Three significant Portland multifamily buildings delivered downtown in the first two quarters: Cyan/PDX (352 units developed by Gerding Edlen Development) and the Ladd (332 units developed by Opus Northwest) and the Riva on the Park (294 units developed by Trammell Crow). Downtown Portland has historically been a healthy submarket for multifamily, and much recent construction has been centered there, so the area is now becoming very competitive. All three of the aforementioned projects are also pursuing LEED certification, which appeals to Portland’s urban tenant. Vacancy is an important factor in Portland’s multifamily market as it is an indicator of the overall market’s health. The vacancy rate has been trending upward in recent quarters, which should continue in the second half of the year. It’s important to note that the increase in vacancy is due to economic pressure on tenants, not migration of people out of the metro area. Expect vacancy to regain its footing next summer or when economic conditions improve. Portland’s Urban Growth Boundary sets it apart from other multifamily markets in the West. The UGB has prevented overbuilding in both the single-family and multifamily markets in the last 5 years. This means that despite the recession, Portland’s apartment …
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VISTA, CALIF. — Construction is now underway for Premier Crossing, a $20 million medical office park located at the corner of South Melrose Drive and Sycamore Avenue in Vista. Being developed by Brock Holdings and other undisclosed companies, the 10-building, 51,768-square-foot project will offer suites and buildings ranging in size from 2,400 to 6,292 square feet. The property, which was designed by Davis & Davis, features a contemporary exterior with granite-like burnished block, brushed aluminum accents and tinted high-performance glass. Richard & Richard Construction Co. is serving as general contractor for the project, which is slated for completion in June 2008.
GLENDALE, ARIZ. — Springfield, Mo.-based John Q. Hammons Hotels & Resorts Inc. has opened the four-star Marriott Renaissance Glendale Hotel & Spa, a 12-story hotel located within Westgate City Center at 9495 W. Coyotes Blvd. in Glendale. The 320-room hotel offers 33 suites, including three presidential suites and two concierge levels, an outdoor swimming pool, a state-of-the-art fitness center, an indoor lap pool, a conference center, a media center, the restaurant Soleil and Caffeina’s, a marketplace café. John Q. Hammons Hotel & Resorts Inc. will manage the hotel, conference center and media center.
TEJON RANCH, CALIF. — Tejon Ranch Co. and Rockefeller Group Development Corp. have broken ground for the construction of a second building at Tejon Industrial Complex, a 1,450-acre master-planned commercial development in Tejon Ranch. Part of the park’s 39-acre The Campus section, the 120,000-square-foot building is designed to serve the needs of manufacturers and smaller warehouse operators. Designed by Irvine, Calif.-based HPA, the facility is scheduled for completion by September 2008. Additionally, the partnership is currently constructing a 606,000-square-foot warehouse building on the site, which is set for completion in January 2008.
SUN CITY AND SUN CITY WEST, ARIZ. — Healthcare Trust of America Inc. has agreed to purchase a 17-building medical office building portfolio in the northwest Phoenix area. Approximately 95 percent of the 641,000-square-foot portfolio is located on or adjacent to one of two major Banner Health hospital campuses. The purchase agreement, which should close within 45 days, provides the self-managed, non-traded REIT the opportunity to acquire two additional medical properties totaling approximately 60,000 square feet on the same campuses.
PETALUMA, CALIF. — Marcus & Millichap has handled the $52 million sale of the 492-unit Lakeville Resort apartment complex, located in Petaluma in the southern part of Sonoma County’s world-renowned wine country. Marcus & Millichap’s Stanford Jones, Phil Saglimbeni and Sal Saglimbeni represented the seller, Equity Residential. The brokerage firm also represented the buyer, Abacus Capital Group.
LOS ANGELES — Madison Partners has arranged the $7.15 million sale of the Kenmore Apartment Portfolio, three 1920s vintage apartment complexes located in the heart of Koreatown in Los Angeles. The three properties, which total 107 apartment units, are located at 407 S. Kenmore Ave., 530 S. Kenmore Ave. and 531 S. Kenmore Ave. Madison Partners’ Darin Beebower represented both the buyer, L.A.-based Vista Apartment Group, and the seller, Prana Ten Properties LLC.
FIFE, WASH. — Animal Supply Co. will expand and renew its current lease of a warehouse and distribution facility in Fife. The expansion of 42,600 square feet brings the company’s total lease up to 120,700 square feet. The financial terms of the 5-year lease with owner TIAA CREF were not disclosed. Cornish & Carey’s Joe Fabian and Scott Carter of Seattle-based Pacific Real Estate Partners represented Animal Supply Co. in the transaction.
FREMONT, CALIF. — Overton Moore Properties (OMP) has secured a 12-year lease with Solyndra Inc. for 506,490 square feet at Page Technology Park in Fremont. Terms were not disclosed, but the total value of the lease is believed to exceed $45 million. OMP was represented by Rob Shannon, Joe Kelley and Ben Knight of CB Richard Ellis and Greig Lagomarsino of Colliers International; Solyndra was represented by GVA Kidder Mathews’ John Olenchalk. Built in 1982, the property was acquired by OMP from Hewlett-Packard in December 2008.
HAYWARD, CALIF. — San Francisco-based Jaeger McHugh & Co. LLC has acquired Barrington Business Center, an approximately 203,515-square-foot multi-tenant industrial complex located in the Interstate 880 corridor in Hayward. Financial terms were not disclosed. Colliers International’s Greig Lagomarsino represented both parties in the three-building transaction, with colleague Joe Yamin assisting on the buyer’s side.