KAILUA-KONA, HAWAII – Alexander & Baldwin has acquired five buildings within the Honokohau Industrial Park in Kailua-Kona for $10 million. The buildings are situated on two lots within the 37-acre industrial park. They are centrally located to service both Kailua-Kona and the Kohala Coast. The buildings contain a total of 73,200 square feet and are currently 94 percent leased to tenants in the construction, tourism, food distribution, automotive repair and transportation industries. The purchase was largely financed with sales proceeds from non-income producing properties.
LOS ANGELES — Waldorf Astoria Hotels & Resorts has opened the Waldorf Astoria Beverly Hills. The hotel is situated at the intersection of Wilshire and Santa Monica boulevards. The 12-story hotel is the Waldorf Astoria Hotels & Resorts’ first new build on the West Coast and second California property. Owned by Alagem Capital Group and clients of Guggenheim Partners, Waldorf Astoria Beverly Hills features 119 rooms and 51 suites. Architects Gensler and PYR designed the hotel, which features a rooftop gathering area with VIP cabanas, a lounge area with panoramic views and a swimming pool. The hotel also features 6,300 square feet of meeting spaces, including two ballrooms, as well as a private Rolls Royce shuttle service within two miles of the hotel, world-class dining, the only La Prairie Spa in Los Angeles and the Tracey Cunningham Salon.
ISSAQUAH, WASH. — Kennedy Wilson has acquired 90 East, a three-building, 573,000-square-foot office campus in greater Bellevue, for $153 million. Located in Issaquah, the campus was built between 1999 and 2001 and is fully leased to Microsoft and Costco. During the last 12 months, the property produced approximately $13 million in net operating income. Kennedy Wilson financed the purchase using a 10-year, interest-only, $77 million loan that features a fixed interest rate of 3.85 percent.
GARDENA, CALIF. — Terreno Realty Corp. has purchased a 114,000-square-foot industrial building in Gardena for $24.7 million. The building is located at 15913 S. Main St., about 14 miles southwest of Los Angeles. The fully leased, single-tenant facility is situated near the 91 (the Artesia Freeway), 110, 105 and 710 freeways between Los Angeles International Airport and the ports of LA and Long Beach.
ALBUQUERQUE, N.M. AND BROWNSVILLE, TEXAS — CareTrust REIT Inc. has acquired two skilled nursing facilities: The Rio at Cabezon, a 136-bed facility located in Albuquerque, and The Rio at Fox Hollow, a 126-bed facility in Brownsville, Texas. The purchase price was approximately $27.3 million, inclusive of transaction costs. The Albuquerque facility represents CareTrust’s entry into the New Mexico market. In connection with the acquisition, CareTrust REIT assumed the existing facility leases with affiliates of OnPointe Health LLC, a regional post-acute care provider with operations in Texas, New Mexico and Colorado. The seller was a prominent Texas developer. The properties are currently in the lease-up period and approaching stabilization, according to Lamb. The investment is expected to generate an initial cash yield of 9 percent, based on the annual cash rent of $2.5 million under the terms of the existing leases. The two existing leases have remaining terms of approximately 17 and 19 years, respectively, and include a hybrid of fixed- and CPI-based rent escalators. CareTrust REIT, a publicly traded investor based in California, funded the acquisition with cash on hand.
CHANDLER, ARIZ. — Medical Development Partners has broken ground on Parkland Memory Care, a 56-unit memory care community in Chandler. The $10 million, 36,400-square-foot project will be located on a 4.5-acre plot. Live Oak Bank, Aileron Capital Management and Mercantile Capital Corp. provided financing. JF Construction Co, which is building the project, estimates a spring 2018 completion date. Upon completion, Seasons Management Group, based out of Oregon, will operate the community. Lenity Architecture designed the property, with landscape architecture provided by Ryan & Associates.
LOS ANGELES — Singapore-based Mapletree Investments Pte Ltd. has acquired a portfolio of eight student housing communities and four multifamily properties from Los Angeles-based Kayne Anderson Real Estate Advisors for $1.6 billion. The student housing portion of the portfolio consists of 3,611 beds in the United States and 140 beds in Canada. Properties include: WaHu — an 825-bed community located near the University of Minnesota in Minneapolis The District at Campus West — a 659-bed community located near Colorado State University in Fort Collins, Colo. SkyVue — a 627-bed community located near the University of Pittsburgh in Pennsylvania 4th Street Commons — a 562-bed community located near Florida International University in Miami 930 NoMo — a 430-bed community located near the College of Charleston in Charleston, S.C. Todd — a 351-bed community located near the University of Missouri in Columbia, Mo. 700 on Washington — a 157-bed community located near the University of Minnesota in Minneapolis Parc Cite — a 140-bed community located near McGill University in Montreal, Canada The eight student housing properties are located an average of 0.2 miles away from campus, and have occupancies above 90 percent. The four multifamily properties total 1,388 units, and include: Mint Urban …
The New Mexico multifamily market, more specifically Albuquerque, recorded an impressively strong 2016 with vacancies dropping below 5 percent. Asking rents have increased for three consecutive years, fueling the investment market both in volume and prices. Employment grew by 2,700 jobs in Albuquerque last year. More than 2,000 of those were added in the fourth quarter, making it the strongest employment growth quarter in more than four years. Mining, logging and construction led the way in job creation, growing their sectors by nearly 8 percent. Professional, business services and the hospitality sector also strengthened on the job front. This expansion drove demand for multifamily units, pushing vacancy downward. The vacancy rate in Albuquerque declined 60 basis points in 2016, following a 100 basis point drop in 2015. Rents dropped slightly in the fourth quarter, but year-end 2016 asking rents were up 4 percent over 2015 to an average of $776 per month. Rent growth in the area has averaged 2.7 percent per year since 2014. Developers stepped up to the plate in 2016, answering the demand for more units. The market received 675 new units with about 1,000 more currently under construction. One of the new highly anticipated projects is …
LOS ANGELES — Greystar has received $100 million in financing for the development of Arts District AMP Lofts, a mixed-use residential and retail property located Los Angeles’ Arts District. HFF placed the 48-month construction loan with CIT’s Real Estate Finance business. The 320-unit property will offer amenities including 20,000 square feet of retail space; a community garden and park; dog run; outdoor creative workspace; clubhouse with bar and indoor/outdoor lounge space; fitness center; and outdoor pool. The development is scheduled for completion in 2019.
MODESTO, CALIF. — HFF has arranged the $170 million refinancing of a portfolio of 33 triple-net-leased grocery properties totaling 1.73 million square feet in Northern California. The portfolio is fully occupied under a master lease with The Save Mart Companies, operating under the Save Mart, Lucky, Lucky California and FoodMaxx brands. The portfolio consists of freestanding and anchor stores located in the San Francisco Bay Area, Sacramento and the Central Valley. Peter Smyslowski, Chris Gandy and Rob Bova of HFF worked on behalf of the borrower, Modesto-based RMP Properties LLC, to place the 10-year, fixed-rate loan with a UBS-led consortium of CMBS lenders.