We all know the recent recession was hard on the Las Vegas commercial market. The good news is that a recovery is now well underway. End users are moving quickly to take advantage of historically low interest rates, which are coupled with potential rental income streams in buildings and office projects that are mostly vacant. The overall market vacancy rate is currently estimated to be at about 25 percent. For tenants that need larger spaces, however, that number can be misleading. Smaller tenants have more options, and Downtown Las Vegas continues to outperform the rest of the market, with only a 10 percent vacancy rate. Although it’s still a tenant’s market, they no longer have the leverage they once had during the middle of the downturn. Landlords are tightening concessions and seeking stronger tenant commitments, though many investors have budgeted tenant improvement dollars during acquisition and underwriting. Investors are now willing to spend these dollars to acquire quality tenants, which previously would have presented a tough sell to banks, receivers and servicers. Most other concessions remain similar to other years, with landlords standing somewhat firmer in the negotiating process. Given these conditions, Las Vegas is now seeing activity in all …
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OCEANSIDE, CALIF. — Flags on Mission Shopping Center, a 107,600-square-foot retail center in Oceanside, has sold to Doerken Properties Inc. for $12.6 million. The center is located at 1527 Mission Ave. Marc Dudzik and Bo Havlik of Lee & Associates – North San Diego County represented both the buyer and seller, Mission Avenue Investors, in this transaction.
CLAREMONT, CALIF. – A 79,800-square-foot office property on the Keck Graduate Institute (KGI) Applied Life Science Campus in Claremont has received $8.5 million in financing. The two-story, single-tenant building is occupied by Technip North America. It is also known as the Technip building. The project management, engineering and construction leader for the energy industry recently signed a new 10-year lease at the property. The new 10-year loan has a fixed interest rate in the mid-5 percent range and a 25-year amortization schedule. It was arranged by Geoffrey Arrobio of Johnson Capital’s Downtown Los Angeles office. Financing was provided by EverBank. KGI plans to use the financing to expand its on-campus pharmaceutical program.
COLORADO SPRINGS, COLO. – The 207-unit Whispering Pines Apartments in Colorado Springs has received $4.3 million in acquisition financing. The community is located at 3030 East Fountain Blvd. Financing contains a three-year term and a 25-year amortization schedule. It was arranged by Gregory T. Benjamin of NorthMarq Capital’s Denver office through the firm’s relationship with a regional bank.
LOS ANGELES — The Groundlings Theatre & School has purchased a 5,000-square-foot classroom space in Los Angeles for an undisclosed sum. The new space is located at 7280 Melrose Ave., right across the street from its main theater. This acquisition will make The Groundlings Theatre & School the largest comedy training facility in the United States.Will Ferrell, Kristin Wiig and Lisa Kudrow are just a few of the famous faces who got their start with the non-profit improvisational and sketch comedy troupe and school. The Groundlings was represented by Bart Pucci and Jon Azulay of Studley. The unnamed seller was represented by David Aschkenasy of Commercial Asset Group.
LOS ANGELES — Sitex Group, a fully integrated private equity firm that specializes in industrial real estate investments in major U.S. markets, has opened an office in Los Angeles. The firm’s Southern California operations will be run by Eric Ruehle, a former vice president of investments at CenterPoint Properties. The expansion will allow the firm to diversify its portfolio by acquiring industrial properties via established local relationships. Sitex’s new office will be located at 1500 Rosecrans Ave. in Manhattan Beach. It is the firm’s third office in the U.S. and its first on the West Coast.
SEATTLE — Kennedy Wilson and Capri Capital Partners have joined forces to acquire the 372-unit Bailey Farm Apartments in the Seattle suburb of Bothell. The community was built in 2013 at 1225 183rd Street SE , just north of Bellevue. The seller was Wolff Company. Bailey Farm was acquired with $45.8 million of debt through a life insurance company. Kennedy Wilson also invested $4 million of equity in this transaction.
RENO, NEV. — Dermody Properties has broken ground on a 624,000-square-foot warehousing and distribution building in Reno. The facility represents the first phase of LogistiCenter 395, a 91-acre, master-planned industrial park that will be located on Lemmon Drive near Highway 395 in northern Reno. The three-building park will be built by United Construction Company. Phase I is scheduled for completion this fall. Once fully completed, LogistiCenter 395 will contain a total of 1.2 million square feet. PCCP LLC is acting as Dermody’s strategic capital partner on the project. CBRE will serve as the facility’s broker.
SAN FRANCISCO – A 71-unit apartment building in San Francisco has received $32 in refinancing. The Class A community is located at 2130 Post. The seven-year, fixed-rate loan was arranged by Dennis Williams and Brian Esquivel of NorthMarq Capital through one of the firm’s existing banking relationships.
WEST HOLLYWOOD, CALIF. – The Oprah Winfrey Network (OWN) has signed a lease for three floors at Formosa South, a creative office building in West Hollywood. The 98,000-square-foot building is situated within The Lot studios where OWN will have access to sound stages and other production facilities. The Formosa South building is the first in a series of new office buildings being developed at The Lot, an 11-acre studio campus on Santa Monica Boulevard. The Lot was originally founded in 1919 by Mary Pickford and Douglas Fairbanks. Notable productions such as Guys and Dolls, Westside Story, Some Like it Hot, The Love Boat, Dynasty, The Social Network and True Blood have all been filmed at The Lot. The landlord is CIM Group.