The Inland Empire has experienced a significant uptick in multifamily development in the past decade. We are currently seeing a healthy shift toward more units being developed, which is driven by substantial regional economic growth in the years following the recession. Multifamily development has grown from less than 2,000 units annually in 2009 to more than 5,000 units developed this year. The Inland Empire has one of the highest imbalances of housing in comparison to significant population growth and increasing renters’ demand, according to CBRE research. The Inland Empire market currently has 15 developments with a total of 3,445 units under construction. Significant developments are taking place in key cities like Ontario and Rancho Cucamonga. This is partially driven by the nearby Ontario International Airport, as well as Ontario’s position as a major logistics, warehousing and shipping hub. Market rents support the much-needed new supply. The City of Riverside currently has 595 units under construction. Riverside has the highest population in the Inland Empire, with consistent population growth over the past decade. An additional 391 units are under construction in Moreno Valley, which is also buoyed by its growth as a regional logistic center, with new industrial warehouse development adding …
MILLBRAE, CALIF. — A partnership between Republic Urban Properties and Principal Real Estate Investors is preparing to break ground on a transit-oriented, mixed-use project named Gateway at Millbrae Station in Millbrae, a suburb just south of San Francisco. Located at the Millbrae Bay Area Rapid Transit (BART) station, the development will comprise 157,000 square feet of office space, 320 market-rate apartments, 80 affordable housing units, a 164-room hotel, 400 homes and 44,000 square feet of retail. Development costs are estimated at $401 million. The two developers formed a partnership called Republic Millbrae LLC, which will finance, construct and own the residential and office components of the project. “Gateway at Millbrae Station promises to be the new standard for revitalizing transit stations by increasing ridership while increasing revenues and creating much-needed affordable housing and jobs for the city of Millbrae and San Mateo County,” says Michael Van Every, president and CEO of Republic Urban Properties. The Millbrae BART Station and parking garage will remain open during construction, which is scheduled to begin on Wednesday, Dec. 4. “BART’s transit-oriented development helps the Bay Area address two of its greatest challenges: worsening traffic congestion and the lack of affordable housing,” says Bevan Dufty, …
NEWARK, CALIF. — Trion Properties has acquired The Meadows, an apartment community located in Newark, for $27.5 million. The name of the buyer was not released. Located at 35750 Bettencourt St., The Meadows features 84 apartment units in a mix of one-, two- and three-bedroom units, all with private patios or balconies and walk-in closets. Trion Properties has an extensive renovation and rebranding program planned for the property, which was built in 1966.
POWAY, CALIF. — Owner-operator Cadence Living and Sabra Health Care REIT have acquired Sunshine Care, a 32-acre seniors housing community in Poway, a suburb of San Diego. Now named Cadence at Poway Gardens, the property is situated near the Palomar Hospital. The community is known for its horticultural therapy program that grows more than 20,000 pounds of organic fruits and vegetables every year. “To be able to produce an in-house farm-to-table experience as an activity that brings staff, families and their loved ones together sets Cadence at Poway Gardens apart from other assisted living and memory care communities,” says Rob Leinbach, a principal with Cadence. “We look forward to the community’s partnership with Backyard Produce that provides excess food grown by our residents to those in the Poway community in need.” Cadence Living currently owns, operates and/or is developing communities throughout the South and West.
TEJON RANCH, CALIF. — Dallas-based Covington Group has purchased a 606,000-square-foot warehouse distribution facility. The property is located within the Tejon Ranch Commerce Center in the 1,450-acre master-planned commercial and industrial development located at the junction of Interstate 5 and Highway 99 in Kern County, Calif. The development is approximately an hour north of the Los Angeles basin. A joint venture between Tejon Ranch Co. and Rockefeller Group sold the asset for an undisclosed price. Dollar General has occupied the warehouse facility since 2012. Other tenants at Tejon Ranch Commerce Center include IKEA, Famous Footwear, L’Oréal USA and Caterpillar. The master-planned area is entitled to more than 20 million square feet of commercial and industrial space, with approximately 6 million square feet already in development and 14 million square feet of entitled space still available.
