SAN JOSE, CALIF. — Equity Office Properties has completed the disposition of a 143,000-square-foot industrial facility, which is located at 350 E. Plumeria Dr. in San Jose. Newport Beach, Calif.-based KBS REIT II purchased the property for $35.7 million or $250 per square foot. Constructed in 1986, the 8-acre property underwent a $6 million renovation in 2008. At the time of acquisition, the property was 100 percent leased to NetGear Inc.
EL CAJON, CALIF. — A partnership sponsored by R&V Management Corp. has acquired Coral Gardens, a 200-unit multifamily complex in El Cajon, for $19.75 million. Located at 425 E. Bradley Ave., the community offers one- and two-bedroom units ranging in size from 678 to 864 square feet. Additionally, the community features garages, a swimming pool and spa, a playground and on-site laundry facilities. The seller was Essex Property Trust. Ed Rosen, John Chu and Alejandro Lombrozo of Cushman & Wakefield represented both parties in the transaction.
Las Vegas — LM Construction Company has completed the shell construction on Building #21 in Arrowhead Commerce Center in Las Vegas. Located at the southwest corner of Sandhill and Post roads, the 148,000-square-foot building features 61-foot truck aprons, 9- by 10-foot dock doors, grade-level ramps and cross-dock capabilities. Additionally, the new building is divisible to 15,681 square feet. The 110-acre Arrowhead Commerce Center now totals more than one million square feet. The center is being developed by Los Angeles-based EJM Development. RGA Architects provided architectural services for the project.
NORWALK, CALIF. — Advanced Real Estate Services Inc., a TIC syndicator, has acquired The Courtyards, a 153-unit apartment community located at 12401 Studebaker Rd. in Norwalk, for $21.9 million. The garden-style community offers 72 one-bedroom/one-bath units and 20 three-bedroom/two-bath units. Additionally, the property features two swimming pools, a whirlpool spa, an arbor-covered picnic/barbeque area, a recreation room, a fitness center and two laundry facilities. Stewart Weston of Marcus & Millichap represented both parties in the transaction. Kennedy Wilson Multifamily Management Group sold the property.
AURORA, COLO. — Davis, Calif.-based Pilgrim Partners LLC has acquired Turnberry at Heather Ridge, a 268-unit apartment community located at 2038 S. Vaughn Way in Aurora. San Diego-based Fairfield Duck Creek LP sold the property for $15.1 million or $56,343 per unit. Built in 1972, the property offers one- and two-bedroom units ranging in size from 665 to 1,090 square feet. Community amenities include a clubhouse with a business center; carports; an on-site laundry facility; a playground; two heated pools; and a fitness center. John Laratta of Hendricks & Partners’ Denver office represented the buyer in the transaction.
The trend toward more workforce and low-income housing will be a very big part of Los Angeles’ future. Additionally, new and existing housing located near major transportation corridors will be in high demand amongst investors. The City of Los Angeles has proposed a 5-year housing plan with a $5 billion price tag to help provide more housing for those two market segments. Los Angeles apartment fundamentals are expected to have softened mildly coming into 2009, though vacancy will still be one of the lowest rates in the nation. Predictions are that the vacancy rate will have risen slightly to 4.5 percent by year-end 2008, then remain unchanged this year. The era of vacancy in the vicinity of 3 percent is not expected to return. Rent gains are decelerating from the invigorating pace of the past decade. This year, Los Angeles’ average asking rate is predicted to rise only slightly, approximately 0.7 percent, to $1,469 per month. In November, the 40,544-unit Beverly Hills submarket had an average asking rent of $1,909 per month; the Santa Monica submarket was at $2,404 per month; the 43,645-unit Wilshire/Westlake submarket at $1,308 per month; the 50,936-unit Hollywood/Silver Lake submarket at $1,468 per month; the Sherman …
WEST LOS ANGELES, CALIF. — Mel Moss of NAI Capital represented a private charitable foundation in the acquisition of a 173,000-square-foot industrial facility located on approximately 10 acres in Southern California. The sale-leaseback transaction was valued at approximately $15 million.
CARLSBAD, CALIF. — Sunroad Enterprises, dba Sunroad Otay Partners LP, has purchased a 67,000-square-foot, fully improved research and development (R&D) facility in Carlsbad. Located at 5858 Dryden Pl., the property sold for $8.65 million. The building is currently occupied by Callaway Golf. The facility features 100-percent HVAC-served, above-standard power and a 3 to 1,000 parking ratio. Tucker Hohenstein and Greg Lewis of Cushman & Wakefield represented the buyer and the seller, IDS Real Estate, in the transaction.
COMMERCE, CALIF. — Mesa West Capital has provided The Magellan Group with a $25.6 million first mortgage loan for the recapitalization of Grace Place Industrial, a 500,795-square-foot industrial complex in Commerce. The fully leased facility features 30-foot clear heights and ample turning radius. The Magellan Group also received $5.75 million of subordinate mezzanine debt from Penwood Select Industrial Partners II LP, for a total debt of $31.35 million. Mesa West Capital and Penwood closed the transaction in 30 days. Brian Halpern and Ben Wagner of CB Richard Ellis Capital Markets arranged the financing.
VAN NUYS, CALIF. — Jessica Kelley and Martin Agnew of Marcus & Millichap’s Encino, Calif., office brokered the disposition and acquisition of 14550 Haynes Street in Van Nuys. The 15,741-square-foot office property sold for $3.4 million. The seller and buyer were not disclosed.