SAN FRANCISCO — Vanbarton Group has purchased a 117,000-square-foot office building in San Francisco for $83 million. The 15-story tower is located at 115 Sansome St. It is fully leased. The property was built in 1912 as the Standard Oil Co. headquarters. The seller, TA Realty, had converted more than 70 percent of the building to creative office space. JLL’s Michel Seifer and Erik Hanson represented TA Realty in the transaction.
SAN JOSE, CALIF. — A partnership between Trammell Crow Company and Principal Real Estate Investors has completed construction of MidPoint@237, a 563,000-square-foot manufacturing project in San Jose. The three-building project is situated at North 1st Street and Nortech Parkway at the top of Silicon Valley’s Golden Triangle. Rob Shannon and Chip Sutherland of CBRE marketed the Class A project. The architect is ARC TEC Inc. and the general contractor is Lusardi Construction Co.
LOS ANGELES — NSB Associates has purchased a 59,395-square-foot office building in El Segundo for an undisclosed sum. The Class B building is located at 181-185 S. Douglas St. in the Los Angeles submarket. NSB represented itself in the transaction, while Alan Pekarcik and Chris Smith of Avison Young represented the seller, an institutional investor.
SANTA MONICA. CALIF. — Mesa West Capital has provided a $283.3 million loan for the acquisition and renovation of the Lantana Media Campus, a 478,713-square-foot office complex in Santa Monica. The campus contains four Class A office buildings on a 12-acre site on Olympic and Exposition boulevards in Santa Monica’s Media District. It is leased to a variety of entertainment and media companies. A joint venture between Brightstone Capital Partners and Artisan Realty Advisors owns the campus. The seven-year, floating rate, non-recourse financing was originated out of the private lender’s open-ended Mesa West Core Lending Fund. Steve Fried and Jason Bressler led the origination for Mesa West.
LOS ANGELES — George Smith Partners has secured $33 million in refinancing for a nine-property multifamily portfolio in Los Angeles. The portfolio is located in the West Hollywood and Koreatown neighborhoods. The transaction required nine separate loans to close concurrently with a structure that provided $5 million in return of equity to the owner and developer. Ultimately, two capital providers provided the loans at a five-year fixed rate of 3.15 percent. Each of the nine loans will self-liquidate over 30 years. After the initial five-year fixed-rate period, the rates will reset and float at 235 over LIBOR for the remaining 25-year term. A step-down prepayment is underwritten, which opens without penalty after the third year. Bryan Shaffer, Jon Shapiro and Max Lehrman arranged the loans.
TEMECULA, CALIF. — The Mount Palomar Winery has received county approval to develop a resort and event venue in Temecula. The resort will include 180 guest rooms ranging from hotel rooms to cottages and villas. It will also feature a 1,800-seat amphitheater, restaurant, retail space and spa, in addition to a 17,000-square-foot tasting room. Mount Palomar will also add more vineyards and a production facility capable of producing 60,000 cases of wine per year.
Financial markets worldwide have seen dramatic volatility in this past 12 months. The Bay Area economy and new hiring have cooled, while the San Francisco housing and condo markets have started to normalize after four feverishly overheated years. We are hearing about a big jump in apartment vacancy rates, with more apartments for rent than we’ve seen in many years just as rental rates begin to decline from recent all-time peaks. As would be expected, preliminary indicators show a transition to a cooler market when it comes to apartment building sales activity. However, as illustrated in the charts below, we haven’t seen any significant changes in the statistics. The second half of 2016 will undoubtedly provide more insight regarding the speed and scale of any market condition changes. San Francisco multifamily assets that contained more than five units experienced a plateau in cap rates year over year between 2015 and 2016. However, this same product experienced an increase in dollars per square foot, price per unit and average sale prices. The politics of new home development in San Francisco are not for the weak of heart. There are vocal disagreements between neighborhood and homeowner associations, developers, affordable housing advocates, tenant’s …
CITRUS HEIGHTS, CALIF., AND CORVALLIS, ORE. — Summit Healthcare REIT has acquired 20 percent interest in two seniors housing communities — Sun Oak Senior Living and Regent Court Senior Living— for $23 million. Summit, a non-traded REIT based in Lake Forest, Calif., acquired the interest from an undisclosed, publicly traded REIT. The two properties are leased to Compass Senior Living, an Oregon-based operator. Sun Oak Senior Living is a 78-bed assisted living and memory care community in the Sacramento suburb of Citrus Heights. Regent Court is a 48-bed memory care community in Corvallis, approximately midway between Portland and Eugene. Capital One – Healthcare Financial Solutions LLC provided financing for the transaction. Blueprint Healthcare Real Estate Advisors, a brokerage firm based in Chicago, arranged the deal. Tim Cobb led the Blueprint team.
SAN BERNARDINO, CALIF. — A private investor has acquired the 80-unit Hillside Apartments in San Bernardino for $10.2 million. The community is located at 2156-2196 Kendall Drive. It is situated just one mile from Cal State San Bernardino. Warren Berzack of Berzack Investment Property Advisors and Slavic Zlatkin of Lee & Associates represented the buyer. Lee’s Ryan O’Connor represented the seller, SB Hillside Properties, in this transaction.
BEVERLY HILLS, CALIF. — Sterling Organization has purchased a retail building located at 315-319 N. Beverly Drive in Beverly Hills’ Golden Triangle. The property was purchased off-market on behalf of the firm’s institutional fund Sterling Value Add Partners II for $23.5 million. The 4,700-square-foot property is expected to be vacant in the first quarter of 2017. Justin Mendelson of Charles Dunn Company represented the buyer. Darrell Levonian and Brian Jensen of Charles Dunn Company represented the seller, a private investor partnership based in California and Texas.