Western

Nordstrom to Permanently Close 16 Stores, Plans Phased Reopening for Others

by Amy Works May 7, 2020

SEATTLE —Nordstrom plans to permanently close 16 of its 116 full-line stores, with the company incurring the non-cash impairment charges associated with the closures. The clothing retailer hopes the closures will better position it for the long-term retail landscape at the end of the COVID-19 pandemic. The list of stores was not released. “We’ve been investing in our digital and physical capabilities to keep pace with rapidly changing customer expectations,” says Erik Nordstrom, CEO of Nordstrom Inc. “The impact of COVID-19 is only accelerating the importance of these capabilities in serving customers.” “More than ever, we need to work with flexibility and speed,” he adds. “Our market strategy helps with both, bringing inventory closer where customers live and work, allowing us to use our stores as fulfillment centers to get products to customers faster, and connecting digital and physical experiences with services like curbside pickup and returns.” The retailer is also restructuring its regions, support roles and corporate organization for greater speed and flexibility. This restructuring is expected to result in expense savings of approximately $150 million. That savings represents 30 percent of the company’s previously announced plans for net cash reductions of more than $500 million in operating expenses, …

May 7, 2020

Development Loans Multifamily Retail Washington Western

NorthMarq Arranges $45M in Opportunity Zone Equity for Multifamily Project in Seattle

by Amy Works May 7, 2020

SEATTLE — NorthMarq has secured $45 million in joint-venture equity through Bridge Investment Group for the development of 12th & Yesler, a multifamily property in Seattle. Jake Leibsohn and Ron Peterson of NorthMarq’s Seattle-based regional office secured the equity for the borrowers, Trent Development and Atlanta-based Hatteras Sky. Situated at the corner of 12th Avenue South and East Yesler Way, the property will feature 274 apartments in a mix of 37 studio units, 172 open one-bedroom layouts, 45 one-bedroom units, five live/work units and 15 two-bedroom layouts. Apartments will offer stainless steel appliances, quartz countertops, in-unit washers/dryers and air conditioning, among other amenities. Additionally, the property will feature 8,142 square feet of ground-floor retail space and 133 parking stalls. Community amenities will include a rooftop deck, community barbecues, a business center, community clubhouse, controlled access, bike storage and repair room and a dog wash area. The project is located in an Opportunity Zone, giving it certain tax advantages. The developers will also participate in Seattle’s Multifamily Tax Exemption program, under which 20 percent of the units (54 units) will be dedicated to workforce housing.

May 7, 2020

Acquisitions California Retail Western

CBRE Negotiates $27.7M Acquisition of Vons-Occupied Retail Asset in San Diego

by Amy Works May 7, 2020

SAN DIEGO — CBRE has arranged the purchase of a retail property located at 4145 30th St. in the North Park neighborhood of San Diego. A Los Angeles-based private investor acquired the building from a Texas-based investment firm for $27.7 million. Vons, a Fullerton, Calif.-based supermarket chain, occupies the 40,000-square-foot building on a lease that runs through June 2039. Gary Stache, Anthony DeLorenzo, Doug Mack and Bryan Johnson of CBRE represented the buyer, which was completing a 1031 exchange. The seller was self-represented in the off-market transaction.

May 7, 2020

Acquisitions California Industrial Western

Rexford Industrial Buys Clothing Production Facility in Metro Los Angeles for $21M

by Amy Works May 7, 2020

COMMERCE, CALIF. — Los Angeles-based Rexford Industrial has acquired an industrial facility located in Commerce, approximately eight miles southeast of Los Angeles. A private seller sold the property for $21 million. Situated on five acres located at 6687 Flotilla St., the divisible, 120,000-square-foot property features office space, 20-foot to 24-foot clear heights, extensive dock-high loading and a large secured yard. Color Image Apparel, a Los Angeles-based clothing manufacturing company, currently occupies the facility. Jeff Stephens, Jack Mergenthaler and Evan Crawford of CBRE represented the seller, while the buyer was self-represented in the deal.

May 7, 2020

Acquisitions California Mixed-Use Multifamily Office Retail Western

Federal Realty Investment Sells Historic Pottery Barn Building in Old Pasadena for $16.1M

by Amy Works May 7, 2020

PASADENA, CALIF. — Federal Realty Investment Trust has completed the disposition of the historic Pottery Barn Building, a mixed-use property located at the intersection of East Colorado Boulevard and North Fair Oaks Avenue in Pasadena. A private investor acquired the property for $16.1 million. Pottery Barn occupies three levels of the five-story, 30,955-square-foot building, which was built in 1905 and renovated in 1997. The property also offers two floors of residential space and one floor of office space leased to other tenants. Pottery Barn has occupied the building for the more than 20 years, and last year executed a lease extension at the property. Carlos Lopez and Lee Csenar of Hanley Investment Group represented the seller, while Rob Ippolito, Glenn Rudy and Pete Bethea of Newmark Knight Frank Capital Markets represented the buyer in the transaction.

