SACRAMENTO, CALIF. – Virtu Investments has acquired the 796-unit Natomas Ridge apartment complex in the Sacramento submarket of Natomas for a reported $62 million. The community is located at 2025 W. El Camino Ave. Natomas Ridge was 94 percent occupied at the time of sale. It is situated just eight minutes from downtown Sacramento, via Interstate 5. The community was constructed in 1979. About 765 of the community’s 796 units have undergone complete kitchen and bathroom renovations. The transaction was executed by Mark Leary, Curtis Gardner and John McCulloch of the ARA Pacific team. The seller was a global investment manager.
THOUSAND OAKS AND SAN LUIS OBISPO, CALIF. — BRE Atlas Property Owner LLC recently picked up three Marriott hotel properties in Thousand Oaks and San Luis Obispo through a receivership sale. The sales price was not disclosed. The three properties included in the receivership sale are: the 139-room Courtyard Marriott at 1605 Calle Joaquin in San Luis Obispo; the 93-room TownePlace Suites by Marriott at 1712 Newbury Road in Thousand Oaks; and the 120-room Courtyard Marriott at 1710 Newbury Road, also in Thousand Oaks. Trigild was appointed receiver of the properties in 2013 after a long legal dispute between certain members of the family trust that owned the three properties, in addition to the Best Western Valencia and Holiday Inn Express Valencia. The court directed Trigild to oversee property management and the operations of the properties. The firm completed the receivership sale of the Holiday Inn Express and Best Western properties in Valencia this past August. The remaining three properties were sold after a Monterey California Superior Court judge ruled in favor of the sale, overruling the objections of some of the trust beneficiaries. The receiver’s counsel was Fernando Landa of Crosbie Gliner Schiffman Southard & Swanson LLP. Alan Reay …
LOS ANGELES — RC Acquisitions has purchased National City Tower, a historic adaptive reuse development in Downtown Los Angeles, for $43.2 million. The 118,162-square-foot property is located at 810 South Spring Street in the Financial District. National City Tower was built in 1924 and redeveloped in 2008. It formerly served as a National City Bank branch. The property now contains 93 residential lofts, in addition to ground-floor and basement retail space. The retail portion was fully occupied by tenants like Terroni restaurant, Peking Tavern and Crane’s Downtown Bar. The residential component is 97 percent occupied. Janet Neman and Bryan Glenn of Charles Dunn Company represented both the buyer and seller, National City Towers LLC, in this transaction.
SAN DIEGO – The 36-unit Hillcrest Apartments in the San Diego submarket of Hillcrest has received $7.4 million in construction-permanent financing. The community will be located at 4021 Eighth Ave. Financing will be used to develop the property, which is scheduled for completion in early 2016. The construction loan converts to a permanent loan at stabilization. The loan also carries an earn-out feature that allows the borrower to draw additional loan dollars at stabilization. It features a 4.2 percent rate with an interest-only period of up to 27 months. Financing was arranged by HFF’s Aldon Cole and Bryan Clark on behalf of Veritas Urban Properties. The 12-year, fixed-rate loan was arranged through a correspondent life company lender.
CARLSBAD, CALIF. – Research Center Plaza, an 81,118-square-foot R&D/office campus in Carlsbad, has sold to a joint venture between Lincoln Property Company and Artemis Real Estate Partners for $9.5 million. The property is located at 2232, 2234 and 2236 Rutherford Road. It was 75 percent leased. The JV plans to upgrade the exterior and interior spaces of the project, creating office lofts with collaborative features, open ceilings and enhanced natural lighting. The JV represented itself in this transaction, while the sellers, RCP Funding Corp. and Shmael Carlsbad Investors LLC, were represented by Rick Reader and Brian Driscoll of Cassidy Turley.
LOS ANGELES – The 24-unit Wilcox Gateway Properties apartment complex in Los Angeles has sold to NHVA1-XVlll for $4.4 million. The community is located at 1812 -1830 Wilcox Ave. The property consists of 24 units on four parcels of land. Three of the properties were built in the 1920s. The fourth was built in 1986, which means it is not subject to rent control. The new owner plans to relocate the existing tenants so it can renovate the 24 units. Tim Steuernol and Rob Zaharia of NAI Capital’s West L.A. office represented both the buyer and seller, Wilcox Gateway Partners LLC, in this transaction.
The Los Angeles industrial market continues to lead the country with the lowest vacancy of any industrial market. The combination of the overall market’s size and lack of inventory continues to put upward pressure on rents. Not only is there limited inventory, but a lack of quality product puts top economical facilities in high demand. The inability to build new product readily, combined with increasing demand, changes the focus of the marketplace going forward. As rents for high-quality properties continue to rise, developers and land owners are looking for ways to redevelop existing product to take advantage of this need. A number of redevelopment projects have recently commenced construction, and many of those properties are already pre-leased prior to completion. This increased demand also gives owners of older, less functional properties the ability to spend the necessary funds to upgrade their facilities with the anticipation of receiving higher rents and a return on their investment. The increase in demand from international commerce through the Port of Los Angeles, combined with growth in the manufacturing, aerospace and healthcare sectors, have all assisted in this overall increase in demand. The need for third-party logistics companies to acquire large chunks of space to …
LOS ANGELES – The 36-unit Burnside Lofts in Los Angeles has sold to Burnside Wilshire Apartments LLC for $8 million. The community is located at 649 South Burnside Ave. Darin Beebower of Madison Partners represented both the buyer and seller, Burnside Partners LP, in this transaction.
LOS ANGELES – The University of Southern California (USC) has signed a four-year lease for 19,653 square feet within the World Trade Center in Downtown Los Angeles. The 370,000-square-foot office building is located at 350 S. Figueroa Street. The new lease allows the school to nearly double its presence at the center. It has also brought the World Trade Center’s occupancy to 74 percent. USC was represented by Dennis Smith, Howard Feuerstein, and Cory Campbell of Travers Realty. The landlord, Jamison Properties, was represented by Chris Runyen of Charles Dunn Company.
LOS ANGELES – The 22,416-square-foot Diamond Indoor Swapmeet in Los Angeles has sold to an undisclosed non-profit organization for $3.6 million. It is located in an infill area of South Gate along Firestone Boulevard. The property contains a large building that serves as the Diamond Indoor Swapmeet, general store and banquet hall. The second building had been used for a small taco stand. The seller, Diamond 888 LLC, was represented by Steve Liu and Roger Niez of NAI Capital’s Orange County office.