Jeff Weidell, president of NorthMarq, recognizes there is still plenty of money out there to sustain activity levels in 2019. He also recognizes, however, that lenders are becoming prudent in this extra-long real estate cycle. This has caused borrowers to flex their creative muscles as they fund their projects in the interim period between redevelopment and sale. Weidell notes that bridge financing is extremely active and popular, with many borrowers doing what they can to leverage the entire capital stack as we wait to see where this market is headed. Watch the video for more insights from Weidell about what 2019 will bring to the commercial real estate lending landscape.
DAVIS, CALIF. — A public-private partnership between the University of California, Davis and University Student Living has broken ground on a student housing complex that will add 3,300 beds to the university’s West Village neighborhood. The first 1,000 beds of the project are expected for completion in fall 2020. The joint venture recently announced the closing of $575 million in financing, which comes from the proceeds of a tax-exempt bond sale. The new complex, set on 34 acres, will comprise nine four-story apartment buildings along with indoor and outdoor community space and recreational fields. A 10,000-square-foot community building will house a fitness center, multipurpose room and student support services. The development team includes general contractor CBG Building Co. and architect Stantec. When complete, the new apartment communities at West Village will be owned by the non-profit Collegiate Housing Foundation, which will hold the ground lease from the University of California. University Student Living is the student housing arm of The Michaels Organization, a residential real estate firm with full-service capabilities in development, property management, finance and construction.
RIALTO, CALIF. — Dermody Properties has acquired a 19-acre site in Rialto for the development of LogistiCenter at Rialto I. Terms of the transaction were not released. The 411,330-square-foot distribution facility will feature 36-foot clear heights, a 185-foot concrete truck court, 49 dock-high doors, 77 truck trailer spots and 245 auto parking stalls. Dermody Properties selected HPA as the architect and Fullmer Construction as the general contractor for the project. The company plans to begin construction soon on the property, with delivery slated for December. The facility is situated within Renaissance Rialto Business Park, which is home to Amazon, Target, Under Armour, Ozburn-Hessey Logistics, Niagara Bottling, Medlin Industries, Monster Energy, Distribution Alternatives and Lifetime Brands. Darla Longo and Barbara Perrier of CBRE represented all parties in the sale. Dan De La Paz, David Consani and Jim Koenig, also of CBRE, will be the leasing brokers for the project.
PHOENIX — George Oliver has unveiled plans for its redevelopment of CASA, an office building in Phoenix’s Uptown neighborhood. The company plans to implement a $17 million renovation to re-establish CASA from a 1989-built project, previously known as Catalina Terraces, into a modern Class A office space focused on community, health and wellness. Renovations will keep the 181,188-square-foot building’s Spanish architectural roots, including natural wood elements and smooth stucco finishes, as well as updated modern lobbies, updated restrooms, an exterior facelift and new landscaping. Tenant amenities will include a tenant lounge and café operated by Kaleidoscope Juice and a training center with the ability to host approximately 60 guests. The property will feature two centralized courtyards with water features and seating, as well as an on-site co-working facility operated by the ownership accommodating users ranging from one to 10 desks. CASA will also include a wellness center with a yoga room, new fitness center with showers, on-site meditation room, salon with hair stylist and dog park. The ownership also plans to include a two-story dining experience with dedicated food truck parking, climate-controlled space, a shaded outdoor dining area, and outdoor games and lounge space. Phoenix-based George Oliver purchased the CASA …
PHOENIX — Owner-Operator Life Care Services (an LCS Company) and general contractor The Weitz Company have started construction of a four-story independent living expansion at Sagewood, a continuing care retirement community in Phoenix. This is the largest expansion at the property since it opened in 2010.The 280,000-square-foot project includes 101 new units, 23,000 square feet of common space and a 156-stall underground parking garage. The independent living units will feature both one- and two-bedroom floor plans with a living room and full-size kitchen. New amenities will include an 18-hole putting course, chapel, top-floor lounge and guest suites. This phase of construction will also deliver new administration offices for the Sagewood operations staff; renovations to the existing Canyon Café and Palo Verde kitchen and dining hall; and a new dining venue. Designed by architect Todd & Associates, this phase of construction is scheduled for completion by the end of 2020. This will be the 14th project Weitz has built at Sagewood since originally constructing the 85-acre community, and the fourth since the start of 2017.
