Western

320-W-Bell-Rd-Phoenix-AZ

— By Brian Polachek, Senior Vice President, SRS Real Estate Partners — The holiday season is upon us, and as 2023 draws to a close the real estate community turns its focus towards the future, particularly to what 2024 holds. Let’s look at recent developments and future expectations of the Phoenix retail market, a sector that has shown remarkable growth and resilience. Phoenix’s retail landscape has experienced a significant growth period, primarily due to a combination of factors including substantial population increases, strong consumer spending, minimal store closures and limited new retail space has been built. This surge in growth is largely attributed to Phoenix’s rising appeal as a place to live as well as a business-friendly environment. The influx of new residents and businesses has created a robust consumer base, driving up spending and providing a diverse market for retailers. Remarkably, the Valley has seen positive absorption for nine consecutive quarters, totaling 4.2 million square feet in the past year alone. As a result, Phoenix has become one of the leading U.S. markets in retail demand, bringing vacancy rates down to a record low of 4.5 percent, according to CoStar. This ongoing demand signifies not only the market’s current …

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9713-233rd-Ave-E-Bonney-Lake-WA

BONNEY LAKE, WASH. — Cascade RCL LLC has completed the disposition of The Cascade Building, a 10.3-acre industrial park at 9713 233rd Ave. East within Eastown Jobs Center in Bonney Lake, east of Tacoma. Walter E. Nelson Co. acquired the asset for $41 million. The buyer, a privately owned supplier and manufacturer of facility cleaning supplies and equipment, is relocating to the 184,000-square-foot property from its current location in Auburn, Wash. The Class A, tilt-up industrial building features modern amenities in a campus-like setting. Matt McLennan and Kraig Heeter of Kidder Mathews represented the seller in the deal.

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Oasis-Commerce-Center-Las-Vegas-NV

LAS VEGAS — Panattoni Development has broken ground on Oasis Commerce Center, an industrial development on South Rainbow Boulevard in Las Vegas. The project team includes Ware Malcomb, Westwood and Martin Harris Construction. Situated on 19.9 acres, the development will offer 422,000 square feet of Class A industrial space upon completion in fourth-quarter 2024. The cross-dock building will feature 36-foot clear heights and substantial trailer parking. CBRE’s Higgins/Toft/Zaher team is marketing the property for lease.

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HONOLULU — A subsidiary of Avalon Group, a real estate investment company, has purchased an 11.1-acre land parcel at 2707 and 2715 Pamoa Road in Honolulu for $23.3 million. Adjacent to the University of Hawaii at Manoa and three private schools, the site served as the Saint Francis School campus until 2019. The existing infrastructure totals more than 130,597 square feet, including classrooms, a meeting facility, dormitory, commercial kitchen, gymnasium, sports field and a large parking area. Norb Buelsing, Laurie Lustig-Bower, Peter Grossman, Scott Crockfield and Kadie Presley Wilson of CBRE represented the seller, Sisters of St. Francis of the Neumann Communities, in the transaction.

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Reserve-Woodinville-WA

WOODINVILLE, WASH. — PCCP has provided a $25 million loan to CapRock Partners for the acquisition of The Reserve at Woodinville, a Class A industrial asset located at 15902 Woodinville-Redmond Road NE in Woodinville, northeast of Seattle. Built in 2018 on 8.8 acres, the 159,869-square-foot property features 30-foot clear heights, 19 dock-high doors, four grade-level doors, 137 auto spaces, T-5 energy-efficient warehouse lighting and ESFR sprinklers. At the time of sale, the property was fully occupied by four tenants. Greg Brown, Peter Thompson and Kaden Eichmeier of JLL Capital Markets Debt Advisory secured the non-recourse loan for the borrower.

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HAILEY, IDAHO — Seattle-based BearRock Investments LLC has purchased Silvercreek Living, an assisted living community in Hailey, for $6.4 million. The buyer plans to convert the property into workforce housing. Hailey is a small city of fewer than 10,000 residents south of the Sun Valley-Ketchum metro area in Central Idaho. Located on McKercher Boulevard, the 24,600-square-foot asset consists of two 12,000-square-foot buildings, each offering 16 studio apartments and a large commercial kitchen. Paul Kenny of Paul Kenny & Matt Bogue Commercial Real Estate represented the buyer and undisclosed seller in the deal.

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Aspendale-Centennial-CO

CENTENNIAL, COLO. — Headwaters Group has broken ground on Aspendale Centennial, an active adult community in Centennial, a southern suburb of Denver.  The property will feature 172 age-restricted units in a four-story, 203,653-square-foot building. Live Oak Bank provided construction financing, and a programmatic institutional equity partner provided equity.  “This is a meaningful project, as it will be our first ground-up development since Headwaters Group’s inception in 2022,” says Ben Burke, managing partner at Headwaters Group. The focal point of the community will be a two-story clubhouse featuring 9,757 square feet of internal community amenity space. Construction is set to begin later this month, with pre-leasing starting in October 2024. Headwaters expects to deliver the first units in August 2025. Headwaters Group has three additional development sites under control in Colorado and four in Arizona, with plans to start projects on all four over the next 24 months. In 2023, Headwaters Group acquired an age-restricted apartment community in Salt Lake City.

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Broadway-Road-Portfolio-Phoenix-AZ

PHOENIX — Deer Park, Ill.-based Government Investment Partners (GIP) has acquired a two-building office portfolio, located at 3925 and 3945 E. Broadway Road in Phoenix, from The Simone Charitable Foundation for $17.4 million. The State of Arizona Department of Child Safety and Imani Wellness occupy the 75,148-square-foot building at 3925 E. Broadway Road, and the City of Phoenix occupies the 61,850-square-foot building at 3945 E. Broadway Road. Totaling 136,998 square feet, the portfolio was 88 percent occupied at the time of sale. Brian Ackerman of Colliers handled the transaction.

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SAN DIEGO — Thorofare Capital has provided $26 million in lease-up bridge financing for an apartment property located in San Diego’s Point Loma neighborhood. The newly built property features 82 apartments with best-in-class finishes and amenities. Felix Gutnikov, David Perlman, Andrew Kim and Jonathan Hart of Thorofare Capital secured the loan that features a one-year initial term plus extensions. Further details on the borrower and property were not disclosed.

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1780-W-6th-Ave-Denver-CO

DENVER — BKM Capital Partners has purchased West 6th Center, a light industrial property at 1780 W. 6th Ave. in Denver, for $10.7 million. BKM acquired the asset through a joint venture partnership with TerraCore Capital. Built in 1995, the facility features a 69,575-square-foot unit, a 29,745-square-foot unit and a 23,463-square-foot unit. The asset offers 16- to 20-foot clear heights, a small office component, 50,000 square feet of secured yard space, two oversized grade-level loading doors, 26 dock-high doors and five mobile metal ramps to convert select dock-high doors to drive-in doors. At the time of sale, three occupants fully occupied the 122,783-square-foot small-bay industrial building. BKM plans to invest $7 million into a value-add repositioning plan to modernize the asset. Plans include upgrades to the property’s roof, parking lots, HVAC systems, paint scheme, landscaping, signage and storefronts, as well as capital for speculative tenant improvements. The buyer plans to divide the 69,575-square-foot property and convert it into four smaller units to create six total units ranging from 20,464 square feet to 40,928 square feet. Alec Rhodes, Aaron Valdez and Raymond Trevisan of Cushman & Wakefield represented the undisclosed seller, while BKM represented itself in the deal.

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