PHOENIX – The 114-room Holiday Inn & Suites Phoenix has received a $9.3-million loan. The select-service hotel is located two miles south of the Phoenix Sky Harbor Airport and two miles west of Arizona State University. It opened in 2010. The non-recourse, fixed-rate, CMBS first-mortgage loan was secured by KeyBank Real Estate Capital.
Western
SAN DIEGO – An 8,400-square-foot restaurant space in the San Diego submarket of Encinitas has sold to PS2 Pacific LLC for $6.5 million. The beachfront property is located at 2530 Highway 101. The buyer plans to renovate the property before opening a new restaurant at the space, which has been vacant for more than a year. The buyer also owns Pacific Coast Grill, an adjacent restaurant property. The seller, Avolencia Group LLC, originally built the property more than 40 years ago. It had no outside representation. The buyer was represented by Richard Lebert and Matt Zimsky of Colliers International.
While the industrial recovery in the Phoenix area has been slow, market indicators show signs of steady improvement. Average rental rates for the Phoenix metro industrial market have remained consistent, hovering around $0.52 per square foot for the past year. In the Southwest Valley, however, which constitutes almost one-third of the entire valley’s industrial space, average rental rates are much lower at $0.36 per square foot. Lease rates at Sky Harbor Airport are averaging about $0.59 per square foot, and $0.66 per square foot in the Southeast Valley. The highest average rental rates are predictably seen in the Northeast Valley, which reported an average of $0.85 per square foot. More than 2.9 million square feet was leased in the second quarter, representing 593 transactions. Leases remain steady compared to the first quarter of this year, but the rate will likely fall short of 2013 when 16.7 million square feet was leased. Vacancy rates continue to fall after the spike seen last year. The second quarter of 2014 reported a 12.6 percent vacancy, down from the high of 13.2 percent in the third quarter of 2013. While a positive indicator, vacancy rates in the industrial sector swing on such a pendulum …
MESA, ARIZ. — Superstition Springs Business Park, a 101,411-square-foot flex industrial park in Mesa, has sold to Allred Hampton DE for $13.9 million. The park is located at 7307 and 7427 E. Hampton Ave. It was 91.5 percent leased at the time of sale. Allred Hampton was represented by Stein Koss and Tom Louer of Lee & Associates Arizona. The seller, Hampton/Mesa, was represented by Pat Dempsey, Jan Fincham, Chris McClurg and Matt Fredrick of the same firm.
PEORIA, ARIZ. — Barstow Shopping Centers has acquired Peoria Marketplace, a 25,481-square-foot shopping center in Peoria, for $5.1 million. The center is located at 7521, 7549 and 7611 West Cactus Road. The property was built in two phases in 2001 and 2002. It was 91 percent occupied at the time of sale. Notable tenants include Farmers Insurance, H&R Block, Panda Express, Little Caesar’s Pizza and Subway. CBRE’s Steve Julius and Jesse Goldsmith represented both the buyer and seller, G and T Retail Properties, in this transaction.
HAYWARD, CALIF. — General Forklift & Equipment has leased 40,000 square feet of space at the Clawiter business complex in Hayward. The center is located at 25864 Clawiter Road. Other notable tenants at the center include Berkeley Farms and Gillig Corporation. General Forklift was represented by Richard Sutherland of Sutherland Company. The landlord, Clawiter Associates, was represented by Dan Bergen of Colliers International.
SAN DIEGO — Four C Square, a 64,500-square-foot, mixed-use property in San Diego, has received $5 million in refinancing. The property is located at 428 C Street. It features 28 live-work lofts over ground-floor retail, with Ross Dress for Less as the main tenant. The loan features a 10-year term with five years interest-only and a 30-year amortization schedule. It was arranged by Gardiner Champlin and Marty Meagher of NorthMarq Capital’s San Diego office through the firm’s correspondent relationship with Nationwide Life Insurance Company.
TUCSON, ARIZ. — Retail Service Systems has leased 18,424 square feet in Tucson. The space is located at 1150 S. Plumer Ave. The landlord, Antonio Gonzalez, was represented by Paul Hooker and Ron Zimmerman of Cushman & Wakefield | PICOR.
BAKERSFIELD, CALIF. – The 160-unit Auburn Heights Apartments in Bakersfield has received a $10.6-million loan. The affordable housing community is located at 7000 Auburn Street. The loan will finance the property’s renovation. It was funded through HUD’s Section 223(f) Low Income Housing Tax Credit (LIHTC) Pilot Program. The non-recourse loan features a 35-year term, fixed-rate and full amortization. It was provided by CBRE Group through its FHA lending platform.
SAN DIEGO — Sharp Memorial Hospital Rehabilitation Center, a 14,172-square-foot rehab facility in the San Diego submarket of Kearny Mesa, has completed a $6.4-million renovation. The facility is located at 2999 Health Center Drive. The renovation transformed the inpatient wing into a modern healing environment, with more private rooms that contain in-suite bathrooms and showers, updated administrative areas and hallways and an expanded outdoor therapy gardens. The center provides rehabilitation services for patients who have suffered catastrophic strokes, brain and spinal cord injuries, neurological issues, sprains, strains and other injuries, and problems related to balance, speech, lymph edema and chronic pain. The design-build renovation was carried out by McCarthy Building Companies and designed by Cuningham Group Architecture. The companies worked in collaboration with Sharp Healthcare.