California

Roark Capital Invests $200M in The Cheesecake Factory Amid Pandemic-Related Closures

by John Nelson April 21, 2020

ATLANTA AND CALABASAS HILLS, CALIF. — Roark Capital Group, a private equity firm based in Atlanta, has invested $200 million in The Cheesecake Factory Inc. (Nasdaq: CAKE), owner and operator of the chain of restaurants of the same name. The Calabasas Hills-based company also owns and operates the North Italia chain, as well as a collection of restaurants within the Fox Restaurant Concepts subsidiary. The funds will be used to immediately help The Cheesecake Factory navigate the COVID-19 pandemic, in which its dine-in service has been closed. The company, which has been handling takeout orders and deliveries through the DoorDash app, preliminarily reported its off-premise sales in first-quarter 2020 increased by 85 percent from the previous quarter. Specific details of Roark Capital’s capital infusion were not disclosed, but David Overton, chairman and CEO of The Cheesecake Factory, says the investment will improve the company’s liquidity. “This transaction not only gets our affected staff members back to work as soon as practicable, but also importantly solidifies our ability to manage the business for the long-term for all of our stakeholders once we emerge on the other side of this crisis,” says Overton. “Moreover, Roark’s investment underscores the strength of our brands, …

April 21, 2020

Acquisitions California Multifamily Western

Colliers Negotiates $34.7M Sale of Sage Apartments in Escondido, California

by Amy Works April 20, 2020

ESCONDIDO, CALIF. — Colliers International has arranged the sale of Sage Apartments, a multifamily community located at 1920 and 1960 E. Grand Ave. in Escondido. Clear Sky Escondido LP sold the asset to Subsidiaria de Santa Jacinto LLC for $34.7 million, or $253,285 per unit. Peter Scepanovia and Corey McHenry of Colliers International San Diego Region’s Multifamily Advisory Group represented the seller in the transaction. Totaling 86,748 square feet, Sage Apartments features 137 units in a mix of one- and two-bedroom layouts. Over the past three years, the seller made various interior and exterior upgrades to the 1970-era property. The new owner plans to continue the upgrades and renovations.

April 20, 2020

Acquisitions California Lee & Associates Office Western

BLT Enterprises Acquires Two Creative Office Properties in Hollywood for $20M

by Amy Works April 20, 2020

HOLLYWOOD, CALIF. — Santa Monica, Calif.-based BLT Enterprises has purchased two office properties in Hollywood for a total consideration of $20 million. The properties are a creative office asset at 5735 Melrose Ave. and an 18,000-square-foot production and entertainment office compound at 6151 Santa Monica Blvd. BLT plans to transform the Santa Monica Boulevard property into a modern creative industrial compound catering to production catering to production companies, digital advertising agencies and other companies at the convergence of tech and media. The Melrose property already underwent a renovation to fit the needs of the marketplace. Brad McCoy and David Wilson of Lee & Associates represented BLT in both transactions. Adam Hall of TOLD Partners represented the undisclosed seller of the Santa Monica property, while Paul Brehme and Brad McCoy of Lee & Associates represented the seller of the Melrose property.

April 20, 2020

California Loans Multifamily Western

KeyBank Secures $15.2M in Financing for Village Green Apartments in San Bernardino

by Amy Works April 20, 2020

SAN BERNARDINO, CALIF. — KeyBank Community Development Lending and Investment (CDLI) has arranged a $15.2 million interim bridge loan on behalf of Alliant Strategic Investments (ASI) to acquire Village Green Apartments, an affordable housing property in San Bernardino. Woodland Hills, Calif.-based ASI is an investment firm focused on the acquisition and preservation of affordable and workforce housing in urban markets throughout the United States. Situated on 22 acres, Village Green Apartments features 184 units in a mix of one- and two-bedroom layouts. Community amenities for the pet-friendly property include private backyards and two swimming pools. Additionally, KeyBank Real Estate Capital’s (KBREC) Commercial Mortgage Group is arranging permanent financing — a Federal Housing Administration 223(f) mortgage through the U.S. Department of Housing and Urban Development — for ASI. The term of the Housing Assistance Payments Contract on the property will be extended. Hector Zuniga of KeyBank’s CDLI and Paul Angle of KBREC’s Commercial Mortgage Group structured the financing.

April 20, 2020

California Loans Multifamily Western

JLL Arranges $58.5M in Financing for Multifamily Portfolio in Oakland

by Amy Works April 17, 2020

OAKLAND, CALIF. — JLL Capital Markets has secured $58.8 million in financing to fund the recapitalization of a nine-property multifamily portfolio in Oakland. The borrower is Mosser Capital and its new foreign investment partner. Peter Smyslowski and Bercut Smith of JLL Capital Markets represented the borrower in financing. The firm secured floating-rate loan through Société Générale. The term is seven years, including extension options. The loan includes interest-only payments through the first five years of the term with an initial advance of $49.5 million and an additional $9 million in future funding for unit renovations, the addition of new accessory dwelling units (ADUs) and other expenses. Mosser Capital originally acquired the assets in a series of transactions and aggregated the portfolio between 2016 and 2017. The portfolio includes 282 existing rent-controlled residential units, including the addition of 28 to-be-built ADUs, averaging 522 square feet, and four ground-floor retail suites. The properties are centrally located the Oakland submarkets of Cleveland Heights, Adam’s Point, Lakeside, Uptown and East Lake.

