TEJON RANCH, CALIF. — Dallas-based Covington Group has purchased a 606,000-square-foot warehouse distribution facility. The property is located within the Tejon Ranch Commerce Center in the 1,450-acre master-planned commercial and industrial development located at the junction of Interstate 5 and Highway 99 in Kern County, Calif. The development is approximately an hour north of the Los Angeles basin. A joint venture between Tejon Ranch Co. and Rockefeller Group sold the asset for an undisclosed price. Dollar General has occupied the warehouse facility since 2012. Other tenants at Tejon Ranch Commerce Center include IKEA, Famous Footwear, L’Oréal USA and Caterpillar. The master-planned area is entitled to more than 20 million square feet of commercial and industrial space, with approximately 6 million square feet already in development and 14 million square feet of entitled space still available.
EL SEGUNDO, CALIF. — Griffin Capital Essential Asset REIT has completed the sale of an office building located at 2160 Grand Ave. in El Segundo. SteelWave acquired the asset for $63.5 million, or $420 per square foot. Griffin Capital acquired the 151,289-square-foot property in February 2014 for $52.7 million. At that time the property was fully leased to a single tenant with a lease expiration of June 30, 2021. As part of the transaction, Griffin delivered the property unencumbered by the lease. The Shannon Team of Newmark Knight Frank represented the seller in the transaction.
AZUSA, WILMINGTON AND GARDEN GROVE, CALIF. — Rexford Industrial Realty has purchased three industrial properties in Southern California for $56.1 million. The acquisitions were funded using cash on hand. The names of the sellers were not released. The company acquired a 4.2-acre land parcel at 415 S. Motor Ave. in Azusa for $7.2 million, or $39 per land square foot. Rexford plans to construct a 96,950-square-foot Class A industrial building on the site. The development will feature 32-foot clear heights, 14 dock doors, ESFR fire sprinklers and modern office space. Additionally, the company purchased a 57,522-square-foot building located at 508 East E St. in Wilmington for $14.9 million, or $259 per square foot. Situated on 3.45 acres, three tenants fully occupy the property. Rexford also acquired an industrial building located at 12752-12822 Monarch St. in Garden Grove for $34 million, or $130 per square foot. Situated on 11.1 acres, the 276,585-square-foot, four-tenant asset was 93 percent occupied at the time of sale. The company plans to reposition the property with functional and cosmetic improvements and replace a portion of the building with new improvements.
RANCHO CUCAMONGA, CALIF. — Voit Real Estate Services has directed the sale of a multi-tenant industrial park in Rancho Cucamonga. Newport Beach, Calif.-based Focus Real Estate Services sold the asset to Pasadena, Calif.-based Teamrise International for $21.5 million. Located at 9007-9087 Arrow Route, the property features 138,081 square feet of industrial space. Juan Gutierrez of Voit’s Ontario, Calif., office and Mike Bouma of Voit’s Anaheim, Calif., office represented the seller, while KMBJ Inc. represented the buyer in the deal.
STOCKTON, CALIF. — Meridian, a full-service real estate developer and owner of medical real estate, has completed the sale of an outpatient dialysis clinic in Stockton. A Northern California-based private investor acquired the asset for $7.5 million. The 13,600-square-foot property is located at 7500 West Lane. In 2018, Meridian originally acquired a 7,500-square-foot building situated on 2.06 acres to develop the Stockton dialysis clinic. The development team included Walnut Creek, Calif.-based Harriman Kinyon Architects; Livermore, Calif.-based Kier and Wright; and Napa, Calif.-based H2 Builders. Paul Beckwith of Cushman & Wakefield’s Oakland, Calif., office represented the buyer, while Chris Sheldon of Cushman & Wakefield’s San Francisco office represented the seller in the transaction.
