California

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

Acquisitions California Retail Western

NAI Capital Negotiates $2.9M Sale of Retail Asset in Lawndale, California

by Amy Works April 16, 2020

LAWNDALE, CALIF. — NAI Capital has directed the sale of a retail property located at 16711-16725 Hawthorne Blvd. in Lawndale. The asset sold for $2.9 million, or $252 per square foot. The names of the seller and buyer were not released. Built in 1955, the 11,700-square-foot asset was renovated in 2002 with contemporary architectural features. The building features two restrooms, HVAC, high ceilings, 34 parking spaces, a fenced and gated parking lot, two double doors and approximately 800 amps of electric power. At the time of sale, the property was owner occupied. Sheri Messerlian of NAI Capital’s Retail Services Group represented both parties in the transaction.

April 16, 2020

California Loans Multifamily Western

MMCC Arranges $34.5M Construction Loan for Condo Development in Pasadena, California

by Amy Works April 15, 2020

PASADENA, CALIF. — Marcus & Millichap Capital Corp. (MMCC), the financing subsidiary of Marcus & Millichap, has secured a $34.5 million construction loan for a 48-unit condominium development in Pasadena. Stefen Chraghchian and Sharone Sabar of MMCC’s Encino, Calif., office arranged the loan for the undisclosed developer of the property. The 30-month loan was structured with a 5 percent adjustable interest rate and 40 percent loan-to-value ratio. Slated for completion in 2021, the six-story project will total 62,075 square feet, with the for-sale residential units averaging 1,243 square feet each. The property will also feature an amenity deck with a swimming pool, hot tub and outdoor entertainment area.

April 15, 2020

California Company News Retail Western

Jean Retailer True Religion Files for Chapter 11 Bankruptcy Amid Pandemic-Related Retail Closures

by Amy Works April 14, 2020

MANHATTAN BEACH, CALIF. — True Religion, a premium jeans retailer based in Manhattan Beach, filed papers in Delaware bankruptcy court on Monday, April 13. In its filing, the company stated that pandemic-related closure of all its retail location and all the stores of its wholesale buyers had accelerated “existing liquidity constraints.” Due to these factors, True Religion furloughed all nonessential employees and reentered Chapter 11, which it previously entered in July 2017. “While the debtors would have preferred to wait out the current instabilities of the financial markets and retail industry generally, [True Religion] simply could not afford to do so,” according to the filing. The company, which was founded in 2002, stated in its bankruptcy filings that it has just north of 1,000 employees, 92 percent of them currently furloughed. The Chapter 11 petition listed between $100 million and $500 million in liabilities.

April 14, 2020

Acquisitions California Hospitality Western

Marcus & Millichap Brokers $9M Sale of Motel 6 in North Hills, California

by Amy Works April 14, 2020

NORTH HILLS, CALIF. — Marcus & Millichap has brokered the sale of Motel 6 Los Angeles – Van Nuys – North Hills, located at 15711 Roscoe Blvd. in North Hills. A limited liability company sold the asset to a private investor for $9 million. The hotel features 131,412 square feet of space. Brandon Michaels, Steven Schechter and Sean Brandt of Marcus & Millichap’s Encino, Calif., office represented the seller and buyer in the transaction.

April 14, 2020

Acquisitions California Healthcare Top Stories Western

Prime Healthcare Agrees to Acquire Hospital in Los Angeles County for Over $350M

by John Nelson April 14, 2020

LYNWOOD, CALIF. — Prime Healthcare, a private healthcare system based in Ontario, Calif., has agreed to acquire St. Francis Medical Center, a 384-bed hospital in the Los Angeles County suburb of Lynwood. The U.S. Bankruptcy Court for the Central District of California in Los Angeles recently approved Prime Healthcare’s purchase agreement with the seller, Verity Health System, a California-based healthcare system that filed for bankruptcy in summer 2018. As part of the agreement, Prime Healthcare will purchase St. Francis Medical Center for more than $350 million, which includes a $200 million base price and a $15 million in payroll and benefits for staff. The firm will also invest $47 million to make technological and system upgrades, as well as finalize employee agreements with the hospital’s current staff. The remaining balance of the purchase price was not specifically categorized. Prime Healthcare has agreed to honor the Attorney General and Bankruptcy Court conditions recently issued for this sale to preserve the hospital, trauma care, service lines, charity commitments and community benefit programs. “Our agreement with Verity reflects our decades-long mission of saving, improving and investing in community hospitals,” said Dr. Sunny Bhatia, Prime Healthcare’s Region 1 CEO and corporate chief medical officer. …

April 14, 2020

Acquisitions California Industrial Western

Rexford Industrial Buys San Gabriel Valley Industrial Property for $15.5M

by Amy Works April 13, 2020

AZUSA, CALIF. — Rexford Industrial has completed the purchase of an industrial asset located at 720-750 N. Vernon Ave. in Azusa, within the Los Angeles – San Gabriel Valley market. An undisclosed seller sold the property for $15.5 million, or $59 per land square foot. The property was acquired through a sale-leaseback transaction underwritten on a land-value basis. The 71,692-square-foot property is fully leased on a long-term basis. The buyer plans to collect cash flow from the in-place lease and, upon lease expiration, to redevelop the property by constructing a new, larger Class A warehouse/distribution facility.

April 13, 2020

Acquisitions California Retail Western

NAI Capital Facilitates Sale of 8,000 SF Strip Retail Center in Camarillo, California

by Amy Works April 13, 2020

CAMARILLO, CALIF. — NAI Capital has arranged the sale of a strip retail center, located at 415 W. Ventura Blvd. in Camarillo. YS Properties sold the asset to a private investor for $4.8 million, or $600 per square foot. Built in 2020, the 8,000-square-foot property is fully occupied by T-Mobile, Subway, Lindora and Eye Glass Factory. The asset is an out-pad parcel to The Home Depot and located directly off the 101 Freeway. Dave Maron of NAI Capital’s Investment Services Group represented the buyer in the deal.

April 13, 2020

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