California

NKF Negotiates $10.5M Sale of Fully Occupied Industrial Building in Los Angeles

by Amy Works January 28, 2020

LOS ANGELES — Newmark Knight Frank (NKF) has brokered the sale of an industrial property located within Northridge Business Centre at 19851-19853 Nordhoff St. in the Northridge submarket of Los Angeles. GUR Nordhoff sold the asset to Century Park Partners for $10.5 million. Built in 2007 by Overton Moore Properties, the 22,237-square-foot asset features 18-foot clear heights, five grade-level doors and a secure, fenced yard. The U.S. General Services Administration occupies the entire building on a long-term lease. Sean Fulp, Ryan Plummer and Mark Schuessler of NKF’s Private Capital group, along with Kevin Shannon and Ken White of NKF’s Capital Markets, represented the seller, while the buyer was self-represented in the deal.

January 28, 2020

Acquisitions California Retail Western

SRS Brokers $9M Acquisition of Sorrento Plaza Retail Center in San Diego

by Amy Works January 28, 2020

SAN DIEGO — SRS Real Estate Partners’ National Net Lease Group has arranged the purchase of Sorrento Plaza, a shopping center located in the Sorrento Valley submarket of San Diego. A Northern California-based private investor acquired the asset from Wells Fargo, as the successor trustee, for $9 million, or $756 per square foot. Built in 2007, the 11,901-square-foot property is located at 9254 Scranton Road. At the time of acquisition a variety of tenants fully occupied the property, including Subway, Rubio’s Coastal Grill, Opera Patisserie, Croutons and a dental clinic. Sam Hanna of SRS’ National Net Lease Group represented the buyer, while Rick Puttkammer and Bill Rose of Marcus & Millichap represented the seller in the deal.

January 28, 2020

Ranch-Vista-Corporate-Center-San-Diego-CA

California Loans Office Western

CBRE Arranges $111.5M Refinancing for Rancho Vista Corporate Center in San Diego

by Amy Works January 27, 2020

SAN DIEGO — CBRE Capital Markets’ Debt & Structured Finance group has arranged a $111.5 million loan for the refinancing of Rancho Vista Corporate Center, an office/R&D campus in San Diego. The borrower is Swift Real Estate Partners. Mike Walker, Brad Zampa, Megan Woodring and Taylor Shepard of CBRE’s San Francisco office secured the floating-rate financing for the borrower. Annaly Commercial Real Estate served as lender. Situated on 67.5 acres at 16399 W. Bernardo Drive, Rancho Vista Corporate Center offers a total of 816,771 square feet of office and R&D space spread across multiple buildings, including a three-story, Class A office building. Swift Real Estate Partners acquired the campus in 2016 and has completed a $70 million transformation of the property, including upgraded building systems; added amenities, such as a fitness center and outdoor sports court facility; open-air collaboration and gaming areas; cafeteria renovation; new facades; exterior and landscaping upgrades; and increased connectivity between the buildings. The company recently completed the final stage of its repositioning strategy, which included converting Building 60 into Class A creative office space from R&D use.

January 27, 2020

Acquisitions California Retail Western

Partnership Sells The Shops at Todos Santos Plaza in Metro San Francisco

by Amy Works January 27, 2020

CONCORD, CALIF. — A partnership between Paragon Commercial Group and Long Market Property Partners has completed the disposition of The Shops at Todos Santos Plaza, an entire city block of urban retail located in downtown Concord. Terms of the transaction, including the name of the buyer and acquisition price, were not released. Comprising 15 retail and restaurant tenants, the asset was fully leased to a strong roster of daily needs and restaurant tenants. Nicholas Bicardo, Brandon Rogoff, Forest Gherlone and Mike Zystra of Newmark Knight Frank (NKF) represented the seller in the deal.

January 27, 2020

Acquisitions California Industrial Western

Cabot Properties Acquires Industrial Building Near San Diego for $15.9M

by Amy Works January 27, 2020

EL CAJON, CALIF. — Boston-based Cabot Properties has purchased an industrial building, located at 2025 Gillespie Way in the San Diego suburb of El Cajon. A private local investor sold the property for $15.9 million. Built in 1999, the 150,159-square-foot warehouse and distribution facility features 27-foor clear heights, abundant car and trailer parking, three grade-level doors and 15 dock-high doors, which can be expanded to 26 doors. At the time of sale, the property was on a ground lease with the County of San Diego and 73 percent leased to two tenants. The asset is part of the 65-acre, master-planned Gillespie Field Business Park, also known as Cuyamaca West. The park consists of 27 buildings totaling more than 735,000 square feet. Louay Alsadek, Hunter Rowe, Darla Longo, Barbara Perrier and Rebecca Perlmutter of CBRE represented the seller in the deal. Sean Williams and Erik Parker, also of CBRE, handle leasing for the property.

