Tuesday, May 7, 2024
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1500-N-Central-Ave-Phoenix-AZ
ArizonaDevelopmentMultifamilyRetailWestern

Avison Young Brokers $13M Sale of Multifamily/Retail Development Site in Downtown Phoenix

by Amy Works

PHOENIX — Avison Young has arranged the sale of a 3.9-acre land parcel located at 1500 N. Central Ave. in downtown Phoenix. Donnelley Financial sold the asset to Scottsdale-based Aspirant Development for $13 million. The buyers plan to use the site for the development of a 25-story building offering 325 apartment units and 17,000 square feet of retail space. Development of the project is underway, with completion slated for 2025. The site is situated on the corner of Central Avenue and McDowell Road and offers immediate access to the Valley Metro Light Rail stop. Mark Seale, Jonathan Larsen and Sally Zesut of Avison Young represented the seller, while Ray Cashen of Cashen Commercial represented the buyer in the transaction.

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AcquisitionsCaliforniaHealthcareIllinoisMidwestTop StoriesWestern

Remedy, Kayne Anderson Acquire 37-Property Healthcare Portfolio for $252M

by John Nelson

CHICAGO AND LOS ANGELES — A joint venture between Remedy Medical Properties and Kayne Anderson Real Estate has acquired a portfolio of 37 healthcare properties from Broadstone Net Lease (NYSE: BNL), a diversified real estate investment trust with an industrial focus. The properties traded hands for $252 million. JLL served as the broker for the transaction. The 37 properties were selected from a larger collection of healthcare assets designated for sale by Broadstone Net Lease. The properties are being sold as part of the REIT’s plan to focus on core net lease assets in the industrial, retail and restaurant sectors. As of March 31, industrial properties comprised 54.2 percent of the REIT’s portfolio. The portfolio totals more than 708,000 square feet across 13 states. Each property is fully leased. The assets are situated in prominent markets that include: Chicago; Houston; Charlotte, North Carolina; Indianapolis; Seattle; Milwaukee; Tampa, Florida; and Arlington, Texas. The properties are leased by health systems and physician groups such as Advocate, Emerge Ortho, Froedert Health, IU Health, Tampa General, TGH Imaging and USPI. The largest facility included in the portfolio is Ridgeway Medical Campus in Greece, New York, near Rochester. The multi-specialty outpatient medical center comprises 120,000 …

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CaliforniaIndustrialMarket ReportsWesternWestern Market Reports

State of the Industrial Real Estate Marketplace in Northern California

by Jeff Shaw

— By Edward F. Del Beccaro, Executive Vice President, TRI Commercial — The major Northern California industrial markets contain a total of more than 860 million square feet of industrial buildings. The San Francisco Bay Area, North Bay, Silicon Valley, Sacramento and Central Valley have all experienced a falloff in tenant demand from 2021 to 2022 pandemic highs. Most markets experienced negative absorption in fourth-quarter 2023, including sublease space coming on the market that resulted in rents either plateauing or decreasing.  Nevertheless, the outlook is still positive based on the various economic drivers pushing the market. For instance, manufacturers are benefitting from onshoring, with a projected 40 percent reduction in sourced material from China, per a recent report from Alix Partners. In addition, declining interest rates and continuing inflation will cause institutional money to flow into the industrial sector versus the office sector, according to a March 2024 ProLogis report. Below are various industrial submarket reviews: In the Oakland/East Bay Industrial I-80/880 Corridor, year-end 2023 experienced a slowdown in demand due to new construction and existing space becoming available. More than 10.2 million square feet is available, reflecting negative absorption of more than 778,000 square feet last year. The Port …

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Villas-28th-St-Vancouver-WA
AcquisitionsMultifamilyWashingtonWestern

Kennedy Wilson, Haseko Purchase Two Multifamily Properties in Vancouver, Washington for $90M

by Amy Works

VANCOUVER, WASH. — Kennedy Wilson has partnered with Haseko Corp. to purchase The Farmstead and Villas at 28th Street for $90 million. Both apartment communities are located in Vancouver, just across the Columbia River from Portland, Oregon. The name of the seller was not released. Totaling 350 units, the recently completed properties feature diverse floor plans across three unit types, as well as a variety of amenities, including secure gated access, fitness centers, dog parks, a pickle ball court, pet wash stations, natural green space and walking trail. The assets are located within five minutes of each other and within 10 minutes of Portland.

