floor plans, with an average unit size of 787 square feet. Units offer high-speed internet access, air conditioning, heating and kitchen appliances. Onsite amenities include laundry, carport and surface parking, a secure entry gate and landscaping. Eric Chen, Blake Torgerson and Hunter Wetton of CBRE represented the buyer and seller in the deal.

August 2, 2023

California Loans Mixed-Use Top Stories Western

Kilroy Realty Obtains $375M Loan for One Paseo Mixed-Use Campus in San Diego

by John Nelson August 1, 2023

SAN DIEGO — Kilroy Realty Corp. (NYSE: KRC), an office, mixed-use and life sciences REIT based in Los Angeles, has obtained a $375 million loan for a portion of One Paseo, a mixed-use campus in San Diego. New York Life Insurance Co. provided the 11-year, non-recourse loan, which features a fixed 5.9 percent interest rate. The loan matures in August 2034. The 36-acre property is situated between the city’s Carmel Valley neighborhood and Del Mar, as well as near I-5 and State Route 56. One Paseo is home to tenants including lululemon athletica, Sephora, drybar, BodyRok, Harland Brewing, Shake Shack, Cava and Blue Bottle Coffee, among others. The loan was secured by a 23-acre portion of Kilroy Realty’s One Paseo campus that comprises two office buildings, 608 apartment units and more than 95,000 square feet of retail space. This portion was developed in phases between 2019 and 2021, according to Kilroy Realty. “Against a challenging capital markets backdrop, we are very pleased with this loan execution, which further fortifies our already strong balance sheet and liquidity position while establishing a new partnership with a world-class life insurance company,” says John Kilroy, CEO of Kilroy Realty. JLL and Allen Matkins advised …

August 1, 2023

California Development Retail Western

R.D. Olson Breaks Ground on Bolsa Row Terrace Shopping Center in Westminster, California

by Jeff Shaw July 31, 2023

WESTMINSTER, CALIF. — R.D. Olson has announced the groundbreaking of Bolsa Row Terrace, a new shopping and dining destination in Westminster’s Little Saigon District. Spanning 26,211 square feet, the two-story retail development will feature shopping and dining options overlooking a landscaped courtyard with al fresco bistro seating. The architecture draws inspiration from Vietnam’s pre-war French colonial style, with elements like arches, ironwork, glass storefronts and a clock tower with a traditional mansard roof resembling Bến Thành Market. Completion of Bolsa Row Terrace is scheduled for early 2024. This is R.D. Olson’s second phase of the six-acre project for developer IP Westminster.

July 31, 2023

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