Employers throughout Orange County continue to seek ways to attract and retain the best and brightest talent as unemployment dropped to 2.4 percent in the second quarter, below both the California and U.S. rates. That, in turn, has resulted in landlords reinvesting in their properties, providing creative and flexible work spaces, and offering a variety of onsite amenities and service that help companies fulfill that goal. Landlords continue to seek out creative competitive advantages by improving the actual employee experience within the workplace. This often results in amenities like gyms, fitness classes, outdoor work areas, restaurants and collaborative open spaces. Add to that complimentary concierge and personal services, dog-friendly campuses, onsite hosted events and entertainment opportunities and it’s evident to see that property owners are stepping up their tenant services game, thereby enhancing employee innovation and productivity in the workplace. With all that in mind, three new office projects completed construction in the second quarter. FLIGHT at Tustin Legacy added 457,217 square feet of unique, creative office space with 26 percent already pre-leased. The major warehouse-to-office conversion project at 2722 Michelson was delivered fully leased to Anduril, an aerospace defense firm, which subsequently subleased 47,733 square feet to advertising technology …
JURUPA VALLEY, CALIF. — CBRE Capital Markets’ Debt & Structured Finance team has arranged a $9 million loan for Kite Family Limited Partnership. The funds will be used to refinance debt on Jurupa Valley Spectrum, a retail asset in Jurupa Valley. Located at 8022-8082 Limonite Ave., the 124,949-square-foot retail center was 98 percent leased at the time of financing. Jurupa 14 Cinemas occupies approximately 48 percent of the property. Other tenants include Walgreens, Starbucks Coffee and the United States Postal Service. Shaun Moothart, Bruce Francis, Bob Ybarra, Dana Summers, Doug Birrell and Jennifer Ansari of CBRE secured the financing, which was used to retire existing debt on the property, improve the borrower’s terms and enhance the cash flow generated from the investment. The loan’s structure also provides for future funding to build out additional improvements at the property.
Despite the headwinds facing retail real estate, including the continued rise of ecommerce, the Orange County retail market remains resilient. Statistics are favorable. Vacancy is low at 3.7 percent and average market rent is $32.29 per square foot, up 1.15 percent from last year. Cap rates remain nearly 200 basis points below the national average, signaling buyer sentiment that OC retail is a relatively safe haven. Ground-up development is slow and selective, shoring up demand and keeping rates up for the foreseeable future. The interesting thing is that the market trends are pervasive. Let’s identify a few. Drive-thru restaurants are on fire. Tenants like Chick Fil-A, Raising Cane’s, Starbucks, In-N-Out, Panera and others are performing much higher in SoCal as compared to the rest of the country. Good sites are commanding competition, driving ground rents and drive-thru build-to-suit rents higher each of the past three years. Fitness, grocery, discount and entertainment uses are the most active players in the box category. It’s amazing to think the 1.5 million square feet of big boxes that were dumped on the market in 2017 and 2018 are now mostly accounted for thanks to these new users. EOS Fitness, Planet Fitness, ALDI, Burlington, At …
CORONA, CALIF. — San Diego-based Providence Capital Group has completed the sale of Rincon Corporate Plaza, an office building located at 355 E. Rincon St. in Corona. ZHOPE LLC acquired the asset for $11.8 million, or $200 per square foot. At the time of sale, the 58,850-square-foot property was 100 percent leased to 17 tenants, including Lennar Homes, Wells Fargo and Verizon. Anthony DeLorenzo, Gary Stache, Doug Mack, Sammy Cemo and Bryan Johnson of CBRE represented the seller. Shaun Moothart and Jenifer Ansari, also of CBRE, arranged financing for the Corona-based buyer in the transaction.
LAGUNA BEACH, CALIF. — LaSalle Investment Management has completed the disposition of Aliso Creek Shopping Center, a retail asset located at 30814-30936 Pacific Coast Highway in Laguna Beach. Although the sale price was not released, it marked the highest price-per-square-foot sold for an anchored shopping center in Orange County, according to JLL, which brokered the deal. Situated on 4.2 acres, Aliso Creek Shopping Center features 49,149 square feet of retail space and was fully leased at the time of sale. Tenants include CVS/pharmacy, as anchor, Yoga Works, Starfish Laguna, Fantastic Sam’s, Pure Pilates, Chase Bank, Hand & Stone, Aliso Beach Animal Clinic and Z-Pizza. Gleb Lvovich, Bryan Ley and Daniel Tyner of JLL Capital Markets represented the seller in the transaction. The name of the buyer was not released.