LOS ANGELES — Los Angeles-based Colony Capital has entered into a definitive agreement to sell six of its hospitality portfolios to Highgate, a hospitality investment and management firm, for $67.5 million. The six portfolios consist of 22,676 rooms across 197 individual hotels. The transaction is expected to close in the first quarter of 2021, subject to customary closing conditions and third-party approvals. The portfolio, valued at $2.8 billion, includes the assumption of approximately $2.7 billion in consolidated investment-level debt. Moelis & Co. served as financial advisor to Colony Capital in connection with the transaction, and Willkie Farr & Gallagher LLP served as legal counsel for the seller. Latham & Watkins LLP served as legal counsel for the New York City-based buyer.
LA VERNE, CALIF. — Truist Financial Corp. has provided $42.4 million in financing for Hillcrest, a continuing care retirement community (CCRC) in La Verne, approximately 30 miles east of Los Angeles. The borrower was not disclosed. The funding will be used to refinance existing debt and support the construction of a new independent living component named Hawthorne Homes. The 24,000 square-foot addition will consist of 14 one-floor cottage and duplex units located on a 1.4-acre parcel on Hillcrest’s 50-acre campus. The new construction includes several environmentally friendly and sustainable features, including solar energy, rainwater reclamation, clerestory windows and energy-efficient appliances. Construction is scheduled to begin this week, and completion is set for summer 2021. Upon completion of the new units, the Hillcrest campus will consist of 240 independent living units, 48 assisted living units, 24 memory care beds and 59 licensed skilled nursing beds.
PHOENIX — Marcus & Millichap has arranged the sale of Sora on Rose, a multifamily property located at 6201 N. 16th St. in Phoenix’s Uptown neighborhood. The property traded for $14.5 million, or $157,609 per unit. Paul Bay of Marcus & Millichap represented the undisclosed seller, while Darrell Moffitt, also of Marcus & Millichap, represented the undisclosed buyer in the deal. Built in 1971 on 2.7 acres, Sora on Rose features 92 apartments with an average unit size of 815 square feet. Amenities include a clubhouse, laundry services, covered parking, swimming pool and a fitness center.
LOVELAND AND WINDSOR, COLO. — Woodward Inc. has completed the disposition of its research and development campus located at 3800 Wilson Ave. in Loveland. Concurrently, the company purchased a facility located at 753 Champion Drive in Windsor. The new campus is adjacent to Woodward’s existing Rocky Mountain Technology and Innovation Center (RMTIC). Southgate One sold the Windsor property to Woodward and acquired the Loveland facility. Terms of the transactions were not released. Peter Kast of CBRE’s Fort Collins, Colo., office represented Woodward in the trade. Woodward originally purchased the Loveland campus in 1991. Situated on 39.7 acres, the campus features 209,000 square feet of space. The campus was home to Woodward’s Air Valves Engineering & Testing department, which will relocate to the Windsor facility. Woodward is an independent designer, manufacturer and service provider of equipment for the aerospace and industrial sectors.
STANTON, CALIF. — Dan Almquist of Frontier Real Estate Investments plans to debut Rodeo 39 Public Market, a collection of eateries and retail spaces in Southern California, in mid-October. Located at 12885 Beach Blvd. in Stanton, Rodeo 39 will feature hangar doors that open up for an inside/outside setting, original artwork and murals from five different local artists and several first-to-market retail and restaurants concepts. The Rodeo 39 mix includes Banh Xeo Boys, Bearded Tang Brewery, Beleaf Burgers, Bestea, Dot & Dough, Fika Fika Creamery, Hook & Anchor, Joystix, Kra Z Kai’s BBQ, My First Kiss, Nandomo by HiroNori, Oi Asian Fusion, Phoholic, Primal Cuts, Pvsta Lab, Rodeo Bar, RTE, Shootz, Sizzle, Steel Pan Pizza, Skin Design Tattoos, Tenori, Orng Cnty, The Nail Boss, Utopia Studios, WNTD and ZeroUV. Additionally, Rodeo 39 will offer a seamless to-go ordering system called Rodeo39Go that allows for the choice of pick-up, curbside, delivery or contactless ordering via QR codes from tables within Rodeo 39 Public Market. Rodeo 39 is currently in the soft-open phase as tenants train their staff and team members. An official grand opening to the public is slated for Oct. 17 and 18.
