PHOENIX — BKM Capital Partners has acquired Diablo Business Center, a nine-building industrial business park located at 3610-3660 E. Wier Ave. and 4663-4645 S. 36th St. in Phoenix. An undisclosed seller sold the property for $8.1 million. The multi-tenant property features 150,000 square feet of light industrial space. BKM plans to implement a $1.8 million capital improvement program at the property. Planned renovations include creative speculative tenant buildouts, reviving dead units, the addition of private fenced yards and upgrades to the exterior including a modern, multi-tone paint scheme, drought-resistant landscaping, upgraded monument signage and standardized tenant signage. The company will also address structural improvements including a new roof, new parking lot and an improved HVAC system. Bob Buckley of Cushman & Wakefield represented the seller in the transaction.
I have had the pleasure of selling commercial office space in Northern Nevada for nearly 15 years. During this time, I saw the peak of the market from 2003 to 2008 wherein construction was at an all-time high, lease rates were reaching unseen heights and absorption was setting records. Then we all got to experience the Great Recession from 2008 through 2012. This saw nearly half of the buildings that were constructed during the previous peak become empty. Vacancy rates hit 20 percent, lease rates dropped to levels well below where they were in 2003, and construction came to a screeching halt. Then, magically, at the beginning of 2013 the economy took a turn and the Northern Nevada office market began its recovery. This was expedited in 2014 with Tesla making its announcement of the Gigafactory in the Tahoe Reno Industrial Center and the Tesla Effect created a national buzz that hasn’t slowed. Unfortunately, this has created a new problem. The Reno office market sits at 10.1 percent vacancy, down from 20.7 percent during the recession, as net absorption has been positive year over year since 2012. The absorption has been primarily in second-generation space as there has been relatively …
HOLLYWOOD, CALIF. — Santa Monica, Calif.-based Artisan Realty Advisors has purchased Space 15 Twenty, a retail property located at 1520, 1534, 1538 and 1542 N. Cahuenga Blvd. and 1535 Ivar Ave. in Hollywood. Cahuenga Lofts and Ivar Group sold the property for $61 million. Situated on a 71,000-square-foot land parcel, the property consists of two buildings with an open space area and a surface parking lot. Urban Outfitters, Umami Burgers, Free People and Pharmacy Boardshop, a skate shop, occupy the property. The asset was built in the mid-1920s and renovated in 2007. Cory Stehr of Lee & Associates-LA North/Ventura represented the sellers in the transaction.
FULLERTON, CALIF. — Merlone Geier Partners has purchased College Plaza Shopping Center from a private investor for $29.7 million. Located at 2400-2520 E. Chapman Ave. in Fullerton, the 77,276-square-foot shopping center was constructed in 1962 and renovated in 1998. Goodwill and 99 Cents Only anchored the property, which was 73 percent occupied at the time of sale. However, Goodwill vacated during the sales process. Geoff Tranchina, CJ Kodani and Scott Burns of JLL represented the seller, while Merlone Geier represented itself in the deal.
MODESTO, CALIF. — Newmark has placed $28 million in long-term, fixed-rate non-recourse financing for NorthPointe Shopping Center located on Pelandale Avenue in Modesto. The name of the borrower was not disclosed. Save Mart Supermarket anchors the 180,300-square-foot shopping center. Additional tenants include Cost Plus World Market, Starbucks Coffee, Jamba Juice, Verizon Wireless and H&R Block. Mitchell Zeemont of Newmark arranged the 15-year, fixed-rate term loan with a 30-year amortization schedule. One of the firm’s correspondent life insurance company lenders, Genworth Life Insurance Co., provided the capital.
LAS VEGAS — Northcap Multifamily has brokered the sale of Cypress Springs Apartments, located at 3651 N. Rancho Drive in Las Vegas. Oceanside Cypress Springs sold the property to an undisclosed buyer for $15 million. Built in 1994, the asset features 144 multifamily units. Devin Lee, Robin Willett, Jerad Roberts and Jason Dittenber of Northcap Multifamily represented the seller in the transaction.
PALMDALE, CALIF. — Faris Lee Investments has arranged the sale of a newly constructed, single-tenant retail building located at 40022 10th St. West in Palmdale. Southern California-based HFC/PRP Palmdale sold the property to Valuerock Investments Partners for $10.5 million. Built in 2017, the 54,942-square-foot building is located within the Destination 0-Eight Power Center. Hobby Lobby fully occupies the building. Jeff Conover and Christopher DePierro of Faris Lee Investments represented the seller and buyer in the deal.
LOS ANGELES — Delta Airlines, in a partnership with Los Angeles World Airports (LAWA), has unveiled plans for the $1.86 billion Sky Way project at Los Angeles International Airport (LAX). The undertaking calls for upgrades to two of the existing domestic terminals, as well as the Tom Bradley International Terminal, and delivery of infrastructure that connects the hubs. Construction of the project is scheduled to begin this fall. Upon completion, the terminals will offer a greater capacity for security screening with automated lanes, as well as more gate-area seating. Terminals 2 and 3 will feature 27-gate complexes with a secure connection to the international terminal. “LAX is one of the most important hubs in our network where we operate more than 170 daily flights and connect more passengers to our partner airlines than anywhere else in the U.S,” said Delta CEO Ed Bastian. “The Delta Sky Way at LAX project is a once-in-a-generation opportunity to invest in and transform the airport experience in partnership with LAWA and the City of Los Angeles.” Delta, which launched a new slate of retail and dining options for Terminal 3 in December 2017, will continue to adjust the shopping and restaurant options at the …
OAKLAND, CALIF. — CIT Group’s Real Estate Finance division was the sole lead arranger for a $107.5 million construction loan for Station on 12th, a 333-unit multifamily project in downtown Oakland. The borrower is a joint venture between a Brookfield-sponsored private real estate fund and The Martin Group, the developer and operating partner for the project.
DENVER — HFF has arranged refinancing for Stanford Place II, an 18-story Class A office building located in the north end of Denver Technological Center. The borrower is Lowe Enterprises Investors. Eric Tupler of HFF arranged the two-year, floating-rate loan with extension options through a national bridge lender. The loan amount was not disclosed. Completed in 1982, 22 tenants occupy the 366,184-square-foot building, with Western Union as anchor tenant.