NEW & NOTABLE

BEVERLY HILLS, CA— Zachary Gingold has joined Sonnenblick-Eichner Co. as an associate. Gingold brings to Sonnenblick-Eichner Company experience in underwriting, negotiation and closing of more than $300 million in real estate debt transactions. In his new role, he will be responsible for preparing investment and financing memoranda, as well as completing the financial analyses and market research associated with each transaction. His responsibilities also will include managing the due diligence process, evaluating potential investment and financing proposals, and helping with the closing process. Prior to joining Sonnenblick-Eichner Company, Mr. Gingold held internships at iBorrow LP, Rexford Industrial, and Latitude Management Real Estate Investors.

LOS ANGELES— CBRE has hired Jonathan Schley as a VP in the firm's high-

street retail team. Based in the firm's downtown Los Angeles office, Schley will focus on tenant and landlord representation and collaborate closely with SVP Andrew Turf. During his twelve-year career in commercial real estate, Schley has worked on luxury retail transactions in such cities as New York, Los Angeles, London and Paris. Prior to CBRE, Schley was owner and founder of Schley a real estate development, investment, and advisory company, with a primary focus on the retail and hospitality sectors. Before the founding of his own company, Schley was director of retail development at Tungsten Partners where his primary focus was boutique hotel chain Ace Hotel.

DEALTRACKER

PHOENIX—Bascom Arizona Ventures has sold Arcadia Cove Apartments in Phoenix to BH Equities for $71.5 million. Bascom purchased the 432-unit property in 2013 for $40.72 million, and made substantial improvements to the property. Upgrades featured a fitness room, an Internet café, and a clubhouse with iPads stations. Interior upgrades included two-tone paint, new cabinetry, granite countertops, energy-saving stainless steel appliance packages, modern light fixtures, vinyl plank flooring, and ceilings fans. The amenities brought the community up to modern design.

PHOENIX—NorthMarq Capital has provided the $23 million refinance loan for Colter Park Apartments, a 120-unit multifamily property located at 909 West Colter Street Phoenix, Arizona. Luke Donahue, senior vice president/senior director at the firm, secured the funding on behalf of an unnamed borrower. The full term interest-only loan was funded by NorthMarq's Fannie Mae platform.

TEMPE, AZ—Capstone Advisors has acquired DeMuro Corporate Square, a seven-building office and flex industrial property in Tempe, Arizona, from University Corporate Square Associates, for $10.2 million. The investor has plans to reposition the property to supply 'creative' office and flex–industrial space to today's contemporary firms looking for a unique work location in centrally located Tempe. The 88,837 square-foot property is located at 1505-1575 W. University Ave. just a few blocks west of the Arizona State University campus, a dynamic hub for entrepreneurship and innovation.

LAS VEGAS—Calmwater Capital has originated a $36.7 million loan on behalf of Remington Nevada to refinance existing debt and finance remaining construction of the Mountains Edge Marketplace in southwest Las Vegas. Once completed, the 101,000-square-foot retail property will be located at the corner of Blue Diamond Road and South Buffalo Drive, and will be anchored by Albertsons. The Calmwater-provided credit facility comprises a $16.6 million senior secured term loan and a $20.1 million delayed draw term loan for future construction costs, tenant improvements and leasing costs.

SAN DIEGO—San Diego's Mission Grove Office Park has traded hands between Radius Investments and Charlie Jadallah for $10.3 million. The two-building, 65,649-square-foot office complex has two multi-tenant office buildings. Cushman & Wakefield's Derek Hulse, Rick Reeder and Brad Tecca with the firm's San Diego offices represented the seller in the transaction. Nick Totah of Marcus & Millichap represented the buyer.
PHOENIX—Las Vistas at Papago Park, a 13-building apartment community at 1010 N 48th St., has been sold for $13.5 million to an affiliate of Avenue North. The local buyer has plans to rename the property Proximity at Papago Park and update the multifamily development. Hahn, Trevor Koskovich and Jeff Sherman with Colliers International in Greater Phoenix negotiated the sale transaction. WWC XVIII LLLP, an Arizona limited liability partnership sold the property to Avenue North, LLC. The apartment community was constructed in 1982 and contains 13 buildings on 4.74 acres of land. The development offers 200 apartments units totaling 134,000 square feet. Equally split between one and two-bedroom units, the apartments range in size from 620 to 720 square feet. More than 300 parking spaces are available at the development, which is located on 48th Street between McDowell Road and Van Buren Avenue. The property was 90% occupied at the time of the sale.