HESPERIA, CALIF. — Progressive Real Estate Partners has directed the sale of a free-standing gas station and convenience store, located at 16815 Main St. in Hesperia. An Orange County, Calif.-based private investor sold the property to a Nevada-based private investor for $4.6 million. Encompassing a 1-acre site, the transaction included an eight-pump ARCO Gas Station and a 2,500-square-foot AM/PM Convenience Store. The building was built in the late 1980s. Victor Buendia of Progressive Real Estate Partners represented the seller and buyer in the deal.
KEARNS, UTAH, AND CASA GRANDE, BULLHEAD CITY AND KINGMAN, ARIZ. — MedCore Partners, in partnership with Trinity Private Equity Group, has acquired four seniors housing assets throughout Arizona and Utah for $98 million. The acquisition is the first tranche of a five-property, 531-unit, $130 million portfolio acquisition for the partnership. The final property is still under construction, with the sale slated for completion upon delivery in May. SunTrust Bank provided financing for the transactions. The four communities involved in this deal total 409 units of assisted living and memory care. The properties include Caliche Senior Living in Casa Grande with 105 units, Joshua Springs Senior Living in Bullhead City with 104 units, White Cliffs Senior Living in Kingman with 103 units and the 97-unit Summit Senior Living in Kearns. Immediately upon closing on the assets, Watermark Retirement Communities took over the management of each of the properties.
TACOMA, WASH. — 3650 REIT has facilitated a $78 million construction loan for Yareton Investment. The borrower plans to use the loan to complete the development of a full-service Marriott hotel in Tacoma. Now 30 percent complete, the 22-story hotel will feature 304 guest rooms, 9,000 square feet of event space, a 10,000-square-foot ballroom and direct connection to the Greater Tacoma Convention Center. With this loan, Yareton Investment is able to advance the development of the hotel component of its broader mixed-use project that includes a residential tower. Matt Fisher of JS Coats Capital arranged the financing.
LAS VEGAS — Brass Cap Cos. is developing Nevada State Industrial Park, located in Southwest Las Vegas near the new Raiders stadium and Las Vegas Strip. Located at the corner of Edmond Street and Russell Road, the three-building industrial park will feature 200,000 square feet of light industrial space. Currently under construction, Nevada State Industrial Park is slated for completion by June. The buildings are available for lease or sale, with Dan Doherty and Paul Sweetland of Colliers International – Las Vegas handling leasing or sale of the project.
HAYWARD AND SAN LEANDRO, CALIF. — Levin Johnston of Marcus & Millichap has directed two property sales, totaling $23.4 million, in the East Bay area of San Francisco. In the first deal, Levin Johnston, Adam Levin and Eymon Binesh of Marcus & Millichap brokered the acquisition of Stratford Village Center, located at 1641-1645 Industrial Parkway West in Hayward. A private buyer acquired the property for $12.9 million. Originally constructed in 2003 and 2004, Stratford Village Center features 40,852 square feet of retail space. At the time of sale, the property was 100 percent occupied by a variety of tenants, including Starbucks Coffee, Subway, Fremont Bank, Straw Hat Pizza, DaVita Inc., Select Staffing, CosmoProf and Manheim Inc. In the second transaction, Levin and Johnston represented the buyer and seller, both local apartment owners, in a $10.5 million multifamily transaction. Located at 15977 Maubert Ave. in San Leandro, The Maubert Apartments is a garden-style apartment community comprising four buildings offering a total of 34 apartments in a mix of two-bedroom/two-bath and one-bedroom/one-bath flats. On-site amenities include a gated and secured entryway, private balconies, assigned covered parking and on-site laundry.