There’s a clarity that’s emerged in the Inland Empire industrial market following 20 consecutive quarters of positive absorption. As a result, it’s not surprising the market is experiencing the highest number of speculative developments in five years. In 2013, development took off, absorption was strong, and the overall vacancy rate was low, all of which were strong indicators of the role and importance the industrial sector plays in Southern California and the entire Western Region. The Inland Empire West submarket experienced the majority of the increased gross activity that was reflected in an overall 1.2-million-square-foot, year-over-year increase on 7.9 million square feet of activity in the fourth quarter of 2013. That resulted in 4.2 million square feet of net absorption for the quarter, pushing the year-end total to 14.8 million square feet. Notably, the Inland Empire East submarket surpassed the West submarket in generating more net absorption during this same time – 2.3 million square feet to 1.9 million square feet, respectively. This was due to the lack of supply of high-quality buildings in the West submarket, while the East submarket was viewed as a more desirable location in terms of building quality. Steady demand and shrinking supply during the …
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LOS ANGELES — Sabra Health Care REIT has received five loans totaling $46.1 million. The loans will allow the REIT to refinance five of its facilities, which are located in California, Colorado, New Mexico and Montana. The loans’ rates were in the low 4-percent range. The five 232/223(f) HUD loans were closed by Housing & Healthcare Finance.
LOS ANGELES – A 1.42-acre multifamily development site in Downtown Los Angeles has sold to an unnamed buyer for $6.8 million. The site is located at the junction of Chavez Ravine and Stadium Way. The buyer has the potential to develop 150 to 200 apartments on the site. The seller, Chavez Realty Development, was represented by Lynwood Fields and Bob Pearson of Madison Partners.
LOS ANGELES – A 40,428-square-foot industrial/office building in the Los Angeles submarket of Thousand Oaks has sold to International Church of Foursquare Gospel for $5.2 million. The building is located at 3353 Old Conejo Road. The seller, Dorothea Phelan and Ardean Calvin Trusts, was represented by Jack Dwyer of NAI Capital’s Westlake Village office.
SCOTTSDALE, ARIZ. – A 31,427-square-foot development site in Scottsdale has sold to Deco Acquisitions (dba Deco Communities) for $4 million. The 0.72-acre site is located at 4422 N. 75th Street. Deco Communities plans to develop the 90-unit Envy luxury condominium complex on the site. It will partner with Isles Ranch Partners on this project. The unnamed seller was represented by David Fogler, Steven Nicoluzakis and Don Arones of Cassidy Turley.
LONG BEACH, CALIF. – A retail building in Long Beach that is occupied by a CVS store has received $2.7 million in refinancing. The store is located at 1250 E. Pacific Coast Highway. The loan features a 10-year term and a 25-year amortization schedule. It was arranged by Doug Austin of NorthMarq Capital’s San Diego office through the firm’s relationship with a correspondent life company.
LONG BEACH, CALIF. — Parallel Capital Partners has acquired Shoreline Square, a 383,652-square-foot office tower in Long Beach, for $101.7 million. The Class A office tower is located at 301 East Ocean Blvd. It is part of a master-planned, mixed-use development within the city’s Central Business District. Shoreline Square is currently 90 percent leased. Notable tenants include General Services Administration U.S. Customs office, Comerica bank, Tidelands Oil (Oxy), Department of Defense offices and UBS Financial Services. The tower currently holds a LEED-Silver designation. It was renovated in 2008, and is expected to achieve LEED-Gold certification later this year. Parallel Capital Partners represented itself in this transaction, while the seller, Guggenheim Real Estate, was represented by CBRE’s Kevin Shannon.
LOS ANGELES – Blackstone has acquired the National Upscale Select Service Portfolio, which includes 15 hotels along the east and west coastlines, for an undisclosed sum. The portfolio contains seven California-based hotels, including the 125-roomHampton Inn & Suites Thousand Oaks; the 143-room Hyatt Place Los Angeles/LAX/El Segundo; the 128-room Residence Inn Camarillo; the 132-room SpringHill Suites Irvine John Wayne Airport Irvine/Orange County; the 112-room Residence Inn San Diego North /San Marcos; the 119-room Homewood Suites Fresno and the 118-room SpringHill Suites Fresno. It also contains hotels in Alabama, Florida, Virginia, Connecticut, Pennsylvania and Maryland. All hotels are under the Hilton, Hyatt or Marriott branding. Most are less than five years old, and many feature amenities like sundry shops, fitness centers, outdoor patios and business centers. The seller, OTO Development LLC, was represented by Mark Fair, Al Calhoun and Samantha Fisher of JLL’s Hotels & Hospitality Group.
HONOLULU, HAWAII — Johnny Rockets and Fun Foods LLC have signed an area development agreement to bring Johnny Rockets restaurants to Hawaii and Guam. Fun Foods LLC is a sister company of the Fernandez Entertainment group, which operates E. K. Fernandez Shows and Fun Factory. Fun Factory operates family entertainment centers on Oahu, Maui, the Big Island and Kauai. E. K. Fernandez Shows is a locally owned, third-generation family business that provides carnival, fair and circus attractions in Hawaii. Pacific Business Newsnotes Johnny Rockets is targeting locations in Waikiki and Ala Moana Center, among others. It has also been in talks with Fun Factory to open restaurants either adjacent to or inside the family entertainment centers, though nothing has been decided yet.
CHANDLER, ARIZ. – W. P. Carey Inc. has acquired a 183,000-square-foot office building in Chandler for $43.1 million. The Class A building is located at 2700 Frye Road. The facility is leased to QBE Holdings for 10 years. It serves as the company’s West Coast regional headquarters. Neil Glassmoyer, Tivon Moffitt and Peter Bauman of Colliers International in Greater Phoenix represented both the buyer and the seller, Regent Properties, in this transaction.