NEWPORT BEACH, CA—HFF has closed the $42 million sale Gateway Marketplace, a 127,861-square-foot shopping center anchored by both Smart & Final and Aldi in the San Diego county community of Chula Vista, California. HFF marketed the property on behalf of the seller, a partnership between Brixton Capital and ALTO Real Estate Funds. An affiliate of American Assets Trust, Inc. purchased the asset free and clear of existing debt. Gateway Marketplace was completed in 1997 and redeveloped in 2016. In addition to the dual grocery anchors, the 98.7-percent-leased center is also home to Party City, Hobby Lobby, Mattress Firm, Little Caesars and AT&T. Gateway Marketplace is situated on 9.95 acres at 40 North 4th Avenue in Chula Vista, which is approximately seven miles from downtown San Diego and Tijuana. The center is located at the northwest corner of North 4th Avenue and C Street, which have combined traffic counts of 43,400 vehicles per day. Additionally, the center has direct east and westbound access to the South Bay Freeway, which is trafficked by approximately 146,500 vehicles per day.
LOS ANGELES—Rexford Industrial Realty has acquired three industrial properties in three separate transactions for a total of approximately $71.5 million. Additionally, the company announced the disposition of an industrial property for approximately $18.7 million. Proceeds from the disposition were reinvested into a new acquisition, with the balance of the purchases funded utilizing cash on hand and the company's line of credit. The Company acquired 14820-30 Carmenita Road and 13555 Excelsior Drive located in Norwalk within the Los Angeles – Mid Counties submarket for $30.7 million, or approximately $155 per square foot. The property consists of one two-tenant industrial building and two single-tenant industrial buildings containing a total of 198,062 square feet on 12.01 acres. The buildings are 100% leased to four tenants at rents that are approximately 17% below market. The two-tenant building features 30-foot clear-height, high-image frontage and a favorable ratio of dock-high loading. The two single-tenant buildings provide excess land for outside storage that is coveted by tenants in the market. The property is located on a major thoroughfare with immediate Santa Ana (5) freeway access. According to CBRE, the vacancy rate in the 109 million square foot Los Angeles, Mid Counties submarket was 0.9% at the end of the first quarter 2017.

PHOENIX—The I-10 Distribution Portfolio in Phoenix has traded hands between DCT Industrial and Colony Northstar for $39 million. JLL managing directors Bo Mills and Mark Detmer and Vice president Ryan Sitov led the JLL team on the sale. The assets are located at 101 North 103rd Ave. and 101 North 104th Ave., and are 279,186 square feet and 279,279 square feet respectively. Both buildings offer flexible space with cross-dock capabilities and the ability to accommodate either single or multi-tenant layouts.

SAN DIEGO—Cushman & Wakefield announced today that Elisabeth Awes Separate Property Trust and the Williams Family Trust have come to terms on a long-term ground lease with developer 4th & J for a prominent 30,056 square-foot parcel at 372 4th Ave. in San Diego's Marina District. As the new lessee, 4th & J, LLC plans to redevelop the parcel into a $60 million six-story, 168-unit multifamily project. The highly visible property situated at the corner of 4th Ave. and J St. currently consists of a 20,000 freestanding retail building formerly occupied by Cost Plus World Market that will be razed to make way for the new housing structure.