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AcquisitionsArizonaOfficeWestern

Newmark Arranges $86.1M Sale of 308,481 SF Office Tower in Phoenix

by Amy Works

PHOENIX — Newmark has arranged the $86.1 million all-cash sale of 24th at Camelback, an office asset in Phoenix’s Camelback corridor. Barry Gabel, Chris Marchildon, CJ Osbrink and Kevin Shannon of Newmark represented the seller, an institutional owner. The buyer was a family office based abroad. Located at 2375 E. Camelback Road, the eight-story 24th at Camelback offers 308,481 square feet of office space. Developed by Hines in 2000, the property features a fitness center, onsite dining options, shared tenant conference facilities, 24/7 security, two subterranean levels of parking and a detached, six-level, above-grade parking structure.

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Sycamore-Hills-Distribution-Riverside-CA
CaliforniaDevelopmentIndustrialWestern

Rockefeller Group Starts Construction of 603,100 SF Sycamore Hills Distribution Center in Riverside, California

by Amy Works

RIVERSIDE, CALIF. — Rockefeller Group has begun construction of Sycamore Hills Distribution Center situated on 34.6 acres in the Inland Empire city of Riverside. Totaling 603,100 square feet, the project will include a 400,000-square-foot building and a 203,100-square-foot building. The two buildings will offer 36-foot clear heights, 56-foot by 60-foot column spacing, 623 auto parking spaces and 155 trailer parking spaces. As part of the development, Rockefeller Group will develop and then donate a 1.2-acre trailhead parking lot north of the property that will provide hiking and mountain biking access to the Sycamore Canyon Wilderness Park. The trailhead parking lot will include 52 parking stalls, a seating area, drinking fountain and bike repair stand that will be dedicated in fee title to the City of Riverside upon completion. JPMorgan Chase provided $87.2 million in construction financing for the project, which is slated for completion in early 2025. The project team includes HPA Architects, Kimley-Horn, Fullmer Construction and ECM Management. Bill Heim, Alex Heim, Michael Chavez, Mario Calvillo and Finn Comer of Lee & Associates’ Ontario office will oversee leasing of the project.

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Aviator-Hotel-Anchorage-AK
AlaskaHospitalityLoansWestern

PACE Loan Group Completes $10M Financing for Aviator Hotel in Anchorage, Alaska

by Amy Works

ANCHORAGE, ALASKA — PACE Loan Group (PLG) has completed the third tranche of C-PACER financing for The Aviator Hotel in downtown Anchorage. With this round of $10 million financing, the hotel has received $16.7 million in Commercial Property Assessed Clean Energy & Resilience (C-PACER) loans to support the renovations and upgrades to the 1970s-era hotel, which is being redeveloped into a modern, Class A hotel. Once the renovation is complete in late 2024, The Aviator Hotel will have 250 rooms and suites, a retail store, coffee shop, brewery, bar and a restaurant with year-round outdoor deck with views of Denali, the highest mountain peak in North America. Renovation of the property began in 2022. To date, 61 room updates have been completed. Renovations include energy conservation measures, including HVAC upgrades, building envelope, water fixtures, lighting, insulation, snow-load management and energy-efficient heating. The conservation measures are expected to save an average of $259,773 in energy costs annually over the next 30 years, and the resilience improvements will increase the building’s resistance to extreme weather events. Matthew McCormack of PLG originated the C-PACER loans, which required collaboration with other municipal and private funding sources.

