LOS ANGELES — CHA Health Systems Inc. has broken ground on a new patient care tower within CHA Hollywood Presbyterian Medical Center (HPMC), a private hospital campus in Hollywood. The nearly 175,000-square-foot tower will replace an existing building at an estimated cost of $291 million. The tower is part of HPMC’s three-phase, $350 million overhaul that includes retrofitting the existing Doctor’s Tower and South Wing to satisfy California’s seismic requirements. The state passed a seismic retrofitting law in the wake of the 1994 Northridge earthquake that requires all acute care medical centers and hospitals to adhere to seismic-specific structural standards by 2030. The goal of the law is for all California hospitals to remain operational in the event of an earthquake, such as the 4.5-magnitude tremor that shook regions of Southern California early this morning. KMD Architects designed the new tower to meet the state’s seismic requirements as well. Doctor’s Tower, South Wing and HPMC’s new parking deck are set to open this year. The tower will double the hospital’s current emergency department with a 26,000-square-foot space that features 20 exam rooms and a private room for women’s services, as well as areas designated for chest pain observation and detox …
IRVINE, CALIF. — A joint venture between a global investment management firm and Hines has received $144 million in financing for Intersect, a four-building office campus in Irvine. Kevin MacKenzie, John Chun, Jamie Kline, Peter Thompson, Michael Leggett and Dereck Barker of HFF arranged the three-year, floating-rate loan through New York Life Insurance. The borrower will use the loan to retire existing debt and fund the remaining lease-up of the property. Intersect comprises Buildings A, B, C and D located at 17875 and 17877 Von Karman Ave. and 17872 and 17838 Gillette Ave., respectively, in the core airport-area submarket of Orange County. The 425,203-square-foot campus features a restaurant; micro-retail shipping containers that serve grab-n-go coffee, juice and food; indoor and outdoor workspace; a 6,000-square-foot indoor/outdoor gym; private tenant terraces; a 100-seat, stadium-style conference center; a 20-person board room; and an outdoor game pavilion. Additionally, the property features surface parking, a 1,583-space structured parking garage at 17892 Gillette Ave. and a 177-stall subterranean parking facility.
COSTA MESA, CALIF. — Servitas and Orange Coast College have announced plans for an 811-bed student housing community on the college’s campus in Costa Mesa. The project site is on campus land. The arrangement is structured as a ground lease to a nonprofit organization, allowing for tax-exempt debt financing with no recourse to the college, district or taxpayers. The design-build team includes HPI Architecture, MVE Architects and construction firm C.W. Driver. George K. Baum & Co. provided the bond underwriting, and The Scion Group will manage the project in close collaboration with the college. “This project will benefit Orange Coast College in more than one way,” says Matt Myllykangas, senior vice president of Servitas. “Not only will the college be able to provide its students with on-campus housing for the first time, but also enhance the student experience overall. This residence hall will add to the college’s sense of community. Servitas is thrilled to be part of this exciting time for OCC, and looks forward to seeing how this project impacts the college and its students in the years to come.” A timeline for the development has yet to be announced.
LOS ANGELES AND MONTCLAIR, CALIF. — KeyBank Real Estate Capital has originated a total of $125 million in Freddie Mac first mortgage financing for two multifamily properties in the Los Angeles area. The firm arranged a $72.4 million fixed-rate loan for The Paseos Apartment Homes, a 385-unit multifamily property located in Montclair. Built in 2014, the property comprises 15 three-story apartment buildings. The undisclosed borrower used the loan to refinance existing debt. The loan features a 10-year term, five-year interest-only payment period and 30-year amortization schedule. Additionally, KeyBank arranged a $52.6 million fixed-rate loan for The Piero, a 225-unit garden-style apartment complex located in Los Angeles. The property is comprised of a seven-story apartment building, with three unit layouts ranging from 468 square feet to 1,218 square feet. The undisclosed borrower used the loan to refinance existing debt. The financing features a 10-year, interest-only term. Robert Prouty of Key’s Commercial Mortgage Group arranged the financing for both properties.
ANAHEIM, CALIF. — American Realty Advisors (ARA) has acquired a newly constructed industrial facility located at 1730 S. Anaheim Way in Anaheim. A joint venture between Batcheller Equities and Panattoni Development sold the property for an undisclosed price. The 143,930-square-foot facility features floor-to-ceiling windows, modernized creative office space, a hybrid solar roof system complete with skylights and solar panels, 32-foot clear heights, ESFR sprinklers and a 2.05/1,000 parking ratio. An electrical contractor currently fully occupies the facility on a lease that runs through 2028. ARA represented itself in the transaction, while Bret Hardy and Jeff Read of NKF Capital Markets represented the seller.
