NORWALK, CALIF. — Paragon Commercial Group has purchased a vacant retail property situated on 2.3 acres at 10710 Firestone Blvd. in Norwalk. RSM Properties sold the asset for $7.1 million. Paragon plans to redevelop the 25,977-square-foot building for Chick-fil-A. An Office Depot and a coffee chain formerly occupied the property. Pat Wade and Alex Kozakov of CBRE represented Paragon in the off-market transaction.
BOSTON — Cabot Properties Inc. has sold its Value Fund V portfolio in two separate transactions for a total of $2.8 billion. Blackstone Real Estate Income Trust Inc. (BREIT) acquired the portfolio, which features logistics properties in the United States and Europe. The U.S. portfolio includes 102 properties totaling 15.2 million square feet located in major logistics markets such as the Inland Empire, California; Eastern Pennsylvania; South Florida; and the New York metropolitan area. In a separate transaction, Blackstone’s European Core Plus business and its affiliates acquired the remaining European properties, which feature 22 properties totaling 2.2 million square feet of industrial space. The properties are located in European markets such as the Midlands, North West and South East in the United Kingdom; Amsterdam; and Düsseldorf in Germany. “The sale of our Value Fund V portfolio completes our most ambitious logistics property investment program over the past 20 years,” says Franz Colloredo-Mansfeld, chairman and chief executive officer of Cabot. “This portfolio was created through 90 transactions, including 24 development projects throughout the U.S., U.K. and Europe completed over the past five years. We are pleased to have now completed approximately $5 billion in three transactions with Blackstone Real Estate over …
SACRAMENTO, CALIF. — Phillips Edison & Co. has purchased Town & Country Village, a dual grocery-anchored community shopping center in Sacramento, from Donahue Schriber for an undisclosed price. Trader Joe’s and Sprouts Farmers Market co-anchor the 216,320-square-foot shopping center. At the time of sale, the property was 91 percent leased to a variety of tenants, including Bed Bath & Beyond, Ross Dress for Less, T.J. Maxx and Five Below. Town & Country Village is situated on 19 acres at 2601-2651 and 2717-2805 Marconi Ave. Originally constructed in 1950, the asset was most recently renovated between 2013 and 2014. Eric Kathrein, Geoff Tranchina, Bryan Ley and Gleb Lvovich of JLL represented the buyer in the deal.
VISTA, CALIF. — KKR has acquired Vista Commerce, an industrial warehouse facility in Vista, from Westcore for an undisclosed price. Situated on an all-concrete site, the 197,000-square-foot Vista Commerce features 14 dock-high doors, six grade-level doors, 27-foot clear heights and ample power. The property is fully leased to an undisclosed, publicly listed healthcare diagnostic testing company. CBRE represented Westcore in the deal. KKR acquired Vista Commerce through its KKR Real Estate Partners Americas II fund.
SAN JOSE, CALIF. — KBS Real Estate Investment II has completed the disposition of 300 Holger Way, a Class A office building in San Jose. An affiliate of Menlo Equities acquired the property for $35 million. Constructed in 2000 and fully renovated in 2019, the three-story building features 99,552 square feet of office space on 4.8 acres. KBS invested more than $3 million in renovations to the property, including new interiors, upgraded exteriors, landscaping, a new outdoor amenity area, an upgraded parking lot and new HVAC system. The building is part of the eight-building District 237 office park, which KBS originally acquired in 2013. The 300 Holger Way property is the final asset to sell in the office park. Joseph Moriarty, Scott Prosser, Jack Depuy, Brad Zampa and Mike Walker of CBRE represented KBS in the transaction.
