(SOURCE: NKF)

Construction activity in the Inland Empire remains highly active with 31 million square feet in development. That is a 131% increase from one year ago. There are 132 buildings currently underway, which includes 73 under 100,000

square feet; 37 between 100,000 and 499,999 square feet; and 22

over 500,000 square feet. Vacancy has been under 5.0% for 17 consecutive quarters, while the average asking rent is hovering near a record high. Net absorption in the second quarter totaled 4.1 million square feet, and was positive for the 31st-straight quarter. The bulk of this quarter's activity came from new construction occupancies.

(SOURCE: NKF)

NEW & NOTABLE

LONG BEACH—The Long Beach City Council on Tuesday voted unanimously to confirm Frank Colonna and Bonnie Lowenthal to the Board of Harbor Commissioners, which oversees the Port of Long Beach and the staff of the City's Harbor Department. Colonna and Lowenthal are both former City Council members; Lowenthal is also a former state Assembly member and Long Beach Unified School District Board Member. Their first meeting as Harbor Commissioners is set for Aug. 14. Colonna will fill the seat of Commissioner Doug Drummond, who was appointed to a partial term of four years in 2011 and was reappointed in 2015, with the intent to retire in August 2017. Colonna's term runs into 2021. Lowenthal is appointed to a six-year term; she is replacing Commissioner Rich Dines, who joined in 2011. Harbor Commissioners are appointed by the mayor to a maximum of two six-year terms.

LONG BEACH— The Long Beach Board of Harbor Commissioners has approved a new leader to head the Port of Long Beach's Finance and Administration Bureau. Sam Joumblat, the Chief Financial Officer of Total Transportation Services Inc., is returning to the Port as Managing Director of Finance and Administration. The key financial position manages an annual budget of $750 million and this decade's $4 billion, 10-year capital improvement program—the largest of any seaport in the nation. The Finance and Administration Bureau comprises the Port's Finance, Information Management, Real Estate and Risk Management divisions. The previous leader of the bureau retired late last year.
DEALTRACKER

LAKE FOREST, CA—Summit Healthcare REIT has acquired an assisted living and memory care facility located in Chandler, Arizona, for $13.4 million. The facility consists of a total of 90 licensed beds, and will be leased to Compass Senior Living, an operator who leases six other facilities in Summit's portfolio. The acquisition was made through Summit Chandler, LLC, which is a wholly owned subsidiary of Summit.

LOS ANGELES—Rancho Pacifica Park, a nearly 1.2 million square foot industrial/flex project totaling six buildings and situated on more than 55 acres, has traded hands between an unnamed seller and Rexford Industrial. The master planned project is located in the city of Rancho Dominguez, within the flourishing South Bay market of Los Angeles. Jeff Chiate, Jeffrey Cole, Ed Hernandez, Mike Adey and Nico Napolitano of Cushman & Wakefield's National Industrial Advisory Group (IAG) represented the seller. The 1,170,806 square foot park was built during 1987 through 1989 and contains the addresses of 20001-20021 Rancho Way and 2301-2399 E. Pacifica Place. The park's composition includes five industrial buildings and one flex building, each residing on its own parcel. The property benefits from a wide range of unit sizes, ample dock loading, lighted concrete truck courts, and minimum warehouse clear heights ranging from 24 to 30 feet.

TEMPE, AZ—DeMuro Corporate Square, a 7-building business park totaling 88,837 square feet at 1505-1575 W. University Dr., Tempe, has traded hands between University Corporate Square Associates and Tempe Creative Campus for $10.2 million. Occupancy was reported to be 92%. Lee & Associates Investment Principals Steve Gonzalez, Marcus Muirhead, and Greg Guglielmino represented the seller. Built in 1985, the seven-building business park contains buildings of just over 7,000 square feet to 17,000 square feet. The business park features I-1 light industrial zoning and 319 parking spaces. The outstanding location is just three miles east of Phoenix Sky Harbor International Airport and several blocks from Downtown Tempe and the main campus of Arizona State University.

HUNTINGTON BEACH—Seagate Plaza, a 30,234-square-foot shopping center in Huntington Beach, California, has traded hands for $10.8 million. Joseph Lising in Marcus & Millichap's Newport Beach office represented the 1031-exchange buyer, Cathy Investments LLC. The seller is Asbury Properties Inc., a Los Angeles-area family-owned real estate company. Built in 1975, the property is located on the corner of Bolsa Chica Road and Edinger Avenue at 16107 Bolsa Chica St. in Huntington Beach. The center is anchored by a recently renovated Carl's Jr. Major tenants include Seagate Veterinary Hospital, Classic Cleaners, Seagate Liquor & Grocery, Subway, and Coastline Dental.

