The industrial market had a notable year in 2014. Vacancy declined 270 basis points from the first quarter of 2014 where nearly 1 million square feet of space was absorbed. It has been more than seven years since absorption has registered similar figures. The primary factor driving last year’s success was a handful of large deals with more than 50,000 square feet. The supply of larger, quality spaces was steadily leased up throughout the year. These accounted for 54 percent, or 522,000 square feet, of absorbed space. Market velocity slowed down during the fourth quarter, driven by a lack of quality inventory. Absorption registered a positive 103,000 square feet, and was the lowest quarterly level of 2014. The centrally located North I-25 submarket outshined all other submarkets. In the biggest deal of the quarter, Flagship Foods occupied nearly 79,000 square feet of space in the North I-25 submarket. There were also nine other spaces occupied in this submarket that contributed another 60,000 square feet of absorption. A developing concern for 2015 is the significant amount of new available space being brought to market. Although still occupied, a total of 244,000 square feet of new space was added to the inventory …
CHANDLER, ARIZ. — A trio of FedEx Ground distribution centers has received $52 million in acquisition financing. The portfolio includes a 312,539-square-foot facility in Chandler, Ariz., a 254,353-square-foot facility in Spartanburg, S.C., and a 151,088-square-foot facility in Wichita Falls, Texas. The borrower was TIC – RI Pullman LLC, RI Cascade LLC, RI Elk Grove LLC (Rood TICs). The portfolio acquisition satisfied a 1031 exchange. The properties received $31.2 million, $12.2 million and $8.6 million, respectively. Financing was arranged by Todd B. Harding and Mick Stapleton of NBS Financial Services. It was provided by State Farm Insurance Company through the firm’s correspondent relationship. The loans featured 10-year terms with 30-year amortization schedules.
MAUI, HAWAII — Burnham USA has purchased Shops on the Green, a 6.3-acre shopping center on Maui, for an undisclosed sum. The center is located at 100 Wailea Ike Drive in Wailea. Shops on the Green will soon undergo a renovation and a rebranding. It will be renamed Wailea Village Center. The transaction also includes about 22,000 square feet of retail and office buildings, as well as golf-related facilities. Burnham has also secured entitlements to expand the center for an additional 23,000 square feet of retail, which the firm plans to develop immediately. The project is situated directly across from Grand Wailea Resort, the Four Seasons Resort Maui at Wailea and the new Andaz Maui at Wailea Resort. It sits adjacent to the Marriott Residence Inn. The center includes the main facilities for Wailea’s flagship golf course and club, called Old Blue. The seller, Ronald Allred, is best known as the founder and developer of Telluride Ski Mountain Village in Colorado.
PERRIS, CALIF. — National Stores has signed a 10-year lease at a 579,708-square-foot distribution facility in Perris. The lease is valued at $26 million. The facility is located at 3900 Indian Ave. in the Riverside submarket. The clothing, shoes and home décor merchandiser operates 325 stores in 22 states. National Stores was represented by CBRE’s Tres Reid and Rich Rizika. The landlord, Sares-Regis Group (SRG), was represented by Tom Taylor and Steve Bellitti of Colliers International.
BOULDER, COLO. – The 39-unit Plaza on Broadway apartments in Boulder has sold to an unnamed buyer for $24 million. The community is located at 955 Broadway Street. It was built in 2013. Plaza on Broadway is situated directly across from the University of Colorado-Boulder. The property sits on a 60-year ground lease. The sale was executed by Jacob and Nick Steele of Marcus & Millichap’s Denver office.
DRAPER, UTAH – Wadsworth Development Group has completed a 1,920-square-foot Starbucks in the Salt Lake City submarket of American Fork. The new outpost is located at 496 E. State Road, just north of Orem. Starbucks fully occupies the new space. It was developed by Starbucks Coffee Company.
CITY OF INDUSTRY, CALIF. – Rexford Industrial has acquired a 51,823-square-foot industrial facility in the City of Industry for $7 million. The facility is located at 425 S. Hacienda Blvd. The property was leased-back to the seller under a new 10-year lease.
GLENDALE, ARIZ. – Dunbar Real Estate Investment Management has purchased Arrowhead Business Center, a 43,915-square-foot office campus in Glendale, for $7 million. The three-building campus is located at 7025, 7055 and 7075 West Bell Road. It was 88.9 percent occupied at closing. Dunbar purchased the asset through its investment advisor AEGON USA Realty Advisors LLC. The seller, Warranty of America, was represented by DTZ’s Bob Buckley, Tracy Cartledge, Steve Lindley and Ben Geelan.
CENTENNIAL, COLO. – Good Times Burgers & Frozen Custard has completed a sale-leaseback in Centennial. The restaurant is located at 14505 East Arapahoe Road. The asset was purchased by a local individual investor. The seller, Good Times Drive Thru, entered into a new long-term, triple-net lease at closing. Good Times was represented by Drew Isaac of Marcus & Millichap’s Denver office.
IRVINE, CALIF. – LoanDepot has doubled the size of its largest online direct-lending production center in Orange County. The consumer lender increased its space from 131,267 square feet to 238,732 square feet. It now maintains a total of 885,162 square feet of office space nationwide. The company has direct-lending production centers in Plano, Texas, Brentwood, Tenn., and Scottsdale, Ariz. The company also plans to hire an additional 1,000 employees.