DENVER — Evans Senior Investments (ESI) has arranged the sale of the Novellus Cherry Creek, an assisted living community in Denver. ESI represented Novellus Living in the transaction. Peaks Healthcare purchased the asset for an undisclosed price. Originally built in 2002, Novellus Cherry Creek comprises 66 assisted living units. The community faced occupancy challenges, with only 36 percent of its units occupied at the time of marketing. In alignment with its broader portfolio strategy, Novellus Living opted to divest its Colorado asset, focusing efforts on its thriving California and Arizona portfolios.
— By Anthony Pappageorge, Managing Director, NorthMarq — The Bay Area multifamily market is showing signs of stabilizing, although there are some persistent challenges present in the market that will impact operations. With 2024 likely to be a period of slower economic growth, there will be a continued emphasis on multifamily property operations. The challenges in the Bay Area rental market have shifted somewhat in recent years. In the period immediately following the pandemic, owners of rental properties were focused on maintaining occupancy levels and rent collections. In the current environment, added pressures surrounding rising property insurance costs and the prospect for additional rent control measures are increasing uncertainty to the Bay Area multifamily market. Occupancy: A Bit Lower than Usual, but Bouncing Back One multifamily property metric where the Bay Area routinely outperforms nearly every other part of the country is occupancy levels. Conditions remain tight at the beginning of 2024, with average occupancies ranging from about 96 percent in the South Bay and San Francisco, to about 94.5 percent in the East Bay. Current occupancies are about 50 basis points lower, on average, than in 2019. This is welcome news to operators who saw rates decline to about 90 …
ONTARIO, CALIF. — San Francisco-based Stockbridge has acquired a core industrial portfolio in the Inland Empire from Principal Asset Management for $142.2 million. Located at 3351 E. Philadelphia St. and 4450 E. Lowell St. in Ontario, the two-building portfolio offers 540,478 square feet of industrial space. At the time of sale, the properties were both 100 percent occupied. Jeff Chiate, Jeffrey Cole, Rick Ellison and Matt Leupold of Cushman & Wakefield’s National Industrial Advisory Group – West represented the seller in the transaction. Phil Lombardo, Chuck Belden and Andrew Starnes of Cushman & Wakefield provided leasing advisory. Rob Rubano, Brian Share, Joseph Lieske, Max Schafer and Becca Tse of Cushman & Wakefield Equity, Debt & Structured Finance collaborated in sourcing acquisition financing for the transaction.
SAN DIEGO — A joint venture between Birtcher Anderson & Davis and Nuveen has purchased 7949 Stromesa Court, an industrial building in San Diego’s Miramar submarket, from an undisclosed seller for $26.5 million. Situated on 5.3 acres, the single-story, 107,564-square-foot building was 95 percent leased to 12 tenants. The property features grade- and dock-level loading, 22-foot warehouse clear heights and the ability to accommodate 53-foot truck trailers. Evan McDonald and Kurtis Blanchard of Colliers represented the buyer, while Dean Asaro of Kidder Mathews represented the seller in the transaction.
RANCHO SANTA FE, CALIF. — Belmont Village Senior Living and Greystar Real Estate Partners have unveiled plans for Belmont Village Rancho Santa Fe, a luxury active adult community in Rancho Santa Fe, approximately 25 miles north of San Diego. Groundbreaking is scheduled to occur before the end of the year. The project will feature over 185 apartments including 15 freestanding cottages. The leaders of both Greystar and Belmont Village, Jerry Brand and Patricia Will, are long-term residents of Rancho Santa Fe. Belmont Village Rancho Santa Fe will be Belmont Village’s fourth community in the San Diego area and 17th in California since 2002. The company enjoys a relationship for program development with the University of California San Diego’s Stein Center for Research on Aging. HPI Architecture designed the development.
FRESNO, CALIF. — JLL Capital Markets has arranged the sale of Cherry Ave Self Storage, a self-storage facility on 5.4 acres at 1844 S. Cherry Ave. in Fresno. A public REIT sold the asset to PSC Fresno LLC, an affiliate of Pratt Street Capital LLC, for $8.2 million. Cherry Ave Self Storage consists of a three-story building and 12 one-story buildings offering a total of 1,085 units. The facility features drive-up units, freight elevators and boat and RV parking. Additionally, the property offers a 262-square-foot, newly renovated office. Brian Somoza of JLL Capital Markets’ investment sales and advisory team represented the seller in the deal.
LAS CRUCES, N.M. — Blueprint Healthcare Real Estate Advisors has negotiated the sale of a 50-bed transitional care facility in Las Cruces, approximately 45 miles northwest of El Paso, Texas. The community was built in 2017 and is strategically located within two miles of three short-term acute care hospitals that offer Medicare referral opportunities. With trailing EBITDAR (earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs) approaching $745,000 at the time of marketing, the facility presented an acquisition opportunity for a regionally focused owner-operator to realize immediate cash flow upon acquisition, expand upon an existing geographical footprint, and still have the ability to achieve significant value by stabilizing the asset. The buyer was an owner-operator that Blueprint previously worked with in New Mexico. The seller and price were not disclosed. Amy Sitzman and Giancarlo Riso led the Blueprint team.
TEMPE, ARIZ. — LV Collective, in partnership with Kayne Anderson Real Estate and Pacific Life, is set to break ground on Rambler Tempe, an 829-bed student housing development serving students attending Arizona State University. The community, which is scheduled for completion in fall 2026, will span 552,380 square feet at 1020 E. Apache Blvd. in Tempe. Work on the project began in March. Upon completion, the property will offer units in studio, one-, two-, three- and four-bedroom configurations. Shared amenities will include a café, coworking space, private study rooms, content creation rooms, two swimming pools and hot tubs, a rooftop terrace, clubroom, resident lounge and two-level fitness facility with yoga and on-demand fitness studios. The development team for the project includes Shepley Bulfinch, Layton and Variant Collaborative.
SEATTLE — Aegis Living has opened Aegis Living Laurelhurst in the Laurelhurst neighborhood of Seattle, near the University of Washington (UW). The six-story building features 147,911 square feet of space and 136 assisted living apartments. Aegis Development LLC is the developer, Ankrom Moisan Architects is the architecture firm and Exxel Pacific is the general contractor. Aegis Living Laurelhurst is Aegis’ 38th community and the second one to open this year.
GARDEN GROVE, CALIF. — Strategic Retail Advisors (SRA) has arranged the sale of a retail building located at 10912 Katella Ave. in the Orange County city of Garden Grove. OC Freedomhouse Church acquired the former Walmart Neighborhood Market from a private investor for $18 million. OC Freedomhouse plans to operate a new religious facility, including church services, an accredited Bible college and a child daycare all within an existing 46,287-square-foot tenant space. Blaine Bush of SRA handled the transaction.