It is important to understand that the mid-2000s did not reflect a sustainable level of industrial leasing activity. Real estate in general — and Phoenix in particular — has always been subject to cycles. The past few years have seen a flight to quality with tenants moving from older buildings to newer, more modern facilities. They were able to lease new space at bargain rates that were at or below what they were paying for their older facilities. The initial signs of an improving economy have already manifested themselves in an industrial demand increase. This trend is expected to continue and gradually gain momentum, albeit not along the same steep trajectory of recent growth patterns. At the end of the first quarter of 2012, the national industrial market consisted of 289,117,054 square feet. It currently has 39,089,600 square feet of vacant space. At the beginning of 2011, the industrial vacancy rate stood at 15.5 percent. With 6,993,112 square feet of positive net absorption in 2011 and 302,468 square feet in the first quarter of 2012, the vacancy rate now registers at 13.5 percent. Despite positive absorption, the overall average rental rates have seen little improvement over 2011 with the exception …
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EVERETT, WASH. — The 120-unit Woodbrook Apartments in Everett has received nearly $6.2 million in first-mortgage refinancing. The property is located at 525 112th Street SE. The 10-year loan boasts a 30-year amortization schedule. It was arranged for Woodbrook Investment Partners, LP by John Kinser and James DuMars of NorthMarq’s Phoenix regional office through the firm’s seller-servicer relationship with Freddie Mac.
SANTA ANA, CALIF. — Corinthian Colleges has renewed its lease for 163,734 square feet of office space at Griffin Towers in Santa Ana. The towers are located at 5 & 6 Hutton Centre Drive. The space serves as Corinthian’s corporate headquarters. Corinthian Colleges was represented by Ronda Clark, Ryan Hawkins and Joe Bevan of Jones Lang LaSalle Orange County.
ENCINITAS, CALIF. — The Plaza at Encinitas Ranch has received $43 million in refinancing. The 145,303-square-foot power retail center is located at 1550-1590 Leucadia Blvd. in Encinitas. It was built in 2002 and is fully occupied by tenants like REI, Starbucks, Pei Wei, Subway and AT&T. Walmart anchors the center. The 13-year, fixed-rate loan was arranged for a joint venture between Zelman Development Company and Carltas Company by HFF’s Paul Brindley. It was secured through a life insurance company.
SAN DIEGO — Bernardo Executive Center, a 173,244-square-foot, Class B office property in San Diego, has sold to Brookwood Financial Partners for $21.55 million. The center is located at 16835, 16855 and 16875 W. Bernardo Drive. It was 78.2 percent occupied at the time of sale. Brookwood plans to invest $1.4 million-worth in capital improvements at the property, which was built in 1984. Louay Alsadek, Evan August, Jeb Bakke, Scott Kincaid and Mike Corbosiero of CBRE San Diego represented both the buyer and the unnamed seller in this transaction. Scott Peterson and Mark McGovern of CBRE Debt & Equity Finance assisted Brookwood with financing services. CBRE was also retained to lease the remaining space at the property. Alsadek notes this was the first institutional office sale of more than $10 million to occur in the Rancho Bernardo submarket since 2009.
HONOLULU – The Gentry Pacific Design Center in Honolulu has sold to the Office of Hawaiian Affairs (OHA) for about $21 million. The 185,787-square-foot center is located at 560 N. Nimitz Highway. The property was built in the 1930s and had previously been the headquarters for the Gentry companies. It is managed by Colliers International Hawaii. The sale was executed by Michael “Skip” Schuman of Bishop Street Commercial (BSC). Matt Bittick, BSC’s president and CEO, notes that OHA plans to honor the leases that are currently in place with about 40 tenants at the Gentry Pacific Design Center.
PLACENTIA, CALIF. – A 77,788-square-foot industrial property in Placentia has sold to Classic Performance Products for $5.9 million. It is located at 378 E. Orangethorpe Ave. The company plans to use the property for its manufacturing, sales and R&D operations. Classic Performance was represented by Mike Vernick and Mike Hefner of Voit’s Anaheim office. The seller, Lincoln Imports, was represented by CBRE’s Erik Wanland and Sean Ward.
PHOENIX – The 124-unit Barrington Regent in Phoenix has received $6.37 million in first-mortgage refinancing. The property is located at 825 W. Osborn Road. The fixed-rate, non-recourse loan was arranged for Su Casa Properties by Luke Donahue of NorthMarq’s Phoenix office through the firm’s seller-servicer relationship with Freddie Mac. The 10-year loan features two years interest-only and a 30-year amortization schedule.
SURPRISE, ARIZ. – Bell West Ranch Shops, a 27,225-square-foot shopping center and freestanding, single-tenant building in Surprise, has sold to PWREO Bell & 303, LLC for $4.34 million. The strip-retail shopping center was built in 2004. It is currently 95.2 percent leased. Notable tenants include Pizza Hut and O’Reilly Auto Parts. Ryan Schubert and Michael Hackett of Cassidy Turley BRE Commercial’s Retail Capital Markets Group represented both the buyer and the seller, Bell West Ranch Shops, LLC, in this transaction.
LAS VEGAS – A 21,610-square-foot property in Las Vegas that is net leased to La-Z-Boy furniture has sold to a private group for $3 million. It is located at 5700 Centennial Center Blvd. inside the Centennial Gateway at Centennial Center. The buyer was represented by Alvin Mansour of Marcus & Millichap’s San Diego office. The seller, a developer, was represented by Chris Cunning of the firm’s Las Vegas office.