SAN DIEGO — J Street Hospitality, a San Diego-based hotel developer and owner, has purchased Hotel Karlan San Diego – a Doubletree by Hilton, for an undisclosed price. Azul Hospitality Group has been retained to manage the hotel. Located at 14455 Penasquitos Drive in San Diego, the 174-room hotel features a fitness room, swimming pool, tennis court, 24-hour pavilion pantry market and room service. Mark Armstrong of HREC Investment Advisors represented the undisclosed seller in the transaction.
NEW MEXICO — Mill Valley, Calif.-based Four Corners Property Trust has purchased a restaurant property located in New Mexico for $3.9 million. The asset was acquired through a sale-leaseback transaction and will operate under a new triple-net lease with Cerca Trova Restaurant Concepts, the largest domestic franchisee in the Bloomin’ Brands system. Outback Steakhouse occupies the property under a lease with 20 years of the initial term and rent increases of 10 percent every five years during the initial term.
Hawaii’s multifamily market continues to achieve record pricing driven by strong local investor demand and notable institutional investors of larger mega deals at $100 million or above. This market is defined by limited inventory and prohibitively expensive new construction that leaves Hawaii with stable annual vacancy rates of about 96 percent. Hawaii has seen only modest increases in annual rental rates of less than 1 percent and relatively low rents for apartments in our market that pencil out to $1.75 per square foot to $2.25 per square foot. Despite these relatively anemic financial returns, enthusiasm remains for this sector. In fact, multifamily continues to reign as the most desired asset class for local investors with monthly transaction counts in the five to seven range and the most aggressive cap rates currently averaging 3.86 percent. The pricing results for multifamily have been stunning with per-unit sales prices ranging from $250,000 to $380,000, depending on the type of construction. The multifamily market demand drivers are not anticipated to change in the near term. While the island of Oahu reports average annual new housing demand of 3,500 units, only 1,500 housing units at most are approved annually. Paul Brewbaker, former chief economist for …
Todd Harrop, executive vice president and national director of capital markets at Bellwether Enterprise in Columbus, Ohio, believes 2019 will be another opportunistic year for lenders and intermediaries. REBusinessOnline discussed with Harrop the abundance of capital in this market – and how discipline and changes in capital providers’ programs have put these funds to work. What is the biggest challenge you anticipate in 2019 as an intermediary in commercial real estate? Much like 2018, we continue to be optimistic about the commercial real estate finance market in 2019. In 2018, we were challenged with a variety of market disruptors including rising interest rates, market volatility, geopolitical risks, and signs of an overall slowing global economy. In 2019, we expect these disruptors to continue. Furthermore, the debt space remains very crowded as capital flows continue to rise and opportunities have declined due to fewer refinance opportunities. The good news is capital is far from complacent and underwriting remains very disciplined, which should enable the markets to continue to function well. Where do you see the biggest opportunity for your company in 2019? In general, I believe there is an increased opportunity for mortgage bankers/intermediaries in 2019. This is due to the fact …
SACRAMENTO, CALIF. — The trustees of California State University have given final approval for a $164 million student housing community to be built on the university’s Sacramento campus. A public-private partnership between the university, Greystar and the university’s nonprofit affiliate, University Enterprises Inc., will develop the community. The 360,000-square-foot development will offer 1,100 beds in studio, two- and four-bedroom, apartment-style units. The property will also feature a clubhouse, café, fitness center, community room, outdoor pool, sand volleyball court, bocce court, barbecues and 546 surface-level parking spaces. The development team is scheduled to break ground on the project in May, with completion set for summer 2021. The first phase of the project, which includes relocating the Dan McAuliffe Memorial Ballparks to a new location, is currently underway. Steinberg Hart architects designed the project, which Sundt Construction will build.
COLORADO SPRINGS, COLO. — Crescent Real Estate LLC has received $102.5 million in acquisition financing for a suburban office portfolio in Colorado Springs. Trey Morsbach, Jim Curtin and Leon McBroom of HFF secured the five-year, floating-rate acquisition loan through Bank of America Merrill Lynch. The 13-building portfolio features more than 1 million square feet of office space. At the time of acquisition, the portfolio was 75 percent occupied by a variety of industry sectors, including aerospace, government and military/defense contractors, technology and healthcare. Major tenants include Northrop Grumman, Army National Guard, GSA, The Spectranetics Corp., Booz Allen Hamilton and United Healthcare.
LOS ANGELES — Institutional Property Advisors (IPA), a division of Marcus & Millichap, has arranged the sale of Morton Gardens, a multifamily property located in the Echo Park neighborhood of Los Angeles. A regional private investor sold the property to an institutional investment fund for $25.5 million, or $386,364 per unit. Built on 2.9 acres in 1972, Morton Gardens features 66 units in a mix of one-, two- and three-bedroom layouts, two courtyards, controlled entry and covered parking. Joe Grabiec, Greg Harris and Kevin Green of IPA, along with Paul Darrow of Marcus & Millichap, represented the seller and procured the buyer in the deal.
SUMNER, WASH. — Arbor Realty Trust has funded $7.5 million in Freddie Mac SBL financing for Cavalla Apartment Homes in Sumner. Built in 2005, Cavalla Apartment Homes features 72 two-story residences with gourmet kitchens, washer/dryer units, personal garages, tiled fireplaces, private balconies and a shared gazebo. Jonathan Chaim of Arbor’s New York City office originated the loan, which features a 10-year hybrid term.
TUCSON, ARIZ. — Cushman & Wakefield|PICOR has arranged the purchase of an industrial property located at 4551-4571 S. Alvernon Way in Tucson. Walter & Sons LLC acquired the building from HS-Tucson AZ LLC for $3.9 million. Rite Way Heating, Cooling & Plumbing will occupy the 44,736-square-foot building. Russell Hall and Stephen Cohen of Cushman & Wakefield|PICOR represented the buyer, while William Di Vito of CBRE represented the seller in the transaction.
DENVER — Etkin Johnson Real Estate Partners, a Denver-based investment and development firm, has sold its portfolio of industrial assets in Colorado to San Francisco-based Berkeley Partners for $247.5 million. The deal represents the largest industrial portfolio sale ever closed in Colorado. The portfolio, which was 93 percent leased at the time of sale, comprises 19 properties totaling approximately 1.95 million square feet of industrial space. The facilities range in size from 26,078 to 293,510 square feet. Etkin Johnson acquired the properties between 1990 and 1998. All 19 assets are located in cities within Colorado’s Front Range, including Denver, Boulder, Colorado Springs, Aurora and Golden. “This was a very well-constructed portfolio of infill industrial,” says Matt Novak, partner at Berkeley Partners, which has more than $625 million in assets under management. “The Denver metro has been experiencing rapid growth, and this acquisition provides us a critical mass of properties in the market. Our goal is to hold these assets for 10- to 20-plus years, benefiting from the favorable long-term industrial supply-demand fundamentals.” Jim Bolt, Jeremy Ballenger, Tyler Carner and Mike Winn of CBRE represented Etkin Johnson in the transaction, which marks Berkeley Partners’ first acquisition in Colorado. — Taylor Williams
