The Denver office market ended the first quarter of 2012 with an overall vacancy rate that fell to 13.1 percent. According to CoStar, the vacancy rate was down from the previous quarter of 13.2 percent. Net absorption was more than 1.6 million square feet, which included 900,000 square feet in the central business district (CBD), and 700,000 square feet in the suburban markets. Sublease vacancies also declined from 950,000 square feet to 900,000 square feet. Overall rental rates averaged $19.98 per square foot for full-service buildings. Class A properties averaged $23.81 per square foot for full service, while Class B averaged $17.73 per square foot. Both these rental rates were both up slightly, while Class C buildings remained flat at $13.50 per square foot. Leasing activity will continue to improve in 2012, with net absorption remaining positive throughout the entire market. The majority of submarkets are slowly shifting from markets that favor tenants to neutral markets with rental rate stability and decreased tenant concessions, including less free rent. As you can see, the outlook continues to be positive. There are several major indicators that market fundamentals are strengthening activity with limited new supply on the horizon. Additions/development projects that are …
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SCOTTSDALE, ARIZ. — Sonora Village in Scottsdale has received a $33.65-million acquisition loan. The loan on the 248,322-square-foot community shopping centerfeatures a 10-year term, two years of interest-only and a 30-year amortization schedule. It was arranged for the buyer by NorthMarq via its relationship with a CMBS lender.
MANHATTAN BEACH, CALIF. – A 123,000-square-foot office building located at 1500 Rosecrans Ave. in Manhattan Beach has received $27 million in first-mortgage financing. This building is within the Continental Park. The 10-year, fixed-rate, non-recourse loan was placed with a life insurance company at less than 5 percent. It also contains two years of interest-only payments. The loan was arranged by Sonnenblick-Eichner Company on behalf of the owner, an affiliate of Continental Development Corporation.
BEAVERTON, ORE. — A 449,245–square-foot industrial complex called 217 Distribution Center has sold to Kansas City Life for $23.35 million. The five-building center is located in Beaverton and was 96.5 percent occupied at the time of sale. The seller was Schnitzer Investment Corp. The transaction was executed by Mary Sullivan, John Jugl, Jr., Buzz Ellis and Paige Morgan of Jones Lang LaSalle.
RIALTO, CALIF. – Conopco has signed a three-year lease renewal at a 1.1-million-square-foot distribution space in Rialto. The facility is located at 305 W. Resource Drive. Conopco was represented by Jay Hruska, Sean Duffy, Tim D’Addabbo and Damon Bowers of Cushman & Wakefield in Connecticut; Chuck Belden, Kyle Kehner and Tim Pimentel of the firm’s Inland Empire office; and Tom Cotter of Unilever. The landlord, Prologis, was represented in-house.
EL CAJON, CALIF. — A 43,480-square-foot retail building in El Cajon has sold to Securities Real Estate Fund 2012, LLC for $5.95 million. The property is located at 1571-1641 Magnolia Ave. The buyer was represented by Eileen Schuler of Schuler Commercial Real Estate. The seller, CCMS 2005-CD1 El Cajon Retail, LP, was represented by Joe Yetter, Mike Clark and Brent Williams of Cassidy Turley San Diego.
VISTA, CALIF. — Select Supplements has leased a 39,672-square-foot industrial space within OakRidge Business Center III in Vista. The center is located at 2390 Oak Ridge Way. Isaac Little and Marko Dragovic of Lee’s North San Diego County office represented both the tenant and the landlord, SR Commercial, in this transaction.
MESA, CALIF. — Mitel Networks Corporation has signed a 5.5-year lease for 38,157 square feet of warehouse space at Broadway 101 Commerce Park in Mesa. The warehouse is located at 2160 W. Broadway Road. Mitel plans to use the space as its warehouse distribution center. The company will relocate from its current facility in Tempe this fall. Mitel was represented by Robert Stephens and Tricia Gumulka of Newmark Grubb Knight Frank. The landlord, Lincoln Property Company, was represented by Mike Haenal and Mark Tuite of Cassidy Turley in this transaction.
SOUTH LAKE TAHOE, CALIF. — The 262-room Best Western Plus Timber Cove Lodge in South Lake Tahoe has sold to Urbana Realty Advisors for an undisclosed sum. The seller, the property’s original developer, was represented by Tom Sommer and Mike Armstrong of HREC Investment Advisors.
TEMECULA, CALIF. — A single-tenant Panera Bread in Temecula has sold to a private investor for $2,715,000. The 4,850-square-foot building was constructed in 2010 and is located at 41798 Nicole Lane. Patrick G. Kent of Hanley Investment Group Real Estate Advisors represented both the buyer and the seller, Creekside Retail Investors, LLC, in this transaction.