LONGMONT, COLO. — NewMark Merrill Mountain States has taken possession of the Dillard’s building at the former Twin Peaks Mall in Longmont. The firm plans to demolish the mall in early summer to make way for the new Village at the Peaks, an open-air retail destination that is set to open next year. Dillard’s exit represents a major step forward in the new project’s construction.
Western
BREA, CALIF. — Air Treatment Corp. has acquired a 45,500-square-foot industrial and manufacturing building in Brea for $5.5 million. The building is located at 640 N. Puente Street. Air Treatment will relocate its headquarters to the new building from nearby City of Industry. The space will house the firm’s corporate offices, manufacturing and distribution operations in Southern California. Air Treatment was represented by Andrew Herron of The Saywitz Company. The seller, John Higman, was represented by Seth Davenport of Voit Commercial.
CITY OF INDUSTRY, CALIF. — Majestic Realty has broken ground on a 166,000-square-foot speculative office building in the City of Industry. The project will be located at 13300 Crossroads Parkway North in the master-planned Crossroads Business Park. It is scheduled for completion next April. This is the largest Class A office building to be built in the San Gabriel Valley in more than 10 years, according to Majestic. Bank of the West will occupy 93,058 square feet at the new space.
PHOENIX – A 14,490-square-foot property in Phoenix that is net leased to Walgreens has sold to an unnamed buyer for $7.9 million. The property is located at 6838 North 7th Street. An acquisition loan with a 10-year term, 25-year amortization schedule and 4.1 percent rate was structured by Josh Sciotto of Marcus & Millichap Capital Corporation’s Phoenix office. The LLC seller was represented by Mark Ruble and Jamie Medress of Marcus & Millichap’s Phoenix office.
OAKLAND, CALIF. — American Indian Model Schools (AIMS) has received a $4.5-million acquisition loan for a 41,000-square-foot office building in Oakland that houses the school’s main campus. American Indian Charter School II is located at 171 12th Street. This is AIMS’ largest of its three charter schools within the Oakland area. It contains more than 650 students in kindergarten through 8th grade. The loan was provided by Eagle Group Finance. AIMS was represented by Gilda Rivera of George Smith Partners in the sales transaction. The seller was not named.
ONTARIO, CALIF. – A major pet foods company has signed a 15-year lease for a 108,703-square-foot manufacturing and distribution building in Ontario. The lease is valued at $5.8 million. It is located at 2400 E. Francis Street next to Ontario International Airport. The pet foods company was represented by John Pomer of Newmark Grubb Knight & Frank. The landlord, Hager Pacific Properties, was represented by Mark Zorn and Tal Siglar of Colliers’ Ontario office.
DENVER – A 37-unit apartment building in Denver has sold to JMDR, LLC, for $3.9 million. The community is located at 2860 W 32nd Ave. It was built in 1961. The Calame Lewallen Team at Pinnacle Real Estate Advisors, LLC, represented both the buyer and the seller, The Garden, LLC, in this transaction.
LOS ANGELES — Gabe Kadosh has joined Colliers International’s Downtown Los Angeles office as a vice president. He will specialize in the leasing of retail properties, landlord and tenant representation, and in investment sales in the Greater Los Angeles area. Kadosh will focus on building a mixed-use retail leasing division that will target residential environments. He previously opened the Los Angeles for Stream Realty, where he led the company’s retail division.
New paradigms in tenant demand and workplace trends have dramatically altered Los Angeles’ office market in the past three years. Internet, creative and entertainment (ICE) tenants have primarily pushed demand and new trends in adaptive reuse, while finance, insurance and real estate (FIRE) end users — along with their law firm counterparts — have contracted. This is often due to lower spatial requirements per employee, coupled with the rising trend of collaborative space. The segments of LA with repurposed and renovated office properties are white hot. This is especially true in Santa Monica’s Silicon Beach area where rents average $50 but can get as high as $70 per square foot. This new coastal, high-rent district benefits its surrounding areas, as well as the city’s CBD and Downtown, where tenants are seeking lower-cost space. Despite an overall market vacancy of about 18 percent, Downtown rents are holding steady due to a concentration of Class-A owners holding firm or even slightly escalating rates. Considering the real estate fundamentals — relatively high vacancy and 9.5 percent unemployment — there may be a disconnect in the investment market. Los Angeles office investment is generally still a bargain compared to other global gateway markets, however. …
CHANDLER, ARIZ. — Southwest Value Partners has acquired Continuum Business & Technology Park, a 463,300-square-foot business park in Chandler, for $51.7 million. The Class A park was formerly occupied by Motorola. It is located at 2501 S. Price Road. Continuum was renovated in January 2013 and fitted with a new three-story atrium lobby, curtain wall glass, upgraded HVAC systems, and a state-of-the-art electrical and fiber infrastructure. Tenants like Nationstar Mortgage and OnTrac have already signed on at the center. The space also includes a 10,000-square-foot University of Arizona learning center. The seller was Capital Commercial Investments, Inc. The sales transaction was negotiated by Luke Walker and Dave Carder of CBRE’s Phoenix office and Kevin Miller of Capital Commercial Investments.