By Guy Enriquez, Vice President, NAI Capital The market for small- to medium-sized multifamily buildings ranging from 10 to 100 units in the City of San Bernardino has experienced a severe downturn in sales transactions recently. This was caused by the rapid increase in interest rates and a disconnect between buyers and sellers on pricing expectations. Cap rates on sales completed in the third quarter of 2022 show an increase of about 80 basis points year over year to 5.5 percent in the Inland Empire. Third-quarter 2022 sales volume in the Inland Empire fell to 15 transactions totaling $54 million. The area has been averaging 37 transactions totaling $180 million on a quarterly basis over the past four quarters. This quarter, the City of San Bernardino saw one sales transaction in this segment of the market, indicating the lack of deal volume. While rising interest rates caused a collapse of sales volume, combined with other general economic factors, San Bernardino’s rental market has remained very strong. The city’s overall multifamily physical vacancy rate has stood at 3.2 percent throughout 2022. The average rent for a one-bedroom unit increased from $949 to $966 per unit during the first three quarters of …
California
Buchanan Street Partners Purchases Oakbrook Plaza Office Building in Laguna Hills, California for $28.1M
by Amy Works
LAGUNA HILLS, CALIF. — Newport Beach-based Buchanan Street Partners has purchased Oakbrook Plaza, an office building located at 24422 Avenida De La Carlota in Laguna Hills. A New York City-based fund manager sold the property for $28.1 million in an off-market transaction. The four-story building features 120,354 square feet of space. Currently, the property is 66 percent occupied, with 30 percent of the existing space leased to medical tenants. The asset is located less than one mile from MemorialCare Sadddleback Medical Center and several retirement communities. Kevin Shannon, Paul Jones and Brandon White of Newmark represented the seller in the transaction.
VISTA, CALIF. — Rockwood Capital has purchased The Rylan, a multifamily property in downtown Vista, from StreetLights Residential for an undisclosed price. The Rylan offers 126 units, resort-style amenities and five ground-floor retail spaces. Hunter Combs of Walker & Dunlop represented the seller and buyer in the transaction.
SAN JOSE, CALIF. — WF Batton Management Co. has acquired Valley Research Center, a R&D campus in North San Jose, for $41.5 million. The name of the seller was not released. Joe Moriarty, Scott Prosser and Jack DePuy of CBRE Capital Markets represented the seller in the transaction. Valley Research Center comprises two 64,512-square-foot buildings, which were renovated in the last two years with a new lobby, collaborative work areas, fitness center and outdoor recreational areas. Harmonic Inc. fully occupies the building at 2590 Orchard Parkway and FIT Electronics (Foxconn) leases 26 percent of 2580 Orchard Parkway.
Hanley Investment Group Negotiates $10.4M Sale of Chick-fil-A-Occupied Restaurant in Livermore, California
by Amy Works
LIVERMORE, CALIF. — Hanley Investment Group Real Estate Advisors has arranged the sale of a single-tenant restaurant property located at 1754 N. Livermore Ave. in Livermore. Meridian sold the property to an Alameda County-based buyer in a 1031 exchange for $10.4 million. Chick-fil-A occupies the 4,821-square-foot, built-to-suit property on a 20-year initial net lease term. Bill Asher and Jeff Lefko of Hanley Investment Group represented the seller in the deal.
Wood Partners, Principal Real Estate Open 372-Unit Alta Star Harbor Residential Community in Alameda, California
by Amy Works
ALAMEDA, CALIF. — Wood Partners and Principal Real Estate have opened Alta Star Harbor, a residential property located at 1518 Clement Ave. in Alameda. The property is a combination of new construction and the adaptive reuse of a 100-year-old Del Monte warehouse, with all residences located within the six-acre historic brick façade. Additionally, select units feature preserved original timber roofs, brick walls and concrete floors combined with modern apartment amenities. Designed by BAR Architects, Alta Star Harbor features 372 apartments in a mix of studio, one-, two- and three-bedroom layouts. Units range from traditional apartment-style homes and townhome options to work/live units. Each apartment offers open floor plans, stainless steel appliances, quartz countertops, hard-surface flooring, full-size washers/dryers and temperature control. Community amenities include paseos with landscaped gardens, rooftop sundecks, retail space, a fitness center and yoga studio, Wi-Fi lounge with workspace booths, a clubroom for resident events with a community kitchen, and complimentary coffee bar. Wood Residential will manage the property.
Rockwood Capital, MG Properties Acquire Domain Apartments in San Diego’s Kearny Mesa Neighborhood
by Amy Works
SAN DIEGO — A joint venture between affiliates of Rockwood Capital and MG Properties has purchased Domain San Diego, a multifamily community in San Diego’s Kearny Mesa neighborhood, for an undisclosed price. The sellers were the real estate business within Goldman Sachs Asset Management and Magnolia Capital. Domain San Diego features 379 apartments in a mix of studio, one- and two-bedroom apartments, competitive community amenities and easy access to freeways 163 and 52. Joseph Smolen, Geoff Boler, Mark Peterson, Jonathan Merhaut and Eugene Chong of Eastdil Secured represented the sellers in the deal.
SAN DIEGO — CBRE has arranged the sale of a single-story office building in downtown San Diego. The San Diego County Bar Association acquired the asset from 330 A Street LLC for $6.8 million. Jeff Oesterblad and Marc Frederick of CBRE’s San Diego office represented the seller, while Tom Nicholas and Jack Blumenfeld of Colliers represented the buyer in the transaction.
Boardwalk Investments Group Receives $245M Refinancing for Mixed-Use Portfolio in California
by Amy Works
COSTA MESA, CALIF. — Costa Mesa-based Boardwalk Investments Group, led by Gary Jabara and Debi Kroger, has received $245 million in financing for a portfolio of properties in California. John Chun, John Marshall, Jordan Leake and Spencer Seibring of JLL Retail Capital Markets Debt Advisory secured the permanent financing from four lenders. The portfolio includes: The Estate, a 22-acre hospitality and destination retail complex in downtown Yountville. The property features the 193-room Hotel Villagio, Vintage House and the five-bedroom Villa at The Estate. Aliso Creek Shopping Center, a 49,149-square-foot, 92-percent occupied retail center in Laguna Beach. Flower Hill Promenade, a 168,249-square-foot, 95.6-percent leased retail center in Del Mar. The Landing, a 44,289-square-foot, fully leased shopping center on the Balboa Peninsula in Newport Beach. 1810 State Street, a 99-unit mid-rise apartment complex in downtown San Diego’s Little Italy neighborhood. Restoration Hardware Yountville, a single-tenant wine vault and restaurant space in downtown Yountville.
THOUSAND OAKS, CALIF. — An affiliate of Maxxam Enterprises has received $84.7 million in refinancing for Janss Marketplace, a grocery-anchored regional retail center in Thousand Oaks. Matt Stewart, Alethia Halamandaris and Chris Jaffe of JLL Capital Markets Debt Advisory secured the financing through TerraCotta Credit Fund for the borrower. Located at 165-401 N. Moorpark Road, Janss Marketplace features 456,390 square feet of retail space. The property was built in phases from 1959 to 1999 and renovated in 2007 and 2020. Current tenants include Aldi, ULTA Beauty, Petco, Old Navy, Five Below and Golds Gym. At the time of financing, the property was 90 percent occupied.