SAN PEDRO, CALIF. — Hanley Investment Urban Retail Advisors has brokered the sale of an 18,864-square-foot retail property, located on the ground floor of a 116-unit residential condominium building in downtown San Pedro. Financial terms were not disclosed. The retail portion of Centre Street Lofts, built in 2007, was 18 percent occupied at the time of sale. Carlos Lopez of HI Urban Retail Advisors represented the seller, Centre Street Lofts LLC of Hollywood, and The Heger Company’s Joel Mostert represented the buyer, International Longshore & Warehouse Union Local 13, which will occupy the space as its corporate headquarters.
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HONOLULU — St. Louis-based The Korte Company has begun work on the 16,674-square-foot Fort Shafter Youth Center in Honolulu. The $8.3 million youth center will include classrooms, a homework center, activity rooms, a multi-purpose area, a teen area, a lounge, a kitchen prep and culinary arts area, a common area and stage, and a play court.
TORRANCE, CALIF. — Marcus & Millichap has brokered the $4.685 million sale of Makena Plaza, a 9,512-square-foot retail property located at 17405 Crenshaw Blvd. in Torrance. The 1-year-old building is anchored by Wachovia and T-Mobile. Marcus & Millichap’s Scott Hook represented the seller, a limited liability company, and the brokerage firm’s John Susank represented the buyer, a private investor.
ANAHEIM, CALIF. — Voit Real Estate Services has brokered Caldwell Real Estate Holdings LLC’s $3.8 million sale of a 27,796-square-foot industrial building, located at 1260 N. Fee Ana St. in Anaheim, to U.S. Union Tool Inc. Voit’s Mike Vernick and Mike Bouma represented the seller, and Tim Cronin of Lee & Associates represented the 1031-exchange buyer.
The declining job market continues to take a toll on the Orange County multifamily sector. With unemployment reaching 9.6 percent in August, the market is showing little signs of life. Relief will not come until new jobs are created and the unemployment level begins to descend. Orange County’s apartment vacancy increased 36 percent during the 12 months following second quarter 2008, from 4.5 to 6.1 percent. Asking rents fell 1.9 percent since second quarter 2008, from $1,566 to $1,537, while effective rents during the same time frame decreased at a higher rate of 3.6 percent from $1,519 to $1,465. Despite the downturn in rental rates, tenants are vacating the apartment market in search of less expensive housing. Orange County residents are moving in with their parents, taking in roommates or seeking respite in neighboring markets or even out of state. Rising vacancies have led to a decline in values by more than 20 percent since 2007. According to CoStar’s year-to-date numbers, the average price per unit for buildings with 16 or more units is $129,704 with average cap rates at 7.83 percent, compared to 2007, when the average price per unit was $179,260 with average cap rates at 4.43 percent. …
LOS ANGELES — Construction has started for the $10 million Santa Monica Pavilion mixed-use project, located on Santa Monica Boulevard in Westwood, across from the Los Angeles California (Mormon) Temple. Developed by Santa Monica Pavilion LLC and designed by Los Angeles-based Nadel Architects, the three-story, 44,500-square-foot project consists of 9,000 square feet of retail space, 35,500 square feet of office space and multiple parking options. Santa Monica Pavilion is slated to open in late 2010.
SAN FRANCISCO — A development by Berry Street LLC (an affiliate of BRIDGE Housing Corp.) and the San Francisco Redevelopment Agency, Mission Walk has opened in San Francisco, offering the first below-market-rate, for-sale homes in the new Mission Bay neighborhood. The multifamily property comprises 131 condominiums and townhomes — 25 one bedrooms, 82 two bedrooms and 24 three bedrooms — in two five-story buildings, each with an on-grade parking garage and landscaped courtyard. The homes are priced to be affordable to households that earn 80 to 100 percent of the 2008 area median income. LMS Architects designed the property.
VAN NUYS, CALIF. — Marcus & Millichap has brokered the $6.15 million sale of 99 condominiums at the 161-unit Sonterra Homes, an REO property located at 15425 Sherman Way in Van Nuys. Amenities include a swimming pool, spa, fitness center and barbecue/picnic areas. Marcus & Millichap’s Ron Harris represented a Chicago-based lender in the sale of the condo units to Gidi Cohen of Cohen & Associates.
LONG BEACH, CALIF. — W.E. O'Neil Construction Co. of California has started construction on the $48 million Pier G Maintenance Facility located in the Port of Long Beach. The project is part of the broader terminal redevelopment efforts, which include construction of an 87,200-square-foot maintenance and repair building, a 17,500-square-foot reefer wash building, a 10,000-square-foot West Arrival building, associated car and equipment parking, and a longshore restroom. Robert Stewart Architects has designed the Pier G Maintenance Facility to achieve LEED Silver certification.
HONOLULU — Mid Pac Petroleum has purchased the eighth floor of Alakea Corporate Tower, located at 1100 Alakea St. in downtown Honolulu. The Hawaii-based petroleum marketer and distributor will be relocating from 677 Ala Moana to its new corporate headquarters in April. Victor Arcayena of Hawaii Commercial Real Estate LLC brokered both sides of the transaction.