LAS VEGAS—Calmwater Capital has originated a $36.7 million loan for 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, anchored by Albertsons, will be located at the corner of Blue Diamond Road and South Buffalo Drive, adjacent to the Mountains Edge master-planned community. Mountains Edge Marketplace is located at the entrance to the 14,000-home, Mountains Edge Master Planned Community, one of the top-selling master planned communities in the country from 2010 to 2014. The property's grocery anchor tenant, Albertsons, opened its 55,000-square-foot store in April. Remington Nevada has secured a variety of regional and national tenants, which will open doors upon the property's completion including Chase Bank, Burger King, Del Taco and Orange Theory Fitness.
LOS ANGELES—Chino Spectrum Towne Center, a 459,969-square-foot power center located in the affluent community of Chino in San Bernardino County, California, traded hands. The property was purchased by MetLife Investment Management, and the seller was a partnership between Vestar Development Co and an institutional entity. Chino Spectrum Towne Center is located at the intersection of Grand Avenue and the 71 Freeway in the City of Chino. Anchor tenants include Wal-Mart, Kohls, Best Buy, Marshalls, Nordstrom Rack, DSW, Party City, Pier One Imports, and Aki Home. Savills Studley's Bill Bauman, EVP, and Kyle Miller, corporate managing director, handled the sale.

BEVERLY HILLS—Quantum Capital Partners has arranged $31.75 million in CMBS debt to refinance a 10-story, 137,254-square-foot mixed-use building in Downtown Los Angeles. The 10-year interest only, non-recourse loan was secured by The Metropolitan, a historic building constructed in 1913 at 499 S. Broadway at the intersection of Fifth Street. The building was acquired in 1996 by the Sponsor, a local investor operating as 499 S. Broadway LLC,. The top eight floors were converted for residential use in 2011 under the City of Los Angeles' Adaptive Reuse Ordinance. Designed by renowned architect John Parkinson, whose other well-known local projects include Los Angeles City Hall, the Los Angeles Memorial Coliseum, and Los Angeles Union Station; The Metropolitan is considered one of the finest examples of Beaux Arts Style architecture in Southern California.

BUILDING BLOCKS

HENDERSON, NV— ASCAYA, a residential development set in the foothills of the McCullough Range outside of Las Vegas, has completed its first inspiration home. The 6,641-square-foot estate, designed by SB Architects, includes four bedrooms, six and a half baths, and an office and entertainment room. Based in San Francisco with offices in Miami and Shenzhen, the firm is globally known for site-sensitive designs and creating thought-provoking and well-crafted architectural projects. Six of the country's leading architects were commissioned to design one-of-a-kind homes to showcase to prospective buyers the unique sites available at ASCAYA. In an exercise of collective creativity, each home introduces a different interpretation of contemporary design. Four additional inspiration homes are currently under construction, with the final home scheduled to start construction later this year.

DENVER— CityView has acquired a property in Denver that it will develop in partnership with The Dinerstein Companies. The proposed class-A, 350-unit multifamily development will be named Colorado Station, replacing an underutilized retail center, which currently exists on the site. The property is located minutes from Cherry Creek and is a short light rail ride to both Downtown and the Denver Tech Center, Denver's primary employment hubs. The transit-oriented development will anchor the southeast corner of Colorado Boulevard and Evans Avenue.

Transactions remained healthy this week, with ample activity in the Southwest market throughout asset classes. Some of the most notable sales with in the industrial market with Rexford's purchase of Rancho Pacifica Park, a nearly 1.2 million square foot industrial/flex project totaling six buildings and situated on more than 55 acres, and retail with MetLife Investment Management's purchase of Chino Spectrum Towne Center, a 459,969-square-foot power center. Employment news, however, has slowed this week with nearly no new employment news coming out of the Southwest, aside from the annual appointments to the Harbor Commissioners Board. 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 net absorption was positive for the 18th consecutive quarter, but remained flat year-over-year with 410,036 total square feet of absorption. Additionally, the vacancy rate also remained unchanged from the prior quarter. Santa Monica accounted for 44% of Greater Los Angeles' second-quarter net absorption activity, and Culver City nabbed the largest lease in the second quarter when HBO signed a 128,000-square-foot lease deal there. The overall average asking rent of $3.09/SF was up 2.3% from one year ago but was unchanged from the prior quarter. Available sublease space was up 6.8% from one year ago. Although it

increased, sublet space represented just 2.1% of existing inventory; this is in line with the 10-year average of 2.2%.

(SOURCE: NKF)

Construction activity in the Inland Empire remains highly active with 31 million square feet in development. That is a 131% increase from one year ago. There are 132 buildings currently underway, which includes 73 under 100,000

square feet; 37 between 100,000 and 499,999 square feet; and 22

over 500,000 square feet. Vacancy has been under 5.0% for 17 consecutive quarters, while the average asking rent is hovering near a record high. Net absorption in the second quarter totaled 4.1 million square feet, and was positive for the 31st-straight quarter. The bulk of this quarter's activity came from new construction occupancies.