May 7, 2020

California Development Top Stories Western

Carmel Partners Plans 11-Acre Cumulus District Mixed-Use Development in Los Angeles

by Alex Tostado May 7, 2020

LOS ANGELES — Carmel Partners has unveiled its full plans for Cumulus District, an 11-acre mixed-use development in Los Angeles’ Baldwin Hills neighborhood. The centerpiece of the development will be a pair of multifamily buildings rising 31 stories and seven stories with a total of 1,210 units between them. The project is a redevelopment of a former Cumulus Media radio broadcast site. The property will also feature private underground parking for residents and 100,000 square feet of retail, with a 50,000-square-foot Whole Foods Market as the anchor. A one-acre park will connect the two main buildings. Amenities for residents include a 24-hour fitness center, skydeck, dog run, pet spa, co-working spaces, and multiple pools and spas. The 31-story building will offer 300 units ranging from studios to penthouses, while the seven-story building will offer 910 units. Cumulus District is located at 3333 S. La Cienega Blvd., adjacent to the Expo Line light rail, which connects the property to downtown Los Angeles and the beaches. In addition, major tech companies such as Apple and Sony Studios are located within three miles of the development. “The launch of the Cumulus District comes at an exciting time as Culver City and West Adams …

May 7, 2020

Industrial Market Reports Nevada Western Western Market Reports

Reno’s Industrial Market Remains In Demand

by Jeff Shaw May 6, 2020

Reno’s industrial real estate market has kept a jaw-dropping pace over the winter months. The fourth quarter of 2019 saw record-setting gross absorption numbers for any quarter at 3.34 million square feet with 10 transactions above 100,000 square feet. This amount of activity so late in 2019 typically suggests a slow start to the new year. However, activity seems to have picked up steam, as many users are considering new growth in Reno/Sparks. As a whole, 2019 was a fruitful year for industrial real estate. The market continues to draw attention for its West Coast distribution fundamentals and pro-business environment from tenants, developers and investors. Developers constructed 3.5 million square feet of industrial product, split almost equally between speculative and build-to-suit construction. About 17 million square feet of our 90-million-square-foot market changed hands at market-low cap rates to industrial investment groups. This included many groups that were new to the market, as well as several existing groups doubling down in Northern Nevada. Inventory remains the primary concern for tenants and developers as we come into 2020. With some minor caveats, new construction is getting absorbed as quickly as it is brought to the market. Given the strong start to 2020, …

May 6, 2020

Company News Restaurant Retail Western

Starbucks to Reopen More Than 85 Percent of Stores Nationwide by May 9

by Amy Works May 6, 2020

SEATTLE — This week, Seattle-based Starbucks started reopening its company-operated stores across the United States. Operating under modified operations and hours, including heightened safety protocols, the company plans to have more than 85 percent of stores opened by May 9 and expects to have more than 90 percent of stores open by early June. The company is using its experience in China, where more than 98 percent of its store are open and operating under revised protocols, as the foundation for its reopening in the United States amid the continued concerns of the global COVID-19 pandemic. “We have adapted these protocols for the U.S., and our goal is to exceed the standards outlined by the Centers for Disease Control and Prevention for a safe experience, including heightened emphasis on cleaning and sanitizing protocols in our stores,” says Kevin Johnson, CEO and president of Starbucks. The coffee company has expanded its service beyond drive-up to include mobile order for contactless pick-up, delivery and, in some locations, curbside parking and grab-and-go through the café. To that end, Starbucks is focusing on the safest and more convenient ways for customers to order through its Starbucks App, with expanded features including optimization for curbside …

May 6, 2020

Acquisitions California Healthcare Office Western

Pain Management Group Buys Richley Medical Plaza in San Diego for $6M

by Amy Works May 6, 2020

SAN DIEGO — An Orange County, Calif.-based pain management group has purchased Richley Medical Plaza, a medical office building in San Diego’s Midway District, for $6 million. Dan Henry and Lars Eisenhauer of CBRE represented the seller, a private investor, in the deal. Located at 3434 Midway Drive, the 25,600-square-foot building was originally built in 1991. The two-story property includes a 6,475-square-foot surgery center that features three operating rooms, a recovery area, waiting room, reception room and two restrooms. At the time of sale, the building was 85 percent vacant.

May 6, 2020

California Development Loans Multifamily ORIX Western

Hunt Capital Arranges $3.5M in Financing for Acquisition, Rehab of Pacific Rim Apartments in Sacramento

by Amy Works May 6, 2020

SACRAMENTO — Hunt Capital Partners has closed $3.5 million in Low-Income Housing Tax Credit (LIHTC) equity financing for the acquisition and rehabilitation of Pacific Rim Apartments, an affordable housing property in Sacramento. The borrower, Alliance Property Group, plans to upgrade the garden-style complex, which was originally built in 2004. Slated for completion in July 2021, the renovated community will offer 31 three-bedroom units and an additional three-bedroom unit for management. The development team includes Day Builders, Musser: Architects and FPI Management. Planned site and exterior improvements include pavement, fencing and landscaping repair; installation of additional barbecue and playground areas; a new roofing overlay; and construction of a new management office/community room with a laundry facility. Individual units will be outfitted with new kitchen appliances, flooring, various automatic sensors and fresh paint. Once completed, Pacific Rim Apartments units will be leased to family households earning up to 50 percent and 60 percent of the area median income. Additionally, All Things Are Possible, a nonprofit organization, will provide a variety of residential services, including food distribution, parenting and mentor workshops, English-as-a-second-language classes, veteran services, toddler support, employment search and resume assistance. The total development cost for the Pacific Rim Apartments renovations is …

May 6, 2020

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