PALO ALTO, CALIF. — Morgan Stanley Real Estate has paid $65 million for a full leasehold interest in a 75,875-square-foot office building in Palo Alto. The building is located at 1117 South California Ave. within the Stanford Research Park. Its main tenant is Paul Hastings law firm, among others. Morgan Stanley acquired the building for its commingled fund, The Prime Property Fund. This is the fund’s first Palo Alto investment. Northern California is one of seven markets preferred by the fund. Additional markets include Southern California, Chicago, South Florida, New York, Boston and Washington, D.C. About 9 percent of the fund’s portfolio is based in Northern California. This includes a mix of office and industrial properties throughout San Francisco, Santa Clara, San Jose, Hayward and Stockton. The fund’s counsel was provided by Doug Praw and Lewis Feldman of Goodwin Procter LLP.
Western
SACRAMENTO, SAN JOSE, CALIF. — Ridge Capital Investors, LLC, has acquired a Sacramento apartment complex and a San Jose office building for a total of $31.8 million. The firm purchased the 105-unit Lesarra Apartments in the Sacramento suburb of El Dorado Hills for $22.8 million. The community is located at 2230 Valley View Parkway near El Dorado Hills Town Center. Ridge Capital partnered with an affiliate of Andell, Inc. on this transaction. This is Ridge Capital’s fifth apartment investment in the past 18 months, and its first in Sacramento. Both the buyer and the unnamed seller were represented by Jason Parr of Cushman & Wakefield’s San Francisco office. Ridge Capital also recently acquired the 109,200-square-foot Balentine Park in Silicon Valley for $9 million. It is located at 39889 Balentine Drive, just off Interstate 880. The property was 70 percent occupied at the time of foreclosure. It will undergo extensive renovations this year. Ridge Capital partnered with Contrarian Capital Management, LLC on this trustee sale. This is Ridge Capital’s third Silicon Valley office investment in the past 18 months.
SACRAMENTO, CALIF. – A family trust has purchased the 197-unit Parkwood apartment building in the Sacramento suburb of Carmichael for $14.2 million. The community is located at 6930 Fair Oaks Blvd., across from Carmichael Park. It was built in two phases that commenced in 1973 and 1985. Eric Price of Marcus & Millichap’s Sacramento office represented both the buyer and the seller, another family trust, in this transaction.
LOS ANGELES — Knollwood Plaza, a 23,922-square-foot shopping center in the Los Angeles submarket of Granada Hills, has sold to a private Los Angeles investor for $10.5 million. The center is located at 11846-11862 Balboa Blvd. It is fully occupied by tenants like Starbucks, Curves, Pacific Dental, State Farm Insurance, The UPS Store and a Bank of America ATM. The buyer was represented by Alex Needleman of Rosano Partners. The seller, Knollwood Balboa L.P., was represented by Edward B. Hanley and William B. Asher of Hanley Investment Group.
SCOTTSDALE, ARIZ. — Sierra Crossings, a 17,955-square-foot retail property in Scottsdale, has sold to a limited liability company for $5.5 million. The center is located at 11300 East Via Linda Road. It contains one single-tenant retail building that is occupied by Tutor Time and one multi-tenant retail building that includes four other tenants. The buyer was represented by Doug Fielding of Marcus & Millichap’s Phoenix office. The seller, another LLC, was represented by Mark Ruble and Jamie Medress of the same office.
CERRITOS, CALIF. — Big 5 Plaza, a 15,568-square-foot retail center in Cerritos, has sold to a private Vernon investor for $4.6 million. The plaza is located at 11310-11360 183rd Street. It is anchored by Big 5 Sporting Goods. The fully leased center is also home to Subway, Castlehead Escrow and Providence Speech and Hearing. Edward B. Hanley and Jeremy McChesney of Hanley Investment Group represented both the buyer and seller, a private Los Angeles investor, in this transaction.
YORBA LINDA, CALIF. – A 46,449-square-foot property in Yorba Linda that is net leased to Best Buy has sold to a Midwest-based corporation for $6.6 million. The retail building is located at 23000 Savi Ranch Parkway near Costco, Kohl’s, HomeDepot, Target and Dick’s Sporting Goods. Best Buy has four years remaining on its current lease, with three, five-year renewal options. The seller, a high-net-worth individual from the Midwest, was represented by Randy Blankstein and Jimmy Goodman of The Boulder Group.
PORTLAND, ORE. — Jama Software is relocating and expanding in Portland. The enterprise software company is consolidating two of its offices and relocating its headquarters to 2&Taylor. The new office space is located at 135 SW Taylor. It will occupy 34,629 square feet of the 70,397-square-foot building. The space was formerly occupied by Bally’s Total Fitness. Jama was represented by Niall Travers, Eric Turner and Craig Reinhart of Cresa. The landlord, B13 Investors, LLC, was represented by Peter Andrews and Nick Ehlen of Melvin Mark Brokerage Company.
OAKLAND, CALIF. – A six-unit apartment building in Oakland has sold to an unnamed buyer for $1.2 million. The community is located at 416 Staten Ave. near Interstate 580. It was built in 1925. The seller, a bank/financial institution, was represented by David Wolfe of Marcus & Millichap’s Oakland office.
The boom times of retail development in Metro Phoenix, which started in the mid-‘90s, have long been considered the “good ol’days.” The market peak of 2007, when 11.2 million square feet of new retail was delivered, was followed by development plummet. Between 2010 and 2012, the region averaged less than 1 million square feet per year. Phoenix’s retail recovery began in 2011, and has experienced a steadily increasing demand for existing space. Though few are singing “Happy Days are Here Again,” times are looking up. Retail and restaurant sales are increasing in Phoenix. This, combined with an availability of quality retail locations at attractive rents, has inspired national and regional retailers and restaurants to increasingly think about Phoenix when they’re looking to expand. Much of the demand for new retail and restaurant space has occurred in mature areas since the start of the recovery. As reports of new home sales increase in the outlying areas, however, some of the troubled retail centers that were built between 2006 and 2008 are experiencing an increase of activity. Retail vacancy rates dropped in the past nine months by almost 1 percent, settling at 10.5 percent for the third quarter of this year. The …