Western

CBRE Arranges $2.2M Acquisition of Multifamily Building in Palm Desert, California

by Amy Works January 25, 2024

PALM DESERT, CALIF. — CBRE has brokered the purchase of an apartment property located at 73435 San Gorgonio Way in the Coachella Valley city of Palm Desert. A Los Angeles-based private investor acquired the asset from an undisclosed seller for $2.2 million, or $264 per square foot, in an off-market transaction. Dan Blackwell and Andrew Boukather of CBRE represented the buyer in the deal. Built in 1988, the two-story, 8,360-square-foot building offers 10 two-bedroom apartments with a patios or balconies, a community pool and garage parking.

January 25, 2024

Acquisitions Content Partner Features Loans Midwest Multifamily NAI Northeast Office Retail Southeast Texas Western

Previous Year’s Challenges Shape 2024 Outlook for Cap Rates, Investment Activity, Distressed Properties

by Sarah Daniels January 25, 2024

If NAI Global president and CEO Jay Olshonsky had to use one word to sum up the 2023 commercial real estate market, it would be “inactive.” The interest rate-fueled bid-ask spread stifled investment sales of all property types, and in the office sector especially, tenants avoided making any space decisions if they didn’t have to. One month into 2024, not much has changed. From an investment sales perspective, Olshonsky still sees properties offered at capitalization rates between 4 and 5 percent while interest rates are 6 percent or higher, which is prolonging the disconnect between buyers and sellers. Meanwhile, robust job creation well beyond today’s levels is needed to create the leasing demand that will reverse the office sector’s troubles in the new era of hybrid work. But that’s not likely to happen in 2024 as the tech sector, in particular, continues to lay off workers. “I’ve been in the real estate business a long time, and this is a cycle unlike most others,” says Olshonsky. “The biggest problem we have right now is mainly record-high office vacancy just about everywhere — certainly in the large cities — which we’ve never really seen before. On the investment side, lenders cannot …

January 25, 2024

Acquisitions California Multifamily Western

HGIT Acquires 249-Unit Hanover Diridon Apartments in San Jose, California

by Amy Works January 24, 2024

SAN JOSE, CALIF. — Hines Global Income Trust (HCIT) has purchased Hanover Diridon, a Class A multifamily property in San Jose. The buyer plans to rebrand the asset at Diridon West. Located at 715 W. Julian St., the seven-story property features 249 apartments in a mix of studios, one-bedroom and two-bedroom layouts with luxury finishes. Community amenities include a pool with cabanas, rooftop sky deck with cityscape views, fitness center, dog spa, an indoor/outdoor clubhouse and below-grade parking. Developed in 2021, the property is currently 95 percent leased. Terms of the transaction were not released.

January 24, 2024

Acquisitions California Retail Western

Unilev Capital Sells 151,709 SF Tri-City Retail Center in San Bernardino, California for $24.3M

by Amy Works January 24, 2024

SAN BERNARDINO, CALIF. — Unilev Capital has completed the sale of Tri-City Center, a shopping center in San Bernardino, to DPI Retail for $24.3 million. Built in 1987, the 151,709-square-foot property was fully occupied at the time of sale. Current tenants include 24 Hour Fitness, Curacao, Pollo Campero, Poke Bar, Barber, Cantos Jewelers and Pet World. Bryan Ley and Tim Kuruzar of JLL Retail Capital Markets represented the seller in the transaction.

January 24, 2024

California Development Industrial Western

Tejon Ranch Co. Breaks Ground on 700,000 SF Nestlé USA Distribution Center in California

by Amy Works January 24, 2024

TEJON RANCH, CALIF. — Tejon Ranch Co. has begun construction on a distribution center for Nestlé USA Inc., the world’s largest food and beverage company. The development is located on 58 acres of Tejon Ranch Commerce Center (TRCC) in Tejon Ranch, approximately 100 miles northwest of Los Angeles. The multi-story, 700,000-square-foot building will be fully automated to serve Nestlé’s portfolio and designed to support future growth and expansion plans. No official opening date has been announced, but Nestlé is targeting 2025 for initial completion of construction and 2026 for commencement of operations. TRCC represents more than 2.5 million square feet of industrial space either under construction or completed. Mac Hewett, Mike McCrary and Brent Weirick of JLL represented Tejon Ranch Co. in the 58-acre land sale transaction.

