Western

Share of Markets with Rising Apartment Cap Rates_460

Arbor Report Finds Rental Housing Insulated from Economic Contraction, Risk Factors Endure

by Sarah Daniels February 14, 2023

— By Ivan Kaufman, founder, chairman and CEO of Arbor Realty Trust, Inc.; and Sam Chandan, a professor of finance and director of the Chen Institute for Global Real Estate Finance at the NYU Stern School of Business Rental housing is uniquely positioned to withstand tremendous economic headwinds. Although some observers point to the slowdown in apartment rent growth as a sign of growing weakness, this trend is a cyclical feature that is not reflective of any structural change in the profile of demand or supply. It is normal to expect a period of slowing rent growth while there is uncertainty in the economic outlook. In-depth findings on these trends, plus a thorough economic outlook for 2023 and a complete breakdown of risk factors, are detailed in Arbor Realty Trust Special Report Spring 2023: Navigating a Corrective Environment, from which this article is excerpted. While no asset class is immune from the challenges of higher interest rates, the presence of amortization, which spreads out a loan into a series of fixed payments over time, makes the multifamily sector less likely to see mounting distress. All Department of Housing and Urban Development (HUD)-conforming multifamily loans are fully amortizing. Moreover, Fannie …

February 14, 2023

Colorado Development Mixed-Use Office Retail Western

Confluent Development Completes 127,000 SF Vectra Bank Corporate Center in Denver

by Amy Works February 13, 2023

DENVER — Confluent Development has completed Vectra Bank Corporate Center, a nine-story office building within Belleview Station in Denver. The 127,000-square-foot building brings together more than 200 employees from across the Denver metro area to serve Vectra Bank customers and facilitate the bank’s future growth. Vectra Bank Corporate Center features floors of office space and parking; a 4,300-square-foot conference center for employee training and hosting public events; and one floor of commercial retail space, including a Vectra Bank branch. Other features at the building include eight electric vehicle charging stations, bicycle storage, a greenspace with a large open-air patio on the sixth floor, café, grand fireplace and a lobby on the ninth floor. The project team included Open Studio Architectures, Weitz Co. and Provident Construction, as well as in-house entitlement experts at Confluent.

February 13, 2023

Acquisitions Multifamily Oregon Student Housing Western

Marcus & Millichap Negotiates Sale of 650-Bed Ducks Village Student Housing Community Near the University of Oregon

by Amy Works February 13, 2023

EUGENE, ORE. — Marcus & Millichap has arranged the sale of Ducks Village, a 650-bed student housing property located near the University of Oregon campus in Eugene. The 22-building community offers 230 units. Shared amenities include a renovated clubhouse, resort-style swimming pool, fire pits, a fitness center, basketball courts and a tanning booth. Joel Dumes and Patrick Mullowney of Marcus & Millichap represented the seller, a limited liability company, and procured the buyer in the transaction.

February 13, 2023

Acquisitions California Multifamily Western

Berkadia Brokers $20.3M Sale of YOLO West Apartments in Ventura, California

by Amy Works February 13, 2023

VENTURA, CALIF. — Berkadia has brokered the sale of YOLO West Apartments, a multifamily community located at 11114 Darling Road in Ventura. California-based NUWI Capital sold the asset to California-based Universe Holdings for $20.3 million, or $452,222 per unit. Adrienne Barr of Berkadia Los Angeles represented the seller in the deal. Built 2019, YOLO West Apartments features 45 one- and two-bedroom floor plans, including four live-work units, with in-unit washers/dryers and private balconies. Community amenities include a fitness center, a picnic and game area, and a clubhouse.

February 13, 2023

California Leasing Activity Multifamily Seniors Housing Western

Sherman & Roylance Arranges Two Leases for Skilled Nursing Facilities in Los Angeles

by Jeff Shaw February 13, 2023

LOS ANGELES — Sherman & Roylance has arranged new leases for two skilled nursing facilities totaling over 150 licensed beds in downtown Los Angeles. Sherman & Roylance sourced a selection of competitive offers and recommended the new tenant.

