Western

Commercial Real Estate Lending Had a Banner Year in 2018

by Jaime Lackey January 28, 2019

Records were meant to be broken. That’s a phrase commercial lenders have become fairly familiar with over the past few years. Multifamily lending, in particular, has enjoyed a good run. In the fourth quarter of 2018, the Mortgage Bankers Association released the MBA Annual Report on Multifamily Lending. According to the report, strong market conditions helped fuel a 6 percent increase in multifamily lending in 2017. Lenders provided a record high of $285 billion in new mortgages for apartment buildings with five or more units. Jamie Woodwell, vice president of commercial real estate research for MBA, cited a few reasons for this uptick in activity. “The multifamily lending market in 2017 benefited from improving fundamentals, rising property values and low interest rates,” he says. “The result was larger loan sizes and record levels of overall borrowing and lending…Demand came from borrowers and lenders of all sizes, with loan amounts ranging from thousands of dollars to hundreds of millions.” This breakneck pace continued last year as low unemployment, job growth and overall economic strength gave investors and lenders confidence in the market. Freddie Mac had its best year ever in terms of multifamily production in 2018. The government-sponsored enterprise (GSE) closed …

January 28, 2019

Conference Coverage Features Midwest Northeast Southeast Texas Western

How to Reach the Right Retail Audience

by Jaime Lackey January 27, 2019

It’s no secret that pop-up and experiential retail are hot topics. But it can be hard to figure out how best to engage audiences with an individual activation before, during and after the event. To help marketers solve this conundrum, Brandon Chesnutt, vice president and director of digital & development at Identity, hosted a session titled “Six Winning Pop-Up Retail Marketing Ideas Property Managers Can’t Ignore” during the 2019 Ancillary Retail Expo, a two-day conference produced by InterFace Conference Group and Ancillary Retail magazine. At issue during the session, which took place in mid-January at the Hilton Daytona Beach hotel, were a host of key topics for retailers looking to decide which pop-up retail marketing strategies generate the most attention, excitement and foot traffic. Chesnutt introduced the property owners and managers in attendance to tactics and campaign ideas that have the attention of retail marketers, including targeted social media advertising and tailored group activations. The Detroit native acknowledged that it’s an exciting time for marketers of all stripes, but said that excitement and energy comes with a host of questions about best practices in a rapidly changing industry. “The expectations of what is considered marketing are shifting,” said Chesnutt. “If …

January 27, 2019

California Development Hospitality Loans Western

HFF Arranges $155M in Construction Financing for Two Beachfront Hotels in Oceanside, California

by Amy Works January 25, 2019

OCEANSIDE, CALIF. — HFF has arranged $155 million in construction financing for the ground-up development of two oceanfront hotels in Oceanside. The developer/borrower is S.D. Malkin Properties. Situated on a 2.7-acre, two-block site along Mission Avenue and North Pacific Street, the two hotels will offer immediate access to the beach and a total of 387 rooms, 85 percent of which will have water views. Destination Resorts will operate one of the hotels, while Joie de Vivre will operate the other. Hyatt owns both brands. The property operated by Destination Resort will feature 226 rooms, a signature restaurant, indoor/outdoor lounge, pool with ocean views, luxury spa and more than 20,000 square feet of meeting and event space. The hotel operated by Joie de Vivre will feature 161 guest rooms, a rooftop pool and bar, a world-class restaurant, public garden and 3,000 square feet of retail space, as well as the historic 1887 Graves House, which will be renovated and open to the public. Timothy Wright, Scott Hall, Olga Walsh and Aaron Lapping of HFF placed the construction financing with Bank OZK and an East Coast-based institutional investor for the borrower.

January 25, 2019

California Civic Development Western

C.W. Driver Completes $73M Cal Poly Pomona Student Services Building in Pomona, California

by Amy Works January 25, 2019

POMONA, CALIF. — C.W. Drive Cos. has completed the construction of a new student services building at California State Polytechnic University, Pomona. The three-story, 138,400-square-foot structure consists of two buildings beneath an undulating roof, which uses solar power to regulate the building’s temperature and energy efficiency. Designed by CO Architects, the curved steel and concrete roof regulates the building’s temperature through its solid and perforated panels. Additionally, the roof shades the exterior glass windows, reducing glare and maximizing natural light. Serving as the new “front door” to the university, the $73 million building plays a critical role in the long-term development of the university, increases operational efficiency and enables growth. The property replaces former student services and administration areas and consolidates key departments located elsewhere on campus. The building will also serve as a one-stop service center to facilitate access, increase visibility and streamline operations for students and staff.

January 25, 2019

Affordable Housing Colorado Development Loans Multifamily Western

KeyBank Provides $50.4M Development Financing for Affordable Housing in Boulder

by Amy Works January 25, 2019

BOULDER, COLO. — KeyBank has arranged $50.4 million in total combined financing for a tax-exempt bond transaction to support Koelbel & Co.’s construction of Diagonal Crossing. Located in Boulder, Diagonal Crossing will feature 105 garden-style apartments for families earning at or below 60 percent of area median income. KeyBank’s Community Development Lending & Investment (CDLI) team provided a $24.7 million construction loan and $10.4 million in Low-Income Housing Tax Credit equity. Additionally, KeyBank Real Estate Capital arranged a $15.3 million permanent loan through a forward commitment for Fannie Mae to issue a mortgage-backed security. Diagonal Crossing will be developed on two parcesl: Lot 3 and Lot 6. Lot 3 will feature 85 affordable housing units in two three-story buildings and one two-story building, while Lot 6 will feature 20 affordable housing units across four buildings. Sarah Geis and Beth Palmer Wirtz of KeyBank’s CDLI team collaborated with Jeff Rodman of KeyBank’s Commercial Mortgage Group on the financing for the project.

