— By Ryan Sarbinoff, first vice president and regional manager, Marcus & Millichap — Phoenix ranks third among the major markets in terms of both total net in-migration and job creation since the end of 2019. The region has also posted one of the largest jumps in median household income. Combined, these factors underpin heightened demand for housing and support elevated multifamily development. While total deliveries will rise for the fourth consecutive year in 2024 to a record high of 22,000 rentals, apartment absorption has notably kept pace through mid-year. As such, metro-wide vacancy is on track to dip to 7 percent by December. This would mark both a 30-basis-point decline from the 2023 peak, as well as an 18-month low. The improving alignment of supply and demand will encourage a return to rent growth, albeit slight. The average effective rent will end 2024 at $1,585 per month, up from the year before but down 5.3 percent from the peak set in 2021. Apartment completions over the past year (ending in June) were most prevalent in the Avondale-Goodyear-West Glendale submarket, where a collective 5,200 units opened. This represented a 23.8 percent boost to existing stock. Yet, the substantial wave of openings …
BOISE, IDAHO — A joint venture between Lincoln Property Co. and One Investment Management (OneIM) has broken ground on EastPort Logistics, a multi-phase industrial development situated on 78 acres in Boise’s Airport submarket. Phase I of EastPort will include 685,000 square feet across four buildings, ranging in size from 12,500 square feet to 378,560 square feet. Upon full build-out, EastPort Logistics will feature seven buildings with clear heights up to 32 feet, more than 1,300 car parking spaces, 168 trailer parking spaces and 196 dock doors. Additional site features will include landscaping and a berm to alleviate light and/or noise from within the site. The project team for phase I includes Mackenzie as architect of record, Kimley Horn as civil engineer and McAlvain as general contractor. TOK Commercial is handling marketing and leasing for the development.
CHINO AND POMONA, CALIF. — JLL Capital Markets has arranged $32.2 million in financing for Proficiency Capital’s acquisition of McGee Business Center I & II, an industrial portfolio in Chino and Pomona. Peter Thompson, Kyle White and Nick Englhard of JLL secured the three-year, floating-rate loan through a bank for the borrower. McGee Business Center consists of two fully leased industrial parks totaling 231,696 square feet. Business Park 1, located at 2300 S. Reservoir St. in Pomona, features four buildings totaling 128,800 square feet. Business Park II, located at 12301-12395 Mills Ave. in Chino, consists of five buildings totaling 101,896 square feet. Constructed in 1981 and 1987, the property features 71 industrial suites averaging 3,263 square feet.
SAN DIEGO — Encinitas, Calif.-based Ambient Communities has acquired 530 B Street, a 24-story office tower in downtown San Diego. An undisclosed seller sold the building for $27.5 million. At the time of sale, the 250,181-square-foot tower was 76.8 percent occupied, with US Bank as a major tenant occupying 77,414 square feet. Ambient Communities plans to eventually convert the office building to primarily residential units. Mickey Morera of Kidder Mathews represented the buyer in the deal. Mary Blagg of Kidder Mathews is overseeing management of the building.
TEMPE, ARIZ. — Boca Raton, Fla.-based Pinnacle Holdings has completed the disposition of Rancho Las Palmas Apartments in Tempe to an Arizona-based private investor for $18 million, or $160,714 per unit. Built in 1986 on 5.2 acres, Rancho Las Palmas features 112 apartments spread across six two-story and three-story buildings. The community offers 48 one-bedroom units and 64 two-bedroom units with an average size of 777 square feet. Unit amenities include balconies/patios, vaulted ceilings in select units and fully equipped kitchens with stainless steel appliance packages in select units. Community amenities include a clubhouse, fitness center, swimming pool, spa, laundry facility, gated entry and ample parking. Avison Young’s Peter Sherman, Keith O’Donnell and Mark Seale, along with Alon Shnitzer, Rue Bax, Eddie Chang, Doug Lazovick and Tyler Bruggman of ABI Multifamily, brokered the transaction.
