HAYWARD, CALIF. — BKM Capital Partners has acquired North Cabot Industrial Park, located at 19707-19845 Cabot Blvd. in the East Bay city of Hayward. A non-profit entity sold the asset for $10.5 million, or $206 per square foot. Situated on 3.8 acres, North Cabot Industrial Park consists of two buildings offering a total of 51,038 square feet with 13 units ranging in size from 2,794 square feet to 6,936 square feet. The asset features two dock-high and 15 grade-level doors, 14-foot clear heights, sprinkler systems and ample parking. At the time of sale, the property was 91 percent occupied. BKM plans to invest about $685,000 on capital improvements to bring the asset to its brand standards. Planned improvements include upgrades and/or replacements of the roofs, HVAC systems, parking lot, paint, signage and landscaping. The company will invest $49,000 on speculative tenant improvements to modernize a 4,580-square-foot unit with new carpeting, paint, fixtures, millwork and lighting. BKM was self-represented in the transaction, while Robert Ferraro, Michael Barry and Ken Morris of CBRE represented the seller.
EL CAJON, CALIF. — Marcus & Millichap Capital Corp. (MMCC) has arranged a $5.6 million loan for the refinancing of a retail property located at 13578 Camino Canada in El Cajon, a suburb of San Diego. Tenants at the property include Wells Fargo, Subway, Panda Express, The UPS Store and H&R Block. Chad O’Connor of MMCC’s San Diego office secured the financing with a local credit union on behalf of a private client. Terms of the 10-year loan include a 6.5 percent fixed interest rate with 30-year amortization and a loan-to-value ratio of 65 percent.
BEVERLY HILLS, CALIF. — Tinder founder Justin Mateen, his brother Tyler Mateen and their brother-in-law Pouya Abdi have acquired Wilshire Rodeo Plaza, a Class A office and retail complex located at the corner of Rodeo Drive and Wilshire Boulevard in the posh Los Angeles suburb of Beverly Hills. Nuveen sold the asset for $211 million. The 300,000-square-foot property includes three six-story office and retail buildings along Wilshire Boulevard and a three-story office building along Rodeo Drive. The buyers plan to rebrand the property as One Rodeo, as well as upgrade and re-program the buildings to cater to luxury retail and office tenants. Current tenants include Merrill Lynch/Bank of America, USB, William Morris Endeavor and Encore Recordings. The Mateen brothers and Abdi view the acquisition as a generational property, and hope to take advantage of the “flight to quality” in a struggling office sector with limited new Class A supply. “Iconic buildings such as One Rodeo will continue to benefit from increased demand as the trend toward high-quality assets continues to unfold in a post-COVID world,” says Tyler Mateen, who is CEO of Cannon TTM, a Los Angeles-based real estate investment firm. “We are grateful to be acquiring these buildings at …
DIAMOND BAR AND MONTEREY PARK, CALIF. — NAI Capital Commercial has arranged the sale of two separate office buildings in Diamond Bar and Monterey Park, both located in the San Gabriel Valley east of Los Angeles. The assets sold for a total consideration of $28.2 million. Ryan Campbell of NAI Capital Commercial’s Investment Services Group and Tony Naples of Lee & Associates represented the buyer, a private investor, in the transactions. In the first deal, the 80,753-square-foot building at 21680 Gateway Center Drive in Diamond Bar sold for $18.9 million, or $234 per square foot. Situated on a 13.3-acre campus, the fully renovated asset is fully leased to 13 diverse tenants. In the second transaction, a 39,233-square-foot facility at 1100 Corporate Center Drive in Monterey Park sold for $9.3 million, or $237 per square foot. The two-story standalone building features ample parking. The seller or sellers were not disclosed.
VISTA, CALIF. — Lee & Associates – North San Diego County (NSDC) has arranged the sale of an industrial property located at 1204 Avenida Chelsea in Vista, approximately 40 miles north of San Diego. Hyatt Die Cast & Engineering Corp. sold the asset to an undisclosed buyer for $2.4 million. Situated within Vista Business Park, the single-tenant, 7,424-square-foot building features two grade-level doors, 18-foot clear heights and approximately 25 percent office space. Rusty Williams, Chris Roth, Jake Rubendall and Stephen Crockett of Lee & Associates – NSDC represented the seller, while Brandon Powell and Jeff Gan of RE/MAX Direct represented the buyer in the deal.
