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.
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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.
SANTA ANA, CALIF. — In an all-cash transaction, Highridge Partners has purchased the 246,819-square-foot 3 MacArthur office tower in Santa Ana for $31 million. Marking the debut of the firm’s $500 million investment program targeting Class A California office properties, Highridge Partners acquired the 11-story property from Tishman Speyer Office Fund, which had purchased the building in 2007. Located in the airport submarket of Orange County, 3 MacArthur is currently 78 percent leased. The new owner has engaged RiverRock and CB Richard Ellis to handle on-site property management and leasing duties, respectively.
ARIZONA — Goodwill Industries of Central Arizona Inc. has leased more than 118,000 square feet across four new retail store locations in Phoenix, Mesa, Peoria and Tempe. Today’s Tempe opening marks Goodwill’s 43rd location in central Arizona. Velocity Retail Group’s Andy Kroot represented Goodwill in the transactions.
SALIDA, COLO. — Marcus & Millichap has handled the nearly $2.8 million sale of Salida Center, a 20,400-square-foot retail property located at 101 W. Hwy. 50 in Salida. The property is net-leased to Family Dollar, Sherwin Williams and Autozone for 10- and 15-year terms. Marcus & Millichap’s Jason Burns represented the seller, a retail developer.