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Terreno Tears Down Industrial Asset in Carson to Make Way for New Facility

27 Jul 2015, 2:25 pm

By Alex Girda, Associate Editor

An L.A.-area industrial asset is ready for a complete overhaul. Terreno Realty Corporation is prepping the redevelopment of a property it owns in the city of Carson, CA.

Located on South Main Street, the property currently consists of three industrial buildings that total around 186,000 square feet of space. Terreno acquired the industrial buildings back in 2012, and in 2014 also acquired a 34,000-square-foot office building. All four buildings are located on a 14.3-acre site.

The owner’s plan is to demolish the three industrial buildings and build a new front-load structure that would offer 25,000 additional square feet of space. The existing office property is slated for extensive july renovation. Terreno estimates that around $16.4 million will be invested in the new asset. According to a press statement released regarding the redevelopment, the stabilized cap rate of the redeveloped property is estimated at around 6.1 percent. Completion on the new industrial facility is slated for 2016’s Q2.

Leasing for the planned facility has been a success with roughly three quarters of the 210,000 available square feet already under contract. That’s thanks to a ten-year lease that has been inked with FedEx Trade Networks.

MacFarlane Looks For Partners at Park Fifth

24 Jul 2015, 1:48 pm

By Alex Girda, Associate Editor

A major mixed-use development project is on the market for financiers. MacFarlane Partners is the developer in charge of Park Fifth, and is currently looking for a deal involving either a presale or joint venture opportunity for the project.

MacFarlane’s offering gives a potential investor the chance to become part of a large downtown L.A. mixed-use community. The company tasked CBRE Capital Markets’ Institutional Properties team members Curtis Palmer and Ted Fentin to market the assignment.

Park Fifth Project

Park Fifth Project

Slated to take shape at the corner of 5th Street and South Olive Street in the proximity of Pershing Square Park and the Gas Company Tower, Park Fifth will occupy a 2.3-acre site. When completed, the $400 million project will total 660 rental units, as well as 12,000 square feet of retail space.

Residents will benefit from an amenity package that includes a 14,000-square-foot courtyard, floor-to-ceiling windows, private balconies, dog walks, fitness center, rooftop terraces, and multiple lounge areas and pools. A parking facility accommodating up to 695 vehicles is also planned at the site.

Berkadia Arranges Trio of Multifamily Deals Throughout SoCal

22 Jul 2015, 2:49 pm

By Alex Girda, Associate Editor

Three multifamily properties traded this week in Chula Vista, Bermuda Dunes, and Lake Elsinore for a total sales volume of $85 million. What ties them all together? The three deals were arranged by Managing Director Director Alex Mogharebi out of real estate company Berkadia’s Ontario, CA office.

The Villages at Bonita Glen

The Villages at Bonita Glen

In Chula Vista, Mogharebi arranged the sale of The Villages at Bonita Glen for $49.1 million. Located at 240, 250, 254 and 260 Bonita Glen Drive and 72 Sandalwood Drive, the 295-unit property was built in phases throughout the 70s and 80s. Acquired by Philadelphia-based RRE Bonita Glen Holdings, the property was fully occupied at the time of the transaction. Former owner Granite Investment Group held the property since 1997.

The second property of the three is Oasis at Bermuda Dunes, a 140-unit community that was bought by Pacific Development Partners for $19 million. Located at 79090 42nd Avenue in Bermuda Dunes, the community was finished in 2005 by current seller, L.A.-based Tri-Millennium Properties. The resident amenity package includes a swimming pool, business center, playground, and media room. According to a press statement announcing the sale, the new owners are looking to increase revenues at the property through a host of changes that includes a new property management team.

Harbor Grand

Harbor Grand

Located at 15120 Grand Avenue in Lake Elsinore, Harbor Grand is the final asset on the list. The 192-unit community was sold by owner Positive Investments to Providence Capital Group for $16.9 million. The buyer acquired Harbor Grand as the upleg of a 1031 exchange. Positive Investment previously acquired the property out of foreclosure and, during its tenure as owner, carried out a number of improvements.

Sidewalks, Air Rights and Land: Parting Gifts from the Defunct Redevelopment Agency

21 Jul 2015, 2:31 pm

By Alex Girda, Associate Editor

Following the demise of the Community Redevelopment Agencies across California, a large amount of leftover real estate, the result of a variety of projects or zoning changes made during their activity, is now available. The CRA/LA, the successor of The Community Redevelopment Agency of the City of Los Angeles, now needs to offload an interesting mix of assets that remained in the wake of the agency’s shutdown.

the city of Los Angeles

The City of Los Angeles

According to a recently issued press statement, CRA/LA chose Cushman & Wakefield to handle the disposition of the 50-asset portfolio. Consisting of an eclectic mix of assets that includes land, leased fees, easements, and air rights, as well as more unconventional bits of real estate such as stretches of sidewalk, the portfolio is dispersed throughout the city, and paints a picture of the extensive activity of the Redevelopment Agency.

Cushman & Wakefield has been granted exclusivity in the disposition of the portfolio, with efforts to sell the assets being headed by Associate Director Jimmy Chai, Vice Chairman & Executive Managing Director Marc Renard, as well as Senior Director Manfred Schaub. The brokerage already setup a website where those interested can peruse the assets that are up for grabs.

Set to be sold at fair market value, the properties originally became available on July 15th. Interested parties are expected to submit offers for the assets before the September 15 deadline.

Image courtesy of crala.org

Lucky Thirteenth for The Bascom Group in California

21 Jul 2015, 2:28 pm

By Alex Girda, Associate Editor

The Bascom Group recently completed its 13th California acquisition, proving that you really can’t have too much of a good thing. The company paid $25.5 million for a garden-style residential asset in the city of Downey, known as The Square Apartments.

Berkadia representatives Shane Shaeffer and Adrienne Barr brokered the transaction while financing for the acquisition was provided by Brian Eisendrath, Brandon Smith and Annie Rice of CBRE Capital Markets. The financing measure consisted of an $18.8 million loan sourced from California Bank & Trust. Property management company Fusion handled management duties for the community until the time of the sale.

Located at 12535 Brookshire Ave, the apartment community offers a total of 112 residential units on a 3.4-acre lot. The complex is comprised of 15 two-story buildings that offer three different floorplans. 38 percent of units at the property are two-bedroom apartments, while 36 percent offer three-bedrooms. The remaining 27 percent are one-bedroom units. The property offers tenants good access to the nearby Imperial Highway, schools, retail and dining.

The Bascom Group is looking to carry out an improvement program at The Square Apartments. According to rentv.com, the 1965-built community will see its interiors and exterior modernized and improved.

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