— By Bryan Cunningham of JLL — The retail sector continues to be a bright spot for commercial real estate in San Diego County. Despite financial headwinds that include interest rates, construction costs and increases in operating costs like labor and insurance, the resiliency of the consumer has allowed retailers and restaurants to continue to generate substantial sales volumes. Both national and regional retail and restaurant tenants continue to expand, although more cautiously than in years past. Retail vacancy rates in San Diego continue to hover around 5 percent, with the more desirable coastal communities closer to 3 percent. The lack of new development due to geographical constraints, as well as interest rates and construction costs, is driving expanding tenants to look purely at second-generation retail centers. While the retail tenant pool is somewhat shallow due to bankruptcies by Bed Bath & Beyond, 99 Cents Only, Party City, JoAnn Stores and the like, the lack of new product is keeping well-positioned shopping centers in high demand. Most grocery- and big box-anchored shopping centers are enjoying rents at record levels with very little vacancy. Retail centers continue to be at the forefront of interest from investors as well. While interest rates …
MONROVIA, CALIF. — IPA Capital Markets, a division of Marcus & Millichap, has arranged $76 million in construction financing for The Monroe, a Class A multifamily and retail development in Monrovia. The project is currently under construction and scheduled for completion in September. Located at 127 W. Pomona Ave., The Monroe will feature 232 apartments and 7,050 square feet of ground-floor commercial space. Apartments will range from studios to three-bedroom units, with 25 of the units designated affordable for low- and moderate-income households. Additionally, the property will have 302 residential parking spaces and 85 public parking spaces. Community amenities will include a gym, swimming pool, clubhouse, barbecue area, rooftop patio and conference/meeting rooms. Stefen Chraghchian of IPA Capital Markets secured the financing with Affinius Capital on behalf of Adept Urban Development.
SAN DIEGO — Lincoln Property Co. and Brasa Capital Management have purchased Spectrum Tech Center, an industrial and flex property in the Kearny Mesa submarket of San Diego, for $26.2 million. The new owners will rebrand the asset as Spectrum Logistics Center and plan renovations designed to align the site with current market demand for industrial space. The existing industrial building will be renovated and the existing vacant office building will be demolished and replaced with a 3.7-acre industrial outdoor storage (IOS) yard. The owners will begin demolition and construction activity on the site immediately, with delivery planned for late summer 2026. Located at 4820 Overland Ave. and 9112 Spectrum Center Blvd., Spectrum Tech Center currently comprises two buildings totaling 161,981 square feet on two parcels totaling 8.8 acres. The asset includes a two-story, 59,460-square-foot corporate headquarters building and a 102,521-square-foot technical R&D, manufacturing and distribution space.
By Cris O’Neall, Esq. of Greenberg Traurig LLP With the number of public-private partnerships for constructing public facilities on the rise, communities across the country wrestle with the question of how to treat such arrangements for ad valorem property tax purposes. In most instances, private developers and taxing entities take opposing positions on the issue. Public-private joint ventures have become a popular strategy to achieve community objectives through collaboration with private developers. To construct a particular facility, a municipality or other government will typically provide subsidies or other financial incentives to encourage participation in the project by a private-industry partner or partners. These subsidies, which may come in the form of grants or tax credits, often lead to property tax contention. Some taxing authorities include the subsidies or tax benefits granted to the private developer in the taxable assessed value of the real property. In contrast, private developers view such subsidies or benefits as tax-exempt intangible property that should not be included in assessed values. Here are a few common incentives and their property tax implications: Low-Income Housing Subsidies The treatment of federal subsidies for operation and construction of low-income housing became an early battleground in the ongoing conflict over …
AZUSA, CALIF. — Langdon Park Capital and Standard Real Estate Investments have acquired an apartment property located in Azusa. The 84-unit community will be rebranded as Langdon Park on Arrow and will operate under a long-term affordability structure designed to benefit working families. Situated 25 miles east of downtown Los Angeles, the property features one-, two- and three-bedroom apartments. The new ownership group plans to invest in modest renovations to enhance the resident experience while maintaining affordability and minimizing displacement. The joint venture secured equity financing from The Community Preservation Corp. Financing for the acquisition also included a Fannie Mae loan arranged by Walker & Dunlop. The property will benefit from a Welfare Tax Exemption through the California Municipal Finance Authority, made possible by the active participation of Housing on Merit, a California-based nonprofit serving as the managing general partner.
