— By Bryce Aberg and Brant Aberg of Cushman & Wakefield — Optimism is returning to the San Diego industrial market after a few quarters of recalibration. Buyer appetite has resurfaced in core submarkets like Otay Mesa, Miramar and Carlsbad, which has created a ripple effect across the Greater San Diego industrial market. With an inventory of 162 million square feet as of the second quarter, San Diego is beginning to see the benefit of limited supply. Natural barriers like Mexico, the Pacific Ocean, Camp Pendleton and the nearby mountains are driving the San Diego industrial market toward full build-out. There is currently only 2.4 million square feet of inventory under construction, with not much more proposed. Following the all-time highs in rent growth and positive absorption seen in 2021 and 2022, San Diego’s enduring fundamentals and built-in advantages have kept it in place as one of the most stable and competitive in Southern California. With a diversified tenant base, high barriers to entry and a strategic position on the U.S.-Mexico border, fundamentals have held while others in the Southern California region have struggled in comparison. Bid-ask spreads are also starting to narrow as buyer and seller sentiments begin to …
CULVER CITY, CALIF. — Helio Group has obtained a $92 million construction loan for Aston Residences, a to-be-built multifamily property in Culver City. Jeff Sause, Chad Morgan, Jacob Michael and Danny Ryan of JLL arranged the floating-rate loan with Affinius Capital for the borrower. Located at 10505 Washington Blvd., Aston Residences will offer 160 one-bedroom and 30 two-bedroom apartments with luxury finishes and smart home technology. Community amenities will include 5,191 square feet of ground-floor retail space, a fitness room, clubhouse, an indoor pickleball court, hot and cold plunge pools, an outdoor kitchen and bicycle parking within a three-floor garage. Completion is slated for first-quarter 2028.
FOSTER CITY, CALIF. — Artemis Real Estate Partners has acquired Atria at Foster Square, a 155-unit senior living community located in Foster City, roughly 20 miles southeast of San Francisco. Artemis purchased the property in partnership with the current operator, Atria Senior Living, which will continue to manage the community under its Atria Signature Collection brand. Built in 2016, the property was developed as part of a mixed-use master-planned town center. Amenities at the community include a theater, fitness center, activity and game rooms, a library, courtyard, physical therapy space and multiple dining venues. Aaron Rosenzweig and Dan Baker of JLL represented the undisclosed seller in the transaction.
OAKLEY, CALIF. — RealSource Group has arranged the ground lease sale of a single-tenant convenience store and fuel station located at 1050 Laurel Road in Oakley. California Capital & Investment Group sold the asset to 7-Eleven, which exercised its Right of First Refusal on the property, for an undisclosed price. Jonathan Schiffer and Austin Blodgett of RealSource represented the seller in the deal. 7-Eleven occupies the 3,795-square-foot building that was built in 2019 on 1.2 acres. The property is subject to a triple-net ground lease with over nine years remaining on the initial 15-year term, 10 percent rent increases every five years and three five-year renewal options.
Ellis Partners, Baupost Group Buy 460,000 SF Multi-Building Office Campus in Santa Clara, California
SANTA CLARA, CALIF. — Ellis Partners, in partnership with The Baupost Group, has purchased Campus at Scott, a Class A office campus in Santa Clara, from New York-based Clarion Partners for an undisclosed price. The three-building, 460,000-square-foot property is located at 3315, 3325 and 3355 Scott Blvd. The partnership plans to upgrade the asset’s amenities including fitness, food and outdoor areas.
HESPERIA, CALIF. — Newcastle Partners has broken ground on an industrial development located at 9260 Mesa Linda St. in Hesperia. Situated on 18.3 acres with immediate access to I-15, the project will offer 406,138 square feet of Class A industrial space. Ryan Lal and Dante Borruso of Voit Real Estate Services are overseeing all marketing, sales and leasing efforts for the property.
GLENDALE, CALIF. — Marcus & Millichap has arranged the sale of a vacant retail building located on 2.4 acres at South Central Avenue and Chevy Chase Drive in Glendale. Aria Investments LLC sold the asset to the City of Glendale for $24 million. The city plans to develop a park and recreation center on the site, which includes a 33,818-square-foot retail building formerly occupied by JoAnn Fabrics. Sheila Alimadadian of Marcus & Millichap represented the seller and procured the buyer in the deal.
SAN DIEGO — Pacific Coast Commercial Real Estate has negotiated the sale of Del Oro Apartments, a value-add multifamily property in San Diego’s Hillcrest neighborhood. John Lopez and Cheryl Lopez acquired the asset from an undisclosed seller for $4.5 million. Citizens Private Bank provided acquisition financing for the buyers. Located at 3748-3772 Tenth Ave. and 918 Robinson Ave., Del Oro Apartments consists of an 18-unit apartment building and an adjacent duplex. The properties offers 15 studios averaging 326 square feet and five one-bedroom/one-bath units averaging 447 square feet. Zoned RM-3-9, the property also features nine garages. Ken Robak and David Dilday of Pacific Coast Commercial represented the seller, while Patti McKelvey of Coldwell Bank West represented the buyers in the transaction. Chicago Title Co. managed escrow and title services.
MOUNTAIN HOUSE, CALIF. — Brixton Capital has purchased The Market Mountain House, a neighborhood shopping center in Mountain House, from Shea Properties for $32 million. The fully leased property offers 86,872 square feet of retail space spread across five buildings. Current tenants include Safeway and its affiliated fuel station, Starbucks Coffee, The UPS Store, Great Clips and Haagen-Dazs. Rob Ippolito, Pete Bethea, Glenn Rudy, Nicholas Ricardo and Warren McClean of Newmark represented the Aliso Viejo, Calif.-based seller, while Brixton was self-represented in the transaction.
PALM DESERT, CALIF. — Irvine, California-based Faris Lee Investments has brokered the $6.1 million sale of a two-tenant retail property located at the corner of Highway 111 and Fred Waring Drive in Palm Desert. SchoolsFirst Federal Credit Union and T-Mobile occupy the 7,400-square-foot building. Chris DePierro, Jeff Conover, Don MacLellan, Scott DeYoung and Greg Lukosky of Faris Lee represented the seller, Sage Investments, in the transaction. The all-cash, 1031 exchange buyer was a Southern California-based private investor. This deal marks the 25th property Faris Lee Investments has sold in the Palm Desert, Palm Springs, La Quinta and Indio markets.