(SOURCE: NKF)

NEW & NOTABLE

LONG BEACH—The Long Beach City Council on Tuesday voted unanimously to confirm Frank Colonna and Bonnie Lowenthal to the Board of Harbor Commissioners, which oversees the Port of Long Beach and the staff of the City's Harbor Department. Colonna and Lowenthal are both former City Council members; Lowenthal is also a former state Assembly member and Long Beach Unified School District Board Member. Their first meeting as Harbor Commissioners is set for Aug. 14. Colonna will fill the seat of Commissioner Doug Drummond, who was appointed to a partial term of four years in 2011 and was reappointed in 2015, with the intent to retire in August 2017. Colonna's term runs into 2021. Lowenthal is appointed to a six-year term; she is replacing Commissioner Rich Dines, who joined in 2011. Harbor Commissioners are appointed by the mayor to a maximum of two six-year terms.

LONG BEACH— The Long Beach Board of Harbor Commissioners has approved a new leader to head the Port of Long Beach's Finance and Administration Bureau. Sam Joumblat, the Chief Financial Officer of Total Transportation Services Inc., is returning to the Port as Managing Director of Finance and Administration. The key financial position manages an annual budget of $750 million and this decade's $4 billion, 10-year capital improvement program—the largest of any seaport in the nation. The Finance and Administration Bureau comprises the Port's Finance, Information Management, Real Estate and Risk Management divisions. The previous leader of the bureau retired late last year.
DEALTRACKER

LAKE FOREST, CA—Summit Healthcare REIT has acquired an assisted living and memory care facility located in Chandler, Arizona, for $13.4 million. The facility consists of a total of 90 licensed beds, and will be leased to Compass Senior Living, an operator who leases six other facilities in Summit's portfolio. The acquisition was made through Summit Chandler, LLC, which is a wholly owned subsidiary of Summit.

LOS ANGELES—Rancho Pacifica Park, a nearly 1.2 million square foot industrial/flex project totaling six buildings and situated on more than 55 acres, has traded hands between an unnamed seller and Rexford Industrial. The master planned project is located in the city of Rancho Dominguez, within the flourishing South Bay market of Los Angeles. Jeff Chiate, Jeffrey Cole, Ed Hernandez, Mike Adey and Nico Napolitano of Cushman & Wakefield's National Industrial Advisory Group (IAG) represented the seller. The 1,170,806 square foot park was built during 1987 through 1989 and contains the addresses of 20001-20021 Rancho Way and 2301-2399 E. Pacifica Place. The park's composition includes five industrial buildings and one flex building, each residing on its own parcel. The property benefits from a wide range of unit sizes, ample dock loading, lighted concrete truck courts, and minimum warehouse clear heights ranging from 24 to 30 feet.

TEMPE, AZ—DeMuro Corporate Square, a 7-building business park totaling 88,837 square feet at 1505-1575 W. University Dr., Tempe, has traded hands between University Corporate Square Associates and Tempe Creative Campus for $10.2 million. Occupancy was reported to be 92%. Lee & Associates Investment Principals Steve Gonzalez, Marcus Muirhead, and Greg Guglielmino represented the seller. Built in 1985, the seven-building business park contains buildings of just over 7,000 square feet to 17,000 square feet. The business park features I-1 light industrial zoning and 319 parking spaces. The outstanding location is just three miles east of Phoenix Sky Harbor International Airport and several blocks from Downtown Tempe and the main campus of Arizona State University.

HUNTINGTON BEACH—Seagate Plaza, a 30,234-square-foot shopping center in Huntington Beach, California, has traded hands for $10.8 million. Joseph Lising in Marcus & Millichap's Newport Beach office represented the 1031-exchange buyer, Cathy Investments LLC. The seller is Asbury Properties Inc., a Los Angeles-area family-owned real estate company. Built in 1975, the property is located on the corner of Bolsa Chica Road and Edinger Avenue at 16107 Bolsa Chica St. in Huntington Beach. The center is anchored by a recently renovated Carl's Jr. Major tenants include Seagate Veterinary Hospital, Classic Cleaners, Seagate Liquor & Grocery, Subway, and Coastline Dental.

LAS VEGAS—Calmwater Capital has originated a $36.7 million loan for 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, anchored by Albertsons, will be located at the corner of Blue Diamond Road and South Buffalo Drive, adjacent to the Mountains Edge master-planned community. Mountains Edge Marketplace is located at the entrance to the 14,000-home, Mountains Edge Master Planned Community, one of the top-selling master planned communities in the country from 2010 to 2014. The property's grocery anchor tenant, Albertsons, opened its 55,000-square-foot store in April. Remington Nevada has secured a variety of regional and national tenants, which will open doors upon the property's completion including Chase Bank, Burger King, