ONTARIO, CALIF. — WCV Commercial Properties has secured a 4-year, $2.69 million lease with Dirt Cheap Inc. for 185,342 square feet of industrial space, located at 1100 S. Etiwanda Ave., Units A & B, in Etiwanda Distribution Center in Ontario. Colliers International’s Mike McCrary and Jeff Bellitti represented WCV in the transaction, and Anthony Naticchioni of NAI Capital represented the tenant, a landscape services company. The lease makes WCV’s 274,312-square-foot building 100 percent occupied.
Western
VICTORVILLE, CALIF. — Grubb & Ellis has represented Wells Fargo Trust in the $4.2 million sale of a former Wickes Furniture store, located at 12704 Amagosa Rd. in Victorville, to Ashley Furniture Industries. Grubb & Ellis’ Ted Bradach represented the seller of the freestanding, 39,200-square-foot retail building, and Aaron Hodgdon of The Hodgdon Group represented the buyer.
Small box retail is the new Seattle trend, and small-shop local retailers are rising to the top. Investor groups are primed, seeing this market as a cherry-picking field of opportunities. Strong big box retailers are shopping a surplus of space that has gone dark. The vacancy rate in the Puget Sound area is 7 to 8 percent, with 4 percent being the norm in prior recessions. Retailers that have vacated without immediate replacement include Circuit City, Linens 'n Things and Joe's Sports & Outdoor. Developers and landlords have struggled to crunch numbers that mid-box retailers can digest. Retailers still seek “Main & Main” locations. Small shop space now commands 25 percent lower rents, but remains competitive due to lack of new construction. From small to large space, tenants should expect to see rates in the low teens, even the single digits in one-off markets. After many peaked at more than current market rates, renewal rates have now dropped in order for landlords to retain tenants. Often space that would have commanded $36 per square foot to $40 per square foot 2 years ago, now goes for around $30 per square foot. Both the upper-income suburban locations and the inner-city mixed-use …
NEWPORT BEACH, CALIF. — S.K. Hart Properties has acquired Bayview Corporate Center, located at the intersection of Jamboree Rd., MacArthur Blvd. and the SR-73 Freeway in Newport Beach. Terms were not disclosed. Formerly the corporate headquarters of Downey Savings & Loan, the Class A office campus consists of two six-story towers connected by a three-story atrium and a five-level parking structure. The purchase marks S.K. Hart Properties’ entry into the Orange County commercial real estate market.
DENVER — Catholic Health Initiatives has reserved 100,000 square feet of space for an 11-year term at 198 Inverness Drive West, an eight-story, Class A office building that Lowe Enterprises acquired in 2006. CHI plans to begin relocating its associates to the southeast Denver location in June. CB Richard Ellis’ John Marold represented Lowe in the transaction, and Cushman & Wakefield’s Nick Pavlakovich represented CHI. The office development was certified LEED Gold in September.
LOS ANGELES — Marcus & Millichap has brokered the purchase of an 18-unit apartment property, located at 1382 Kelton Ave. in Los Angeles, for $3.39 million. Marcus & Millichap’s Robert Narchi represented the buyer, a private investor.
PASADENA, CALIF. — Barnhart Inc. has completed a $48 million project for Pasadena City College involving the construction of a new 66,558-square-foot Industrial Technologies building and the renovation and expansion of the campus center and bookstore. The new building, which includes 15 laboratories, was designed by PBWS Architects, and the renovated 47,065-square-foot campus center was designed by LPA Inc. The campus center expansion also required the demolition of an existing one-story bookstore and construction of a newly designed two-story building to take its place.
Following trends in the domestic and global economy, conditions in the Los Angeles office market continued to deteriorate this summer. Los Angeles County’s unemployment rate reached 11.9 percent in July, up from 7.7 percent 1 year earlier, and the Bureau of Labor Statistics estimated that 172,100 non-farm jobs were lost between July 2008 and July 2009. Area companies have conceded to a difficult business environment and lower revenue forecasts by shedding employees in record numbers and, in turn, reducing their need for office space. At mid-year, total vacancy was 14.7 percent, up from 12.5 percent at the end of last year. The market experienced negative net absorption of 3.3 million square feet through the first half of the year, and preliminary third quarter data indicates that vacancy continues to rise, albeit at a slower pace than has been witnessed during the past 18 months. While previous real estate downturns in Los Angeles were triggered by excessive speculative office construction, the current rise in vacancy has stemmed from a collapse in demand. Construction has been relatively limited in the current cycle; however, a handful of large projects have been delivered this year, most notably The Pointe (480,000 square feet) and 2300 …
REDLANDS, CALIF. — BlackRock has sold the Pioneer Industrial Center, a 390,780-square-foot Class A warehouse and distribution building located at 9425 Nevada St. in Redlands, to Sares-Regis Group. Financial terms were not disclosed. Cushman & Wakefield’s Jeffrey Cole, Chuck Belden and Ed Hernandez represented both the buyer and seller. Built in 2007, Pioneer Industrial Center is 52 percent leased to Sleep Innovations, a national bedding manufacturer.
EL CENTRO, CALIF. — Sperry Van Ness has handled the sale of an 18,000-square-foot office building located at 1625 W. Main St. in El Centro. The property, which is leased to the Superior Court of California on a new 10-year term, was purchased by an institutional buyer in an all-cash transaction. Tony Gild of Sperry Van Ness in San Diego represented the seller.