SEATTLE — Amazon has decided to split its second headquarters (HQ2) location between two cities, instead of creating one HQ2 facility, according a source who spoke to The Wall Street Journal. According a person familiar with the company’s plans, the driving factor behind the new decision to create two equal offices is the ability to recruit the best tech talent from various geographical regions. Additionally, the decision will ease the potential community issues regarding housing and transit for potentially thousands of new employees in one specific city. Under the new plan, Amazon will create two equal HQ2 facilities, each with approximately 25,000 employees. While Amazon has not announced its final decision, it is in late-stage discussions with several cities — Crystal City in Northern Virginia, Dallas and New York City as front runners — according to The Wall Street Journal, and a decision may be announced as early as this week. Amazon plans to view all three of its main U.S offices as headquarters with similar executive and back-office functions, notes a person familiar with the decision. However, the split means the company is creating two smaller offices than its 45,000-employee Seattle headquarters.
BOTHELL, WASH. — Decron Properties has purchased Avana 522 Apartments, a multifamily property located at 18101 126th Ave. NE in Bothell, for $173 million. The transaction marks the Los Angeles-based firm’s entry into the Pacific Northwest real estate market. Situated on 56 acres, the 558-unit property was built in 1988 and expanded in 1999. The garden-style community features a mix of one-, two- and three-bedroom units. Community amenities include two outdoor pools, one indoor pool, two clubhouses, two fitness center, four playgrounds, indoor and outdoor basketball courts, tennis courts, picnic and barbecue areas, two pet parks, and an indoor movie theater. Decron plans to implement a capital improvement program, including upgrading all unit interiors with stainless steel appliances, new kitchen cabinet doors and quartz countertops, and upgraded plumbing and electrical fixtures. The program will also upgrade the community areas, including the renovation of the clubhouses and pool areas, adding fire pits, new playground equipment and modernizing the two dog parks. Additionally, Decron plans to expand the capacity of the package locker facility. Frank Bosl, Eli Hanecek and Jon Hallgrimson of CBRE’s Seattle office represented the undisclosed seller in the transaction.
LOS ANGELES — Walker & Dunlop has arranged $153.7 million in construction financing for Rise Koreatown, a seven-story multifamily property located off Wilshire Boulevard in Los Angeles’ Koreatown submarket. Boca Raton, Fla.-based Rescore Property Corp. is developing the property along with Los Angeles-based Cal-Coast. Rise Koreatown will feature 364 studio and one-bedroom apartments, averaging 649 square feet, catering to the young professional demographic. The property will also feature 52,000 square feet of ground-floor retail anchored by Zion Market, a Korean grocery chain. Kevin O’Grady and Eric McGlynn of Walker & Dunlop’s Capital Markets group structured both senior and mezzanine financing for the project.
PORTLAND, ORE. — Carnegie Capital has sourced and structured a $6.2 million cash-out refinancing for a 39-unit assisted living and memory care community in Portland. The original developer still owns and operates the community, which was 100 percent occupied at the time of the financing. The loan pays off the original construction financing. Further details on the community and borrower were not disclosed. Carnegie put together the loan in two tranches with a bank and private equity shop joining forces to complete the capital stack. The loan carries a fixed rate for three years, interest-only payment period and flexible exit options. JD Stettin, managing partner of Carnegie Capital, arranged the transaction.
PUEBLO, COLO. — Pinnacle Real Estate Advisors has arranged the sale of a value-add multifamily asset located at 1024-1026 Oxford St. and 28 Amherst Ave. in Pueblo. An undisclosed buyer acquired the asset for $2.3 million. Built in 1971, the property features 35 units and is within walking distance of Safeway and King Soopers. Chris Knowlton of Pinnacle Real Estate represented the buyer and undisclosed seller in the deal.
The retail market in Reno/Sparks continues to improve with big box retailers moving to the market and a steady decrease in the vacancy rate. The retail market in Reno/Sparks has seen an overall decrease in vacancy for the fifth consecutive quarter with the current vacancy rate hovering just under 7 percent. Average market rent is currently $1.50 per square foot, triple net, and appears to be slowly climbing as we continue to experience positive net absorption. Tenants moving and expanding in the area include Big Lots leasing 30,112 square feet in Spanish Springs, and Harbor Freight and Tractor Supply Company leasing 16,016 square feet and 38,326 square feet, respectively, in Sparks. Sprouts Farmers Market has opened two new locations in Reno and Sparks over the past 12 months, absorbing roughly 60,000 square feet. Grocery Outlet, Tuesday Morning, Marshall’s Home Goods, Burlington and Raley’s Supermarkets have also expanded in northern Nevada. The Reno/Sparks market has seen increased activity in the finance services and fast-casual restaurant industries. New fast-casual restaurants in the area include Mod Pizza, California Pizza Kitchen, Burrito Bandito, Sizzle Pie, Pine State Biscuits and Habit Burger. Chase Bank and United Federal Credit Union have opened several locations in Northern …
BOTHELL, WASH. — A joint venture between PCCP and SteelWave has purchased Canyon Park Business Center, a 17-building office/flex property located in Bothell, an eastern suburb of Seattle. A venture between SteelWave and Colony NorthStar sold the office park for an undisclosed price. Totaling 632,591 square feet, the campus features 13 Class A flex/office buildings, totaling 450,961 square feet, and four Class A life science lab and data center buildings, totaling 181,630 square feet. At the time of sale, the portfolio was 99 percent occupied. Canyon Park Business Center was built between 1985 and 1997. Kevin Shannon, Nick Kucha, Ken White, Michael Moll, James Childress and Bill DeLacy of Newmark Knight Frank represented the sellers, while the buyers were self-represented in the deal.
FOUNTAIN VALLEY, CALIF. — Bend, Oregon-based Sunshine Retirement Living has announced plans for Park View Estates, a 100,000-square-foot assisted living and memory care community in Fountain Valley, located approximately 35 miles southeast of downtown Los Angeles. The property will sit on 3.5 acres and feature 150 units adjacent to Fountain Valley Regional Hospital and Medical Center. Construction is scheduled for completion in the first quarter of 2020. The memory care neighborhood will total 44 units, all located on the first floor. The assisted living neighborhood will total 106 units spread across the first and second floors. Lantz-Boggio Architects & Interior Designers designed the community. Sunshine Retirement Living is a family-owned seniors housing company with 21 retirement communities in 10 states.
FORT COLLINS, COLO. — LNR Partners, also known as MSCI 2006-HQ10 East Harmony Road LLC, has completed the sale of Preston Center, an office building located in southeast suburban Fort Collins. Brinkman Capital acquired the property for $9.6 million. Located at 2809 E. Harmony Road, the property features 57,287 square feet of Class B+ office space. At the time of sale, the property was 85 percent leased. David Tilton, Rick Egitto and Sam Crowe of Avison Young represented the seller in the deal.
GARDEN GROVE, CALIF. — A private Northern California-based investor has purchased a retail center located at 11072 Magnolia St. in Garden Grove. DECMAC II, a local investor, sold the property for $5.1 million. 99 Cents Only occupies approximately half of the 36,469-square-foot property, with the remaining space vacant. Alex Kozakov, Patrick Wade and Matthew Greenberg of CBRE represented the seller, while Jeff Helm of Helm Properties represented the buyer.