RIVERSIDE, CALIF. — Sun Development and Management Corp. is developing a 132-room Hampton Inn & Suites by Hilton at Turner Riverwalk, a 1 million-square-foot, master-planned business park in Riverside. Located adjacent to the Medical Park at Riverwalk and the Shops at Turner Riverwalk, the hotel is slated for completion in first quarter 2010. Riverside Lodging Association purchased the 2.28-acre land parcel for the development of the hotel. When complete, Turner Riverwalk will feature 400,000 square feet of office space, 100,000 square feet of medical office space, 375,000 square feet of R&D and industrial space and 125,000 square feet of retail space.
INGLEWOOD, CALIF. — The Los Angeles office of Heery International has been awarded the construction management for Locust Street Senior Center and Housing Complex, which is located one block east of Inglewood’s historic downtown. The 90,000-square-foot senior center will be the first city-owned housing development in Inglewood’s history. The project will feature 58 senior apartments, a three-floor rooftop terrace, a 6,000-square-foot commercial kitchen, and Wi-Fi Internet access for residents and visitors. Kennard Design Group and WWCOT Architects are providing architectural services for the project, which is slated for completion in spring 2011.
VAN NUYS, CALIF. — Tony Azzi of Marcus & Millichap represented both parties in the disposition and acquisition of a 75-unit apartment property in Van Nuys. Located at 6919-6929 Sepulveda Blvd., the property sold for $5.62 million or $178.55 per square foot. The buyer and seller were not disclosed.
PHOENIX — Climatec has selected McShane Construction Co. for the renovation and remodeling of the company’s 103,000-square-foot corporate office building, which is located at 2851 W. Kathleen Rd. in Phoenix. The project calls for the partial demolition and reconstruction of the facility, which will include the incorporation of several of Climatec’s extensive product lines. Additionally, the renovations include redesign of interior spaces and entryway of the facility, and replacement of mechanical, electrical and plumbing systems. Dick & Fritsche Design Group is providing architectural services for the project, which is slated for completion this month.
CALABASAS, CALIF. — Kasower Properties LLC has acquired a 36,660-square-foot office building, which is located at 26010 Mureau Rd. within Calabasas Commerce Center in Calabasas. Arden Realty Inc. sold the property for $7 million. The buyer purchased the property to house its business, Canoga Park, Calif.-based Mighty Net Inc., a credit and financial information provider. Sperry Van Ness represented the buyer; Robert Erickson and Marc Spellman of Lee & Associates—LA North/Ventura Inc. represented the seller in the transaction.
ORANGE COUNTY, CALIF. — The Northwestern Mutual Life Insurance Co. has completed the disposition of three multifamily properties located in Orange County. The properties, which total 1,368 units, sold for a total consideration of $201 million. In the first transaction, Newport Beach, Calif.-based Pacific Coast Management acquired Aventine @ Aliso Viejo, a 386-unit luxury apartment community located at 22501 Chase in Aliso Viejo, Calif., for $56.2 million. In the second transaction, Walnut Creek, Calif.-based Sequoia Equities has purchased Alize @ Aliso Viejo, a 484-unit rental property located at 2 Enterprise St. in Aliso Viejo, for $75 million. In the third transaction, Newport Beach-based Stoneridge Capital Partners acquired Avila @ Rancho Santa Margarita, a 498-unit community located at 22751 El Prado Ave. in Rancho Santa Margarita, Calif., for $70 million. Joe Leon and Dean Zander of Hendricks & Partners, along with Ray Eldridge and Kevin Mulhern of CB Richard Ellis, brokered the transactions.
ORANGE COUNTY, CALIF. — Voit Real Estate Services has completed the sales of three industrial properties in Orange County. In the first transaction, Contract Carpet acquired a 29,070-square-foot land parcel for $4.8 million. LPC Fullerton sold the property, which is located at 850 Enterprise St., Suite 6 in Fullerton, Calif. Brian DeRevere and Ryan Peterson of CB Richard Ellis represented the buyer; Mitch Zehner and Louis Tomaselli of Voit represented the seller in the transaction. Additionally, The Setbisium Trust completed the disposition of an 18,900-square-foot industrial building, which is located at 151 Columbine Ave. in Santa Ana, Calif. Landmax Group LLC purchased the property for $2.9 million. Greg Velastegui of Voit represented the buyer; Michael Cargile, Loren Cargile and Kevin Bayless, also of Voit, represented the seller in the transaction. In the final transaction, Staminus Communication Inc. has purchased a 4,637-square-foot industrial property, which is located at 9253 Research Dr. in Irvine, Calif., for $1.3 million. Sam Saeedi of Optimal Portfolio Real Estate Ground represented the buyer; Michael Hartel, Kevin Turner, Joseph Winkelmann and Travis Haining of Voit represented the seller, KPM Spectrum, in the transaction.
BEVERLY HILLS, CALIF. — Laurus Corp. has acquired a one-acre development site, which is located at the intersection of North Palm Drive and Civic Center Drive in the Platinum Triangle area of Beverly Hills. The property has entitlements to build 35 luxury condominiums in two adjacent buildings. Current project plans include two five-story buildings featuring units ranging in size from 2,000 to 3,400 square feet. The units will feature unique designs, top-of-the-line furnishing and high quality amenities. 432 Beverly Hills LLC was formed as an investment vehicle to acquire the property by a group of equity partners.
The northern Nevada office market remained weak in 2008 with all four quarters recording increased vacancy and negative net absorption, a continuation of a trend that began in 2007 when three out of four quarters finished with negative net absorption. Last year finished with negative 116,000 square feet of leased office space and vacancy exceeding 20 percent. Directly related to the drastic downturn in the residential real estate market, Reno’s office performance had been fueled by the national homebuilders, mortgage companies and title companies, who saw their requirements for office space drop as quickly as the demand for their products and services. The area’s office sector quickly changed from growth and high demand to nearly non-existent demand and increasing vacancy, thus leaving investors and developers scrambling for tenants. With rising vacancy and demand declining, many office property owners are willing to slash effective lease rates to secure tenants. The average asking rate for Class A properties at year-end 2008 was $22.08 per square foot, a $1.56 less than a year earlier, and Class B was down to $16.68 per square foot. During the highs of late 2006, the effective rates for class A product exceeded $27 per square foot. With …
The Reno-Sparks apartment market will continue to face occupancy challenges due to job losses at local casinos, hotels and other gaming-related companies due to the current recession. Effective rents will remain flat in 2009 and in some cases decrease, while occupancies are expected to decline, building on a trend established in second half 2008. Landlords will be forced to offer concessions as they compete for new and existing tenants. Apartment owners across the market are vying to attract new tenants and retain existing ones. As a result, concessions are ranging from reductions in deposits to a full month of free rent, especially at properties with management issues. Remaining flat, the local economy was experiencing unemployment of approximately 8 percent in November 2008 due to layoffs in many sectors, including the leisure and hospitality industry. In the 1970s, 30 percent of the employees in Reno worked in the gaming industry, but today only 17 percent are involved in that sector. In fact, the leading employers of Reno’s increasingly diversifying economy are the Washoe County School District, IGT, Catholic Healthcare West and the gaming-hospitality industry. Looking at fundamentals, fourth quarter 2008 vacancy was 9.4 percent in the Reno-Sparks MSA, reflecting an increase …