SAN DIEGO — Pacific Castle has completed the disposition of Santee Town Center, a 120,000-square-foot retail center in the San Diego submarket of Santee. An undisclosed buyer acquired the property for $27 million. Ross Dress for Less, Michael’s and Office Depot occupy the center. REZA Investment Group represented Pacific Castle in the deal.
MORGAN HILL, CALIF. — The city planning commission of Morgan Hill has approved plans for a three-story, mixed-use building located at 17395 Monterey Road in downtown Morgan Hill. Designed by KTGY Architecture + Planning, the 10,000-square-foot building will be used as a dining destination owned and operated by local restauranteur Dan McCranie. Construction is slated to begin in early 2017, with completion scheduled by the end of the year.
LOS ANGELES — A private partnership has acquired Valencia Studios, a 120,878-square-foot production studio in the Los Angeles submarket of Valencia, for $19.3 million. The four-building studio is located at 26030 Avenue Hall and 28343 Avenue Croker. The space has been used to produce such television shows as NCIS, Jag and the Power Rangers. The new buyer plans to continue operating the space as a production studio. Jeffrey Andrew of Cushman & Wakefield Pacific represented the buyers. CBRE’s Craig Peters and Robert Valenziano represented the sellers, Capital Foresight Limited Partnership and Valencia Studios NKG.
ORANGE, CALIF. — HFF has arranged the sale of a 468,000-square-foot retail portion of The Village at Orange, an 850,000-square-foot retail center located at 1500 E. Village Way in Orange. An undisclosed institutional investor acquired the property, excluding Sears and JCPenney, from an institutional seller for $84.5 million. The property was 92 percent occupied at the time to sale to a variety of tenants, including Walmart, Trader Joe’s, Sprouts Farmers Market, Ross Dress for Less, Ulta, Home Goods, Party City and PetSmart. The property is currently undergoing renovations that will convert portions of the indoor regional mall into an open-air retail space. Bryan Ley, Gleb Lvovich and CJ Osbrink of HFF represented the seller in the transaction.
SALINAS, CALIF. — Pacific Castle has acquired Prune Tree Shopping Center in Salinas from JG Management for $20 million. Located at 17601 Vierra Canyon Road, the 131,000-square-foot property is occupied by Safeway, CVS/pharmacy, McDonald’s, Taco Bell, Starbucks Coffee and AutoZone. Pacific Castle financed the acquisition through a 1031 exchange with existing capital partners. Bryan Ley of HFF represented the undisclosed seller in transaction.
LOS ANGELES — Meridian Capital Group, on behalf of Decron Properties, has arranged a $10 million loan for Playa Lincoln, a shopping center located at 8701 Lincoln Blvd. in Los Angeles. The grocery-anchored center features 73,000 square feet of retail space. Additionally, Meridian secured an $88 million loan for Playa Del Oro II, a multifamily property located at 7280 W. Manchester Ave. in Los Angeles. The asset features 260 apartment units and 5,000 square feet of retail space. The 10-year loans, provided by a life insurance company, feature five years of interest-only payments. Seth Grossman and Sarah Kuebler of Meridian Capital Group arranged the financing for the borrower.
SAN FRANCISCO — Merck has announced its new 294,000-square-foot West Coast research facility will be built in South San Francisco’s innovation cluster. The nine-story laboratory/office campus will be located at 213 E. Grand Ave. The site is fully entitled, with construction expected to commence in early 2017. Merck is scheduled to occupy the building in early 2019. The facility is targeting LEED-Platinum certification. Merck signed a long-term, full-building lease at the facility, which Alexandria Real Estate Equities will develop, construct and operate. The biopharmaceutical company is a current tenant of Alexandria. The campus will feature open green outdoor spaces, a 300-seat auditorium, fitness center, and café and terrace with waterfront views.
LOS ALAMITOS, CALIF. — A joint venture between Lincoln Property Co. and Long Wharf Real Estate Partners LLC is set to begin construction of Village 605, a 113,880-square-foot shopping center located roughly 23 miles outside Los Angeles in Los Alamitos. The open-air center will consist of seven one-story buildings. 365 by Whole Foods Market will anchor the property. The development will also feature a large community gathering area, outdoor seating and landscaped walkways. Construction is expected to begin in early 2017 with an anticipated opening set for early 2018. The project architect is KTGY Group Inc., and Strategic Retail Advisors is handling leasing.
LAGUNA BEACH, CALIF. — Marcus & Millichap has arranged the $19.7 million sale of a 34,478-square-foot Gelson’s Market located along the Pacific Coast Highway in Laguna Beach. Glen Kunofsky and Lior Regenstreif of Marcus & Millichap brokered the transaction. Both the buyer and seller of the property were undisclosed.
LOS ANGELES — A joint venture between Lincoln Property and Rockwood Capital has purchased Gateway El Segundo, a 355,000-square-foot office campus, for $120 million. The campus is located at 300, 360, 390, 400 and 460 N. Sepulveda Blvd. in the Los Angeles submarket of El Segundo. The campus includes three Class B office buildings, two single-story retail buildings and outdoor meeting spaces. The office buildings are currently 52 percent leased, while the retail space is fully leased to six fast-casual and quick-service restaurants. The JV plans to undertake a multi-million-dollar renovation at Gateway El Segundo to transform it into a creative office campus. Upgrades will include an improved central courtyard, spec suites for smaller creative tenants seeking move-in-ready spaces, and modernized lobbies, restrooms and fitness center. Renovations are expected to be completed by fall 2017.