Western

SAN DIEGO — Kilroy Realty Corp. (NYSE: KRC), an office, mixed-use and life sciences REIT based in Los Angeles, has obtained a $375 million loan for a portion of One Paseo, a mixed-use campus in San Diego. New York Life Insurance Co. provided the 11-year, non-recourse loan, which features a fixed 5.9 percent interest rate. The loan matures in August 2034. The 36-acre property is situated between the city’s Carmel Valley neighborhood and Del Mar, as well as near I-5 and State Route 56. One Paseo is home to tenants including lululemon athletica, Sephora, drybar, BodyRok, Harland Brewing, Shake Shack, Cava and Blue Bottle Coffee, among others. The loan was secured by a 23-acre portion of Kilroy Realty’s One Paseo campus that comprises two office buildings, 608 apartment units and more than 95,000 square feet of retail space. This portion was developed in phases between 2019 and 2021, according to Kilroy Realty. “Against a challenging capital markets backdrop, we are very pleased with this loan execution, which further fortifies our already strong balance sheet and liquidity position while establishing a new partnership with a world-class life insurance company,” says John Kilroy, CEO of Kilroy Realty. JLL and Allen Matkins advised …

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Cantata-Trails-Albuquerque-NM

— By Robert Gallegos, Senior Vice President, The Mogharebi Group — New Mexico is rapidly becoming an important multifamily market for both investors and developers as the state experiences explosive job and population growth, which is expected to continue on an upward trajectory over the next five to 10 years. While Albuquerque remains the most targeted multifamily market in the state, it is worth noting that the tertiary market of Santa Teresa — near El Paso and the Mexico border — is becoming a hotbed for multifamily investment.  Santa Teresa is a key inland port serving as a strategic focal point for intermodal shipments in the Southwestern U.S., with more than 6 million square feet of industrial space in use and nearly 1 million square feet under construction. As more jobs flood into New Mexico, the demand for quality rental housing will continue to far outstrip supply.  With a population of more than half a million people and counting, it is no wonder Albuquerque is seeing the bulk of investment activity. The city has drawn an influx of new residents thanks to its diverse economy, relatively affordable cost of living and quality of life. According to Numbeo, one of the largest cost-of-living …

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Parking Lot Aerial Bohler Shopping Center Retail

Shopping center owners and property managers throughout the United States are exploring opportunities to increase foot traffic by transforming excess parking into restaurants, entertainment venues, neighborhood amenities and even multifamily uses. “In our experience, nearly every shopping center that’s not grocery-anchored is going through a process to reassess the amount of parking they have, the amount of parking they need and alternative ways to develop those parking areas to add value,” says Cornelius Brown, a principal in the Pennsylvania offices of Bohler, a land development consulting and site design firm. With more than 30 offices across the Eastern and Central United States, Bohler has helped many of its clients with parking conversions ranging from single pad site creation to comprehensive, property-wide redevelopment. Municipalities Onboard Landlords have been carving out parcels for standalone retailers, restaurants and other uses for years, but the trend is accelerating as more and more municipalities ease minimum parking requirements. Parking-reduction advocates have argued that offering fewer spaces reduces environmental impacts associated with heat islands and stormwater runoff. Others contend it promotes the use of mass transit and ridesharing, which can reduce vehicle emissions and, in the case of bars and restaurants, may reduce incidents of impaired …

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PHOENIX — CapRock Partners has completed Phase I of CapRock West 202 Logistics in Southwest Phoenix.  The project spans 140 acres and 2.5 million square feet of Class A industrial warehouse space across five buildings. Colson Group USA has become the first tenant to sign a lease for 118,833 square feet of space. Josh Wyss with Cushman & Wakefield represented the tenant in the lease transaction. Payson MacWilliam and Don MacWilliam of Colliers International are leading the leasing efforts for CapRock West 202 Logistics. 

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WESTMINSTER, CALIF. — R.D. Olson has announced the groundbreaking of Bolsa Row Terrace, a new shopping and dining destination in Westminster’s Little Saigon District.  Spanning 26,211 square feet, the two-story retail development will feature shopping and dining options overlooking a landscaped courtyard with al fresco bistro seating. The architecture draws inspiration from Vietnam’s pre-war French colonial style, with elements like arches, ironwork, glass storefronts and a clock tower with a traditional mansard roof resembling Bến Thành Market.  Completion of Bolsa Row Terrace is scheduled for early 2024. This is R.D. Olson’s second phase of the six-acre project for developer IP Westminster. 

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RENO, NEV. — Montane Building Group has commenced tenant improvements at the headquarters of HDR, a company owned by NevDex Properties.  The project, located at 10615 Professional Circle, Suite 201, will span 3,882 square feet and include a modern office space featuring open work areas, private offices, a conference room, a mothers’ room and a break room.  HDR, known for its engineering, architecture, environmental and construction services, employs more than 11,000 people across 200 offices worldwide. The tenant improvement project is scheduled for completion in mid-August.

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PASADENA, CALIF. — PSRS has arranged the a $9.6 million loan to refinance debt on Renaissance Court, a mixed-use community in Pasadena, just northeast of Los Angeles.  Renaissance Court offers 41 multifamily units, including one- and two-bedroom apartments and two-bedroom townhomes. The property also includes nine ground-level retail units.  Kostas Kavayiotidis arranged the non-recourse loan through a life insurance company. The financing features a 10-year term and 30-year amortization.

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ROCKLIN, CALIF. — Circle K has signed a 3,700-square-foot lease at University Square, a 10-acre, mixed-use development currently underway in the Sacramento suburb of Rocklin.  Upon completion, the convenience store and gas station will be situated on a site featuring more than 20,000 square feet of retail space and 5,000 square feet of space for quick-service restaurants.  LRE & Cos. is the developer and landlord. The project is scheduled for completion in late 2025. 

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RANCHO SANTA FE, CALIF. — Steve Hermann Hotels has sold The Inn at Rancho Santa Fe, an 85-room luxury boutique resort in Rancho Santa Fe, a northern suburb of San Diego. An institutional investment fund purchased the asset for $100 million.  The resort is currently undergoing a comprehensive renovation and should be fully operational by the end of this year.  Sonnenblick-Eichner Company represented the seller.

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GARDEN GROVE, CALIF. — Driver SPG, a division of C.W. Driver Companies, has started construction of the St. Callistus Chapel and Crypts, a new worship space located underneath Christ Cathedral in Garden Grove.  The $14.5 million chapel, designed in a modern Byzantine architectural style, will feature sacred art from Granda of Madrid, Spain, and will accommodate 220 people with a marble altar for masses and devotional shrines on each side.  The project is scheduled for completion by summer 2024. It will include hundreds of niches and burial spaces for generations of Diocese of Orange bishops.

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