PALM DESERT, CALIF. — Ashford Hospitality Trust has sold a two-hotel portfolio in Palm Desert for $36 million. The transaction includes the 151-room Courtyard Palm Desert and the 130-room Residence Inn Palm Desert. The portfolio achieved RevPAR (revenue per available room) of $92 with an occupancy rate of 74 percent and ADR (average daily rate) of $123. The portfolio also had an existing debt balance of about $24 million that was assumed by the buyer.
LOS ANGELES — Bold Films has announced plans to relocate its headquarters to the new Hollywood 959 creative entertainment campus. The campus is located at 959 N. Seward St. in the Hollywood Media District. Bold Films has leased 15,000 square feet in the five-story West Wing building. The independent entertainment production and finance company has worked on films such as “Nightcrawler,” “Whiplash” and “Drive.” JH Snyder Company developed and built Hollywood 959 this past March. The campus includes 245,000 square feet of creative office space in two wings. Greg Frankovich of Newmark Grubb Knight Frank represented Bold Films in the transaction. Michael Geller of First Property represented JH Snyder.
LAS VEGAS — Burke Construction Group has completed construction on an expanded warehouse facility for the Frito Lay Las Vegas Distribution Center. The center is located at 1209 Trade Drive. The 30,000-square-foot addition will allow Frito Lay to expand its existing warehouse facility. The space was built directly adjacent to the active warehouse, creating one common warehouse space. William E. Franz designed the property. Burke built the space on behalf of Con-Real LP.
HONOLULU — The Honolulu City Council has approved Salem Partners’ plan to develop a 36-story mixed-use tower in Honolulu. The $700 million project will be situated across from the Convention Center. Named Mana`olana Place, this will be the first project in the city’s newly adopted Ala Moana transit-oriented district. The tower will feature 505,000 square feet that will house a 125-room ultra-luxury hotel, 109 condominiums, about 12,500 square feet of retail and dining, a large public plaza and gardens. Construction is expected to start in 2017 for completion in 2020. Mana`olana Place will create a pedestrian-friendly environment with street frontages leading to the public plaza at the corner of Kapiolani Boulevard and Atkinson Drive.
BEAVERTON, ORE. — The Specht Company and its affiliates have sold four phases of Beaverton Creek Business Park for $51.1 million. The sale consists of 11 buildings totaling 380,050 square feet and one 2.4-acre parcel of land in Beaverton. Artemis Real Estate Partners and Cruzan purchased three phases of the property totaling 311,337 square feet for $41.6 million. An undisclosed buyer acquired the remaining 68,713-square-foot phase for $9.5 million. Another Specht entity retains ownership of a separate six-acre parcel within the park that is immediately adjacent to the Beaverton Creek Light Rail Station. All of these properties are leased to Nike. The sports apparel company has been a tenant at the park since 1991. HFF executed the sales transactions and secured a $27 million, 10-year, fixed-rate acquisition loan for Artemis and Cruzan through a correspondent life insurance company lender.
PORTLAND, ORE. — Gramor Development Inc. has sold Timberland Town Center, a 91,000-square-foot shopping center located in Portland, for $43.1 million. A 40,000-square-foot Market of Choice grocery store anchors the center, which is also home to Orangetheory Fitness, H&R Block, Blu Olive Mediterranean Cuisine, B’Tan Sun Studio and Supercuts. JLL Income Property Trust acquired the property. Capital Pacific LLC brokered the transaction.
HUNTINGTON BEACH, CALIF. — DJM Capital Partners has completed the development of Phase I of Pacific City, a mixed-use development located in Huntington Beach. Phase I features 191,000 square feet of retail, 100,000 square feet of outdoor community space and 400,000 square feet of on-grade and subterranean parking. An eight-story, four-star oceanfront hotel named Pasea also opened at the property this year. Future components of the development will include a 516-unit residential community to be named The Residences at Pacific City. C.W. Driver Cos. built the first phase of the project, which is currently 80 percent leased to tenants including Equinox Fitness, LOT 579, Ola Mexican Kitchen, Tank Farm & Co., Barnabas Clothing, H&M, Free People, Tommy Bahama and Sephora. Jerde Partnership, SMS Architects and Lifescapes International designed the development.
ANAHEIM HILLS, CALIF. — JCH Consulting Group has arranged the sale of six skilled nursing facilities in Central California for an undisclosed price. Riverside Healthcare sold the facilities to Meridian Management Services, which operates all six. The specific facilities and purchase price were not disclosed. Built between 1950 and 1975, the facilities range from 42 to 99 beds. The average occupancy rate at the time of closing was 80 percent. JCH represented the buyer while Marcus and Millichap represented the seller. Nick Stahler was JCH’s lead agent on the transaction. Anaheim Hills-based JCH Consulting Group is a brokerage firm focused on the seniors housing industry.
SAN DIEGO — Strata Equity Group has acquired a 24-property multifamily portfolio from an affiliate of New York City-based DRA Advisors LLC for $720 million. The Southeast Residential Portfolio consists of 6,294 units located throughout 13 metropolitan areas in Georgia, North Carolina, Tennessee and South Carolina. The properties were built between 1985 and 2000, with an average year built of 1996. Over the past three years, net rental income for the portfolio has increased 12.2 percent while averaging 95.3 percent occupancy. Malcom McComb of CBRE negotiated the transaction on behalf of the seller. Bill Chiles and Robert LaChapelle of CBRE also secured $500 million in acquisition financing for Strata. The financing features a mixture of seven- and 10-year fixed- and floating-rate loans provided by Freddie Mac. “We negotiated a portion of the portfolio under a newly created version of the Freddie Mac Revolving Credit Facility,” says Chiles. “This facility gives Strata Equity Group more financing flexibility for certain assets, as well as an attractive vehicle for new purchases with similar business plans.” The names of only three properties in the portfolio were disclosed: Alta Mills, 1650 Anderson Mill Road, Austell, Ga.; Eagle Pointe Apartments, 8608 Eagle Pointe Drive, Knoxville, Tenn.; …
The Phoenix industrial market is thriving, despite more than 5.6 million square feet of new construction set to deliver this year. There is enough demand in this market to keep the average vacancy rate at a near eight-year low of 9.7 percent, while absorption is on pace to exceed 6 million square feet for the third year in a row. Tenants have more choices than ever thanks to all this new inventory. Many are making a flight to quality, upgrading to next-generation space featuring wide column spacing and clear heights of up to 36 feet. This is particularly valuable in the West Valley, where large, efficiency-focused, third-party logistics firms and e-commerce companies must maximize how they manage vast amounts of product. Some of these needs are so specific that corporations have opted to custom build, as is the case with the recently completed 400,000-square-foot REI distribution center and the 384,377-square-foot IRIS USA facility, both situated in Surprise. These projects rank as the Valley’s two largest owner-builder completions of the year and have propelled the Northwest submarket — the third smallest industrial submarket in metro Phoenix — into the “hot” category. Meanwhile, owners and builders have gotten more creative in centralized …