Submitted by Kitty Wallace, senior vice president with the West Los Angeles office of Sperry Van Ness. What area is your area of expertise? My area of expertise is Southern California, but for the purpose of this interview I will focus on Los Angeles County. What trends do you see presently in multifamily development in your area? The rapid escalation of construction costs has subsided and in some cases is even coming down and labor is more widely available and less expensive. Despite reduced costs, land costs have started to come down. As demand for luxury condos wane, many development sites that were once slated for condo-construction will most likely be redirected to multifamily apartment buildings or mixed-use buildings. Who are the active multifamily developers in your area? A few major multifamily developers in the area are Legacy Partners, Related Development Company, NMS Properties, JPI Development, Lowe Enterprises, Fifield Company, and JSM Development. Please name one or two significant multifamily developments in your area. What impact will these projects have on the market? One significant multifamily development is the $600 million mixed-use development on Hollywood and Vine by Legacy Partners. This project is comprised of a hotel, retail space, condominiums, …
What area is your expertise? Office / San Diego/ Submarket: Kearny Mesa What trends do you see presently in office development in your area? Once known primarily as an industrial market Kearny Mesa continues to add new office buildings to its inventory. The market currently consists of approximately 9.4 million square feet of office space of which only 13.8 percent is Class A space. Recent development projects support an increased movement toward new Class A office buildings. Two brand new Class A developments underway in Kearney Mesa include the Sunroads Centrum (273,468 square feet) and the Terraces at Copley Point (380,000 square feet). These two projects together will add an additional 653,468 square feet for a total of 1.3 million square feet of Class A office space in the Kearny Mesa market. Who are the active office developers in your area? Sudberry Properties, Sunroads Enterprises, the County of San Diego, Badiee Development Inc., and The Ghianni-LaRussa Group. Please name one or two significant office developments in your area. What impact will these projects have on the market? Sunroad Centrum: The Sunroad Centrum is a 273,468-square-foot, Class A office tower in Kearny Mesa designed by Brian Paul & Associates, which is …
SAN BERNARDINO, CALIF. — JLO Properties LLC has acquired an 80-unit apartment complex, which is located at 1823 Clyde St. in San Bernardino. Clyde Street Properties sold the property for $8.97 million. Bo Drake and William Everitt of Los Angeles-based Investment Real Estate Associates represented the buyer; Alex Mogharebi of Marcus & Millichap represented the seller in the transaction.
SAN DIEGO — Public Storage has purchased Miramar Place Self Storage, a 100,638-square-foot self-storage property located at 6200 Miramar Rd. in San Diego. Granite Investment Group sold the property for an undisclosed price. Constructed in 2006 and situated on a 4.02-acre lot, the property offers 100 RV parking spaces. At the time of acquisition, the facility was 100 percent occupied. Greg Wells, Steve Rowland and Michael Roberts of Grubb & Ellis|BRE Commercial represented both parties in the transaction.
ROSEMEAD, CALIF. — Richard Longobardo of Marcus & Millichap’s Ontario, Calif., office represented the seller in the disposition of an 8,000-square-foot retail center in Rosemead. An undisclosed buyer acquired the property for $1.4 million or $175 per square foot. Located at 1600 N. Potrero Grande, the property is a sale/lease-back offering and has had a successful owner/user in occupancy since 1995.
CANOGA PARK, CALIF. — Paul Kenworthy of the West Los Angeles office of Charles Dunn, a partner of GVA Worldwide, has brokered the sell and acquisition of a 19-unit apartment building, which is located at 7037 Alabama Ave. in Canoga Park. Saswata Sen purchased the 17,324-square-foot property for $2.85 million. The seller was Khougaz Trust. At the time of acquisition, the property was 100 percent occupied. Kenworthy represented both parties in the transaction.
PHOENIX — Costa Mesa, Calif.-based T&C Development Inc. et al has purchased a 40,542-square-foot industrial property, which is located at 3255-3305 E. Osborn Rd. in Phoenix for $2.2 million. Brian Thompson of RT Management Group represented the buyer; Paul Boyle and Rick Danis of Grubb & Ellis|BRE Commercial represented the seller, California-based Phoenix Osborn Ventures LLC, in the transaction.
PHOENIX — Phoenix-based Windsor Capital LLC has selected Phoenix-based Summit Builders to provide design/build services for the conversion of an existing 121,000-square-foot office building into a Hilton Garden Inn. Located on Van Buren Street in Phoenix, the property will undergo complete interior demolition and removal of exterior skin to become a 192-unit hotel. The 10-story hotel will feature a swimming pool, lobby, lounge, restrooms, conference rooms, a stairwell, a kitchen, a restaurant, laundry facilities, a fitness center and a business center. Additionally all mechanical, plumbing and electrical systems are being replaced. Phoenix-based Orcutt Winslow is also providing design services for the project. Interior demolition is currently underway with construction scheduled to commence second quarter 2008 with completion slated for late fourth quarter 2008.
CORONA, CALIF. — Mammoth Equities has completed a 57,204-square-foot multi-tenant professional building in Corona. Located at Green River Road and Interstate 91, Mammoth Professional Building – Corona is a three-story, steel-framed facility, which offers suites ranging in size from two to 10 rooms. Each suite is equipped with an air conditioning system and pre-wired for high-speed networking and phone access.
BURBANK, CALIF. — Los Angeles-based AMC Associates LLC has acquired a 66,070-square-foot retail center, which is located at 2500-2600 W. Victory Blvd. in Burbank, for $28.75 million. The two-tenant property is triple-net leased to a 49,695-square-foot Ralph’s and a 16,375-square-foot CVS/pharmacy. Steve Dietrich of Financial Research Group, Terry Marks of National Net Lease Realty and Clifford Letovsky of Letovsky Real Estate Corp. represented the buyer; Shaun Riley and Richard Walter of Irvine, Calif.-based Faris Lee Investments represented the seller, Scottsdale, Ariz.-based Univest Development Group, in the transaction.