SAN DIEGO — IQHQ Inc., a developer of life sciences real estate with offices in Boston and San Diego, will build the San Diego Research and Development District (The RaDD), a $1.5 billion campus that will be located along San Diego’s waterfront. IQHQ has secured various permits and entitlements and plans to break ground on the first phase of the project later this week. Completion of Phase I is scheduled for summer 2023. The RaDD will span eight acres and three city blocks, making it the largest urban commercial waterfront site on the California coast, according to the development team. Preliminary plans call for lab, office and retail space, specific amounts of which were not disclosed. The San Diego Union-Tribune reports that the project will consist of several mid-rise buildings and a 17-story tower, as well as a museum and several acres of green space and rooftop decks. The paper also reports that locally based developer Manchester Financial Group will retain ownership of a portion of the site and will develop a hotel on the campus. “The RaDD is exciting on so many levels — not only does it represent our first acquisition in San Diego, which IQHQ is proud …
TEMPE, ARIZ. — A joint venture between FCP and Tides Equities has purchased Solara at Mill Avenue, a multifamily community in Tempe. An undisclosed seller sold the asset for $77 million. Solara at Mill Avenue features 515 apartments in a mix of one- and two-bedroom layouts with updated kitchens, new cabinets, quartz countertops, wood-style flooring and large windows. Community amenities include a clubhouse, covered parking, dog park, fire pit, event lawn, swimming pool and 24-hour parcel/package concierge. Matt Pesch of CBRE brokered the transaction. Solara at Mill Avenue is adjacent to Tides at South Tempe, which the joint venture acquired in June.
CARSON, CALIF. — C.W. Driver Cos. has completed the construction of California State University, Dominguez Hills’ (CSUDH) Science & Innovation Building in Carson. The 87,000-square-foot facility features state-of-the-art laboratories, faculty offices and classrooms that will help prepare students for careers in science, technology, engineering and math. The $71.5 million building features sophisticated mechanical and plumbing systems, including special supply and return air ducting, more than 60 fume hoods, and extensive laboratory waste disposal systems. Additionally, electrical systems line every classroom, consisting of medium- and low-voltage utilities, data ports and audio-visual features. Toyota USA Foundation provided a $4 million grant to CSUDH that was used in part to fund the project. In recognition of the grant, the Toyota Center for Innovation in STEM Education was established in the building. The center features a fabrication lab, spaces for K-12 teaching demonstrations and training, SMART classrooms, collaborative workstations and an outdoor workspace. HGA Architects & Engineers served as architect for the project.
ISSAQUAH, WASH. — Costco Wholesale Corp. (NASDAQ: COST) has reported a 12.5 percent increase in quarterly net sales in its fiscal fourth quarter, which ended Aug. 30. Costco’s sales jumped to $52.9 billion from $46.4 billion last year. Costco also experienced a 91 percent jump in quarterly e-commerce sales, resulting in a 50 percent increase over the previous year. The company’s net income for the fourth quarter was $1.4 billion, compared with $1.1 billion last year, even though this year’s fourth quarter was negatively impacted by $281 million in costs related to COVID-19 — such as premium wages and sanitation protocols — and a $36 million pre-tax charge due to prepayment of a $1.5 billion in debt. Costco recorded $4 billion in net income for the fiscal year, up from $3.7 billion in the prior year. The company currently operates 795 stores across the globe, as well as e-commerce sites in the United States, Canada, the United Kingdom, Mexico, Korea, Taiwan, Japan and Australia.
GLENDALE, ARIZ. — Barclay Group and W.M. Grace Cos. have broken ground on 303 Logistics, a 349,663-square-foot speculative industrial building in Glendale. Fronting the Loop 303 freeway, the cross-dock facility will feature 36-foot clear heights, 75 dock-high and four grade-level doors, 52-foot by 50-foot column spacing, clerestory windows, R-30 insulation, and an ESFR sprinkler system. Additionally, the property will offer 89 trailer parking spaces and is expandable to 297 auto parking spaces on a fully graded and secure site. The project will be Foreign Trade Zone capable, offering up to 72 percent reduction in both real and personal property tax, duty deferral or elimination and reduced customs reporting entries. Completion is slated for second-quarter 2021. Butler Design Group is serving as architect and The Renaissance Cos. is serving as general contractor. Riley Gilbert, Anthony Lydon and Marc Hertzberg of JLL serve as the project’s leasing team.