Western

SRS Arranges $6.6M Ground Lease Sale of Restaurant Asset in Garden Grove, California

by Amy Works January 14, 2020

GARDEN GROVE, CALIF. — SRS Real Estate Partners has arranged the ground lease sale of a single-tenant restaurant property, located 12001 Harbor Blvd. in Garden Grove, 1.2 miles south of Disneyland. A Southern California-based partnership sold the asset to a private investor for $6.6 million, or $1,072 per square foot. Outback Steakhouse occupies the 6,180-square-foot property on an absolute triple-net lease basis that was recently extended for an additional 20 years. Patrick Luther and Matthew Mousavi of SRS’ National Net Lease Group represented the seller, while Tom Carosella of Carosella Properties represented the buyer in the transaction.

January 14, 2020

Acquisitions California Retail Western

CBRE Negotiates $5.6M Sale of Las Cumbres Square in San Diego’s Mission Valley

by Amy Works January 14, 2020

SAN DIEGO — CBRE has arranged the sale of Las Cumbres Square, a retail center in San Diego’s Mission Valley submarket. A local private buyer acquired the property from a local investor for $5.6 million. Located at 6110-6120 Friars Road, the 12,781-square-foot property was originally built in 1978 and remodeled in 2019. At the time of sale, the retail center was 70 percent leased to nine tenants, including Round Table Pizza, Mr. Peabody’s Burgers & Ale and Los Panchos Taco Shop. Additionally, the site offers 63 off-street parking spaces. Reg Kobzi, Joel Wilson and Michael Peterson of CBRE represented the seller in the deal.

January 14, 2020

Acquisitions Hospitality Nevada Retail Top Stories Western

MGM Growth Properties, Blackstone REIT to Buy MGM Grand, Mandalay Bay Casinos in Las Vegas for $4.6B

by John Nelson January 14, 2020

LAS VEGAS — MGM Growth Properties has agreed to form a joint venture with Blackstone Real Estate Income Trust Inc. to acquire the Las Vegas real estate assets of the MGM Grand and Mandalay Bay casinos and resorts for $4.6 billion. MGM Growth (NYSE: MGP) will own 50.1 percent of the joint venture, and Blackstone Real Estate, a non-traded REIT managed by Blackstone (NYSE: BX), will own 49.9 percent. The MGM Grand and Mandalay Bay comprise 9,743 hotel rooms combined, as well as approximately 3 million square feet of meeting space and approximately 300,000 square feet of casino space across 226 acres on the Las Vegas Strip. MGM Growth currently owns the Mandalay Bay’s real estate, and MGM Resorts International (NYSE: MGM) currently owns the MGM Grand’s real estate. At closing, which is expected to occur this quarter, MGM Resorts will enter into a long-term, triple-net master lease with the new ownership for both properties and provide a full corporate guarantee of rent payments. MGM Resorts’ initial annual rent for both venues will be $292 million. MGM Resorts will continue to manage and operate all aspects of the properties on a day-to-day basis, with the joint venture owning the properties …

January 14, 2020

Development Hospitality Loans Utah Western

Portman Holdings, DDRM Begin Construction of 26-Story Hyatt Regency Salt Lake City

by Amy Works January 13, 2020

SALT LAKE CITY — Atlanta-based Portman Holdings, Irvins, Utah-based DDRM and city officials broke ground for Hyatt Regency Salt Lake City on Friday, Jan. 10. The developers received $377 million in financing for the project, located at the northwest corner of 200 S and West Temple in Salt Lake City. Situated adjacent to the Salt Palace Convention Center, the 26-story Hyatt Regency Salt Lake City will feature 700 guest rooms, approximately 60,000 square feet of meeting space, two restaurants, a lounge, outdoor pool, business center, fitness center and 7,500-square-foot outdoor event terrace. Completion for the 686,784-square-foot hotel is slated for October 2022. Minneapolis-based Piper Sandler Cos. (PSC) served as sole capital arranger for the financing. The private financing sources include non-recourse construction debt and limited partner equity. Additionally, the Piper Sandler Hospitality Group served as the placement agent for the $54.7 million Commercial Property Assessed Clean Energy (C-PACE) loan to finance a portion of the project, which represented the single largest amount ever financed by C-PACE nationally. PSC also served as the sole underwriter for a $45 million taxable bond issue to finance the remaining portion of the project, which will be repaid by taxes generated at the hotel.

January 13, 2020

Acquisitions Arizona Hospitality Western

Marriott Sells Sheraton Phoenix Downtown to Blackstone Group for $268M

by Amy Works January 13, 2020

PHOENIX — A subsidiary of Marriott International has completed the disposition of Sheraton Phoenix Downtown, located at 340 N. Third St. in Phoenix. An affiliate of The Blackstone Group acquired the asset for $268 million. The hotel features 1,003 guest rooms, nearly 77,000 square feet of meeting space, a fitness center and lap pool. Marriott acquired the hotel in 2018 and began a major renovation to create a showcase hotel for the new Sheraton brand vision. The project is slated for completion in the first half of this year. Marriot will continue to operate the hotel under a long-term management agreement with the buyer.

