LOS ANGELES — Kilroy Realty Corporation has announced its plans to develop The Residences at Columbia Square, a luxury residential tower in Hollywood. The 20-story tower will be located inside Columbia Square, a $385-million, mixed-use creative office, residential and retail development. The 675,000-square-foot Columbia Square is being developed on the site of the historic CBS broadcast facility on Sunset Boulevard. The Residences will include a mix of long-term rental and furnished extended-stay apartment homes. It will be the first luxury extended-stay property to reside in the heart of Hollywood, according to Kilroy. The firm has teamed up with The Kor Group to collaborate on the project’s programming, design and branding. Kor will also manage the project once construction is complete in spring 2016.
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RANCHO CUCAMONGA, CALIF. — Tivoli Square Apartments, LP, has purchased Foothill Crossing, a 312,307-square-foot regional power center in Rancho Cucamonga, for $54 million. The center is located at 12181-12357 Foothill Blvd., across from Victoria Gardens lifestyle mall. It is 90 percent occupied by tenants like Sears Grand, Total Wine & More and Office Depot. The 1031 Exchange buyer was represented by Dennis Vaccaro of Faris Lee Investments. The seller (and developer), Foothill Crossing, LLC, was represented by Jeff Conover of the same firm.
LAS VEGAS – The 248-unit Desert Palms North Apartments in Las Vegas has sold to DesertPalms, LP for $7.8 million. The Class C community is located at 1001 E. Carey Ave. It was built in 1992. The complex is currently 78 percent occupied. The seller was Desert Palms North, LLC. The transaction was executed by NAI Vegas’ Sauter Multifamily Group
SUNNYVALE, CALIF. — SK Telecom Americas has relocated and expanded to a 34,697-square-foot space in Sunnyvale. The new office is located at 310 DeGuigne Drive. SK Telecom was previously based at 150 Mathilda Place. The relocation will allow SK Telecom to more than double its previous space. SK Telecom was represented by Fletcher Baker of Cresa San Jose. The landlord, Menlo Equities, was represented by CBRE.
MESA, ARIZ. — Blandford Homes has acquired 19.3 acres in Mesa for $3.2 million. The site is located near the southwest corner of Greenfield Road and McDowell Road. The company plans to develop high-end executive homes on lots containing about 35,000 square feet. Brent Moser, Mike Sutton and Brooks Griffith of Cassidy Turley Arizona’s Land Group represented both the buyer and the seller, Horlacher Foundation, Inc., in this transaction.
LAS VEGAS — Craig Promenade Retail Center, an 86,395-square-foot shopping center in North Las Vegas, has sold to RREF II-KI Promenade LLC for $10.1 million. The center is located at located at 525-785 W. Craig Road. It was 70 percent occupied at the time of sale. Notable tenants include Big Lots and Metro PCS. RREF II-KI Promenade represented itself in the transaction. The seller, TNP SRT Craig Promenade, LLC, was represented by Faris Lee.
PASADENA, CALIF. – A 23,776-square-foot office building in Pasadena has sold to Markwood Enterprises for $7 million. The building is located at 66 Hurlbut Street. It is leased to Pacific Clinics. Markwood is aggressively seeking value-added opportunities, including multifamily development, mixed-use development and medical. The company was represented by Marie Taylor and Dan Bacani of NAI Capital’s Pasadena office.
SCOTTSDALE, ARIZ. — Redrock Business Center, a 21,190-square-foot office complex in Scottsdale, has sold to A2Z Properties for $1.9 million. The Class B, four-building center is located at 17100 East Shea Blvd in the Fountain Hills submarket. Only two of the office buildings were included in this transaction. Eric Wichterman, and Mike Coover of Cassidy Turley represented both the buyer and the seller, MJA Investments, in this transaction.
Optimism is returning to the Inland Empire office market. With an overall vacancy rate of 18.3 percent at the end of the third quarter, the office sector is slowly improving. It’s down from a 19.4 percent vacancy rate, which was recorded in the second quarter of 2013. The declining vacancy number shows activity is increasing throughout the Inland Empire as tenants feel now is the time to take advantage of below-market rental rates for Class A and B properties. Landlords are also competing to lower their vacancy levels. They’re negotiating rental rates, tenant improvements and free rent concessions. Nevertheless, it’s a tenants’ market. There is an absence of new construction throughout the region and, as occupancies continue to improve, renewal negotiations will become tougher for tenants as the market is expected to gradually favor landlords as fundamentals continue their positive momentum. With that said, tenant urgency is returning to the market as absorption levels increase and options for quality product diminish. In fact, we’re starting to see rent growth in certain sectors of the market. The average overall asking lease rate ended the quarter at $1.73 per square foot, increasing by 1 cent from the previous quarter. CBRE forecasts that …
SANTA ANA, CALIF. – Blackstone Group has purchased a pair of Class A office buildings inside the mixed-use MacArthur Place development in Santa Ana for $82.5 million. The buildings are located at 1 and 2 MacArthur Place in the Airport submarket. They contain a total of 409,762 square feet. The seller was GLL Real Estate Partners. The transaction was executed by Michael Zietsman and Baker Morphy of Jones Lang LaSalle’s Capital Market.