By Christopher Reutz, Research Director, Colliers It’s no secret the San Diego County office market experienced unprecedented conditions in 2020. Yet, brighter days may be ahead for the local office market. The COVID-19 pandemic caused many “non-essential” businesses to adopt work-from-home policies. San Diego’s office market took an incredible hit from this in early 2020, amounting to 450,000 square feet of negative net absorption. This was the biggest drop in local demand in more than six years. Last year recorded 1.8 million square feet of negative net absorption, while the first quarter of 2021 posted nearly 400,000 square feet of additional negative demand. The forecast for San Diego’s office market, though, is cautiously poised for an upswing. Demand began to pick up this last quarter as the percentage of vaccinated employees increased. Demand for office space also increased with net absorption totaling 16,000 square feet, signifying the wave of move-outs had finally passed. Additionally, while vacancy during the recession increased from 9.9 percent to a current rate of 14.2 percent, it still remains lower than historical rates recorded during the Great Recession. From late 2008 through mid-year 2011, vacancy remained in the 15 percent to 16 percent range. While the national conversation has focused …
LOS ANGELES — ViacomCBS Inc. (NASDAQ: VIAC, VIACA) has entered into a definitive agreement to sell CBS Studio Center in Los Angeles to a partnership formed by Hackman Capital Partners LLC and Square Mile Capital Management LLC. The sales price of approximately $1.85 billion includes associated businesses of CBS that operate within the 1 million-square-foot complex. Situated on a 55-acre site in the Los Angeles neighborhood of Studio City, the property includes 22 stages, production offices and support buildings, third-party tenant offices, the Broadcast Center and filmable backlot locations. Shows filmed at the studio over the years have included Seinfeld, Mary Tyler Moore, Parks and Recreation, The Talk, It’s Always Sunny in Philadelphia, That 70’s Show and Gunsmoke. At closing, ViacomCBS subsidiary CBS Broadcasting Inc. will enter into a long-term leaseback of the Broadcast Center, which is home to TV stations CBS 2 and KCAL 9. ViacomCBS will continue to occupy stages and produce content on the lot, as well as enter into a short-term leaseback of certain portions of the property in order to manage the transition of its employees to other locations. “This sale is part of an ongoing optimization of ViacomCBS’ real estate and operations portfolio and …
MARTINEZ, CALIF. — San Diego-based MG Properties Group has acquired Maris at Martinez, a multifamily property located at 142 Fig Tree Lane in Martinez. Terms of the transaction were not released. Formerly known as Terra Martinez, the 168-unit community was built in 1985. Salvatore Saglimbeni, Stanford Jones, Philip Saglimbeni and Alexander Tartaglia of Institutional Property Advisors, a division of Marcus & Millichap, represented the undisclosed seller. Institutional investors advised by JP Morgan Asset Management provided mortgage financing for the acquisition. Bryan Frazier, Andrew Schoene and Blake Hockenbury of Walker & Dunlop arranged the acquisition financing.
By Steve Kapp, Executive Managing Director, Newmark Strong tenant demand, coupled with a limited supply of Class A industrial product, has pushed industrial rents in the San Francisco East Bay industrial market to new highs. Also known as the I-880 corridor, vacancy rates stood at 6 percent, down slightly from a year ago on a building base of 189 million square feet. Some submarkets like Fremont and Union City, as well as certain building types like new construction Class A warehouse, have performed even better than average. Warehouse rental rates now average above $1 per square foot, per month, in most East Bay markets. These show no signs of slowing down based on strong tenant demand. This demand goes beyond the typical ecommerce giants. Large lease deals were signed by Wine.com, Applied Materials, Home Depot and Chef’s Warehouse in the second quarter alone. Another trend is the rise of the life sciences sector. These firms have traditionally gravitated to research-oriented campuses in South San Francisco, Emeryville or Palo Alto. However, the I-880 corridor is chalking up a number of deals for pilot plants and good manufacturing practices (GMP) facilities. Sana Bio recently leased a 164,000-square-foot advanced manufacturing facility in Fremont, while Senti Bio …
DAVIS, CALIF. — Construction is underway on Orchard Park, a 1,600-bed student housing community located on the University of California, Davis campus. The property will target graduate students, offering units at below-market rates. The community is scheduled for completion in fall 2023. Orchard Park is Phase II of a larger development named The Green at West Village, which is being built through a public-private partnership between the university and Michaels. Phase I of the project delivered 1,000 beds in fall 2020, and included nine four-story buildings with shared amenities including a fitness center, multipurpose room and student support services. The property was fully leased ahead of the 2020-2021 academic year. “Michaels is honored to be the university’s private-sector partner for both of these beautiful, amenity-rich, energy-efficient housing developments,” says Ned Williams, senior vice president of Michaels Student Living. “We understand that great housing, along with a great education, represents the door to opportunity not just for success today, but success for tomorrow and beyond.”