January 13, 2020

Development Multifamily Student Housing Washington Western

Peak Campus, Blue Vista Buy Student Housing Development Site Near the University of Washington

by Amy Works January 13, 2020

SEATTLE — Peak Campus Development and investment partner Blue Vista Capital Management have acquired a development site located near the University of Washington in Seattle, with plans to construct a student housing community. The new project — titled Theory U District — is set to offer 500 beds in studio, one-, two-, three-, four- and five-bedroom, fully furnished units. Shared amenities will include a rooftop deck, multiple study rooms, a landscaped courtyard for outdoor activities, a fitness room, package lockers and parking. University Christian Church (UCC), which previously owned the property, moved out last summer. According to a press release issued by UCC last year, proceeds from the sale will go into a foundation established by remaining UCC members. UCC already demolished the existing buildings, and vertical construction for Theory U District will commence later this year with a projected opening in fall 2022.

January 13, 2020

Acquisitions California Multifamily Western

Sares Regis Group Divests of 83-Unit Aperture Apartments in San Bruno, California

by Amy Works January 13, 2020

SAN BRUNO, CALIF. — Sares Regis Group of Northern California (SRGNC) has completed the sale of Aperture, a multifamily property in downtown San Bruno, for an undisclosed price. The name of the buyer was not released. SRGNC developed the 83-unit property, which opened last year, in partnership with The Resmark Cos. Located at 400 San Mateo Ave., Aperture features a fitness studio, clubroom, outdoor barbecues and gathering areas, keyless entry, a bike room and electric vehicle charging stations. The property was the first residential project to delivered after San Bruno adopted the San Bruno Transit Corridors Specific Plan in 2013 to revitalize the area near the city’s Caltrain station. The development team includes KTGY as architect, RJA as civil engineer, Nishkian Menniger as structural engineer and Johnston Moyer as general contractor. The Jones-Saglimbeni Group of Institutional Property Advisors handled the transaction.

January 13, 2020

Acquisitions Arizona Retail Western

Sun Valley Plaza Holdings Acquires Retail Center Near Phoenix for $6.4 Million

by Amy Works January 13, 2020

MESA, ARIZ. — Sun Valley Plaza Holdings Inc. has acquired Sun Valley Plaza, a 94,094-square-foot retail center in Mesa, for $6.4 million. The center was 96 percent leased at the time of sale to tenants including Denim Diamonds, Main Street Antique Mall and Carbajal’s Mexican Restaurant. The seller, Michael A. Pollack Real Estate Investments, purchased the property in 2004 for $3.1 million when the center was 16 percent leased. Sun Valley Plaza is located at 7336 E. Main St., 30 miles east of downtown Phoenix.

January 13, 2020

Arizona Industrial Market Reports Western Western Market Reports

Phoenix’s Strategic Growth Positions Industrial for Success in 2020

by Taylor Williams January 11, 2020

Phoenix’s industrial inventory is undergoing a period of growth due to the delivery of 2.2 million square feet of new product in the third quarter of 2019 and more than 4.7 million year to date (as of late November). In fact, the market has seen the highest amount of total industrial development year to date since 2007. While these deliveries have increased the industrial vacancy rate slightly, the overall vacancy rate for the area remains low at less than 7 percent. Absorption has been strong and is expected to remain so for the near future. Rental rates also continue to rise, though they are still at a considerable discount to many other West Coast markets. A high amount of development activity is still occurring, particularly in the southern portion of Phoenix. Much of this development is speculative rather than build-to-suit, which indicates developers are confident in the demand for industrial space in this market. Major factors for our growth have been significant job creation and in-migration of both residents and businesses, which have led to growth in industrial and construction jobs in the region. In fact, Greater Phoenix remains one of the top five metros for job creation in the …

January 11, 2020

California Development Mixed-Use Top Stories Western

Hines, USAA, Philena Break Ground on 807,000 SF West Edge Mixed-Use Project in Los Angeles

by Alex Patton January 10, 2020

LOS ANGELES — A partnership between Hines Interests Limited Partnership, USAA Real Estate and Philena Properties has broken ground on West Edge, an 807,000-square-foot mixed-use project in West Los Angeles. Upon full build-out, the development will feature 200,000 square feet of office space, 90,000 square feet of retail space, 600 multifamily units and a half-acre open-air plaza. The project is scheduled for completion in 2022. West Edge’s eight floors of office space will be designed specifically for media and technology users. The office portion will feature 11-foot floor-to-ceiling windows and outdoor terraces on five of the floors. A 36,000-square-foot grocery store will anchor the retail space, with other tenants including a 16,000-square-foot fitness center, 18,000 square feet for multiple restaurants and bars, and 20,000 square feet for other retail. The 600 luxury apartments will feature a private fitness center, resort-style pool, yoga area, library, private test kitchen, rooftop sports bar, movie screening area and a lounge. Situated in the West Los Angeles neighborhood, the site will offer immediate access to the Bundy Station metro station, which connects to the Downtown, Culver City and Santa Monica districts. The Martin Family has owned the site for more than 40 years, and the …

January 10, 2020

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