January 24, 2024

Acquisitions Hospitality Utah Western

Marcus & Millichap Brokers Sale of Two-Property Marriott Hotel Portfolio in Orem, Utah

by Amy Works January 24, 2024

OREM, UTAH — Marcus & Millichap has negotiated the sale of a two-property Marriott portfolio in Orem, just north of Provo. A limited liability company acquired the asset. The name of the seller and acquisition price were not released. The sale included TownePlace Suites Provo Orem and Fairfield Inn & Suites Orem, two four-story hotels sharing a total of 190 guest rooms. Located at 879 N. 120 West, the TownePlace Suites Provo Orem offers 100 guest rooms, and Fairfield Inn & Suites Provo Orem, located at 901 N. 1200 West, features 90 guest rooms. Adam Lewis of Marcus & Millichap handled the transaction.

January 24, 2024

Acquisitions California Industrial Western

BLP Acquires 57,671 SF Logistics Facility in Compton, California

by Amy Works January 24, 2024

COMPTON, CALIF. — Bridge Logistics Properties (BLP) has purchased an infill, last-mile logistics facility in Compton, just south of Los Angeles. Terms of the transaction were not released. Located at 1215 W. Walnut St., the 57,671-square-foot, rear-load warehouse features 25-foot clear heights, eight dock-high positions, a secured truck court and 83 parking spaces. The property is fully leased through June 2025. The asset is located adjacent to the 91 Freeway in Compton, with connectivity to the ports of Los Angeles and Long Beach, Los Angeles International Airport and downtown Los Angeles. Rob Flores and Brian Held of CBRE represented BLP in the deal.

January 24, 2024

Arizona Development Mixed-Use Top Stories Western

GTIS Partners, Clyde Capital Plan $250M Asante Trails Mixed-Use Project in Surprise, Arizona

by Kristin Harlow January 24, 2024

SURPRISE, ARIZ. — A joint venture between GTIS Partners and Clyde Capital has released plans for Asante Trails, a $250 million mixed-use project in Surprise, a suburb of Phoenix. The development will feature a build-to-rent community, retail space and a medical facility, all of which will be built across 90 acres of land. In conjunction with the land acquisition, GTIS and Clyde sold 20 acres within the project site to HonorHealth, one of Arizona’s largest hospital systems, to develop the medical facility. Additionally, 45 acres will be allocated to a joint venture between Clyde and Simon CRE for the development of a multi-phase retail center. GTIS will retain the 25-acre balance of the site for build-to-rent homes. GTIS and Clyde initially pursued the property in April 2021 and took the project through a rezoning and site planning approval process as they secured entitlements. The site is 40 miles northwest of downtown Phoenix, located along North 163rd Avenue and bound by U.S. Highway 60 and Pat Tillman Boulevard. It is directly across from a 175,000-square-foot retail center and is about one mile from a Loop 303 interchange, providing convenient access to the 303 industrial corridor. “We are excited about delivering more …

January 24, 2024

Acquisitions California Florida Retail Western

CBRE Arranges Sales of Nine Big Lots Retail Locations in California, Florida for $50.7M

by Amy Works January 23, 2024

LOS ANGELES — CBRE has brokered the sales of nine individual Big Lots-occupied retail properties to two buyer. Alex Kozakov and Patrick Wade of CBRE represented the seller, a large institutional investor, in the transactions. Robhana Group acquired four properties, totaling 117,494 square feet, for $23.6 million. The assets are: Reliable Properties purchased five locations, totaling 125,439 square feet, for $27.1 million. The properties are: The retail locations were part of a 25-property sale-leaseback portfolio acquired by a large institutional investor in 2023 with Kozakov and Wade representing the seller, Big Lots, in that transaction.

January 23, 2024

Acquisitions Arizona Industrial Retail Western

Capstone Acquires Two Commercial Properties in Tempe, Phoenix for $28M

by Amy Works January 23, 2024

PHOENIX AND TEMPE, ARIZ. — Capstone Advisors has purchased an urban core retail and entertainment property in Tempe and a flex industrial building in Phoenix. The names of the sellers were not released. Located at 420 and 501 S. Mill Ave. in Tempe, the retail and entertainment property consists of two buildings totaling 38,896 square feet. Capstone paid $22.2 million for the asset. At the time of sale, the property was fully occupied. Current tenants include Starbucks Coffee, Spinelli’s Pizza, Lotions & Potions, Bang Bang, Crispy Cones, Varsity Tavern, Rodeo Ranch and Low Key Piano Bar. In the second transaction, Capstone acquired a flex industrial building located at 16402 N. 28th Ave. in Phoenix for $5.8 million. Currently, the 51,680-square-foot building is used as a temperature-controlled, drop-ceiling office occupied by Kemper Insurance. Capstone plans to convert the building back to industrial use as soon as Kemper’s lease expires.

January 23, 2024

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