SANTA ANA, CALIF. — Marcus & Millichap has brokered the sale of The Legion Building, a retail property located at 313 N. Birch St. in Santa Ana. An undisclosed buyer acquired the property for $2.4 million, or $155.63 per square foot. At the time of sale, the 15,742-square-foot property was vacant. Joseph Lising of Marcus & Millichap brokered the transaction. The name of the seller was not released.
LOS ANGELES — Institutional Property Advisors (IPA), a division of Marcus & Millichap, has brokered the sale of an eight-property, 644-unit multifamily portfolio in Los Angeles County for $161.9 million. The properties include: Oaktree Apartments and Stillmore Apartments in Santa Clarita; Tamarind Terrace Apartments in Hollywood; Regency Apartments, Woodley Court and Sylvan Apartments in Van Nuys; Vista Del Madre in Pasadena; and Foothill Village in Sylmar. Seven of the eight assets were not subject to rent control. Greg Harris, Ron Harris, Kevin Green, Joseph Grabiec and Bryan Schellinger of IPA represented the seller, a private ownership group. The team also procured the five separate buyers, which include an institutional discretionary fund, regional syndicators and private investors. Renovations are currently planned for the properties. “It is rare to find a sizeable, almost completely non-rent-controlled, value-add portfolio where the upside can be immediately realized,” says Green. Cap rates ranged between 3.5 percent and 4.5 percent based on current net operating income, according to Harris. Projected cap rates following renovations are between 5 percent and 6 percent. — Kristin Hiller
CHULA VISTA, CALIF. — The City of Chula Vista and the Port of San Diego have approved key agreements to advance the Chula Vista Bayfront resort hotel and convention center project on San Diego Bay. The Board of Port Commissioners and the Chula Vista City Council unanimously approved a disposition and development agreement between the public-private partnership of port, the city and RIDA Development Corp. Construction is slated to begin in late 2019. Gaylord Hotels, the large convention hotel brand of Marriott International, will operate the 535-acre project. Located west of Marina Parkway between H and G streets, the waterfront development will include 1,600 hotel rooms and a 415,000-square-foot convention with 275,000 usable square feet of convention and meeting space. Additionally, the project will feature associated retail and resort-style amenities, including restaurant, bar and lounge facilities, recreational facilities, spa, pool with a lazy river, bike and boat rentals, more than 250 acres of protected wildlife habitat, and 46 acres of new parks, trails and bike paths. Public infrastructure improvements are planned to start by 2019, which includes site preparation, building access roads and new public streets, providing utility services and developing the new Harbor Park. Sun Communities Inc. is developing …
LOS ANGELES — Keybank Real Estate Capital has originated a $247.8 million Freddie Mac first mortgage loan for The Lorenzo in Los Angeles. The 913-unit, Class A, mid-rise student housing property was developed in 2015. The property is 95 percent leased to students attending University of Southern California, Fashion Institute of Design and Merchandising, and Loyola Law School. The remaining units are reserved for tenants earning 50 percent or less of the area median income. The Lorenzo features a three-story fitness center with rock climbing walls, basketball courts and an indoor jogging track. Additionally, the property offers an on-site restaurant with room service, media rooms, study rooms and libraries catering to the different colleges, as well as multiple swimming pools, saunas and sand volleyball courts. Robert Prouty of Key’s Commercial Mortgage Group arranged the fixed-rate loan with a seven-year interest-only term. The undisclosed sponsor used the loan to refinance existing debt.
Avison Young Negotiates $4.8M Sale of Multi-Tenant Industrial Building in Cathedral City, California
CATHEDRAL CITY, CALIF. — Avison Young has arranged the sale of a multi-tenant industrial building located at 68945 Perez Road in Cathedral City. North First Street Properties LP sold the property to Cathedral City 2 LLC for $4.8 million. Built in 1989, the 29,400-square-foot property is situated on 1.7 acres of land with frontage and access along Perez Road. At the time of sale, the property was full leased to a variety of tenants, including Caliber Collision Centers, Su Casa Imports and additional space entitled for cannabis manufacturing. Keith Kropfl and Michael Ganz of Avison Young, along with Thom Olson of Creatus Properties, represented the buyer, while Coldwell Banker represented the seller in the transaction.