San Francisco has been a boom-and-bust market since the Gold Rush. The current intense scrutiny of the yield curve, combined with the stock market’s recent erratic behavior, has sent warnings of the next looming recession. Just how will this affect the office market? Fortunately for the Bay Area, not much. Today, several key factors insulate San Francisco from a severe downturn, unlike past cycles. Among them are Proposition M and a concentration of venture capital, highly skilled talent and some of the world’s largest companies. Since 1986, Proposition M has limited the amount of office development the city will authorize in any given year. The program aims to guard against typical boom-and-bust cycles. The San Francisco office market only includes 85 million square feet, as opposed to Manhattan or Houston, for example, which comprise 400 million and 240 million square feet, respectively. Manhattan currently has 12.4 million square feet of office space under construction, while San Francisco has 3 million square feet in the pipeline. The entitlement limit under Prop M has been reached, meaning no additional new projects can be approved until October when another 950,000 square feet will be allocated for the next year. At first glance, these …
DENVER — Bradbury Properties and Confluent Development have broken ground on three additional buildings at HighField Business Park, an industrial park located at the intersection of E-470 and Peoria Street southeast of Centennial Airport in metro Denver. Upon completion, the three projects will bring the 100-acre near to full build-out, spanning approximately 10 years and totaling 1.25 million square feet of industrial space. Only 12 acres on the park’s north end will remain undeveloped. The new buildings include a 202,000-square-foot, single-story facility, slated for completion in second-quarter 2020; and 160,000-square-foot and 130,000-square-foot speculative buildings, slated for completion in first-quarter 2020. Brinkman Construction and Ware Malcomb are serving as general contractor and architect, respectively, for the FedEx property. Murray & Stafford and Intergroup Architects comprise the project team for the spec buildings. The spec facilities will feature front-park, rear-load design with shared truck courts. HighField Business Park currently features 750,000 square feet of fully leased industrial space. Upon completion of this phase of development, the park will consist of six buildings totaling 800,000 square feet of space. Current tenants at the park include Charter Communications, Gateway Classic Cars, EdgeConneX, Linn Star Transfer and Liteye Systems. Jim Bolt of CBRE leads the …
ORANGE, CALIF. — Los Angeles-based Stanton Road Capital (SRC) has acquired TriCentre, a Class A office tower located in Orange, for an undisclosed price. The name of the seller was not released. Completed in 1986, the 10-story TriCentre features 211,916 square feet of office space. The property is situated within the “Platinum Triangle” at the convergence of Interstate 5, California State Route 57 and California State Route 55. At the time of sale, the building was 78 percent leased to a variety of high-profile tenants, including Farmers Insurance, Children’s Home Society of California, MegaMex Foods and Lockheed Martin. The buyer has plans to invest significant post-acquisition capital to improve the tenant experience, including a fully overhauled lobby and courtyard, as well as building upgrades. SRC has retained Cushman & Wakefield to handle leasing and property management of TriCentre.
BOULDER, COLO. — Pollack Shores Real Estate Group plans to develop The Armory, a 201-unit residential village in North Boulder. Situated on the grounds of a former Colorado National Guard post, The Armory marks Pollack Shores’ entry into the Colorado market. Located at 4750 Broadway in the NoBo Art District, The Armory will feature a mix of two-story apartment buildings, 18 three-story townhomes, 8,400 square feet of retail storefronts along Broadway and two public pocket parks. Additionally, as part of the project, the historic, 9,500-square-foot armory mess hall and smokestack will be preserved as an activity center for residents. Originally built in 1949, the repurposed landmark will feature yoga and fitness classes, a kitchen and bar area, clubroom, outdoor pool deck and leasing office. The project team includes The Mulhern Group, Martines Palmeiro Construction and JVA. Construction is scheduled to begin this fall, with delivery slated for 2021. Matrix Residential, the developer’s fully integrated property management firm, will oversee operations of the community. Armory Community LLC, a local investment group led by Bruce Dierking and Jim Loftus, the original visionaries behind the project, will retain a minority interest in the development.
ESCONDIDO, CALIF. — Healthcare Trust Inc., a New York-based public, non-traded REIT, has acquired Felicita Vida, a seniors housing community located in Escondido, for an undisclosed price. The seller was Torrey Pines Development Group. Built in 2015 on 4.3 acres, Felicita Vida features 91 units, totaling 117 beds, in a mix of 53 assisted living units and 38 memory care units. Rick Swartz, Jay Wagner, Aaron Rosenzweig, Dan Baker, Tim Hosmer and Bailey Nygard of Cushman & Wakefield represented the seller in the transaction.
