PHOENIX — DWG Capital Partners has purchased an industrial facility, located at 3420 W. Catalina Drive in Phoenix, for an undisclosed price. The sale-leaseback deal includes a new, 15-year, triple-net lease with the seller, Rembrandt Stone Masters. The stone fabrication company occupies the 29,600-square-foot property, which is situated on 1.7 acres. Founded in 1996, the company operates a state-of-the-art facility with leading-edge CNC machinery and technology supported by a team of craftsmen and artisans. Dugan Kelley of Kelley Clarke PC represented the buyer, while Steve Lowe and Oscar Lopez of Matthews Real Estate represented the seller in the transaction. WaFd Bank provided acquisition financing, which Jim McCann arranged.
Western
JOHNSTOWN, COLO. — Buc-ee’s has unveiled plans to enter the Colorado market with a travel center in Johnstown, approximately 60 minutes north of Denver. The development, which is the company’s first location outside of the South, is set to open in 2024. Located south of Weld County Road 48 and west of Interstate 25, the 74,000-square-foot Buc-ee’s Johnstown will offer 120 fueling positions and a store with thousands of snack, meal and drink options, including Texas barbecue, homemade fudge, kolaches, jerky and fresh pastries, for travelers. The location will be the most western and highest altitude Buc-ee’s to date. Founded in 1982, Buc-ee’s has 35 stores across Texas. The company begin its multi-state expansion in 2019 and now has locations in Florida, Georgia, Alabama, South Carolina, Kentucky and Tennessee.
Pacific Coast Commercial Negotiates $8.2M Sale of Shopping Center in El Cajon, California
by Amy Works
EL CAJON, CALIF. — Pacific Coast Commercial has arranged the sale of a multi-tenant retail center located at 701-777 Broadway in El Cajon. Broadway Center Associates sold the asset to Alcatraz475 LP/Birch8330 LP for $8.2 million, or $323 per square foot. At the time of sale, the 25,460-square-foot property was 95 percent leased to a mix of local and regional retail tenants. Brian Crepeau and Vanessa Reza of Pacific Coast Commercial represented the seller, while Bing Udinsky of The Udinsky Group represented the buyer in the deal.
By Mark McAdams, Vice President, JLL While the Inland Empire is more well-known for its industrial real estate, the region’s office market has continued with its own success and stability pre- and post-COVID. As employees of office buildings seek refuge from high home prices in neighboring Los Angeles and Orange counties, occupiers equally appreciate the accommodating office rental rates while supporting their employee’s draw to the region. The current office market is in nearly the same place it was at the end of the first quarter of 2020 when COVID appeared on the scene. The overall market vacancy rate stands at 7.8 percent. Some of the submarkets have lower vacancies today than in the first quarter of 2020. Some smaller submarkets have seen even lower vacancy rates down to unprecedented levels at 3 percent to 5 percent. Only one submarket, San Bernardino, has a double-digit vacancy rate at 12.6 percent, and that is still considered healthy. Anything sub-10 percent is generally considered a landlord’s market. These are historically low vacancy rates that have rarely been seen since the area started developing the bulk of its office inventory in the mid-1980s. The pandemic put a hold on rental rate increases that had …
Confluence Cos. Sells Lydian Mixed-Use Building in Denver to Cohen Rojas Capital Partners for $66.2M
by Amy Works
DENVER — Confluence Cos. has completed the disposition of The Lydian, a Class A mixed-use property located at 2590 Welton St. in Denver. Cohen Rojas Capital Partners acquired the asset for $66.2 million. Built in 2018, The Lydian features 129 apartments; 8,176 square feet of ground-floor retail space occupied by a yoga studio and upscale cocktail lounge; 14,500 square feet of designated co-working office space; a rooftop lounge and pool; fitness center; coffee bar; underground parking; and bike storage. Twenty-two of the apartments are rent restricted for those earning up to 80 percent of area median income. Dan Woodward, Dave Potarf, Matt Barnett and Jake Young of Walker & Dunlop Investment Sales completed the sale on behalf of the seller. Justin Nelson and Jay Thomas of Walker & Dunlop’s Capital Markets Group arranged the acquisition financing for the buyer.
