COSTA MESA, CALIF. — Ready Capital has closed a $20.1 million loan for the acquisition, renovation and stabilization of Back Bay Center, a mixed-use retail and office property located in the Eastside submarket of Costa Mesa. The asset features 52,000 square feet of Class B retail and office space. Ready Capital National Bridge Originations Team closed the non-recourse, fixed-rate loan that features an 84-month term, 48 months of interest-only payments and flexible pre-payment options.
SAN JOSE, CALIF. — Mori Trust Co. Ltd. has acquired three office buildings totaling 603,666 square feet in San Jose through its subsidiary MORI America LLC. The purchase price was not disclosed, but The Mercury News reports the portfolio sold for $429 million. The properties are situated on approximately 9.7 acres and are fully leased to Idaho-based computer chip giant Micron Technology. The area is expected to undergo further development under San Jose’s master plan for urban development. Located on Holger Way, the buildings are LEED Gold certified. All three properties, built in 2010, are fully occupied. One of the buildings rises four floors, while the other two are seven floors. The sale also includes a 1,687-space parking garage. The seller on the transaction was Lane Partners, which acquired the campus for $225.5 million in 2017, according to The Mercury News report. The Mori Trust Group is a Japan-based owner and developer with a focus on real estate, hotel management and investment operations. The company previously acquired two office buildings in Boston’s Back Bay district in 2017, and has announced plans to greatly increase its overseas investments. — Kristin Hiller
RIVERSIDE, CALIF. — SRS Real Estate Partners’ National Net Lease Group is arranged the sale of a freestanding, single-tenant property located on 1.9 acres at 3490 Madison St. in Riverside. A Newport Beach, Calif.-based private developer sold the property to a Newport Beach-based physician for $5.3 million. Grocery Outlet Bargain Market occupies the 17,889-square-foot retail property on a 15-year triple-net lease. Patrick Luther and Matthew Mousavi of SRS Real Estate Partners represented the seller, while Marcus & Millichap represented the buyer. Additionally, Garrett Colburn and Townsend Cropsey of SRS secured the long-term lease with Grocery Outlet on behalf of the ownership.
EMERYVILLE, CALIF. — BioMed Realty, a Blackstone portfolio company, has purchased Emeryville Center for Innovation from an undisclosed seller for $135 million. Located in Emeryville, the property currently consists of a 250,000-square-foot, six-story life science office building and adjacent developable land parcels. As part of the transaction, Novartis will enter into a one-year leaseback on the existing building. During this time, BioMed Realty will advance redevelopment plans to transform the building into a Class A+, multi-tenant laboratory and office facility with integrated amenities. The asset also offers the potential to develop approximately 850,000 square feet of additional laboratory and office space on the campus through an existing development agreement with the City of Emeryville. This acquisition allows BioMed, an owner of approximately 4 million square feet of life science office space in the Bay Area, to continue capitalizing on the tenant demand in the San Francisco Bay Area.
SAN BERNARDINO, CALIF. — McShane Construction Co. has started construction on the Home Chef Western Distribution Center in San Bernardino. The 107,134-square-foot property will support Home Chef’s growth and is scheduled to open in third-quarter 2019. Chicago-based Home Chef is a meal kit company that offers subscription meal kits online and retail meal kits at more than 700 Kroger stores in the United States. The warehouse facility will include 79,642 square feet of food preparation space, 17,907 square feet of office space and on-site parking for 208 vehicles. Additionally, the property will feature a vestibule, conference rooms, locker rooms, bathrooms, frock room and break room. Harris Architects is the architect of record for the project.
ANAHEIM, CALIF. — R.D. Olson Construction has broken ground on a 223-room, dual-branded hotel located at 1441 S. Manchester Ave. in Anaheim. Situated two blocks from Disneyland Resort, the 220,000-square-foot property will comprise a 123-room Hilton Garden Inn and a 100-room Home2 Suites. Home2 Suites offers an extended-stay experience for guests, including a full-sized sleeper sofa, workspace and in-suite kitchen complete with a refrigerator, cooktop, dishwasher, dishes and glassware. Additionally, the dual-branded property will also include a laundry, fitness center and 24-hour marketplace. Both hotels will also have access to a restaurant, bar, pool, hot tub, kids splash pad and shared lobby. Guests at both hotels will also have access to 1,000 square feet of meeting space, 1,500 square feet of retail space and two levels of underground valet parking. Completion is slated for the fourth quarter of 2020. The project team includes BRR Architecture and Studio 11 Design.
VISTA AND SANTA CLARITA, CALIF. — Rexford Industrial Realty has acquired two industrial properties located in Southern California for a total of $12.2 million. Rexford purchased 2455 Ash St. in Vista within the North San Diego County submarket for $6.7 million, or $157 per square foot. Situated on 3.4 acres, the 42,508-square-foot property is fully leased to a single tenant. The building features dock-high loading, 22-foot clearance and a private yard. Additionally, the company acquired 25413 Rye Canyon Road in Santa Clarita within the San Fernando Valley submarket for $5.5 million, or $115 per square foot. Situated on 2.6 acres, the 48,075-square-foot property was currently 40 percent leased at the time of sale.
PERRIS, CALIF. — Progressive Real Estate Partners has brokered the sale of Shops at Ramona Expressway in Perris. A Riverside, Calif.-based private investor sold the asset to a Monterey Park, Calif.-based private investor for $3.5 million, or $352 per square foot. Built in 2007 and located at 780 Ramona Expressway, Shops at Ramona Expressway features 9,808 square feet of retail space. At the time of sale, the property was 100 percent occupied. Greg Bedell of Progressive Real Estate Partners represented the seller, while Shane Delaney of REeBroker Group represented the buyer in the transaction.
LA HABRA, CALIF. — George Smith Partners has arranged a $101.3 million bridge loan for La Habra Marketplace, a 375,000-square-foot, open-air shopping center in La Habra. Sprouts Farmers Market and Smart & Final anchor the 37-acre property, which is approximately 20 miles southeast of downtown Los Angeles. Steve Bram of George Smith Partners represented the borrower, DJM Capital Partners Inc., in the transaction. The loan, which includes $96.6 million in initial funding and $4.7 million in future funding, replaces senior and mezzanine loans on the property, and was negotiated at a floating interest rate of LIBOR plus 320 basis points. The lender is a private equity firm with a debt lending platform. “Dual-anchored by two top-name grocery stores, this is a large property in the midst of a successful repositioning,” says Bram, principal of George Smith Partners. “Led by experienced and well-respected ownership, the center has attracted national credit tenants and is situated in a prime location within the La Habra market. Our team was able to draw upon each of these elements to secure maximum leverage for this bridge loan.” Additional tenants at the center include Petco, Ulta Beauty, Hobby Lobby, Ross Dress for Less and LA Fitness. The center …
WEST HOLLYWOOD, CALIF. — Safco Capital Corp. has purchased a retail parcel, located at 8330 W. Santa Monica Blvd. in West Hollywood. Mayfair Realty sold the asset for $25.2 million. A 17,833-square-foot Gelson’s Market, a gourmet grocery store, occupies the building situated on the 1.25-acre site. David Swartz of Crosbie Gliner Schiffman Southard & Swanson represented the buyer in the deal, which was structured as a sale-leaseback transaction.
