California

Hanley Investment Group Brokers $2.9M Sale of Bank of America-Occupied Asset in Palm Desert, California

by Amy Works September 12, 2023

PALM DESERT, CALIF. — Hanley Investment Group Real Estate Advisors has arranged the sale of an absolute triple-net ground lease of a single-tenant building located at 39355 Washington St. in the Coachella Valley city of Palm Desert. A Los Angeles-based private investor sold the building to a Riverside County-based private investor for $2.9 million. Bank of America occupies the 3,515-square-foot freestanding building, which features a drive-thru. Bill Asher and Jeff Lefko of Hanley Investment represented seller, while Tyler Rollema of The Klabin Co. in Torrance represented the buyer in the deal.

September 12, 2023

California Healthcare Market Reports Office Western Western Market Reports

Orange County’s Medical Office Market Stays on Solid Ground

by Jeff Shaw September 12, 2023

— By John Wadsworth and Aaron Phillip, Colliers — The Orange County medical office building (MOB) market continues to show resilience post-pandemic despite headwinds of the new interest rate environment. The overall Orange County MOB market consists of 10 million square feet with a current vacancy of 8.5 percent, down 100 basis points from the end of 2022. The average rental rate is $3.48 per square foot, per month, full-service growth, with an increase of 9.3 percent from mid-year 2022. The lack of significant MOB construction completions, coupled with much of the existing vacancy found in older, functionally obsolete buildings, has kept supply largely in line with demand. The velocity of MOB leasing activity has softened compared to pre-pandemic transaction volume, with healthcare providers still digging out of the financial “COVID hole.” Among other market pressures, labor costs and retention across healthcare employment significantly contribute to continued narrow margins on provider balance sheets. From larger health systems to smaller independent practices, all have been impacted, slowing the pace of expansion projects and mandating shorter, more flexible transactions until more permanent real estate solutions can be implemented. Despite the market challenges posed by the pandemic, MOB absorption has remained positive countywide, …

September 12, 2023

Acquisitions California Multifamily Western

Advanced Real Estate Buys Citron House Apartments in Huntington Beach, California for $96M

by Amy Works September 11, 2023

HUNTINGTON BEACH, CALIF. — Advanced Real Estate has acquired an apartment community in Huntington Beach, formerly known as Citron House, for $96 million. The buyer plans to implement a $7 million renovation project and rebrand the community as Surf House. Located on Warner Avenue, the property features 264 apartments. The community will undergo an exterior facelift with new windows, balcony upgrades, paint, pool area overhaul with new cabanas, new signage and drive-entry enhancements. Apartment interiors will be modernized with new cabinetry, countertops, flooring, fixtures and a contemporary paint scheme. R3 Construction, Advance’s in-house renovation company, is completing the renovations. Advanced Management Co., Advanced’s in-house management company, will operate the property. In the transaction, Advanced assumed an approximately $53 million Freddie Mac loan, which has a remaining term of 1.5 years and bears interest at a 4.22 percent rate. Geoff Boler, Johnathan Merhaut and Eugene Chong of Eastdil Secured’s Newport Beach office brokered the transaction.

September 11, 2023

Acquisitions California Development Industrial Western

Pacific Industrial Acquires Land for 215,000 SF Spec Development in City of Industry, California

by Amy Works September 11, 2023

CITY OF INDUSTRY, CALIF. — Pacific Industrial has purchased 10 acres of land at 17969 Railroad St. in City of Industry. The property was acquired via a short-term sale/leaseback. Additional terms of the transaction were not released. Upon lease expiration, Pacific Industrial plans to develop Pacific Railroad Center, a Class A, 215,000-square-foot industrial facility. The speculative for-lease development will offer electric vehicle charging stations, solar-ready roofs, excess car/trailer parking and a two-story signature glass-entry office. Pacific Industrial plans to break ground in 2024, with completion scheduled for 2025. Chris Bonney and Brad Gilmer of Lee & Associates will be exclusive leasing agents for the project.

September 11, 2023

Acquisitions California Multifamily Seniors Housing Western

CareTrust REIT Purchases 187-Bed Skilled Nursing Facility in Vista, California

by Amy Works September 11, 2023

VISTA, CALIF. — CareTrust REIT Inc. (NYSE: CTRE) has completed a joint venture investment to acquire La Fuente Post Acute, a 187-bed skilled nursing facility in Vista, approximately 40 miles north of San Diego. Once regulatory approval is obtained, Bayshire Senior Communities (a current tenant of CareTrust) will operate the facility pursuant to a new 15-year lease. To acquire the facility, CareTrust and a third-party regional healthcare real estate investor entered into a joint venture. CareTrust’s combined common equity and preferred equity investments in the joint venture total $25.5 million. CareTrust’s initial contractual yield on its combined preferred and common equity investments in the joint venture is approximately 9.7 percent. The lease provides for 3 percent fixed annual rent escalators and two five-year extension options. CareTrust is the managing member of the joint venture entity. The investments were funded using cash on hand.

