LOS ANGELES — Los Angeles-based Pacific Oak Strategic Opportunity REIT has completed its previously announced merger with Pacific Oak Strategic Opportunity REIT II in a stock-for-stock transaction, creating a combined company with more than $2 billion in gross real estate and real estate-related assets. The new company has retained the name Pacific Oak Strategic Opportunity REIT. “We believe the merger creates a stronger and more robust company, and provides significant benefits to stockholders, including improved access to capital markets and reduced operating costs,” says Keith Hall, CEO and a director of Pacific Oak Strategic Opportunity REIT. Houlihan Lokey acted as financial advisor to Pacific Oak Strategic Opportunity REIT’s special committee of the board of directors and SunTrust Robinson Humphrey acted as financial advisor to Pacific Oak Strategic Opportunity REIT II’s special committee of board of directors. Morrison & Foerster LLP, Rogers & Hardin LLP and DLA Piper LLP (US) served as legal counsel in the transaction.
LONE TREE, COLO. — Colorado Springs-based Griffis/Blessing has completed the disposition of Lofts at Lincoln Station, a four-story apartment building located at 9375 Station St. in Lone Tree. Boston-based Eaton Vance acquired the property for $30.5 million. Built in 2015, Lofts at Lincoln Station features 102 apartments in a mix of one- and two-bedroom layouts, with an average unit size of 787 square feet. Community amenities include a clubhouse, fitness center, dog wash station, outdoor kitchen and outdoor wading pool with two spas. Dan Woodward, David Potarf, Matt Barnett and Jake Young of CBRE Capital Markets in Denver represented the seller in the deal.
TUCSON, ARIZ., AND OKLAHOMA CITY, OKLA. — Gantry has secured $86.5 million in refinancing for a seven-property multifamily property in Arizona and Oklahoma. Patrick Barkley, Chad Metzger and Kevin Valenzuela of Gantry represented the borrower, BWL Properties, in the transaction. Wells Fargo arranged the 10-year Fannie Mae loans with five years of interest-only payments. Totaling 1,601 units, the seven apartment communities were built between 1972 and 1985.
SAN DIEGO — Padma Laxmi has purchased an 85,824-square-foot industrial facility located at 10054 Old Grove Road in San Diego’s Scripps Ranch community. CapRock Partners sold the asset for an undisclosed price. Constructed in the early 1980s, the property underwent an extensive renovation in 2018 to bring the property to Class A status. The plan included high-quality finishes throughout, a new roof, a redesigned office area, new drought tolerant landscaping and an updated entry way. Situated on 5.5 acres, the property features a secured yard area, heavy power and an above-average clear height. At the time of sale, the facility was fully leased. Bryce Aberg, Jeff Cole, Jeff Chiate, Ed Hernandez, Mike Adey and Zach Harman of Cushman & Wakefield’s National Industrial Investment Advisory Group in Southern California represented the seller in the transaction. Brant Aberg, also of Cushman & Wakefield, provided leasing advisory services for the property.
TORRANCE, CALIF. — Oakmont Senior Living has opened Oakmont of Torrance, an assisted living and memory care community in the South Bay region of Los Angeles County. Oakmont of Torrance is the first of several Oakmont communities to open during the 2020 pandemic. Guests at the grand opening event were required to RSVP, wear masks, social distance and follow safety precautions. The 106,613-square-foot community sits on nearly two acres and features 55 assisted living units and 32 memory care units.
SOUTH GATE, CALIF. — Marcus & Millichap has arranged the sale of a retail building located at 8700-8730 Santa Fe Ave. in South Gate. A private investor acquired the asset for $2.8 million. The 21,161-square-foot property comprises three commercial parcels and one residential parcel. The buyer plans to operate a retail business at the property. Derek Caldwell of Marcus & Millichap represented the undisclosed seller and secured the buyer in the deal.
By Daniel J. Hogan The economic impact of the COVID-19 pandemic has been felt more severely in Southern California than in most areas of the country. The Southland’s high concentration of employment in the tourism and entertainment sectors made it especially vulnerable to the effects of social distancing protocols and the reluctance of many to board commercial aircraft. Not only were job losses particularly acute in the initial months of the pandemic — the subsequent recovery has been lethargic. The rate of unemployment for July in each of the four large Southern California metropolitan markets remained materially above the national average, and in the case of Los Angeles County (18.2 percent) was the highest of any metropolitan area west of the Hudson River save for Yuma and El Centro. As it always has, Southern California will recover and is likely to do so in even more spectacular fashion than before. In the interim, how can multifamily investors position themselves to prosper? San Diego is the ideal market to scrutinize possible changes in renter behavior during the pandemic and consider their potential investment implications. Indeed, a deep dive into this market may provide clues to some of the great mysteries of …
PORTLAND, ORE. — Oregon Transfer Co. has completed the disposition of the Purdy Brush Building, located at 13201 N. Lombard St. in Portland’s Rivergate Industrial District. The name of the buyer and acquisition price were not released. The Purdy Brush Building has served as the global headquarters and primary paintbrush manufacturing facility of Purdy, a consumer brand company of Sherwin-Williams, since 1985. Originally built in 1980 on a 9.5-acre site, the property features 95,468 square feet, 192 parking spaces, yard storage and two acres of excess land. Paige Morgan and Charles Safley of CBRE Capital Markets represented the seller in the deal.
BAKERSFIELD, CALIF. — The Mogharebi Group (TMG) has arranged the sale of Pine Brook Apartments, a multifamily property located at 5000 Belle Terrace in Bakersfield. A Northern California-based private capital investor acquired the asset for $22 million. Mark Bonas of TMG represented the seller, a long-time owner based in Southern California. Built in 1971 on a 9.2-acre site, Pine Brook Apartments features 240 apartments, two swimming pools and spas, a fitness center, garages, covered parking, a leasing center, community clubhouse, outdoor barbecue stations and laundry facilities.
BOTHELL, WASH. — Dwight Capital has provided a $36.2 million HUD 223(a)(7) loan for Willina Ranch Apartments, a multifamily property located in Bothell. The refinance includes a Green Mortgage Insurance Premium (MIP) Reduction set at 25 basis points as the property is Energy Star certified. Josh Sasouness and Josh Hoffman of Dwight Capital originated the transaction. Built in 2000, the property features 175 apartments, a swimming pool, business center, clubhouse and fitness center.