January 25, 2019

Acquisitions Arizona Industrial Western

Pacifica Real Estate Group Buys 125,896 SF Industrial Property in Mesa for $14.6M

by Amy Works January 25, 2019

MESA, ARIZ. — Santa Barbara, Calif.-based Pacifica Real Estate Group has acquired Pecos Gateway Business Park in Mesa from Mesa-based Boomerang Capital Partners for $14.6 million. Located at 8743 E. Pecos Road, the three-building, multi-tenant property features 125,896 square feet of industrial space. Built in 2008 and situated on 10.5 acres, the asset features 18-foot to 23-foot clear heights, 11 dock-high loading doors, 29 grade-level loading doors and suites ranging in size from 2,000 square feet to 17,500 square feet. At the time of sale, the property was 100 percent occupied. Bob Buckley, Tracy Cartledge and Steve Lindley of Cushman & Wakefield’s Phoenix office represented the seller in the deal.

January 25, 2019

Acquisitions Colorado Multifamily Western

Marcus & Millichap Brokers $8.7M Sale of Eagleview Apartments in Colorado Springs

by Amy Works January 25, 2019

COLORADO SPRINGS, COLO. — Marcus & Millichap has arranged the purchase of Eagleview Apartments, a multifamily property located at 1803 Prairie Road in Colorado Springs. A private local investor acquired the property for $8.7 million. Built in 1968, the 52,000-square-foot building features 65 two-bedroom/one-bath units, covered parking, a swimming pool, fitness center and on-site laundry. Brian Haggar of Marcus & Millichap represented the buyer, while Phillip Gause, also of Marcus & Millichap, secured acquisition financing for the buyer. The name of the seller was not released.

January 25, 2019

Hawaii Hospitality Market Reports Office Retail Western Western Market Reports

Hawaii’s Fundamentals Continue to Attract Investment Sale Interest

by Taylor Williams January 25, 2019

The Hawaii investment sale market was active in 2018 with an abundance of capital seeking investment opportunities throughout the state and across all product types. Mortgage availability from local banks and non-local financiers remained strong, and there was a steady flow of new interest from debt and equity sources looking for first opportunities in Hawaii. Last year’s transaction volume (including entity level) was up 33 percent from 2017 to $5.5 billion. Institutional and cross-border investment volumes were up from 2017 and performing well above the 10-year average. It was a slower year for private investors and REITs, though institutional capital from Singapore, Zurich, Kuwait, Germany and Japan were the foreign standouts in 2018. Entity-level activity boosted Hawaii’s transaction volume significantly in 2018. We anticipate this story to continue to spill over into Hawaii through 2019 as institutions deploy large amounts of capital to build scale. Brookfield’s acquisition of GGP was the largest entity-level transaction, which included the 2.5 million-square-foot Ala Moana Center with its two office buildings consisting of about 400,000 square feet, the Whalers Village in Maui and the Prince Kuhio Plaza in Hilo. The hospitality sector led the charge for the third year in a row with $2.45 …

January 25, 2019

Acquisitions California Industrial Western

HFF Arranges $33M Acquisition of Vacant 340,000 SF Industrial Building in the Inland Empire

by Amy Works January 24, 2019

SAN BERNARDINO, CALIF. — HFF has brokered the sale of a vacant industrial building in San Bernardino. Bixby Land Co. acquired the Class A asset for $33 million. The newly built, 340,000-square-foot property is located at 4982 Hallmark Parkway within the Inland Empire. The acquisition is part of a joint venture with AXA Investment Managers – Real Assets to aggregate $400 million of industrial assets across the Western United States. Andrew Briner and Michael Roberts of HFF represented the buyer, while CBRE represented the undisclosed seller in the transaction.

January 24, 2019

Acquisitions California Office Western

South Korean Gaming Developer Acquires Pettebone Building in Los Angeles for New Headquarters

by Amy Works January 24, 2019

LOS ANGELES — NHN Global, a South Korean video game developer, has purchased the historic Pettebone Building, located at 501 S. Broadway in Los Angeles. RYDA sold the property for $22 million, or $595 per square foot. The video game developer plans to relocate its headquarters, which is currently in Koreatown, to the new location in downtown Los Angeles. Andrew Tashjian and Michael Gooch of Cushman & Wakefield represented the seller, while Carle Pierose of Industry Partners represented the buyer in the transaction. Originally built in 1905, Pettebone Building is designated a Historic-Cultural Monument and underwent an extensive renovation in 2015. The property features updated elevators, fiber internet, and a 3,000-square-foot rooftop deck. Retail tenants at the office building include Mezcalero and YAKIDO.

January 24, 2019

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