San Francisco is not immune to the forces of gravity, but sometimes it appears that might be true for the city's apartment market. Across the country, the multifamily sector has weathered the Great Recession better than other asset classes. Availability of capital — both equity and debt — has resulted in relatively modest value declines compared to office, industrial and retail investments. Transaction volume has been relatively robust, largely attributable to the disassembly and re-sale of the former Lembi portfolio. Research indicates that in excess of 50 apartment sales were completed in the first half of 2010, for a total value representing about $120 million. Among the most active buyers were Flynn Investments, Klingbeil Capital Management and Tribeca Cos. Expect market activity to remain level or even increase, as buyer appetite has yet to be satisfied. The rental market also seems to have stabilized. According to Novato, California-based RealFacts, a national leader in apartment industry research, rents in San Francisco are only down modestly since second quarter of 2009, but they are up slightly in the first half of 2010. While occupancy is reported to be at a relatively low 94 percent, we believe this state may be a temporary …
SACRAMENTO — McCarthy Building Cos. and Tony Moayed Construction Services have completed the 151,000-square-foot recreation and wellness center at California State University, Sacramento. Named The WELL (Wellness, Education, Leisure, Lifestyle), the facility features a fitness center, an indoor track, gym courts, racquetball courts and a student-health center that includes primary and urgent-care clinics, a retail pharmacy, a vision-care center, x-ray services, counseling services, and a nutrition center. McCarthy served as the project’s construction manager at risk and general contractor while TMCS was the construction manager and inspector of record; Hornberger + Worstell served as the architect. Part of the Alex G. Spanos Sports Complex, the WELL is on track to achieve LEED Gold certification and will open for the fall 2010 term.
TEMPE, ARIZ. — CB Richard Ellis has negotiated the $15.4 million sale of the 306-unit Mission Springs Apartments located at 1311 W. Baseline Road in Tempe. Built in 1987 and 95 percent occupied at the time of sale, Mission Springs includes a business center, three swimming pools, two spas, and cookout/picnic areas. CBRE’s Tyler Anderson and Sean Cunningham represented the Columbus, Ohio-based seller, Nationwide Mutual Insurance Co., which acquired the property through foreclosure in November 2009. Duluth, Minn.-based Mercury Investment was the buyer. Rocco Mandala of CBRE Capital Markets Debt & Equity Finance arranged the life-company financing for the purchase.
SAN DIEGO — Voit Real Estate Services has directed the $5.4 million sale of a 53,000-square-foot office property located at 6701-6861 Convoy Court in San Diego. Voit’s Harry Stone represented the seller, Kearny II LLC, in the transaction, and Inmook Hwang of American National Realty represented the buyer, Korean United Methodist Church of San Diego.
IRVINE, CALIF. — The Fazeli Family Trust purchased a 25,328-square-foot industrial/showroom building, located at 8645 Research Drive in Irvine, for $4.5 million. Grubb & Ellis’ Dave Kluver represented the buyer in the transaction, and Craig Fitterer of Lee & Associates represented the seller, McMahon Limited Partnership.
OCEANSIDE, CALIF. — Rockefeller Group Development Corp., a subsidiary of New York-based The Rockefeller Group, has completed the development of an 84,000-square-foot outpatient clinic for the U.S. Department of Veterans Affairs. The clinic is located within Seagate Corporate Center at 1300 Rancho Del Oro in Oceanside. The two-story facility features a back-up generator for emergency power and two MRI pads that accommodate the onsite mobile MRI units. San Diego-based Smith Consulting Architects provided architectural services; San Diego-based Raymond Fox & Associates provided medical architectural and interior design services; Reno Contracting of San Diego served as general contractor for the project. Additionally, Capital Partners Development Co. provided project development management; RBF Consulting served as civil and traffic engineers; and Ridge Landscape Architects provided landscape architectural services for the facility.
LA CAÑADA, CALIF. — A partnership of private individuals has acquired Foothill Promenade, a 42,093-square-foot shopping center located at 475 Foothill Blvd. in La Cañada. Redwood City, Calif.-based Dollinger Properties sold the property for $16 million. The 2.75-acre center is occupied by Trader Joe’s, Union Bank, Petco, Aaron Brothers, Starbucks and Han’s Beauty. Built in 1995, the property was 100 percent occupied at the time of acquisition. William Asher of Hanley Investment Group, Jim Barthe of Pasadena, Calif.-based Real Estate Portfolio Specialists, and Paul Strauss and Nathan Strauss of Monrovia, Calif.-based ASB Property Management represented the buyer in the transaction.
BOULDER, COLO. — The Denver office of NorthMarq Capital has arranged a $1.85 million loan for the refinancing of 2500 Arapahoe, a two-story office building in Boulder. The 17,639-square-foot, Class B office building is currently leased to five tenants, including JPMorgan Chase. The building is located within the Safeway-anchored Arapahoe Village Shopping Center. Greg Benjamin and Jim DiRienzo secured the financing for the undisclosed borrower.
GILBERT, ARIZ. — Kirkland, Wash.-based Sonoma Landing Apartments LLC has purchased Sonoma Landing, a multifamily property located at 4776 E. Guadalupe Road in Gilbert. Built in 2001, the property offers 84 one-bedroom, 112 two-bedroom and 24 three-bedroom units. Additionally, the gated community offers garages, two pools, a spa and a movie theater. Aspen, Colo.-based CTA Venture NO. 9 LLC sold the property for $20 million. Mark Forrester and Ric Holway of Hendricks & Partners’ Phoenix brokered the transaction.
UNION CITY, CALIF. — Caravan Trading Co. has exercised its option to acquire 33333 Western Ave. in Union City. Situated on 6.2 acres, the approximately 70,000-square-foot manufacturing building was purchased for $6.2 million. The buyer, Caravan Trading, will now occupy the former waste management building. Todd Severson of Colliers International represented the buyer; Robert Ferraro and Michael Ferraro of CB Richard Ellis represented the undisclosed seller in the transaction.