The Phoenix office market ended the third quarter in a very strong position. Increasing momentum in the sector should continue into 2015. Healthier economic conditions, including a growing GDP and higher employment, are translating into increased market activity and confidence. The biggest take-away from Phoenix’s rebounding office sector is new office development, with several high-profile construction projects underway in the East Valley. Tower cranes dot the horizon along Tempe Town Lake in downtown Tempe. The largest project, State Farm’s Marina Heights, is under construction on its first phase, which includes two mid-rises totaling more than 1 million square feet. Additional phases will bring the project to more than 2 million square feet, making it the largest office project in Arizona. Hayden Ferry Lakeside III is under construction with a 10-story, 250,000-square-foot building on the lake. This is the third and final phase of this office project. Arizona State University has also jumped into the mix by announcing a huge 330-acre development on the south side of Tempe Town Lake. It is expected to incorporate athletic, commercial and residential projects at full build-out that will be utilized as a funding source for ASU Athletics. USA Place, a $400-million-plus development in downtown, …
BROOMFIELD, COLO. – The 51-unit Villagio Senior Living has broken ground in Broomfield. The memory care continuum community is located at 5866 West 120th Ave. Common-area amenities include 24-hour care, a gourmet dining experience and community programs. The new community is expected to open next fall. The community will be designed by Van Tilburg, Banvard & Soderbergh and built by Pinkard Construction. It is being developed by Blackwood Development and Choice Capital Partners.
RENO, NEV. – The leasehold interest on Brookside Corporate Center, a 261,141-square-foot industrial center in Reno, has sold to Libitzky Property Companies for $15.8 million. The Class A center sits adjacent to Reno-Tahoe International Airport. The three-building center is on a ground lease owned by the airport. HFF’s Steve Golubchik, John Simerlein and Josh DiSalle represented the seller.
NAPA, CALIF. – Western Wine Distribution warehouse, a 196,800-square-foot industrial property near Napa, has received an $8-million refinance. The property is located at 1275 Commerce Blvd. The loan contains a 10-year term and a 25-year amortization schedule. It was arranged by Robert R. Hervey of NorthMarq Capital’s Los Angeles office through the firm’s correspondent relationship with Nationwide Life Insurance Company.
ANAHEIM, CALIF. – A 24,480-square-foot industrial building in Anaheim has sold to an unnamed buyer for $2.5 million. The building is located at 145 W. Santa Ana Street. It also contains 2,250 square feet of office space. The property is leased to EmilAmerica. Chris Migliori of DAUM’s Orange County office represented both parties in the transaction
COSTA MESA, CALIF. – An 8,118-square-foot building in Costa Mesa that is triple-net leased to Citibank has sold to a Pasadena, Calif.-based family trust for $5 million. The building is located at 2700 Harbor Blvd. It sits adjacent to Mesa Verde Shopping Center. Shaun Riley of Faris Lee Investments represented the 1031 exchange buyer. The seller, CP Sunshine LLC, was represented by Equity Investment Advisors.
BETHESDA, MD. — LaSalle Hotel Properties has sold 7.6 million shares of common stock to Barclays, Deutsche Bank Securities and Morgan Stanley for $40.30 per share. LaSalle will use the net proceeds from this underwritten public offering to fund three hotel acquisitions out West. Though the properties were not named, LaSalle noted the hotels were located in San Francisco, Los Angeles and Portland, Ore. They will be purchased for a total of about $500 million. The company will also use some of the proceeds to reduce the amount of its outstanding $750-million senior unsecured credit facility, as well as for general corporate purposes. Barclays, Deutsche Bank Securities and Morgan Stanley are acting as the offering’s underwriters. LaSalle has also granted the underwriters an option to purchase up to 1.14 million additional shares. Bethesda, Md.-based LaSalle Hotel Properties is a multi-operator REIT that owns 44 hotels. The portfolio contains a total of 11,100 guest rooms in upscale, full-service hotels throughout 13 markets in nine states and the District of Columbia. LaSalle specializes in the ownership, redevelopment and repositioning of upscale, full-service hotels in urban, resort and convention markets.
SAN JOSE, CALIF. — KBS Capital Advisors has purchased Ten Almaden, a 309,255-square-foot office building in San Jose, for a reported $116.7 million. The Class A office tower is located at its namesake, 10 Almaden Blvd. Ten Almaden is situated near the San Jose Diridon Transit Station, which is serviced by Caltrain, Amtrak, ACE commuter rail, VTA light rail, bus lines and the planned California High-Speed Rail that will connect downtown San Jose to San Francisco and the peninsula. It is also near San Jose’s Norman S. Mineta International Airport, Interstates 280, 680, 880, US 101, and Highways 87 and 17. The LEED-Gold-certified office tower was built in 1988 and renovated in 2010. It features a three-story atrium and lobby, fitness center with outdoor pool, sauna, showers, a six-level parking structure and a café. Ten Almaden is currently 89 percent leased. Notable tenants include Citibank, Comcast, Robert Half International, Rosetta Marketing Group and Turner Construction Company. The seller, Equity Office Properties, was represented by HFF’s Steven Golubchik, Michael Leggett and John Simerlein.
UNION CITY, CALIF. — Terreno Realty Corporation has acquired Central Plaza, a 170,129-square-foot industrial complex in the San Francisco Bay Area submarket of Union City, for $23.8 million. Terreno is also under contract to acquire Central Pacific, an adjacent industrial project that is currently under construction, for $37.2 million. The three-building, Class A Central Plaza is located at 33306-33580 Alvarado Niles Road. It recently received an upgrade to its exterior façade, asphalt, roof and HVAC system. Central Plaza is currently 99 percent leased. Notable tenants include Strapack, CoreMark and Phillips Delivery. The four-building, 300,000-square-foot Central Pacific is scheduled for completion next March. The Class A project is being developed by Westcore Properties, which was also the seller of Central Plaza. Kevin Hatcher and Mark Maguire of Colliers International represented both Westcore Properties and Terreno Reality Corporation in these transactions.
MESA, ARIZ. — NALS Apartment Homes has purchased the 280-unit Waterford at Superstition Springs apartment complex in Mesa for $33 million. The community is located at 7311 East Southern Ave. Waterford is situated less than a mile from Superstition Springs Center, a 1.2-million-square-foot regional shopping mall with more than 150 stores and eateries. Mesa Pavilions, a 720,000-square-foot power center, also sits directly across the street from this community. Common-area amenities at Waterford include a resort-style swimming pool with spa, a leasing office, 24-hour fitness center, a clubhouse with resident lounge and Wi-Fi, an executive business center and conference room, 80 detached garages, 30 detached storage units, a car care center, and a courtyard space with a playground, volleyball court and barbecue grills. The seller, Waterford at Superstition Springs LLC, was represented by Steve Gebing of IPA and Cliff David of Marcus & Millichap.