GREENWOOD VILLAGE, CALIF. — Greenwood Village-based Commercial Capital Inc., and its subsidiary CCI Funding I LLC, has filed for Chapter 11 bankruptcy protection. The company is a commercial real estate lender, which provides short-term commercial mortgage financing. The bankruptcy filing will leave approximately 12 large Rocky Mountain region construction projects half-built. The filing is due to the underperformance of the company’s loan portfolio, a Denver-based hedge fund and an international bank that provided financing to CCI. The two institutions failed to honor funding commitments totaling more than $30 million. Commercial Capital plans to lay off 75 percent of its workforce or approximately 15 employees. Additionally, the company plans to reorganize under Chapter 11 and continue to represent and broker commercial real estate loans throughout the United States.
LOMA LINDA, CALIF. — Los Angeles-based Downtown Gallery has acquired a single-tenant Fresh & Easy Neighborhood Market in Loma Linda. The 15,000-square-foot property, which is located at 25694 Redlands Blvd., sold for $2.86 million, representing a 6.6 percent cap rate. Built in 2009, the property is situated on a 2.1-acre land parcel. Fresh & Easy is a subsidiary of United Kingdom-based Tesco. The seller was Los Angeles-based MV Investors Inc. Edward Hanley of Hanley Investment Group Real Estate Advisors represented both parties in the transaction.
CITY OF INDUSTRY, CALIF. — Dedeaux Properties LLC has completed construction of Nogales Street Business Center, a four-unit, 71,460-square-foot multi-tenant industrial building in City of Industry. Yotrio Corp., a manufacturer of patio furniture, has signed a 5-year lease for a 20,933-square-foot space at 708 Nogales St. Brett Dedeaux, Mark Repstad and Rustin Mork of Binswanger/Realty Advisory Group represented the landlord; Chris Tolles, Robin Dodson and Erik Larson of Cushman & Wakefield represented the tenant in the transaction.
MOORPARK, CALIF. — M. W. Ossola & Associates Inc. has developed Patriot Commerce Center, a 300,000-square-foot Class A business park in Moorpark. The seven-building first phase includes 22,000 square feet of office/medical space, and approximately 140,000 square feet of industrial/R&D space. The completed project will offer 66,000 square feet of office/medical space and 240,000 square feet of industrial/R&D space. The project offers condominiums and buildings ranging in size from 734 to 21,676 square feet. RCI Builders served as general contractor; Polliquin-Kellog provided architectural services for the project.
KELSO, WASH. — Grayson Pounder of Hendricks & Partners represented the seller, Corvallis, Ore.-based Jesse L. Coombs, in the disposition of Cowlitz River Duplexes. Located at 1420 Pacific Ave. N. in Kelso, the 26-unit property sold for $1.2 million. The buyer was Tualatin, Ore.-based David L. Nelson.
MONTEBELLO AND GLENDALE, CALIF. — Marcus & Millichap has brokered the sales of two multifamily properties in California. In the first transaction, an undisclosed buyer acquired The Greenwood Avenue Apartments in Montebello for $1.2 million. Located at 1324 S. Greenwood Ave., the seven-unit property features six three-bedroom/two-bath units and a four-bedroom/two-bath unit. Kevin Struve and Eric Chen of Marcus & Millichap represented the undisclosed seller in the transaction. In the second transaction, The Alameda Apartments in Glendale sold for $1.7 million or $186.31 per square foot. Located at 1119 Alameda Ave., the 9,288-square-foot property features 1,160-square-foot two-bedroom/two-bath units. Alan Krueger and Struve of Marcus & Millichap represented the seller in the transaction. Details of the buyer and seller were not released.
The Seattle market is currently experiencing the lowest tenant demand in 30 years. Both early stage companies and strong credit corporations are tightening their belts and are reluctant to commit capital. Large companies with strong credit usually look for cost saving consolidation opportunities, but unfortunately, this requires some up-front capital, which is being frozen by financially savvy executives. Many new developments commenced 2 to 3 years ago as Seattle was rated one of the top five real estate markets in the nation. Those projects broke ground without the foresight of the recession that followed. There are currently four new vacant office buildings complete or close to completion. Those buildings include West 8th, 1918 Stewart, 2201 Westlake and 1100 Eastlake. All of their anxious landlords and investors are competing for a small pool tenants. Additionally, the downfall of Washington Mutual has brought thousands of additional square feet onto market. JP Morgan Chase refuted most leases through its bankruptcy acquisition of Washington Mutual. This perfect storm of over supply totals more than 6,500,000 square feet of class A and B office space available for lease. The Eastside markets have been saved from excessive vacancy owing to Microsoft’s expansion last year. However, overall …
SAN FRANCISCO — Wells Fargo & Co. has closed an approximately $289 million Freddie Mac Portfolio for Simpson Housing LLP. The borrower will use the Freddie Mac Conventional Cash Purchase Program to refinance an 11-property multifamily portfolio. The 3,664-unit portfolio includes properties in Arizona, Colorado, New Mexico, Oregon, Washington, Texas and Virginia. The loan features a 7-year variable rate pool and 10+1- and 11+1-year fixed rate pools. Phil Morse and Chris Lubic of Wells Fargo Multifamily Capital in Mclean, Va., originated the transaction, which was a referral from John McKinney and Jeff Spratt of Wells Fargo Real Estate Banking Group.
SYLMAR, CALIF. — McCarthy Building Cos., serving as general contractor, has broken ground at Olive View-UCLA Medical Center for replacement and expansions of the hospital’s emergency services and acute care units in Sylmar. The $32 million project includes construction of a single-story, 41,000-square-foot addition on the north side of the existing facility. The emergency department building will feature 51 exam rooms, a radiology suite with fluoroscopy, general radiology, CT scan rooms, and registration and support areas. The acute-care unit, which will be dedicated to the treatment of tuberculosis, will include 15 negative pressure isolation rooms. Langdon Wilson Architects provided architectural services for the project, which will be delivered under a Guaranteed Maximum Price.
WILSONVILLE, ORE. — Locally-owned Costa Pacific Communities, in partnership with Arbor Custom Homes and Riverstone Property Management, is opening the Villebois Sunday Market at Villebois Village Center in Wilsonville. The market will feature locally based vendors, including Unger Farms, Canby Asparagus Farm, Ken & June’s Hazelnuts, Oregon City, Ore.-based Alita’s Garden and Red Dragon Nursery. Additional vendors include The Village Waffle Baker, SweeTreats, Humdinger Kettle Korn, JGelati Italian Ice, Haagenson’s Catering & BBQ Ribslayer To Go, Ilona’s Bead Werk and Sophisticated Beads.