January 27, 2020

California Industrial Market Reports Western Western Market Reports

Orange County’s Industrial Market Stays Healthy Going Into 2020

by Taylor Williams January 25, 2020

Demand for Orange County industrial space remained healthy in 2019 as vacancy rates ended another year in record-low territory at 2.9 percent, fueled by a strong second-half net absorption. The movement in the second half of 2019 was largely a result of the Fed’s decision to keep interest rates low, which provided assurance for buyers that had been on the fence. The attractive interest rates have led to steady price increases, however, adaptation has been slow. The average time on the market has increased by roughly 30 to 60 days from 2018. Many buyers also struggled with post-close deferred maintenance. With the typical industrial building in Orange County being construction in 1985, buyers are often challenged with renovation costs adding to their bottom lines. Meanwhile, landlords in 2019 became more conservative in rent demands as average gains in asking full-service rents fell to 4.2 percent countywide, compared to 4.9 percent in 2018. Leasing activity remained steady with an average asking rate across Orange County of about $1 per square foot, triple net. A handful of notable new construction projects advanced in 2019. In the fourth quarter, 10 buildings totaling nearly 1.2 million square feet were completed in North Orange County, …

January 25, 2020

California Development Loans Mixed-Use Multifamily Retail Western

Buchanan Mortgage Funds $55M Construction Loan for The Orchard Mixed-Use Project in Azusa, California

by Amy Works January 24, 2020

AZUSA, CALIF. — Buchanan Mortgage Holdings has closed a $55 million loan for construction of The Orchard, a mixed-used residential and retail development in Azusa, approximately 20 miles east of Los Angeles. The borrower, Serrano Development Group, will use the loan to construct 163 market-rate apartments and 31,700 square feet of retail space. The transit-oriented development will be located in downtown Azusa at the corner of North Azusa Avenue and U.S. Route 66. The project will consist of two Class A multifamily buildings connected via a second-story footbridge, subterranean parking and ground-floor retail space. The project marks the second collaboration between Serrano Development Group and Buchanan Mortgage Holdings.

January 24, 2020

California Market Reports Retail Western Western Market Reports

Orange County’s Retail Transaction Volume, Consistency Will Continue in 2020

by Taylor Williams January 24, 2020

Retail transaction volume was strong in January as the shorter 2019 holiday season created a tight window for year-end closings, residual transactions pushed into the New Year and gave 2020 an early jump on what should be another great year. Total transactions in 2020 should continue to build from the big start. The massive transaction volume from the second half of 2019 — more specifically, a glut of fourth-quarter sellers — has produced a wave of investors needing to complete 1031 exchange purchases in the second and third quarters of 2020. By comparison, 2019 featured a slower than typical start due to a combination of elevated interest rates and residual investor hangover from the equity markets debacle of the fourth quarter of 2018. Our sense is that 2020 will benefit from enormous velocity, driven by private investor demand and seller willingness to meet market expectations in favor of quicker transactions as fears of the late cycle, election turmoil and international unrest grow. Further evidence of seller’s alignment with market expectations, trailing available data has shown the asking price to sale ratio narrowed from nearly 12 percent in first-quarter 2019 to 3 percent in fourth-quarter 2019. This brought the bid/ask more …

January 24, 2020

The-Crossing-Tahoe-Valley-South-Lake-Tahoe-CA

Acquisitions California Retail Western

Sutter Capital Sells 46,041 SF Redeveloped Lifestyle Center in South Lake Tahoe

by Amy Works January 23, 2020

SOUTH LAKE TAHOE, CALIF. — Sacramento-based Sutter Capital Group has completed the disposition of The Crossing at Tahoe Valley, a newly redeveloped shopping center in South Lake Tahoe. A private investor acquired the asset for an undisclosed price in a 1031 exchange. Originally constructed in 1973, the shopping center underwent a renovation in 2017. The new design features an institutional-quality mountain contemporary buildout. A large outdoor communal plaza offers casual seating, fire pits and an elevated stage that hosts daily live music performances. At the time of sale, the property was 87 percent leased to a mix of local restaurants, health and wellness services and boutique shops, as well as one of the top-performing Big 5 Sporting Goods stores in the retailer’s portfolio, according to Sutter. Situated on 4.9 acres at 2014-2062 Lake Tahoe Blvd., The Crossing at Tahoe Lake is less than two miles from Lake Tahoe’s southern shore. Eric Kathrein, Bryan Ley and Jake Dempsey of JLL Retail Capital Markets represented the seller in the transaction.

January 23, 2020

California Healthcare Loans Office Western

PSRS Secures $11M Loan for Medical Office Space in Chula Vista, California

by Amy Works January 23, 2020

CHULA VISTA, CALIF. — San Diego-based Pacific Southwest Realty Services (PSRS) has arranged $11 million in financing for a medical office facility located in Chula Vista. The borrower is San Ysidro Health (formerly San Ysidro Health Center). Located at 880 Third Ave., the 23,780-square-foot property was formerly a CVS/pharmacy that was converted to a modern medical office facility. San Ysidro Health is a nonprofit organization that provides healthcare services. Services at the new center will include senior services, adult and family medicine, pediatrics, women’s health and support services. Pasha Johnson of PSRS structured the loan for the borrower.

January 23, 2020

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