OXNARD, CALIF. — The new $26.3 million student services facility at Oxnard College has been completed. The approximately 40,000-square-foot development features a two-story student-services building and a one-story food-services building at the heart of the 118-acre campus’ main quad. Heery International served as the program manager, and Nadel Architects was the project designer.
Western
SCOTTSDALE, ARIZ. — International Cruise and Excursion Gallery Inc. has purchased the former Dial headquarters building, located at 15501 N. Dial in Scottsdale, from CL Scottsdale LLC for $14.5 million. Kevin Rude of J.E. Roberts acted as the receiver in the transaction. Grubb & Ellis’ Bob Buckley, Tracy Cartledge, Steve Lindley, Blake Hastings, Jeff Wentworth and Michael Kitlica represented the seller of the 129,689-square-foot, Class A office building.
The retail sector continues to struggle as consumer confidence remains relatively low. Until the job market perks up, Orange County residents will maintain low levels of spending. This nervous sentiment has crossed over to prospective investors in retail properties because of the potential for weak cash flow. Leasing activity is at a virtual standstill, with no anticipated movement for at least the next 6 to 9 months. With the exception of Kohl’s and Forever 21 leasing up former Mervyn’s stores and Marshalls taking up large space at previously occupied locations, most of the vacated big box spaces are sitting empty. As of August, the Orange County vacancy rate increased to 7.7 percent, up 8 percent from the previous quarter. Further evidence of a weak market, the average asking rent declined $0.05 to $2.56 per square foot from the previous quarter. Sales activity during the third quarter has lacked large trendsetting transactions. Due to rising vacancies and declining rental rates, potential investors have been hesitant to acquire large properties; this explains why most of the deals have been small or mid-sized. Cap rates have shifted from 5 percent during the market peak in 2007 to 8 percent or higher for large, …
PHOENIX AREA –– Goodwill Industries of Central Arizona Inc. has leased four new retail store locations, totaling more than 118,000 square feet, across the Phoenix metropolitan area. Velocity Retail Group’s Andy Kroot brokered the deals on behalf of Goodwill, which took 25,387 square feet in Tempe, 47,430 square feet in Mesa, 21,000 square feet in Peoria and 25,000 square feet in Phoenix. The lease starts range from October 2009 to October 2010.
EL SEGUNDO, CALIF. — Joint-venture development partners AMB Property Corp. and Mar Ventures Inc. have sold the last two remaining buildings at The Edge at Campus El Segundo, their office/flex building development located adjacent to the 405 freeway and close to the Los Angeles International Airport in El Segundo. CB Richard Ellis’ Bill Bloodgood and Bob Healey represented the joint developers in the disposition of the 12,401-square-foot and 13,801-square-foot buildings to Los Angeles-based investor Brad Jones.
SAN PEDRO, CALIF. — Hanley Investment Urban Retail Advisors has brokered the sale of an 18,864-square-foot retail property, located on the ground floor of a 116-unit residential condominium building in downtown San Pedro. Financial terms were not disclosed. The retail portion of Centre Street Lofts, built in 2007, was 18 percent occupied at the time of sale. Carlos Lopez of HI Urban Retail Advisors represented the seller, Centre Street Lofts LLC of Hollywood, and The Heger Company’s Joel Mostert represented the buyer, International Longshore & Warehouse Union Local 13, which will occupy the space as its corporate headquarters.
HONOLULU — St. Louis-based The Korte Company has begun work on the 16,674-square-foot Fort Shafter Youth Center in Honolulu. The $8.3 million youth center will include classrooms, a homework center, activity rooms, a multi-purpose area, a teen area, a lounge, a kitchen prep and culinary arts area, a common area and stage, and a play court.
TORRANCE, CALIF. — Marcus & Millichap has brokered the $4.685 million sale of Makena Plaza, a 9,512-square-foot retail property located at 17405 Crenshaw Blvd. in Torrance. The 1-year-old building is anchored by Wachovia and T-Mobile. Marcus & Millichap’s Scott Hook represented the seller, a limited liability company, and the brokerage firm’s John Susank represented the buyer, a private investor.
ANAHEIM, CALIF. — Voit Real Estate Services has brokered Caldwell Real Estate Holdings LLC’s $3.8 million sale of a 27,796-square-foot industrial building, located at 1260 N. Fee Ana St. in Anaheim, to U.S. Union Tool Inc. Voit’s Mike Vernick and Mike Bouma represented the seller, and Tim Cronin of Lee & Associates represented the 1031-exchange buyer.
The declining job market continues to take a toll on the Orange County multifamily sector. With unemployment reaching 9.6 percent in August, the market is showing little signs of life. Relief will not come until new jobs are created and the unemployment level begins to descend. Orange County’s apartment vacancy increased 36 percent during the 12 months following second quarter 2008, from 4.5 to 6.1 percent. Asking rents fell 1.9 percent since second quarter 2008, from $1,566 to $1,537, while effective rents during the same time frame decreased at a higher rate of 3.6 percent from $1,519 to $1,465. Despite the downturn in rental rates, tenants are vacating the apartment market in search of less expensive housing. Orange County residents are moving in with their parents, taking in roommates or seeking respite in neighboring markets or even out of state. Rising vacancies have led to a decline in values by more than 20 percent since 2007. According to CoStar’s year-to-date numbers, the average price per unit for buildings with 16 or more units is $129,704 with average cap rates at 7.83 percent, compared to 2007, when the average price per unit was $179,260 with average cap rates at 4.43 percent. …