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3106-N-Garey-Ave-Pomona-CA.jpg
AcquisitionsCaliforniaMultifamilyWestern

Flowing Streams Acquires North Garey Village Apartments in Pomona, California for $9.9M

by Amy Works

POMONA, CALIF. — Flowing Streams LLC has purchased North Garey Village Apartments, a multifamily community in Pomona, for $9.9 million. Pomona is approximately 30 miles east of Los Angeles. Douglas McCauley and David Covarrubias of Marcus & Millichap’s Inland Empire office represented the seller, Kot and Offenbecher Trust, and procured the buyer in the transaction. Located at 3016 N. Garey Ave., North Garey Village Apartments offers 44 residences spread across 11 apartment buildings on a 1.5-acre parcel. Community amenities include single-car garages, on-site laundry facilities, storage rooms and select units with fireplaces. The property was built in 1963.

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Demand for retail space in the first quarter of 2024 has been driven by food-and-beverage, discount and experiential sector tenants.
AcquisitionsContent PartnerDevelopmentFeaturesIndustrialLeasing ActivityLee & AssociatesLoansMidwestMultifamilyNortheastOfficeRetailSoutheastTexasWestern

Lee & Associates Report: Industrial, Office Sectors Face Challenges as Retail, Multifamily Show Positive Trends

by Sarah Daniels

Economic headwinds such as elevated interest rates and persistent inflation led to mixed outcomes in the first quarter for industrial, office, retail and multifamily sectors, with market observers anticipating a contracting economy, as outlined by Lee & Associates’ 2024 Q1 North America Market Report. On the industrial front, market pressures — including interest rates and supply chain challenges — led to higher vacancy in the United States in the first quarter of the year. U.S. office space experienced its fifth consecutive year of contraction, as office worker attendance stagnated. Additional challenges, in the form of loans maturing in a high-rate environment, signal further challenges in the near future for the office landscape. Continued merchant demand, reduced closures and bankruptcies and limited supply converged to create a feeding frenzy for retail space, with vacancies at historic lows. And finally, geographically based factors drove multifamily markets, many of which (especially in the Midwest and Northeast) experienced a rebound in apartment demand fueled by rising consumer sentiment and moderating inflation, despite supply outpacing demand. Lee & Associates has made their full, first-quarter report available here (with breakdowns of cap rates by city, vacancy rates, market rents, inventory square footage and more). The summaries from each sector …

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Unison-Elliott-Bay-Seattle-WA
DevelopmentIndustrialLife SciencesMixed-UseOfficeWashingtonWestern

Office Properties Income Trust Completes 300,000 SF Unison Elliott Bay Life Sciences Campus in Seattle

by Amy Works

SEATTLE — Office Properties Income Trust (NASDAQ: OPI) has completed Unison Elliott Bay, a three-building, 300,000-square-foot life sciences campus located at 351, 401 and 501 Elliott Ave. West in Seattle. Unison Elliott Bay features Class A office space totaling 200,000 square feet. The buildings feature 14-foot floor-to-floor heights in two dedicated lab buildings inclusive of move-in ready lab and R&D space, with suites ranging from 12,500 square feet to 25,000 square feet. The campus includes dedicated mechanical infrastructure supported by standby generator power to accommodate lab and technological power requirements. The campus features reception areas, collaborative indoor and outdoor meeting areas, conference and training rooms, fitness and changing room facilities, and a landscaped courtyard with built-in pergola and sculptures. Additional amenities include covered and surface parking, secure bike storage and electric vehicle charging stations. The campus will also offer a chef-driven café, as well as a rotating mix of food trucks. Sonoma Biotherapeutics, a clinical-stage biotechnology company, has signed a 10-year lease for more than 83,000 square feet at the 501 building. The clinic-stage biotechnology company occupies three floors of office and lab space for its R&D and manufacturing center, which is intended for the development of engineered regulatory T …

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