OCEANSIDE, CALIF. — Duhs Commercial has arranged the sales of two retail buildings located in Oceanside for a total of $8 million. In the first transaction, an undisclosed buyer acquired a 3,000-square-foot retail space at 1888 Oceanside Blvd. for $2.6 million. Austin Dias and Rick Wu of Duhs Commercial represented the buyer in the acquisition and lease to 7-Eleven, while Henry Lee of Autowash Brokers represented the undisclosed seller in the deal. Andrew Pierson of Cushman & Wakefield represented the tenant in the lease transaction. In the second deal, Dias and Wu arranged the $5.4 million sale of a 2,450-square-foot retail space at 1990 Oceanside Blvd. Henry Lee of Autowash Brokers represented the undisclosed lessee of the property.
By Chandler A. Larsen, Principal, Avison Young This year started off where 2019 finished for the Los Angeles office property sector – and that’s red hot! During the first two and a half months of the year, office space absorption was on pace to beat 2019. Rents were steadily increasing past $39.84 per square foot on an annual gross basis, record-high (psf) sales prices were recorded across product types and rising construction costs were complemented by a construction pipeline of more than 8 million square feet of office space. Suddenly, by mid-March, COVID-19 had taken hold in the U.S. and abruptly halted all the momentum the Los Angeles office sector had built up. However, the emergency interest rate cuts proposed by central banks across the globe have flooded markets with liquidity, helping to avoid contagion throughout the financial sector. This, in conjunction with the $170 billion in commercial investor relief included in the current stimulus package, points to the potential for a short downturn. Nevertheless, the jury is still out on just how long and how deep this slowdown will be as previously unimaginable unemployment numbers continue to be reported and economic forecasts are trending in the wrong direction. In …
In the realm of apartment market research, Seattle represents a bellwether of sorts these days, where broader trends and themes can be parsed. Seattle’s economy, population and real estate landscape have grown at rates previously considered impossible in a primary market. The city stands at the veritable intersection of technological and generational change — the corner of Large Cap Tech Boulevard and Millennial Street — and it has developed into the avatar of the infill, wood-frame mid-rise design touchpoint that defines so much of today’s urban apartment architecture. What happens here will reveal some of the trends likely to follow in similar markets — from Raleigh to Portland. Seattle was also the first major U.S. metropolitan market to grapple with the novel coronavirus, so the path that it follows will provide some insight into how the American multifamily market will mutate as we adjust to “life in the time of COVID,” to borrow a note from Garcia Marquez. By the same token, the Jet City faces the prospect of digesting an enormous multifamily supply pipeline that was, for the most part, conceived for the pre-COVID-19 world. The manner in which this supply is absorbed will speak volumes about how the …
RANCHO BERNARDO, CALIF. — Ryan Cos. has completed construction of Silvergate Rancho Bernardo, an 11-acre seniors housing campus in Rancho Bernardo, approximately 25 miles north of San Diego. AmeriCare Health & Retirement developed the community, which Ryan Cos. built. The development features of 20 cottages, 108 apartments, six penthouse units and 48 memory care units, and was 90 percent pre-leased. The apartments range from 400 square feet to 1,200 square feet, while the cottages run between 1,400 square feet and 1,600 square feet. Silvergate Rancho Bernardo is AmeriCare’s third development of its kind and is considered the company’s flagship community. Warner Design Associates handled interior design.
MESA, ARIZ. — Newmark Knight Frank (NKF) has arranged the sale of Shoppes at Legacy, a retail center located at 5609 E. McKellips Road in Mesa. An affiliate of YAM Properties sold the asset to Sperry Equities for $9 million, or $166.17 per square foot. Built in 2006, Shoppes at Legacy features 54,160 square feet of retail space. At the time of sale, the retail center was 90 percent occupied by a variety of tenants, including Cigna Medical Group and Pita Jungle. The transaction included a freestanding building occupied by Auto Zone on a triple-net lease and a Verizon cell tower. Jesse Goldsmith, Steve Julius and Chase Dorsett of NKF represented the seller and buyer in the deal.
