Western

SRS Arranges $3.4M Sale of Red Robin-Occupied Restaurant Property Near Disneyland

by Amy Works February 1, 2019

GARDEN GROVE, CALIF. — SRS Real Estate Partners has brokered the sale of the ground lease for a single-tenant restaurant property in Garden Grove. A Los Angeles-based private non-1031 investor acquired the property from a Los Angeles-based partnership for $3.4 million. Red Robin Gourmet Burgers and Brews occupies the 7,346-square-foot property, which is located at 12007 Harbor Blvd., on a corporate-guaranteed triple-net lease with Red Robin Gourmet Burgers Inc. Matthew Mousavi and Patrick Luther of SRS Real Estate Partners’ National Net Lease Group represented the seller, while Michael Walseth, also of SRS, represented the all-cash buyer in the deal.

February 1, 2019

Content Partner Features Lument RED Capital Group Western

RED Capital Group: The Northwest Enters 2019 with Strong Momentum, Rising Risks

by Jeff Shaw February 1, 2019

For decades, the Pacific Coast has defined the American avant garde. From the Beats and Hippies of the Fifties and Sixties to today’s coders, gamers, software engineers and social network titans, the West Coast has set the standard for contemporary cutting edge social and life-style evolution. Lately, the region has emerged as a global economic leader as well. The rise of Big Tech operations in the five Pacific Northwest metro areas we cover — the East Bay, Portland, San Francisco, San Jose and Seattle (the “Pacific 5”) — has altered their economic landscapes profoundly. From 2014 to 2017, nominal metropolitan GDP per capita increased more than three times faster than the national average, and personal income per capita — already considerably higher than the U.S. mean — increased at an 80 percent faster rate than the metropolitan norm. Wealth creation and income growth on this scale fueled commensurate demand for rental housing space, especially the luxury infill product favored by investors and developers. Total Pacific 5-occupied apartment stock increased at a 2.4 percent annual rate over the three years ended in 3Q18 (Reis) — 20 percent faster than the balance of the RED 50, RED Capital Research’s large market peer …

February 1, 2019

Acquisitions California Industrial Western

KKR Buys Newly Constructed Industrial Building in California for $43.5M

by Amy Works January 31, 2019

PERRIS, CALIF. — Rockefeller Group has completed the sale of an industrial distribution building located within Optimus Logistics Center in Perris. KKR, through its Real Estate Partners Americas II Fund, acquired the newly constructed asset for $43.5 million. The 406,650-square-foot building is the second building to be completed and sold at Optimus Logistics Center, a 1.45 million-square-foot industrial complex. Rockefeller Group, in a joint venture with MBK Real Estate, completed the construction of Optimus Logistics Center in September 2018. Mike McCrary, Peter McWilliams, Sharon Wortmann and Scott Coyle of JLL represented both Rockefeller Group and KKR in the transaction.

January 31, 2019

California Development Loans Multifamily Seniors Housing Western

Dekel Capital Structures $59.4M in Construction Financing for Assisted Living Community in Glendale, California

by Amy Works January 31, 2019

GLENDALE, CALIF. — Dekel Capital has assembled $59.4 million in debt and equity financing for the development of Sage Glendale Senior Living, a 113-bed assisted living and memory care facility in Glendale. Developed by Willis Development, Sage Glendale Senior Living will feature 81 assisted living units, 24 private memory care units, and four semi-private memory care units. Community amenities will include a community garden, library, theater, classrooms, exercise area, commercial kitchen and beauty salon. Slated for completion in first-quarter 2020, the seniors housing community will be located at 509-525 W. Elk Ave., approximately nine miles north of downtown Los Angeles. The financing consists of a $38.7 million construction loan originated by East West Bank and arranged through Dekel Capital’s advisory practice. The four-year financing, with interest-only monthly payments for the first 36 months of the term, was underwritten at 65 percent loan-to-cost ratio. Dekel also provided $20.7 million in joint venture equity through the firm’s proprietary equity fund Dekel Strategic Investors.

January 31, 2019

Acquisitions California Loans Multifamily Seniors Housing Western

CBRE Arranges $35.2M Acquisition Financing for Seniors Housing Community in Oakland

by Amy Works January 31, 2019

OAKLAND, CALIF. — CBRE has arranged $35.2 million in financing for the acquisition of The Point at Rockridge, a Class A, 148-unit assisted living and memory care community in Oakland. The borrower is a joint venture between Angelo Gordon & Co. and Auctus Capital Partners. The property is located near the University of California Berkeley in the affluent submarket of Rockridge. Home values in a one-mile radius average over $1 million and the average household income is nearly $130,000 per year. The property has undergone two multimillion-dollar renovations in recent years. The first renovation was in 2013, converting 30 assisted living units into a dedicated memory care wing. The second renovation occurred in 2016, providing updates to interior and exterior common areas, community amenities, units and landscaping. The buyers plan to make further improvements to the community. Integral Senior Living, which has operated the property since 2013, will continue to manage The Point at Rockridge following the acquisition. Aron Will, Austin Sacco and Adam Mincberg of CBRE National Senior Housing arranged the seven-year, fixed-rate Freddie Mac loan with 48 months of interest-only payments.