GILBERT, ARIZ. — CBRE has arranged the sale of The Forum at Gilbert Ranch, a Class A office and medical campus located at 1472, 1482, 1528 and 1530 E. Williams Field Road and 2314 S. Val Vista Drive in Gilbert. Denver-based EverWest Real Estate Investors sold the property to Forum at Gilbert LLC, a private Midwestern buyer, for $20.5 million. Totaling 92,453 square feet, the five-building campus features one single-story building and four two-story buildings. The asset offers modern construction and improvements, with subterranean and covered parking with a parking ratio of 4.4 spaces per every 1,000 square feet. Geoff Turbow, Matt Pourcho, Anthony DeLorenzo, Gary Stache, Bryan Johnson and Doug Mack of CBRE Investment Properties – SoCal/Phoenix represented the seller in the deal. Jeff Stein and Jeff Harris of CBRE Debt & Structured Finance in Houston arranged financing for the buyer. At the time of sale, the property was 93 percent leased to a variety of finance, real estate, coworking and medical tenants. CBRE’s Jamie Swirtz and Bruce Suppes will handle leasing of the property on behalf of the new ownership.
SILVERDALE, WASH. — Marcus & Millichap has arranged the sale of Affordable Self Storage, a self-storage facility in Silverdale. A limited liability company sold the property to a Washington-based limited liability company for $4.3 million, or $143 per rentable square foot. Located on 7979 Provost Road NW on 1.3 acres, Affordable Self Storage features 30,325 square feet of self-storage space. Christopher Secreto of Marcus & Millichap represented the seller and secured the buyer in the deal.
EL SEGUNDO, CALIF. — Griffin Capital Essential Asset REIT has completed the sale of an office building located at 2160 Grand Ave. in El Segundo. SteelWave acquired the asset for $63.5 million, or $420 per square foot. Griffin Capital acquired the 151,289-square-foot property in February 2014 for $52.7 million. At that time the property was fully leased to a single tenant with a lease expiration of June 30, 2021. As part of the transaction, Griffin delivered the property unencumbered by the lease. The Shannon Team of Newmark Knight Frank represented the seller in the transaction.
AZUSA, WILMINGTON AND GARDEN GROVE, CALIF. — Rexford Industrial Realty has purchased three industrial properties in Southern California for $56.1 million. The acquisitions were funded using cash on hand. The names of the sellers were not released. The company acquired a 4.2-acre land parcel at 415 S. Motor Ave. in Azusa for $7.2 million, or $39 per land square foot. Rexford plans to construct a 96,950-square-foot Class A industrial building on the site. The development will feature 32-foot clear heights, 14 dock doors, ESFR fire sprinklers and modern office space. Additionally, the company purchased a 57,522-square-foot building located at 508 East E St. in Wilmington for $14.9 million, or $259 per square foot. Situated on 3.45 acres, three tenants fully occupy the property. Rexford also acquired an industrial building located at 12752-12822 Monarch St. in Garden Grove for $34 million, or $130 per square foot. Situated on 11.1 acres, the 276,585-square-foot, four-tenant asset was 93 percent occupied at the time of sale. The company plans to reposition the property with functional and cosmetic improvements and replace a portion of the building with new improvements.
SEATTLE — Institutional Property Advisors (IPA), a division of Marcus & Millichap, has arranged the sale of Willowcrest, an apartment property in West Seattle. Investco sold the property to Raymond Capital Advisors for $18.8 million, or $251,000 per unit. Built in 1988 on two acres, Willowcrest features 75 units in a mix of one- and two-bedroom apartments averaging approximately 780 square feet. All units have a wood-burning fireplace, full-size washer and dryer, and private patio or balcony. Philip Assouad, Giovanni Napoli, Ryan Dinius and Sidney Warsinske of IPA represented the seller and procured the buyer in deal.