COLORADO SPRINGS, COLO. — Marcus & Millichap Capital Corp. (MMCC) has arranged a $4.7 million loan for the refinancing of a medical office building located at 2860 S. Circle Drive in Colorado Springs. Tenants at the medical office include a mental health clinic, a counseling clinic, an esthetic clinic, an acupuncture clinic and a treatment center. Garrett Fierstein of MMCC secured the financing with a local credit union on behalf of a private client. Terms of the 10-year loan include a 6.75 percent fixed interest rate with a 25 year-amortization schedule and a loan-to-value ratio of 65 percent.
WOODINVILLE, WASH. — JLL Capital Markets has arranged the sale of Beaumont Apartments in Woodinville, approximately 20 miles northeast of Seattle. The asset traded for $136.1 million. David Young, Corey Marx and Chris Ross of JLL Capital Markets’ Investment and Sales Advisory team represented the undisclosed seller in the deal. The name of the buyer was not disclosed. Located at 14001 NE 183rd St., Beaumont Apartments offers 344 studio, one- and two-bedroom units, with an average size of 856 square feet. The apartments offer stainless steel appliances, keyless entry, mosaic tile kitchen backsplashes, undermount sinks, deep soaker-style bathtubs and French doors leading to private balconies. Community amenities include a fitness center, resort-style pool, terrace with barbecues and fire pit, fenced dog park and a coworking space. The three-story building was constructed in 2009.
SAN FRANCISCO — Gantry has expanded its Southern California presence by merging the operations of Westcap Corp. into its platform. The merger boosts Gantry’s correspondent-driven loan production, adding more than 250 existing loans with $3.2 million in servicing responsibilities. With this consolidation, Gantry’s servicing portfolio reaches more than $23 billion. Westcap’s CRE loan producers, Managing Director Steve Beck, Executive Vice President Steve Bridges and Director Topher Van Mourick, will continue their roles. Since 1981, Westcap has been a mortgage banking presence in Southern California serving clients throughout the Western states from offices in Irvine, Calif., and Los Angeles. Moving forward, Westcap’s producers will operate under the Gantry name. The acquisition of Westcap marks a key milestone for Gantry, which has been expanding its reach in commercial mortgage banking. The Gantry acquisition team was led by Michael Heagerty, George Mitsanas, Robert Slatt, Jeff Wilcox and Andy Bratt. Gantry’s other recent growth initiatives include the acquisition of Q10|Triad Capital Advisors in October 2024, Norris, Beggs & Simpson’s mortgage banking arm in 2020 and The Rose Hill Group in 2019.
IRVINE, CALIF. — Premier Design + Build Group has started construction on LogistiCenter at Irvine I & II, its first project in the Western region for developer Dermody Properties. The development will consist of two LEED-certified industrial facilities totaling 224,920 square feet. LogistiCenter at Irvine I will be a 133,320-square-foot freestanding building situated on six acres. The asset will feature 10,000 square feet of office/mezzanine space, a clear height of 36 feet, 15 dock doors with dock bumpers, one drive-in door and 108 parking stalls. Situated on an adjacent 4.4 acres, the 91,600-square-foot LogistiCenter at Irvine II will offer 8,200 square feet of office/mezzanine space, a clear height of 36 feet, 11 dock doors, one drive-in door and 74 parking stalls. Completion is slated for first-quarter 2025. The project team includes HPA Architecture, Darin Fong and Associates, Tait Engineering, Kier + Wright, Gregg Electric and Wallace P. Johnson Plumbing. CBRE is serving as the real estate broker for the development.
MONTEREY PARK, CALIF. — Coldwell Banker Commercial George Realty, on behalf of the private investor seller, has arranged the $38 million sale of the Holiday Inn & Suites hotel at 400 S. Atlantic Blvd. in Monterey Park. Details of the sale were not released. Completed in 2024, the six-story property features 136 guest rooms and 2,000 square feet of meeting space. The hotel is part of the Atlantic Times Square project, which has brought new development to the area south of I-10, west of downtown Los Angeles.