BUILDING BLOCKS

PHOENIX—Cawley Architects of Phoenix recently completed a 9,130-square-foot surgery center for Spectra Eye Institute at the newly redeveloped 36,959-square-foot headquarters of Retinal Consultants of Arizona along I-17. Cawley Architects collaborated with G2 Capital of Scottsdale and GCON of Phoenix on redeveloping the original building, located at 15401 N. 29th Avenue in the Arizona Business Park in Phoenix. The building was first constructed as a large fitness center. Upon being vacated by the original owner, the two-story concrete building fell into disrepair and

OCEANSIDE—Shopoff Realty Investments has sold 4.8 acres of land it previously entitled for the ground-up development of 70 townhomes and 3,000 square feet of neighborhood-style retail space. The townhomes will range from 1,708 square feet to 2,215 square feet, and will feature roof-top patios. The site is ideally situated within the El Corazon master-planned community in Oceanside, California, just a few miles from the Pacific Ocean. The community will feature a vast array of parks, tournament sports fields, hiking trails, commercial, retail and housing.

SAN DIEGO—Badiee Development has commenced construction on the Escondido Victory Industrial Park, Escondido's first, new industrial development in more than a decade. This significant milestone was celebrated today with a groundbreaking ceremony hosted with City of Escondido Mayor Sam Abed and dozens of other distinguished community and business leaders. The 91,000-square foot Escondido Victory Industrial Park is located at 2005 Harmony Grove Road, Escondido, CA (92029) and will be completed in the spring of 2018. The project is comprised of two modern industrial buildings, which are suited for one to two substantially sized companies. The project will feature contemporary building design including outdoor areas that open to the Escondido Creek, high clear height ceilings and mezzanine space among other features.

The industrial market continues to be the major highlight in the Southwest region. In fact, a new study from Kidder Mathews highliegted the success in the market and the extended runway ahead. Then, the deals backed up the rest, with huge sales and pricing that continues to soar. Here, we take a look at what happened across the political landscape this year. Here's a look at this week's trends, announcements and deals that you may have missed in Southern California, Utah, Arizona and Nevada.

BY THE NUMBERS

LOS ANGELES—The Los Angeles industrial market isn't slowing down, and gains are expected well into the future, even as occupancy costs rise. Net absorption was negative in Q2 at 128,433 square feet, and this is the first quarter of negative absorption since 1Q16. The San Gabriel Valley recorded the most net absorption with 226,780 square feet of occupied space added to the market. We expect this to grow further with over 2.4 million of square feet of construction looking to be added in the upcoming quarters. South Bay recorded the largest negative absorption at over 300,000 square feet, which could be correlated to the lack of available inventory. Leasing activity stayed strong in Q2 increasing over 500,000 square feet from the prior quarter reaching over 5.8 million square feet. We believe that activity shall continue its growth in the upcoming quarters with the addition of 4.9 million square feet of new construction coming to market. Currently the vacancy stands at 2.1%, which is a 10 basis point increase from last quarter and 20 basis point increase from the year prior. The vacancy rate has been ranging between 1.9% and 2.1% since Q4 of 2015. With this consistent pattern we expect it to continue throughout the upcoming quarters. The average asking rental rate at the end of Q2 is $0.84 per square foot on a triple net basis per month. Year-over-year, the asking rate is up $0.06 from Q2 2016, a 7.6% increase. The current asking rate is the highest on record and seems to continue.

(SOURCE: KIDDER MATHEWS)

NEW & NOTABLE

BEVERLY HILLS, CA— Zachary Gingold has joined Sonnenblick-Eichner Co. as an associate. Gingold brings to Sonnenblick-Eichner Company experience in underwriting, negotiation and closing of more than $300 million in real estate debt transactions. In his new role, he will be responsible for preparing investment and financing memoranda, as well as completing the financial analyses and market research associated with each transaction. His responsibilities also will include managing the due diligence process, evaluating potential investment and financing proposals, and helping with the closing process. Prior to joining Sonnenblick-Eichner Company, Mr. Gingold held internships at iBorrow LP, Rexford Industrial, and Latitude Management Real Estate Investors.

LOS ANGELES— CBRE has hired Jonathan Schley as a VP in the firm's high-

street retail team. Based in the firm's downtown Los Angeles office, Schley will focus on tenant and landlord representation and collaborate closely with SVP Andrew Turf. During his twelve-year career in commercial real estate, Schley has worked on luxury retail transactions in such cities as New York, Los Angeles, London and Paris. Prior to CBRE, Schley was owner and founder of Schley a real estate development, investment, and advisory company, with a primary focus on the retail and hospitality sectors. Before the founding of his own company, Schley was director of retail development at Tungsten Partners where his primary focus was boutique hotel chain Ace Hotel.