OGDEN, UTAH — Trez Capital has closed two construction loans, totaling $12.1 million, for the development of two rental townhome communities along Canyon Road in Ogden approximately 40 miles from Salt Lake City. The two loans are part of Trez’s first financing agreement with the borrower, Lotus Co., to develop Class A affordable townhome rental properties. Construction for both properties, Foxridge and Whisperwood, began in January. Foxridge features 38,000 square feet of rentable space divided into 26 townhomes with two- and three-bedroom floor plans. Completion of Foxridge is slated for December. Totaling 57,000 rentable square feet, Whisperwood will feature 40 townhomes in a mix of two- and three-bedroom layouts. All units offer a high-end design with two-car garages and energy-efficient upgrades. Completion is scheduled for February 2021. Interiors of both properties will feature stainless steel appliance packages and custom kitchens with high-end countertops, upgraded plumbing and electrical fixtures and oversized windows. The properties will also offer residential community space, including barbecues, walking paths and gazebos.
SANGER, CALIF. — Fort Worth, Texas-based MAG Capital Partners has completed the acquisition and 20-year leaseback of a baby food manufacturing facility in California’s Central Valley. Led by Principals Dax Mitchell and Andrew Gi, MAG Capital purchased the fully leased property from Initiative Foods, a private label baby food manufacturer, for an undisclosed price. Located at 1945 Industrial Way in Sanger, the 28,500-square-foot property was built to suit for the tenant-seller, which produces more than 50 varieties of organic products made from locally sourced fruits and vegetables. The facility was completed in November 2019. Mary Garnett and Jim Tuesley of Barnes & Thornburg represented the buyer, while Chelsea Mandel of Stream Capital Partners represented the seller in the transaction.
COLORADO SPRINGS, COLO. — Ramshorn Investments has purchased Tech V, an office property located in Colorado Springs. Tech V LLC sold the asset for $7.9 million. Located at 5475 Tech Center Drive, Tech V features 54,174 square feet of office space. Taylor Stamp of Quantum Commercial Group represented the seller, while Michael Palmer and Paul Palmer, also of Quantum Commercial, represented the buyer in the deal.
By George Chronis, Senior Advisor, SVN/Walt Arnold Commercial Brokerage New Mexico retail has been negatively impacted by the state’s stay-at-home order due to the coronavirus. The retail industry was looking pretty promising with robust sales and leasing activity in 2019 and at the beginning of 2020 – New Mexico included. I thought we were off to a good start with several developments near completion, several in progress and several more to begin in 2020. The full economic impact of shuttering our economy for two months or more won’t be known for quite some time. General retail, gyms, restaurants and soft good retailers have been hit the hardest. I have recently consulted with landlords, tenants and developers who have active projects throughout the state. Developers and landlords in the Permian Basin have been hit especially hard by a double whammy. This includes New Mexico’s stay-at-home order, which was compounded by lower global demand for crude oil and the price war between Saudi Arabia and Russia. We shall see who emerges and reopens for business when the stay-at-home order is lifted. There will be some opportunities to expand for those who still have strong financial positions after all this passes. Many landlords …
Parent Company of Men’s Wearhouse, Jos. A. Bank to Shutter Up to 500 Stores, Cut Staff by 20 Percent
FREMONT, CALIF. — Tailored Brands, the parent company of professional menswear retailers Men’s Wearhouse and Jos. A. Bank, has announced a corporate restructuring that entails closing up to 500 stores. The Fremont-based firm says the “unprecedented and industry-wide” disruption caused by the COVID-19 outbreak was the catalyst behind the move. Tailored Brands has identified the 500 stores but did not disclose the retailers, locations or timing of those closures. Other brands in Tailored’s umbrella include K&G and Moores Clothing for Men. The company had 1,445 U.S. stores as of May 2, 2020 totaling 9.1 million square feet. Additionally, Tailored Brands (NYSE: TLRD) plans to cut expenses by reducing its staff by 20 percent by early August. The company expects severance payments and other termination costs to total $6 million. The economic harm stemming from the COVID-19 pandemic is having an outsized impact on the company’s revenue stream. In its first-quarter fiscal business update, Tailored Brands reported that for the period between Feb. 1 and May 2, net sales were down 60.4 percent year-over-year. Its e-commerce revenue, which includes rental services, was down 31.9 percent during the same period. Going forward the company will focus on its e-commerce platform and revised …