PUYALLUP, WASH. — Regency Centers has completed the disposition of a former Mervyns store location, which is located at South Hill Mall in Puyallup. The property, which is currently leased to JC Penney, was sold for an undisclosed price. The undisclosed buyer received the 76,682-square-foot building and 6.3 acres of land. The sales price was not released.
Western
SACRAMENTO, CALIF. — Newmark Realty Capital Inc. has arranged $22.75 million in permanent financing for a medical office property located in mid-town Sacramento. Demetri Koston and George Mitsanas of Newmark secured the financing on behalf of the undisclosed borrower. Terms of the transaction were not disclosed.
WHEAT RIDGE, COLO. — Garrette Matlock and Jon Hendrickson of Marcus & Millichap represented the undisclosed seller in the disposition of Chase Plaza, a retail building located at 5455 W. 38th Ave. in Wheat Ridge. The 17,613-square-foot property is currently 93 percent leased to seven tenants, including Weight Watchers, Cricket, Allstate Insurance and Complete Painting Solutions. Clayton Primm, also of Marcus & Millichap, represented the undisclosed buyer, which acquired the property for $1.275 million.
LAS VEGAS — CityCenter Holdings LLC, a joint venture between MGM MIRAGE and Infinity World Development Group, has revealed changes to the scope of CityCenter in Las Vegas. The changes include postponing the opening of The Harmon Hotel & Spa until 2010 and the cancellation of The Harmon residential condominium component. When complete, The Harmon Hotel & Spa will offer 400 rooms and suites. The residential component would have offered 200 residential units, of which 88 are under contract to be sold. Purchasers will be entitled to receive refunds of deposits and given the opportunity to purchase units at the Residences at Mandarin Oriental Las Vegas, Vdara and Veer Towers. With the cancellation of The Harmon residential component, as well as other additional cost savings, the company now anticipates total cost savings of $600 million instead of its previously stated savings of $400 million. Additionally by postponing The Harmon Hotel, CityCenter will defer approximately $200 million in construction costs to complete the interior fit out of The Harmon. All other components of CityCenter remain on schedule for a December 2009 grand opening.
ENGLEWOOD, COLO. — B&J Properties Limited LLC has acquired Arapahoe Center Building, an office property located at 13111 E. Briarwood Ave. within Centennial Airport Business Park in Englewood. Built in 1982, the 58,750-square-foot building sold for $4.5 million or $76 per square foot. Ron Allum of Fuller Real Estate represented the buyer; Riki Hashimoto and Dan Grooters of Grubb & Ellis represented the seller, Thirteen One Eleven Corp., in the transaction.
CAMARILLO, CALIF. — David Wise of American Corporate Real Estate Services represented the undisclosed buyer in the acquisition of Plaza 5051 at Mission Oaks, a Class A office building located at 5051 Verdugo Way within Mission Oaks Business Park in Camarillo. The three-story, 51,500-square-foot building, which was completed in 2007, was listed at $17.88 million. Bill Kiefer, Steve Economos and Geoff DeWolf of NAI Capital represented the seller, The Foundation Group, in the transaction. The purchase price was not disclosed.
SHERIDAN, COLO. — Weingarten Realty has leased 55,000 square feet to Knoxville, Tenn.-based Regal Entertainment for the development of a 14-screen theater at River Pointe at Sheridan Shopping Center in Sheridan. Located at the intersection of South Santa Fe Drive and West Hampden Avenue, the cinema is slated to open in third quarter 2009. Regal Entertainment, a subsidiary of Anschutz Company, operates 6,787 screens in 552 locations throughout the United States under the names of Regal Cinemas, United Artists Theatres and Edwards Theatres.
The Phoenix retail market expansion has slowed down considerably as it experiences the continued effects of the economic downturn. A decline in consumer spending, negative job growth and a housing market still struggling to recover will keep development to a minimum while vacancies increase in existing centers. At the end of 2008, the valley’s vacancy was 10 percent and should rise above 11 percent during 2009. A return to record vacancy rates seen during the 1980s is unlikely because of the slowdown in construction. In 2008, there was roughly 6.5 million square feet of new retail space delivered, but in 2009 planned projects will be put on hold. One reason is there is no pre-leasing being done, and in many cases banks require guaranteed tenants before they will consider construction loans. In response, developers are changing their focus from new ground-up development to infill and redevelopment properties. Expect more national, regional and local retailers to close during 2009. The list of major store closures in 2008 included national retailers Mervyn’s, Linens ‘n Things and Circuit City. There is still a short list of national retailers looking for space in the valley, including Wal-Mart, Fresh & Easy, Fry’s and Dunkin Donuts. …
PALO ALTO, CALIF. — BRIDGE Housing Corp. is developing Fabian Way Senior, an affordable senior-living apartment community in Palo Alto. Located at 3895 Fabian Way, the $22.9 million community will feature 56 units, with 20 units restricted for seniors with special needs. Additionally, the community will offer private decks, a landscaped courtyard and a community room for activities, services and classes. The community is part of a larger site acquired by BUILD LLC, a partnership between BRIDGE and CalPERS. Financing for the project is being provided by BUILD LLC, State of California Prop 1C Multifamily Housing Program, Silicon Valley Bank Community Development Finance, Union Bank of California N.A., Santa Clara County, City of Palo Alto, the Opportunity Fund, the Sobrato Family Foundation and the Housing Trust of Santa Clara County. Steinberg Architects provided architectural services; Segue Construction is serving as general contractor for the project. Completion is scheduled for early 2010.
MESA, ARIZ. — Wichita, Kan.-based Hawker Beechcraft has completed the first phase of its newest maintenance facility at Phoenix-Mesa Gateway Airport in Mesa. The 26,000-square-foot facility will accommodate maintenance needs of customers and serve as the company’s southwest regional service center. The second phase includes an additional 26,000-square-foot hangar and 22,000 square feet of administrative office space.