DEALTRACKER

PHOENIX—Bascom Arizona Ventures has sold Arcadia Cove Apartments in Phoenix to BH Equities for $71.5 million. Bascom purchased the 432-unit property in 2013 for $40.72 million, and made substantial improvements to the property. Upgrades featured a fitness room, an Internet café, and a clubhouse with iPads stations. Interior upgrades included two-tone paint, new cabinetry, granite countertops, energy-saving stainless steel appliance packages, modern light fixtures, vinyl plank flooring, and ceilings fans. The amenities brought the community up to modern design.

PHOENIX—NorthMarq Capital has provided the $23 million refinance loan for Colter Park Apartments, a 120-unit multifamily property located at 909 West Colter Street Phoenix, Arizona. Luke Donahue, senior vice president/senior director at the firm, secured the funding on behalf of an unnamed borrower. The full term interest-only loan was funded by NorthMarq's Fannie Mae platform.

TEMPE, AZ—Capstone Advisors has acquired DeMuro Corporate Square, a seven-building office and flex industrial property in Tempe, Arizona, from University Corporate Square Associates, for $10.2 million. The investor has plans to reposition the property to supply 'creative' office and flex–industrial space to today's contemporary firms looking for a unique work location in centrally located Tempe. The 88,837 square-foot property is located at 1505-1575 W. University Ave. just a few blocks west of the Arizona State University campus, a dynamic hub for entrepreneurship and innovation.

LAS VEGAS—Calmwater Capital has originated a $36.7 million loan on behalf of Remington Nevada to refinance existing debt and finance remaining construction of the Mountains Edge Marketplace in southwest Las Vegas. Once completed, the 101,000-square-foot retail property will be located at the corner of Blue Diamond Road and South Buffalo Drive, and will be anchored by Albertsons. The Calmwater-provided credit facility comprises a $16.6 million senior secured term loan and a $20.1 million delayed draw term loan for future construction costs, tenant improvements and leasing costs.

SAN DIEGO—San Diego's Mission Grove Office Park has traded hands between Radius Investments and Charlie Jadallah for $10.3 million. The two-building, 65,649-square-foot office complex has two multi-tenant office buildings. Cushman & Wakefield's Derek Hulse, Rick Reeder and Brad Tecca with the firm's San Diego offices represented the seller in the transaction. Nick Totah of Marcus & Millichap represented the buyer.
PHOENIX—Las Vistas at Papago Park, a 13-building apartment community at 1010 N 48th St., has been sold for $13.5 million to an affiliate of Avenue North. The local buyer has plans to rename the property Proximity at Papago Park and update the multifamily development. Hahn, Trevor Koskovich and Jeff Sherman with Colliers International in Greater Phoenix negotiated the sale transaction. WWC XVIII LLLP, an Arizona limited liability partnership sold the property to Avenue North, LLC. The apartment community was constructed in 1982 and contains 13 buildings on 4.74 acres of land. The development offers 200 apartments units totaling 134,000 square feet. Equally split between one and two-bedroom units, the apartments range in size from 620 to 720 square feet. More than 300 parking spaces are available at the development, which is located on 48th Street between McDowell Road and Van Buren Avenue. The property was 90% occupied at the time of the sale.