LOS ANGELES — CMCT has purchased the Rolf K. McPherson building, an eight-story office property located at 1910 W. Sunset Blvd. in the Echo Park neighborhood of Los Angeles. Foursquare Church sold the asset for $51 million. Situated on 1.2 acres, the building features 99,761 square feet of office space, ground-floor retail and on-site parking. Built in 1965, the property features floor-to-ceiling windows offering 360-degree views of Echo Park and downtown Los Angeles. CMCT plans to upgrade the property into a creative office space catering to entertaining, media and technology companies. Lee Black and Veronica Black of Keller Williams Commercial represented both the buyer and seller in the transaction.
LAS VEGAS — Sahara Development has completed the disposition of The Gateway on The Strip, a retail center located in the heart of the Las Vegas Strip. KB Gateway on the Strip LLC acquired the property for $57 million. Constructed in 2015 at 2427 S. Las Vegas Blvd., Walgreens anchors the property with a long-term lease through 2040. At the time of sale, the asset was 42 percent occupied. The 1.8-acre center features a freestanding parking garage, additional income via electronic billboard contracts, an upper-deck patio and an unrestricted gaming license. Chris Clifford, Steve Neiger and Brett Rather of Colliers represented the seller in the deal.
Parkview Financial Provides $42.5M Loan for Acquisition, Redevelopment of Hotel Elegante in Colorado Springs
by Amy Works
COLORADO SPRINGS, COLO. — Parkview Financial has provided a $42.5 million loan to Austin, Texas-based Shir Capital for the purchase, redevelopment and repositioning of Hotel Elegante, a hotel at 2886 S. Circle Drive in Colorado Springs. Built in 1974 on 17 acres, Hotel Elegante features 496 guest rooms, a conference center, restaurant, pool and lounge. With the sale complete, Shir Capital has a planned phased renovation for the common areas, as well as the conversion of the rooms to studio apartments over the next 24 months. Working within the current room layouts, Shir Capital will add kitchenettes and closets, and perform upgrades to modernize the rooms. The units are approximately 350 square feet and all utilities will be included in the rent. Additionally, the 29,600-square-foot conference center will be converted into self-storage, which a third-party operator will manage. Malcomb Davies and Zack Streit of The Davies Group at Los Angeles-based George Smith Partners arranged the financing on behalf of the borrower.
Walton Street Capital Affiliate Buys 183,000 SF Manufacturing Facility in Woodland Hills, California
by Amy Works
WOODLAND HILLS, CALIF. — An affiliate of Walton Street Capital has purchased the former Catalina Yachts headquarters, a manufacturing facility located at 21200 Victory Blvd. in Woodland Hills. Terms of the transaction were not released. Developed in the 1960s, the 183,000-square-foot asset consists of two structures with low coverage, ample vehicular access and flexibility, and 31.5-foot clear heights. The buyer plans to improve the main existing structure to a Class A industrial building with the intention of accommodating multiple users and uses. With access to CA-27 and US-101, the property services a population base of 5.4 million people within a 25-mile radius.
Orange County’s Multifamily Market Stays Strong as New Inventory May Curb the Supply-Demand Imbalance
by Jeff Shaw
By Peter Hauser, Principal, Avison Young The Orange County multifamily sector is extremely strong. Rents continue on a positive upward trend and occupancies remain very high, hovering around 97 percent. It is unquestionably a landlord’s market. Many years of supply constrained NIMBY-ism that created the lack of new construction is coming to an end, however. The California governor has mandated that cities approve quality residential developments with the goal of increasing density and combatting the significant housing shortage. There are currently 6,800 new multifamily units in the process of being delivered. While there are projects in the majority of cities, Irvine, Anaheim, Orange and Santa Ana are seeing the most development activity. Some very active Orange County developers include Trammel Crow Residential, Alliance, the Irvine Company, Western National Group, JPI, Wermers Companies, Avalon, Fairfield, Shopoff Realty and Garden Communities. Alliance Residential is nearly complete on its 1,221-unit Park & Paseo in Santa Ana, near the border of the master-planned Tustin Legacy community. Wermers Companies is also in the process of finishing the 603-unit Elan, located less than a mile from downtown Santa Ana near the intersection of the 55 and 5 freeways. The 653-unit Avalon Brea Place is starting to …