MESA, ARIZ. — CyrusOne has acquired 68.2 acres of land within Mesa Elliot Technology Park in Mesa for the development of a cloud storage campus for the Fortune 1000. Upon completion, the campus will feature five buildings with up to 198 megawatts of critical power to power cloud computing services for clients. Details of the acquisition were not released. CyrusOne operates 45 data center facilities across the United States, Europe and Asia.
OGDEN, UTAH — Community Preservation Partners (CPP) has completed its first acquisition in Utah with the $14.3 million purchase of two apartment communities in Ogden. The seller was an undisclosed private developer. Renovations are currently underway at Normandie Apartments, a 58-unit property at 610 First St., and Osmond Heights, a 40-unit community at 630 23rd St. Planned improvements for both properties include full kitchen renovations; updated bathrooms; new carpeting throughout units and common areas; ADA accessibility improvements throughout exterior spaces; improved outdoor spaces, including parking repavement and landscaping; installation of new outdoor playground equipment; and remodeled laundry rooms and management offices. The transaction preserved all 98 units as affordable through the combination of a 20-year renewal on the existing 54 project-based Section 8 vouchers and reallocation of 44 project-based Section 8 vouchers from another property located outside the city. WNC & Associates, CPP’s parent company, is the lead investor for the project, which includes a loan from California Bank & Trust.
LA MESA, CALIF. — Kidder Matthews has arranged the sale of Rimrock Apartments, a multifamily community located at 8420 Buckland St. in La Mesa. Wyoming-based Joehnk LLC acquired the property from Rimrock LP and Partners LLC for $14.1 million. Jim Neil, Eric Comer, Merrick Matricardi and Bryan Calhoun of Kidder Mathews represented the seller in the transaction. Built in 1974, the garden-style community features 62 value-add apartments. The property features 48 one-bedroom/one-bath and 14 two-bedroom/two-bath floor plans. On-site amenities include a pool, spa and shared laundry room.
ANCHORAGE, ALASKA — Hunt Mortgage Group has provided two Fannie Mae Small Balance Loans totaling $5.4 million for two multifamily properties in Anchorage. The borrower is a limited liability company backed by key principal Elaine Baker, owner of Elaine S. Baker & Associates, a design and furnishing company. The transactions included: A $2.8 million loan for the acquisition of Horizon West Apartments, a 29-unit apartment property located at 540 L St. Constructed in 1971, the five-story building features 17 one-bedroom/one-bath units and 12 two-bedroom/two-bath units. At the time of acquisition, the property was 96 percent occupied. The 10-year loan features a fixed rate with 12 months of interest-only payments followed by a 30-year amortization schedule. A $2.6 million loan for the purchase of East 56th Avenue Apartments, located at 200, 240 and 270 E. 56th Ave. The community features five three-story, walk-up multifamily buildings constructed in 2009. At the time of sale, the property was 95 percent occupied. The property features 10 two-bedroom/one-bath units and 12 two-bedroom/two-bath units. The 10-year, fixed-rate loan features a 30-year amortization schedule.
OREM, UTAH — The Muller Co. and an affiliate of Cerberus Capital Management have acquired Canyon Park Technology Center, an office campus in Orem, for an undisclosed price. Built between 1988 and 1992, the 924,634-square-foot campus consists of 14 one-, two- and three-story buildings situated on 85 acres. The property features spaces ranging from 100 square feet to 60,000 square feet, and it was 54 percent leased at the time of sale. WordPerfect Corp. leases a portion of the campus for its headquarters. The buyers plan to upgrade the common areas and grounds with new lobbies, restrooms and tenant amenities, including a dedicated amenity center featuring a lounge and game room, café and gym facilities.
LAKE OSWEGO, ORE. — Ziegler has closed $41.1 million in fixed-rate bond financing for Mary’s Woods at Marylhurst Inc. Mary’s Woods is an Oregon nonprofit corporation operating a seniors housing community located in Lake Oswego, approximately eight miles south of Portland. The community consists of 233 independent living apartments, 50 independent living villas, 55 assisted living apartments, 23 memory support suites, 26 residential care suites and five licensed skilled nursing suites. The community is situated on a 36-acre site, which Mary’s Woods leases from the Sisters of the Holy Names of Jesus and Mary, an Oregon nonprofit corporation. The borrower plans to use the proceeds to finance a portion of an expansion project; pay a portion of the interest on the bonds; fund a debt service reserve fund; and pay certain costs of issuance of the bonds. The bonds will be issued with a combination of temporary and permanent series, consisting of $16.7 million in tax-exempt serial and term bonds, amortizing over a 34-year period ending May 15, 2052.
TORRANCE, CALIF. — Rexford Industrial Realty has acquired a single-tenant industrial property located at 3100 Fujita St. in Torrance. An undisclosed seller sold the property for $14 million, or $153 per square foot. Situated on 3.7 acres, the property features 91,516 square feet and features a single tenant, which has occupied the property since 1992.
SAN JOSE, CALIF. —Levin Johnston, a division of Marcus & Millichap, has arranged the sale of First Street Manor, a multifamily property located 523-530 N. First St. in downtown San Jose. A private investor acquired the property for $12.5 million. Situated near Google’s newest proposed tech campus, Google Village, the property features 39 apartment units. The buyer plans to perform full façade upgrades to the asset in order to rebrand the property and improve its overall value. Adam Levin and Robert Johnston of Levin Johnston represented the buyer and the seller, a private investor, in the transaction.
PHOENIX — BKM Capital Partners has acquired Diablo Business Center, a nine-building industrial business park located at 3610-3660 E. Wier Ave. and 4663-4645 S. 36th St. in Phoenix. An undisclosed seller sold the property for $8.1 million. The multi-tenant property features 150,000 square feet of light industrial space. BKM plans to implement a $1.8 million capital improvement program at the property. Planned renovations include creative speculative tenant buildouts, reviving dead units, the addition of private fenced yards and upgrades to the exterior including a modern, multi-tone paint scheme, drought-resistant landscaping, upgraded monument signage and standardized tenant signage. The company will also address structural improvements including a new roof, new parking lot and an improved HVAC system. Bob Buckley of Cushman & Wakefield represented the seller in the transaction.
I have had the pleasure of selling commercial office space in Northern Nevada for nearly 15 years. During this time, I saw the peak of the market from 2003 to 2008 wherein construction was at an all-time high, lease rates were reaching unseen heights and absorption was setting records. Then we all got to experience the Great Recession from 2008 through 2012. This saw nearly half of the buildings that were constructed during the previous peak become empty. Vacancy rates hit 20 percent, lease rates dropped to levels well below where they were in 2003, and construction came to a screeching halt. Then, magically, at the beginning of 2013 the economy took a turn and the Northern Nevada office market began its recovery. This was expedited in 2014 with Tesla making its announcement of the Gigafactory in the Tahoe Reno Industrial Center and the Tesla Effect created a national buzz that hasn’t slowed. Unfortunately, this has created a new problem. The Reno office market sits at 10.1 percent vacancy, down from 20.7 percent during the recession, as net absorption has been positive year over year since 2012. The absorption has been primarily in second-generation space as there has been relatively …