NEWPORT BEACH, CA—HFF has closed the $42 million sale Gateway Marketplace, a 127,861-square-foot shopping center anchored by both Smart & Final and Aldi in the San Diego county community of Chula Vista, California. HFF marketed the property on behalf of the seller, a partnership between Brixton Capital and ALTO Real Estate Funds. An affiliate of American Assets Trust, Inc. purchased the asset free and clear of existing debt. Gateway Marketplace was completed in 1997 and redeveloped in 2016. In addition to the dual grocery anchors, the 98.7-percent-leased center is also home to Party City, Hobby Lobby, Mattress Firm, Little Caesars and AT&T. Gateway Marketplace is situated on 9.95 acres at 40 North 4th Avenue in Chula Vista, which is approximately seven miles from downtown San Diego and Tijuana. The center is located at the northwest corner of North 4th Avenue and C Street, which have combined traffic counts of 43,400 vehicles per day. Additionally, the center has direct east and westbound access to the South Bay Freeway, which is trafficked by approximately 146,500 vehicles per day.
LOS ANGELES—Rexford Industrial Realty has acquired three industrial properties in three separate transactions for a total of approximately $71.5 million. Additionally, the company announced the disposition of an industrial property for approximately $18.7 million. Proceeds from the disposition were reinvested into a new acquisition, with the balance of the purchases funded utilizing cash on hand and the company's line of credit. The Company acquired 14820-30 Carmenita Road and 13555 Excelsior Drive located in Norwalk within the Los Angeles – Mid Counties submarket for $30.7 million, or approximately $155 per square foot. The property consists of one two-tenant industrial building and two single-tenant industrial buildings containing a total of 198,062 square feet on 12.01 acres. The buildings are 100% leased to four tenants at rents that are approximately 17% below market. The two-tenant building features 30-foot clear-height, high-image frontage and a favorable ratio of dock-high loading. The two single-tenant buildings provide excess land for outside storage that is coveted by tenants in the market. The property is located on a major thoroughfare with immediate Santa Ana (5) freeway access. According to CBRE, the vacancy rate in the 109 million square foot Los Angeles, Mid Counties submarket was 0.9% at the end of the first quarter 2017.

PHOENIX—The I-10 Distribution Portfolio in Phoenix has traded hands between DCT Industrial and Colony Northstar for $39 million. JLL managing directors Bo Mills and Mark Detmer and Vice president Ryan Sitov led the JLL team on the sale. The assets are located at 101 North 103rd Ave. and 101 North 104th Ave., and are 279,186 square feet and 279,279 square feet respectively. Both buildings offer flexible space with cross-dock capabilities and the ability to accommodate either single or multi-tenant layouts.

SAN DIEGO—Cushman & Wakefield announced today that Elisabeth Awes Separate Property Trust and the Williams Family Trust have come to terms on a long-term ground lease with developer 4th & J for a prominent 30,056 square-foot parcel at 372 4th Ave. in San Diego's Marina District. As the new lessee, 4th & J, LLC plans to redevelop the parcel into a $60 million six-story, 168-unit multifamily project. The highly visible property situated at the corner of 4th Ave. and J St. currently consists of a 20,000 freestanding retail building formerly occupied by Cost Plus World Market that will be razed to make way for the new housing structure.

BUILDING BLOCKS

PHOENIX—Cawley Architects of Phoenix recently completed a 9,130-square-foot surgery center for Spectra Eye Institute at the newly redeveloped 36,959-square-foot headquarters of Retinal Consultants of Arizona along I-17. Cawley Architects collaborated with G2 Capital of Scottsdale and GCON of Phoenix on redeveloping the original building, located at 15401 N. 29th Avenue in the Arizona Business Park in Phoenix. The building was first constructed as a large fitness center. Upon being vacated by the original owner, the two-story concrete building fell into disrepair and

OCEANSIDE—Shopoff Realty Investments has sold 4.8 acres of land it previously entitled for the ground-up development of 70 townhomes and 3,000 square feet of neighborhood-style retail space. The townhomes will range from 1,708 square feet to 2,215 square feet, and will feature roof-top patios. The site is ideally situated within the El Corazon master-planned community in Oceanside, California, just a few miles from the Pacific Ocean. The community will feature a vast array of parks, tournament sports fields, hiking trails, commercial, retail and housing.

SAN DIEGO—Badiee Development has commenced construction on the Escondido Victory Industrial Park, Escondido's first, new industrial development in more than a decade. This significant milestone was celebrated today with a groundbreaking ceremony hosted with City of Escondido Mayor Sam Abed and dozens of other distinguished community and business leaders. The 91,000-square foot Escondido Victory Industrial Park is located at 2005 Harmony Grove Road, Escondido, CA (92029) and will be completed in the spring of 2018. The project is comprised of two modern industrial buildings, which are suited for one to two substantially sized companies. The project will feature contemporary building design including outdoor areas that open to the Escondido Creek, high clear height ceilings and mezzanine space among other features.