GARDEN GROVE, CALIF. — Valore Ventures has completed the disposition of an Oggi’s Pizza & Brewery location at 12362 Chapman Ave. in Garden City. The restaurant’s franchisee, a local private investor, acquired the property for an undisclosed sum. The 6,500-square-foot restaurant is part of a four-property, fee-simple restaurant portfolio that Valore Ventures acquired in January. Built between 2001 and 2008, the restaurants are part of a larger development that includes three high-rise hotels and a 2.8-acre parking lot owned by the hotels, but reserved exclusively for restaurant use. Matthew Mousavi and Patrick Luther of SRS Real Estate Partners’ National Net Lease Group represented the seller in the deal.
BELLEVUE, WASH. — A new joint venture between Kennedy Wilson (NYSE: KW) and Security Benefit Life Insurance Co. has acquired Sunset North, a 464,000-square-foot, three-building office campus in Bellevue for $227 million. The property’s three buildings, which are certified LEED Silver, were constructed between 1999 and 2000. They were 99 percent leased at the time of sale to 10 long-term tenants with a weighted-average lease term of eight years. Sunset North is located near the intersection of Interstates 405 and 90, three miles southeast of downtown Bellevue and 10 miles east of downtown Seattle. The joint venture acquired the property with $77 million of equity and a $150 million, 10-year acquisition loan with a 3.25 percent fixed interest rate. The lender was not disclosed. The joint venture targets real estate investment opportunities in the Western United States. “Sunset North is an ideal first acquisition for our joint venture,” says Matt Windisch, executive vice president of Kennedy Wilson. Security Benefit is a Kansas-based insurance company that has been in business for more than 127 years. Kennedy Wilson owns, operates and manages multifamily and office properties in the Western U.S., United Kingdom and Ireland. Kennedy Wilson’s stock price closed Wednesday at $22.63 …
SAN PEDRO, CALIF. — Hunt Real Estate Capital has funded a $64.1 million Fannie Mae affordable multifamily loan for the acquisition and renovation of Park Western Apartments, an affordable multifamily property in San Pedro. The borrower is Park Western Housing, an entity specifically formed to buy and manage the property. Built in 1969, the community comprises 14 residential buildings spread across a 7.7-acre site at 1327 W. Park Western Drive. The 216-unit community features 32 one-bedroom units, 128 two-bedroom apartments, 32 three-bedroom units, 24 four-bedroom apartments and a 1,300-square-foot maintenance shop. Community amenities include a courtyard, on-site management, central laundry facilities, a playground, garage parking and picnic/barbecue areas, as well as surface and covered parking. The borrower plans to renovate the property with plans to upgrade the building exteriors, unit interiors and community amenities and common spaces. Upon completion, the property will also offer a fitness center and community room. Renovations are slated to be completed in 14 months. The Fannie Mae M.TEB loan has a 17-year term, 40-year amortization and provides significantly greater loan proceeds to support a rehab budget. The deal is backed by Richard Siebert and June Park of SDG Housing Partners along with a nonprofit partner, …
RIVERSIDE, CALIF. — Cushman & Wakefield has arranged the sale of Altavita Village, California’s third-largest seniors housing community. Senior Living Riverside LP, an affiliate of La Jolla, Calif.-based Westmont Living, acquired the asset for $58 million, or $98,500 per unit. The seller was Air Force Village West Inc. Totaling more than 1.2 million square feet, Altavita Village is a continuing care retirement community (CCRC) comprising 267 independent living cottages, 103 independent living apartments, 70 independent living duplexes, 59 skilled nursing beds, 55 assisted living units and 35 memory care units. Additionally, the community features main and private dining rooms, a village café, clinic, library, meeting rooms, a chapel and beauty shop. At the time of sale, the asset was 40 percent occupied. Altavita Village is located on a 153-acre site at 17050 Arnold Drive in Riverside, and the property was originally developed in 1989 as a retirement community for military officers before opening to the general public in 2015. The development is located adjacent to March Air Reserve Base. Since 2013, prior ownership invested more than $8 million in upgrades at the property. The buyer plans to invest $20 million in the property over the next several years and convert …
GLENDALE, COLO. — JLL has arranged $22.8 million in financing for two adjacent multifamily properties located in Glendale, a suburb of Denver. The borrower is Glendale-based Slipstream Properties. Kristian Lichtenfels led the JLL team that arranged the two 10-year, interest-only, fixed-rate loans through Freddie Mac’s Green Advantage program for the borrower. The loans will be serviced by Holliday Fenoglio Fowler LP, a JLL company and a Freddie Mac Optigo lender. Proceeds were used to refinance existing loans on the properties. Totaling 185 units, Phenix at Infinity Park I and II are situated along East Mississippi Avenue and South Dahlia Street. The Phase I portion was most recently renovated in 2011 and Phase II was renovated in 2014. The buildings comprise a variety of one- and two-bedroom units, which were 97 percent occupied overall. Community amenities include a swimming pool, dog park, grilling areas and courtyards.