September 11, 2023

CapRock-Global-Logistics-Moreno-Valley-CA

California Development Industrial Loans Western

JLL Arranges $17.5M Pre-Development Financing for Industrial Site in Moreno Valley, California

by Amy Works September 11, 2023

MORENO VALLEY, CALIF. — JLL Capital Markets has arranged $17.5 million in pre-development financing for a 22.1-acre parcel within the World Logistics Center master-planned community in the Inland Empire city of Moreno Valley. Greg Brown, Peter Thompson, Spencer Seibring and Kyle White of JLL Capital Markets’ debt advisory team secured the financing for the borrower, Newport Beach-based CapRock Partners. Upon entitlement, CapRock Partners will have the option to either commence development on an approximately 500,000-square-foot, LEED-certified industrial warehouse or exit via a land sale. The 22.1-acre industrial-zoned site will accommodate a wide range of uses, including e-commerce, manufacturing and distribution. At completion, the building would feature 36-foot clear heights, 65 dock-high doors and up to 10,000 square feet of two-story office space. Additionally, the property will offer 88 trailer parking stalls, 339 auto parking stalls, a truck court depth of 185 feet and a secured concrete yard. CapRock Global Logistics is located south of the 60 freeway at the Theodore Street on/off ramp.

September 11, 2023

Acquisitions California Office Western

Local Family Investor Buys 405,130 SF Office Campus in Fullerton, California for $76.5M

by Amy Works September 7, 2023

FULLERTON, CALIF. — A local family investor has acquired an office campus situated on 33.7 acres in Fullerton for $76.5 million, or $188 per rentable square feet. The seller was a partnership comprising a global real estate investment, development and management firm and a global investment manager. Aerospace and weapons manufacturer Raytheon, an investment-grade credit tenant, fully leases the 405,130-square-foot campus, located at 1801 Hughes Drive. Nico Napolitano, Jeffrey Cole, Jeff Chiate, Rick Ellison, Scott Selke and Brad Brandenburg of Cushman & Wakefield’s capital markets team in Southern California represented the seller in the deal.

September 7, 2023

California Development Multifamily Student Housing Western

UC Merced, Merced College Plan 488-Bed Student Housing Development

by Amy Works September 7, 2023

MERCED, CALIF. — The University of California Merced (UC Merced) and Merced College have announced plans to jointly develop a 488-bed student housing project for community college and transfer students. The California Legislature gave final approval for the $100 million mechanism that will fund the project. The Promise Housing facility will offer rooms on the UC Merced campus for income-qualified community college students that have met the academic requirements of the university’s Merced Promise agreement. The Merced Promise program was created to encourage the most promising and in-need student populations in California’s Central Valley to transform their lives through the pursuit of higher education. “This joint affordable housing project will be a game-changer for our historically underserved region, removing barriers for our students seeking to transfer to UC Merced and providing them with an opportunity to complete their transfer degree at Merced College while fully engaging in campus life at UC Merced,” says Chris Vitelli, president of Merced College. A timeline for the development was not announced.

September 7, 2023

Acquisitions California Retail Western

Black Lion Acquires Whole Foods-Anchored Retail Complex in Thousand Oaks, California for $8M

by Amy Works September 7, 2023

THOUSAND OAKS, CALIF. — Black Lion has purchased a shopping center located at 692 N. Moorpark Road in Thousand Oaks, for $8 million. The name of the seller was not released. Whole Foods Market anchors the 23,958-square-foot retail center, which will undergo rebranding. At the time of acquisition, the 11-storefront property was 55 percent occupied. The buyer plans to implement upgrades to the asset including a façade renovation, new roof and parking lot. Dan Tyner of JLL represented the buyer and seller in the transaction.

September 7, 2023

California Development Industrial Western

Elevation Land Co., Crow Holdings Capital Break Ground on 1.8 MSF Otay Business Park in California

by Amy Works September 6, 2023

OTAY MESA, CALIF. — A joint venture between Elevation Land Co. and a real estate fund advised by Crow Holdings Capital has broken ground on Otay Business Park, situated on a 119-acre site in San Diego’s Otay Mesa submarket. The joint venture acquired the land site in May 2022. Otay Business Park will feature 1.8 million square feet of industrial distribution and logistics space spread across multiple buildings. The first phase of the project is slated to open in late 2025. Dempsey Construction is performing the horizontal site work, which includes grading, as well as on-site and off-site utility and road infrastructure work. Ware Malcomb served as architect for the project.

September 6, 2023

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