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 …
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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.
Dwight Capital Provides $36.2M HUD Loan for Willina Ranch Apartments in Bothell, Washington
by Amy Works
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.
PHOENIX — Fort Worth, Texas-based MAG Capital Partners has purchased an industrial facility located at 2525 E. Beardsley Road in Phoenix. The asset was acquired for an undisclosed price in a sale-leaseback transaction with Arizona Natural Resources (ANR), the current tenant. Built by ANR in 1992, the two-story, 130,656-square-foot building features office, warehouse and research space on a 5.4-acre site. ANR, which Chicago-based CORE Industrial Partners acquired in June, develops and manufactures skin, home and haircare products. Mary Garnett and Jim Tuesley of Barnes & Thornburg LLP represented MAG Capital Partners, led by principals Dax Mitchell and Andrew Gi. J.C. Asensio, Briggs Goldberg, Andrew Sandquist and Tyrell McGee of Newmark Knight Frank’s Chicago office represented the seller, CORE Industrial Partners, in the transaction.
MARICOPA COUNTY, ARIZ. — Phoenix-based Drexler Enterprises has completed the disposition of a 12.3-acre development site located at the northwest corner of Loop 202 and Baseline in Maricopa County. LGP Enterprises, a commercial developer, acquired the site for $2.2 million. Zoned for commercial development, the land parcel is part of a new stretch of the Loop 202. Details on the buyer’s plans for the site were not disclosed. Brian Rosella of Kidder Mathews represented the seller in the transaction.
DeBartolo Development, SKK Development Sell Press at Midtown Quarter Multifamily Complex in Sacramento for $118M
by Amy Works
SACRAMENTO — Tampa-based DeBartolo Development and SKK Developments have completed the disposition of The Press at Midtown Quarter, an apartment community located in Sacramento’s Midtown district. San Rafael-based Oakmont Properties acquired the asset for $118 million. Marc Ross of CBRE brokered the sale, while Andrew Behrens of CBRE’s Debt and Structured Finance group arranged financing for the buyer. Completed in June 2020, The Press at Midtown Quarter features 277 apartments and 8,600 square feet of ground-floor retail space. Amenities include a two-level coworking space; fitness center and yoga studio; rooftop lounge; pet spa and run area; bike lounge with repair and wash stations; car wash; and car charging stations. Additionally, the property offers an acre of outdoor community space with a heated swimming pool, community garden, bocce court, outdoor kitchens and fire tables with lounge seating.
HILLSBORO, ORE. — Shelter Holdings has completed the sale of Meadows at Heron Creek, a garden-style multifamily community in Hillsboro. RISE Properties Trust, a Canadian real estate investment trust with offices in Vancouver and Seattle, acquired the asset for $48.2 million, or $270,786 per unit. Built in 2012, Meadows at Heron Creek features 178 apartments, ample parking and greenbelt and transit accessibility. Anthony Palladino, Giovanni Napoli and Philip Assouad of Institutional Property Advisors, a division of Marcus & Millichap, facilitated the transaction between the seller and buyer.
NewMark Merrill Acquires 182,193 SF The Shops at SouthBay Pavilion in Carson, California
by Amy Works
CARSON, CALIF. — Woodland Hills-based NewMark Merrill Cos. has purchased The Shops at SouthBay Pavilion, a multi-building retail complex in Carson. Seritage SRC Finance sold the asset for an undisclosed price. Burlington, Ross Dress for Less, Sola Salons, Norms Restaurant, Chipotle, Smashburger, Jersey Mike’s Subs, Buffalo Wild Wings and Olive Garden are tenants at the 182,193-square-foot retail property. IKEA, Target, Cinemark Theatres and JCPenney anchor the balance of the 1 million-square-foot mall. Sandy Sigal, Jim Patton and Brad Pearl provided in-house representation for NewMark Merrill, and Seritage SRC Finance worked directly with NewMark Merrill to consummate the transaction.
WEST COVINA, CALIF. — Waterford Property Co. has acquired Marketplace at the Lakes, a value-add retail property located at 904-907 Lakes Drive in West Covina. CIM Group sold the asset for $18.6 million. Built in 1994 on seven acres, Marketplace at the Lakes features 95,628 square feet of retail space. At the time of sale, the property was 80 percent occupied by Michaels and Jerome’s Furniture. In November 2015, Waterford acquired The Lakes, an office campus adjacent to the recently purchased retail center, and repositioned the property into a Class A office project for small to mid-size tenants. The acquisition of Marketplace at the Lakes allows for the possibility to redevelop the retail asset into a multifamily property, which Waterford says offers more opportunities.