April 17, 2020

California Loans Office Western

New York Life Originates $69.9M Acquisition, Repositioning Loan for Office Building in California

by Amy Works April 17, 2020

EL SEGUNDO, CALIF. — New York Life Real Estate Investors has originated financing for the acquisition and repositioning of 2160 Grand, a three-story office building in El Segundo. Originally developed as a built-to-suit project in 1999, the building’s T-shaped layout allows floorplates to be divided for multiple tenants, along with the capability to serve larger space users. The buyer plans to reposition the property into a 164,000-square-foot, campus-like facility with a variety of amenities, including private roof decks, a fitness center, tenant lounge and outdoor courtyard. David Milestone of Newmark Knight Frank Capital Markets placed the debt on the transaction.

April 17, 2020

Acquisitions California Healthcare Top Stories Western

Verity Health System Sells St. Vincent Medical Center in Los Angeles for $135M

by Alex Patton April 17, 2020

LOS ANGELES — Verity Health System has sold the 381-bed St. Vincent Medical Center in Los Angeles for $135 million. The hospital is currently operating on a temporary lease with the State of California as a surge facility for treating COVID-19 patients. The buyer, surgeon and medical researcher Dr. Patrick Soon-Shiong, will continue to honor the lease with the state, while also using several buildings as facilities for COVID-19 research. Soon-Shiong is the principal officer of the Chan Soon-Shiong Family Foundation, a California-based private grantmaking organization. “Verity Health is proud of its partnership with the State of California and is confident that Dr. Soon-Shiong and his team will continue to enhance the collaboration with the state and local government to address COVID-19,” says Rich Adcock, CEO of Verity Health. Verity Health System filed for bankruptcy in summer 2018. The U.S. Bankruptcy Court for the Central District of California in Los Angeles recently approved the sale of the nonprofit’s assets, including St. Francis Medical Center in Lynwood to Prime Healthcare. Located at 213 W. 3rd St. in the Westlake neighborhood of Los Angeles, the Daughters of Charity of Saint Vincent de Paul originally opened the hospital in 1856. The property closed …

April 17, 2020

Acquisitions California Features Western Western Feature Archive

IRS Notice Extends Identification, Exchange Deadlines for 1031 Deals Falling Between April 1 and July 15

by John Nelson April 16, 2020

Many real estate investors seeking tax deferral in a 1031 exchange, as well as owners contemplating a sale of an investment property in the near future and intending to perform a 1031 exchange, have been anxiously awaiting guidance from the IRS on the impact of the COVID-19 pandemic on the time deadlines in an exchange. On April 9, 2020 the IRS issued Notice 2020-23, which extended many deadlines for real estate investors affected by the COVID-19 outbreak, including Section 1031 exchange time deadlines. This notice provides that any person performing a time-sensitive action listed in either § 301.7508A-1(c)(1)(iv) of the Procedure and Administrative Regulations or Revenue Procedure 2018-58, 2018-50 IRB 990 (Dec. 10, 2018), which is due to be performed on or after April 1 and before July 15, 2020, is an “affected taxpayer.” This includes the 45-day identification and 180-day exchange period deadlines in both deferred and safe-harbor reverse 1031 exchanges. Therefore, pursuant to Notice 2020-23, if the end of an investor’s 45-day identification period or 180-day exchange period in a deferred exchange — or the parallel periods in reverse exchanges under Revenue Procedure 2000-37 — falls between April 1 and July 15, the applicable period is automatically extended …

April 16, 2020

Ontario-Ranch-Logistics-Uline-Ontario-CA

California Industrial Leasing Activity Western

Uline Signs 1.2 MSF Lease at Ontario Ranch Logistics Center in Inland Empire

by Amy Works April 16, 2020

ONTARIO, CALIF. — Uline, a distributor of shipping, industrial and packaging materials, has signed a lease to occupy 1.2 million square feet of industrial space at Ontario Ranch Logistics Center in Ontario. Newport Beach, Calif.-based REDA and Clarion Partners, co-landlords and co-developers, are building the 124-acre multi-phase industrial property. The family-owned business will consolidate several of its locations throughout the Inland Empire into the new facility. Speculative construction of Building 2, which will house Uline, was initiated in January. Vertical construction is slated to begin in July with completion set for September 2021. Dave Desper and Joey Sugar of CBRE represented Uline in the lease transaction. Construction of the first phase of Ontario Ranch Logistics Center started in January 2019 and featured a 1.2 million-square-foot facility, which sanitary products manufacturer Kimberly-Clark now occupies. The next phase of speculative development at the campus is a 115,000-square-foot building, which is slated for delivery in early 2021. Upon completion, the entire logistics campus will encompass 2.6 million square feet of industrial space in six buildings. Ontario Ranch Logistics Center features state-of-the-art buildings that include ESFR sprinkler systems, 32-foot to 40-foot minimum clear heights, LED warehouse lighting and concrete truck courts greater than 180 …

April 16, 2020

Acquisitions California Net Lease Retail Western

Marcus & Millichap Brokers $9.3M Sale of Former Walgreens Property in Reseda

by Amy Works April 16, 2020

LOS ANGELES — Marcus & Millichap has arranged the sale of a retail property located on North Tampa Avenue in Los Angeles’ Reseda neighborhood. A partnership acquired the asset for $9.3 million. The 13,000-square-foot property is net-leased to Yogurtland and Walgreens. At the time of sale, Walgreens had vacated the premises, but the retailer still has a lease in place through 2034. Brandon Michaels and Lior Regenstreif of Marcus & Millichap represented the undisclosed seller and buyer in the deal.

April 16, 2020

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