People are aware of the Inland Empire’s rapidly growing market and the fulfillment center trend that’s sweeping Southern California. Amazon, Walmart and many others continue to be pioneers in logistics and door-to-door fulfillment, but the side of the market people are missing is the smaller, more locally sourced user, the groups that service these large international companies. It’s a common theme that when the big guys grow into space there’s normally a contingent of smaller users behind them ready to take down the small- to mid-sized product. This trend has never been more true than it has over the past 12 months. As million-square-foot buildings continue to be leased out by these massive conglomerates, the smaller product has been flying off the shelves. There was a concern in early 2016 that this size range was going to be overbuilt, but due to 8.5 million square feet worth of gross absorption through the first three quarters in the 100,000- to 300,000-square-foot size range, that idea has become a misconception. We’re now sitting with a deficiency of product driving lease rates and sales numbers higher than ever. Lease rates in this size range have jumped about 8 percent over the past year …
SAN MARCOS, CALIF. — Lee & Associates has arranged the $73.4 million sale of Campus Marketplace, a 144,148-square-foot shopping center located roughly 35 miles outside San Diego in San Marcos. Tenants at the center include Ralph’s Grocery, CVS/pharmacy, Starbucks Coffee, Subway, Bank of America, UPS Store and Unleashed by Petco. Jan Fincham and Patrick Dempsey of Lee & Associates brokered the deal on behalf of the buyer, IVT San Marcos Campus LLC, and the sellers, Campus CMH LLC, 36 CMH and Campus BRB LLC. IVT San Marcos Campus LLC is an entity controlled by InvenTrust.
LAGUNA HILLS, CALIF. — Cushman & Wakefield has arranged the sale of The Wellington, a 233-unit independent living and assisted living community in the Los Angeles suburb of Laguna Hills. The luxury community is located next to a master-planned, age-restricted community with over 14,000 residents. The buyer, which was not disclosed, has brought in San Diego-based Senior Resources Group to manage the property. David Rothschild, Mary Christian and Allen McMurty of Cushman & Wakefield’s National Senior Housing Investment Advisory represented the undisclosed seller in the transaction.
GLENDALE, CALIF. — DineEquity Inc., a full-service restaurant group that includes the IHOP and Applebee’s brands, has signed four new multi-unit development agreements in the Middle East, Asia Pacific and Latin America. The agreements are part of the company’s plan to double its number of international locations over the next five years. Since the beginning of 2014, 80 new international restaurants have opened. In addition, during that same time frame, DineEquity nearly tripled the international development pipeline to more than 200 restaurants. DineEquity plans to spread the IHOP to Thailand and India and extend the Applebee’s brand in the Middle East to six locations in Bahrain and Oman by 2023. The company has also planned five new Applebee’s locations in Panama by 2021. Based in Glendale, Calif., DineEquity owns, operates and/or franchises more than 3,700 restaurants in all 50 U.S. states and 17 countries.
MAR VISTA AND BEVERLY HILLS, CALIF. — Newmark Realty Capital has arranged two separate refinancing loans for a Beverly Hills-based developer for two retail properties in Mar Vista and Beverly Hills totaling $21.9 million. George Mitsanas and Doug Tisdale of Newmark secured an $8.6 million loan for a 38,665-square-foot Whole Foods Market in Mar Vista and a $13.3 million loan for a 25,496-square-foot, four-building retail portfolio in Beverly Hills. The 15-year loans, which feature 30-year amortization schedules, were placed with one of Newmark’s correspondent life insurance company lenders.
LAKE ELSINORE, CALIF. — Civic Partners has received approval for the development of Artisan Alley at The Diamond in Lake Elsinore. Situated on 11 acres, the development will feature 95,000 square feet of retail and restaurant space and a 130-room hotel on the corner of Diamond Drive and Malaga Road. Designed by KTGY Architecture + Planning, the property will be built in two phases with the first phase including a 7,000-square-foot restaurant building, 21,500 square feet of brewery space, 11,200 square feet of retail and a 6,700-square-foot pad building for a restaurant or retail space. Artisan Alley will feature a variety of craft breweries, as well as complementary non-traditional food offerings and retailers. Groundbreaking is slated to begin early this year, with completion scheduled for 2018.
LONG BEACH, CALIF. — Seattle-based Nordstrom Inc. plans to relocate its Nordstrom Rack store in Lakewood Center to Long Beach Exchange in Long Beach. The 28,000-square-foot store is scheduled to open in spring 2018. Burnham Ward Properties LLC, an affiliate of Burnham USA Equities Inc., owns the property, which is occupied by Whole Foods 365 and a variety of dining and fitness offerings.
SAN FRANCISCO — Cushman & Wakefield has arranged the sale of a portfolio of Sleepy Hollow Investment Co. office properties for $130 million. The portfolio consists of multi-tenant office buildings located in several markets throughout the San Francisco Bay Area. The portfolio was sold in components to five buyers that included Eagle Canyon Capital, Square I, STG Group, James Lindsey and Long Market Property Partners. Totaling 661,319 square feet, the portfolio spans 10 properties comprising 14 office buildings located on over 32 acres. The assets are located in Pleasant Hill, Walnut Creek, Orinda, San Ramon, Dublin, Santa Rosa and Santa Clara, all in the East Bay, Silicon Valley and North Bay regions. The full list of properties was not disclosed, but two Class A office buildings in the portfolio are The Terraces in Pleasant Hill and Riviera Plaza in Walnut Creek. The portfolio is currently 92 percent occupied by 132 tenants. Eric Fox, Michael Speers and Steve Hermann of Cushman & Wakefield represented the seller. Whiff Collins of Cushman & Wakefield provided local market advisory services. Pleasant Hill-based Sleepy Hollow Investment Co. invests in and manages commercial property throughout the Bay Area. — Kristin Hiller
NEWPORT BEACH, CALIF. — Shopoff Realty Investments has purchased a 44,434-square-foot office building in Newport Beach for $15.4 million. The three-story building is located at 4440 Von Karman Ave. The space was 56 percent occupied by tenants like CommerceWest Bank, DynTek and Johnson Attorneys Group. The asset was purchased through a co-investment structure.
SAN DIEGO — RAF Pacifica Group has purchased a 31,246-square-foot manufacturing and distribution center in the San Diego submarket of San Marcos for $3.7 million. The center is located at 1880 Diamond St. Known as La Costa Meadows, the facility features office space and HVAC production areas, as well as dock- and grade-level loading and 26-foot-clear heights. Isaac Little, Marko Dragovic and Chuck Hardy of Lee & Associates represented both the buyer and the seller, DonMar LLC, in this transaction.