CITY OF INDUSTRY, CALIF. — CapRock Partners has acquired Valley Center Business Park, a 6.5-acre, multi-tenant industrial complex in the City of Industry. The property includes about 92,366 square feet of industrial warehouse space across six buildings. It is strategically positioned for value-add investment in the heart of San Gabriel Valley’s industrial market. CapRock plans to enhance the property’s functionality and marketability through immediate capital improvements.
ESCONDIDO, CALIF. — Express Dry has acquired a 14,000-square-foot industrial building located at 1449 Simpson Way in Escondido for $4.4 million. The purchase was made under the entity Expressunits1449 LLC. The building will facilitate the company’s expansion plans in the Escondido submarket of North San Diego County. JLL’s Chris Baumgart represented the buyer. San Diego Commercial represented the seller, Marky Sparky Toys.
SAN DIEGO — Phase 3 Real Estate Partners has signed three new leases with life sciences companies at GENESIS-Del Mar, an 86,000-square-foot lab building in the Del Mar Heights submarket of San Diego. The building is located at 12250 El Camino Real. The new biotech companies, Mabwell Therapeutics, Genece Health and Lygos, will occupy spaces ranging from 4,000 square feet to 12,000 square feet. JLL’s Chad Urie, Grant Schoneman and Taylor DeBerry represented Phase 3 Real Estate Partners in the three lease transactions.
— By Jerry Holdner, Avison Young — Southern California Region Lead, Innovation & Insight, AVANT — The San Diego office market is starting to show signs of weakness. Unemployment remains low, but it is important to highlight that job creation has been uneven. The bright spot is that high-value-added jobs in a broad range of sectors, such as scientific research, medical products and pharmaceutical development continue to grow, which bodes well for San Diego. We are still uncertain about a recession. It could be short and shallow like many are predicting, or we could be in for a period of monumental headwinds. Investment sales have retreated as interest rates increased, and office workers have been reluctant to return to the office. This has created an uncertain picture of our office market going forward. The rise and future uncertainty of the pace of inflation has caused many to take a “pencils down” approach. This has caused many to slow, pause or even halt their dealmaking, growth, capital investment and development efforts as the ability to borrow funds has become difficult. San Diego’s office vacancy currently stands at 12.3 percent, and 18.9 percent of the total office market is available (including sublease …
PHOENIX — CBRE has arranged the sale of Clarendon Park, a 138-unit multifamily community in Phoenix. WhiteHaven, a Phoenix-based private equity firm, purchased the property for $37 million. Matt Pesch, Austin Groen, Jeff Seaman and Bryson Fricke represented the undisclosed seller. Anthony Valenzuela of CBRE Phoenix Debt & Structure Finance arranged the deal’s financing. Clarendon Park offers one- and two-bedroom apartments. Community amenities include a recently renovated fitness center, remodeled clubhouse and leasing center, pool area, new package lockers and a dog park.
CARLSBAD, CALIF. — CBRE has brokered the $23.5 million sale of three restaurant properties in Carlsbad. Reg Kobzi, Michael Peterson, Joel Wilson, Philip Voorhees, Megan Lanni and Eric Shain of CBRE represented the seller, CPT/SC Title Holding Corp., in the disposition of the properties to separate buyers. Creekside Shops LLC purchased a 10,262-square-foot building leased to King’s Fish House at 5625 Paseo Del Norte for $10.3 million. An undisclosed buyer purchased a 7,166-square-foot P.F Chang’s located at 5621 Paseo Del Norte for $5.7 million. K Ishii Manhattan Ave LLC acquired a 10,470-square-foot B’s Restaurant property located at 5613 Paseo Del Norte for $7.5 million. Shaun Riley with Faris Lee Investments represented the buyer in the transaction.
LOS ANGELES — JLL has arranged an undisclosed amount of financing for USC Expo, a 260-bed student housing development located near the University of Southern California campus in Los Angeles. Greg Brown and Zane Sweet of JLL worked on behalf of the borrower, Mosaic Investment Partners, to secure both joint-venture equity and mezzanine financing from HC2 Capital, as well as a senior construction facility from Calmwater Capital. The seven-story community is scheduled for completion in spring 2025 and will offer fully furnished studio, one-, two-, three- and four-bedroom units. Shared amenities will include a rooftop swimming pool, second-floor amenity deck, fitness center, computer room and dog park.
FREMONT, CALIF. — Marcus & Millichap Capital Corp. has arranged a $4.6 million loan for the acquisition of a single-tenant retail property located in Fremont. Ron Balys of Marcus & Millichap arranged the 10-year financing on behalf of the undisclosed borrower. Red Lobster occupies the property.
ORANGE, CALIF. — CBRE arranged the $1.6 million sale of a four-unit multifamily community located at 224 S. Oak St. in Orange. The fourplex was built in 1957 on a 10,809-square-foot site. The property offers one- and two-bedroom units, as well as four garage parking spaces and four tandem spaces. Dan Blackwell, Sean Farag and Amanda Fielder represented the Orange County-based 1031 exchange seller.
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Lee & Associates’ Second-Quarter 2023 Economic Review by Sector
Lee & Associates’ newly released 2023 Q2 North America Market Report outlines industrial, office, retail and multifamily outlooks trends in the United States. This sector-based review of commercial real estate trends for the second quarter of the year examines the difficulties facing each property type and where opportunities in the landscape may be emerging. Troubles with absorption dogged each sector, with the exception of retail, throughout the first half of 2023. Scheduled deliveries for industrial, office and multifamily indicate this trend will continue throughout much of the United States for the foreseeable future. Lee & Associates has made the full market report available here (with further breakdowns of factors like vacancy rates, market rents, inventory square footage and cap rates by city). The summaries from each sector below provide high-level considerations of the overall outlook and challenges in the market. Industrial Overview: Industrial Growth on Track for Least Gain in Years In a reversal from the ballooning logistics capacities required during the pandemic, demand for industrial space has slowed across North America. After continuously rebuilding inventories from the fall of 2021 through the third quarter of last year, many retailers and wholesalers are taking a breather, pausing further inventory accumulation out of caution over …