January 31, 2019

Acquisitions California Industrial Western

Shaw Development, Penwood Real Estate Divest Industrial Property in the Inland Empire

by Amy Works January 31, 2019

SAN BERNARDINO, CALIF. — A joint venture between Shaw Development and Penwood Real Estate Investment Management has completed the disposition of a single-tenant industrial asset located at 5080 Hallmark Parkway in the San Bernardino submarket of the Inland Empire. Terms of the transaction were not disclosed. Situated on 7.6 acres, the 197,100-square-foot property is triple-net leased on a long-term basis to Tree Island Steel, a wire products producer. The facility features 25-foot to 30-foot clear heights, 16 dock-high loading doors, two grade-level doors, one door with ramp-to-grade level and low office finish. Andrew Briner and Michael Roberts of HFF, along with Frank Geraci and Juan Gutierrez of Voit Real Estate Services, represented the seller in the deal.

January 31, 2019

Acquisitions California Restaurant Retail Western

Paragon Commercial Sells In-N-Out Burger Ground Lease in San Jose for $6.9M

by Amy Works January 31, 2019

SAN JOSE, CALIF. — Paragon Commercial Group has completed the sale of a ground lease for an In-N-Out Burger located at the corner of Great Oaks Parkway and Cottle Road in San Jose. A private Bay Area buyer acquired the property for $6.9 million. In 2014, Paragon began work to acquire a former parking lot site and concurrently entered into a ground lease with In-N-Out Burger for a single-tenant restaurant. The property is currently under construction and is expected to open in first-quarter 2019. Christopher Sheldon of Cushman & Wakefield represented Paragon, while Andy Chana of Sands Investment Group represented the buyer in the deal.

January 31, 2019

Weidell-NorthMarq-quote-2019-Multifamily-Trends

Features Finance Insight Loans Midwest Multifamily Northeast Southeast Texas Western

Top 5 Multifamily Investment, Financing Trends to Watch in 2019

by Jaime Lackey January 30, 2019

We’re already well into the first quarter of 2019 and with that comes the many industry events, including NMHC’s Apartment Strategies Conference and MBA’s CREF 2019. Before the year — and conference season — gets fully underway, we want to share our perspective on the top financing and investing trends that may impact your multifamily investment opportunities in the coming months. 1. New Construction Generates Sales, Financing Opportunities Multifamily development has been robust in recent years, reaching a peak in 2018. About 280,000 apartment units were delivered in 2018, and more than 1.1 million units have been delivered during the past ﬁve years. Only about 25 percent of these units have sold at this point. Developers are expected to either place permanent ﬁnancing on projects or implement exit strategies by increasingly bringing stabilized projects to market. 2. Value-Add Remains Popular, Proﬁtable Investors looking to steer clear of some of the aggressive pricing for new properties will continue to target value-add opportunities. Value-add strategies that can be executed in short time frames of about 18 months will appeal to investors and lenders as vacancies tighten and rents rise in nearly every major market in the country. 3. Interest Rates May Plateau …

January 30, 2019

Features Finance Insight Loans Midwest Multifamily Northeast Southeast Texas Western

Putting The Green In Green Financing

by Jaime Lackey January 30, 2019

Green bonds have been around since 2007, but they only really started to gain traction in 2014 when about $37 billion worth of bonds were issued in the U.S. That number jumped to $45.4 billion last year, according to Bloomberg New Energy Finance (BNEF). These financing vehicles, which tout environmental and social good, can be big business. Fannie Mae accounted for much of these green mortgage-backed securities (Green MBS) with $19.8 billion contributed in 2018. These loans center on assets that have achieved green certification or those that can reduce their energy and water consumption. “Multifamily had another outstanding year in 2018, thanks to our lenders,” says Rob Levin, senior vice president for multifamily customer engagement at Fannie Mae. “Together, we supported all market segments, bringing liquidity to the market while building a balanced portfolio that reflects our strategy with strong credit quality and mission-rich business.” Getting With The Program Lenders are taking advantage of the government-sponsored entities’ (GSEs) sustainability programs at an accelerated pace. Walker & Dunlop structured $392.3 million in green financing for three multifamily properties in Southern California in June 2018. Class A communities the Medici and the Orsini I in downtown Los Angeles were financed through …

January 30, 2019

California Development Healthcare Western

Dignity Health Breaks Ground on $215M Campus Expansion, Patient Care Tower in Los Angeles

by Amy Works January 30, 2019

LOS ANGELES — Dignity Health California Hospital Medical Center has broken ground on a $215 million campus expansion and modernization project in downtown Los Angeles. The centerpiece of the project is a 150,000-square-foot patient care tower that will add space, privacy and advanced medical technology, as well as increasing capacity and accessibility for emergency, trauma and maternity services. The first floor of the new tower will house larger, private and state-of-the-art emergency and trauma bays resulting in a 51 percent increase in the number of patient care areas. Additionally, the new tower will feature an enhanced neonatal intensive care unit with private rooms and labor and delivery suites, including midwifery services, antepartum and postpartum services. The expansion will also include a new pediatrics unit on the sixth floor of the existing Tibbitts Tower, an emergency mental health observation center adjacent to the new emergency department and a new multi-level parking structure with meeting and retail space on the ground floor. Completion is slated for 2020, with occupancy in 2021. The campus expansion is being funded through a loan of $165 million from Dignity Health and a capital campaign seeking local philanthropic investment of $50 million.

January 30, 2019

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