SANTA FE SPRINGS, CALIF. — Voit Real Estate Services has negotiated the sale of Valley View Commerce Center at 14515-14585 Valley View Ave. in Santa Fe Springs. A family wealth office sold the asset to Circle Industrial Growth Fund II for an undisclosed price. Built in 1989 on 14.2 acres, the six-building asset offers 210,098 square feet of multi-tenant industrial space. The property features grade-level loading doors and 109 units ranging from 919 square feet to 3,409 square feet. At the time of escrow, the property was 76 percent occupied. Michael Hefner, Robert Socci, Mitch Zehner and Seth Davenport of Voit represented the seller and buyer in the transaction.
CATHEDRAL CITY, TEMECULA AND REDDING, CALIF. — SRS Real Estate Partners has arranged the sales of three restaurant properties totaling $10 million. Starbucks Coffee occupies the three newly constructed properties, which include drive-thrus, under long-term, corporate-guaranteed triple-net leases. The sales include: – A 1,900-square-foot property at the southwest corner of Highway 111 and Date Palm Drive in Cathedral City. A Northern California-based private investor acquired the asset from a Newport Beach, Calif.-based retail and restaurant development company for $3.7 million. Alexander Moore of SRS Capital Markets represented the buyer in the deal. – A 3,600-square-foot property at 27425 Ynez Road in Temecula. A West Coast-based developer sold the property to a California-based private investor for $3.6 million. Pat Kent and Parker Walter of SRS Capital Markets brokered the sale. – A 2,055-square-foot building at 3045 Shasta View Drive in Redding that sold for $2.7 million. Alexander Moore of SRS Capital Markets represented the seller, a California-based private investor, and the buyer, a Northern California-based private investor.
RIVERSIDE, CALIF. — Hanley Investment Group Real Estate Advisors has brokered the sale of a single-tenant retail property located at 4990 Van Buren Blvd. in Riverside. Portland, Ore.-based developers Zach Bonsall and Braden Bernards of Cole Valley Partners sold the asset to a Long Beach, Calif.-based private investor for $2.8 million. Dutch Bros Coffee will occupy the 1,025-square-foot drive-thru building, which is currently under construction, on a 15-year absolute triple-net ground lease with 10 percent rental increases every five years. An opening date has not been announced for the location. Bill Asher and Jeff Lefko of Hanley Investment Group represented the seller, while Mark Troughton of Whittier, Calif.-based Mark Troughton Real Estate represented the buyer in the deal.
LOS ANGELES — PSRS has arranged $10 million in refinancing for Coronado Apartments, a multifamily property in Los Angeles. The apartment building offers 33 studio, one- and two-bedroom units, underground parking and a rooftop deck. Jonny Soleimani and George Gianoukakis of PSRS secured a five-year, full-term interest-only loan through a bank execution.
PHOENIX AND POWAY, CALIF. — Stos Partners has completed two industrial transactions in Phoenix and Poway. The firm acquired a 39,351-square-foot freestanding industrial building at 2229-2235 E. Magnolia St. in Phoenix for $5.2 million, or $131 per square foot. Purchased from a private investor in an off-market transaction, the vacant warehouse is situated in the Sky Harbor submarket. The building features a clear height of 24 feet, two dock-high and two grade-level doors. Stos Partners plans to reposition the property through a series of capital improvements, including roof replacement, parking lot resurfacing, HVAC upgrades, new speculative office build-out, exterior and interior painting and drought-tolerant landscaping. Parker Huston of DAUM Commercial represented Stos Partners, while Jerry Hillary of DAUM represented the seller in the deal. Stos Partners also completed the $6.5 million disposition of 12575 Stowe Drive in Poway. The firm acquired the 18,000-square-foot property in 2020 for $3.6 million and executed its business plan ahead of schedule. The asset includes a large, secured yard, 26 percent floor-area ratio, a clear height of 20 feet, four grade-level doors and two stories of office space. Tim Clepper of San Diego Commercial represented Stos Partners, while Josh West of Voit Real Estate represented the …