SAN DIEGO — Berkadia, on behalf of sponsor Lincoln Avenue Communities, has arranged $151 million in financing for Sea Breeze Gardens, an affordable multifamily property in San Diego. The financing includes a $53.5 million Low-Income Housing Tax Credit (LIHTC) equity investment and $97.5 million in bonds that were credit enhanced by Freddie Mac. Situated within the Lincoln Park neighborhood of San Diego, Sea Breeze Gardens is a rehabilitation project and once complete will feature 268 units across 36 two-story walk-up residential buildings. The unit mix consists of 100 two-bedroom units and 168 three-bedroom units. Twenty-seven units will be designated for residents earning up to 30 percent area median income (AMI), 27 units at 50 percent AMI and 212 units at 60 percent AMI. Additionally, the property will offer three employee units, and the community will meet the requirements for mobility and sensory access with a total of 27 units for mobility impairment and 11 units for sensory impairment. Tim Leonhard and Chris McGraw of Berkadia secured the financing for the borrower.
CARLSBAD, CALIF. — Innovative Housing Opportunities (IHO) and C&C Development have opened Pacific Wind, an affordable housing community in Carlsbad, approximately 30 miles north of San Diego. Located at 3875 Sydney Way, the 89-unit property replaced 22 1950s-era duplexes. Pacific Wind features five two- and three-story garden-style walk-up buildings with two play areas for low-income working families and individuals who make between 30 to 80 percent of area median income. The community is already fully leased to more than 300 residents. The property features a clubhouse with leasing and resident service offices, a multi-purpose room with a kitchen and a learning center. Funding sources for the $56 million project include Bank of America, California Municipal Finance Authority, City of Carlsbad and National Equity Fund, as well as federal tax credits. The project team included Bassenian Lagoni Architects, M Zaki Design, JAG Interiors, C&C Construction Services as general contractor, Candela Engineering as electrical engineer, Gouvis Engineering Consultants Group as structural engineer, SWS Engineering as civil engineer, TAD Engineering as MEP and VBK Consulting as project manager.
LOS ANGELES — NBP Capital, dba NBP 9401 De Soto LLC, has completed the disposition of a warehouse and distribution facility located at 9401 De Soto Ave. in the Chatsworth neighborhood of Los Angeles. Center Capital Partners, Authentic Capital Group and TPG Angelo Gordon acquired the asset for $41.5 million. Situated on 6.7 acres, the 150,831-square-foot property features 28- to 31-foot clear heights, 12 dock-high loading positions, six ground-level doors, 21,000 square feet of office space and a fenced concrete yard. At the time of sale, the property was fully leased to two high-quality tenants. Mark Esses and Keith Kleinman of California Realty Group represented the seller, while Michael Longo, Barbara Perrier and Bennett Robinson of CBRE National Partners represented the buyer in transaction. The property will serve as the initial investment in a joint venture between TPG Angelo Gordon and Center Capital Partners’ partnership with Authentic Capital Group.
GARDENA, CALIF. — Marcus & Millichap Capital Corp. (MMCC) has arranged the sale of a Chevron-occupied gas station located at 15407 Crenshaw Blvd. in Gardena, a suburb south of Los Angeles. Bradley Buzil of MMCC’s Los Angeles office secured the financing with HAB Bank on behalf of a private client. Terms of the 10-year loan include a 7.25 percent interest rate with 25-year amortization and a loan-to-value ratio of 55 percent.
— By Mark Bridge, Managing Director, Bridge Multifamily Team, Capital Markets, Americas, Cushman & Wakefield — Vacancy The vacancy rate is 4.0 percent as of the mid-point in the second quarter of 2024, up 30 basis points (bps) quarter-over-quarter (QOQ) and year-over-year (YOY). The rate has been increasing in eight out of the last 11 quarters from a market low of 2.1 percent in third quarter 2021. The rate is currently 40 bps above the five-year quarterly average of 3.6 percent. Despite this recent increase, Orange County’s vacancy rate is considerably lower than the national average at 7.7 percent. OC’s vacancy rate ranks it second lowest among the nation’s 50 largest markets. Rent The average asking rent per unit currently sits at $2,513 as of the mid-point in the second quarter of 2024. The market high asking rent per unit peaked in fourth 2023 at $2,530 and has come down 0.7 percent since then. Despite the recent decrease, the asking rent per unit is still up 0.9 percent YOY. Given the tightness of the market and a healthy development pipeline, it is likely that the asking rent will remain elevated. Construction/Deliveries There are currently 23 buildings or 8,183 units under …