February 13, 2023

Acquisitions California Retail Top Stories Western

Bridge Group Investments, Steerpoint Capital Acquire 1.3 MSF North County Mall in Escondido, California

by Kristin Harlow February 13, 2023

ESCONDIDO, CALIF. — Bridge Group Investments and Steerpoint Capital have acquired North County Mall in Escondido, about 30 miles north of San Diego. Unibail-Rodamco-Westfield (URW) was the seller, according to the Escondido Times-Advocate. The sales price was undisclosed. Situated on almost 83 acres, North County Mall totals nearly 1.3 million square feet. Tenants include Target, Macy’s, JC Penney, 24 Hour Fitness, Forever 21, H&M, Apple, Cheesecake Factory, BJ’s Restaurant and Brewhouse, Black Angus Steakhouse, On the Border and more. The mall opened in 1986. Although no plans were released for changes under the new ownership, a press release from the City of Escondido — which owns most of the land on which the mall rests — said the buyers “are eager to bring new investment and retail opportunities to the mall and are committed to working with and supporting the local community.” The property is the fourth mall that Bridge Group Investments and affiliates have acquired in California over the past six months with support from Steerpoint Capital. Previous acquisitions include The Shops at Montebello in Montebello, Antelope Valley Mall in Palmdale and Northridge Mall in Salinas. Bridge Group Investments is the family office for the Mersho family, led by …

February 13, 2023

California Market Reports Office Western Western Market Reports

Rising Costs Create a Challenge for Inland Empire Office Landlords

by Jeff Shaw February 13, 2023

— By Kyle Yocum, first vice president, and Phillip Woodford, senior vice president, CBRE — The Inland Empire office market is experiencing a rise in cost, much like all sectors and markets throughout the U.S. As tenant improvement costs continue to increase, it’s becoming more and more challenging to find win-win situations with landlords and tenants. Landlords are having to increase their TI allocations, while tenants are having to show more flexibility as it relates to working with existing space. That, or they must cover a portion of the TI costs themselves or commit to longer-term leases to help the deal pencil for the landlord. Due to TI costs, both parties need to meet halfway and make concessions. I think one of the reasons our market has done well is that we are a smaller market. Most parties involved seem to understand the give and take needed to make deals pencil for both sides. Concessions are entirely contingent on TI costs, with landlords offering significant amounts of free rent and slight discounts on the rental rate if the TI costs are low. If a tenant is seeking major changes to the space, landlords are staying close to or at their …

February 13, 2023

California Development Multifamily Seniors Housing Western

Clearwater Living Opens 117-Unit Seniors Housing Community in Glendora, California

by Jeff Shaw February 10, 2023

GLENDORA, CALIF. — Clearwater Living has opened Clearwater at Glendora, a 117-unit assisted living and memory care community in Glendora. The property is a two-story, 117,000-square-foot property offering 88 assisted living and 29 memory support apartments with studio, companion, one- and two-bedroom layouts. It is the only assisted living and memory care community in Glendora, according to the developer. Clearwater at Glendora is the company’s 10th seniors housing community in California, Arizona and Nevada, with plans for additional developments in the pipeline.

February 10, 2023

Development Idaho Loans Multifamily Western

Hawkins Cos. Receives $56M in Construction Financing for Canyon Ridge Apartments in Boise

by Amy Works February 10, 2023

BOISE, IDAHO — Hawkins Cos. has obtained $56 million in construction financing for the development of Canyon Ridge, a five-building apartment property in Boise. Sunwest Bank provided the financing. Canyon Ridge will offer 287 apartments, a resort-style outdoor pool, dog park, two playgrounds, a 6,000-square-foot clubhouse, coworking lab, covered barbecue with indoor/outdoor fireplace, fitness center and other common areas. Preleasing is scheduled to begin in spring 2024, with completion slated for May 2025. Dave Karson, Chris Moyer, Paul Roeter and Meredith Donovan of Cushman & Wakefield’s equity, debt and structured finance team represented Boise-based Hawkins Cos. in the transaction.

February 10, 2023

Acquisitions California Industrial Life Sciences Western

BentallGreenOak Buys 119,591 SF R&D/Life Sciences Flex Building in Carlsbad, California

by Amy Works February 10, 2023

CARLSBAD, CALIF. — BentallGreenOak has acquired a R&D/life sciences flex building at 2210 Faraday Ave. within the Faraday Research Center in Carlsbad. Hill Cos. sold the freestanding asset for $35.7 million. The property consists of a single-story, 119,591-square-foot building with second-floor mezzanine space, 24-foot clear heights, dock and grade-level loading, heavy power and ample parking. Originally built in 1997, the property underwent significant renovates in 2005 and features existing life sciences and R&D buildout. Aric Starck and Drew Dodds of Cushman & Wakefield’s capital markets team in San Diego represented the seller in the deal. Don Trapani provided leasing advisory for the property.

February 10, 2023

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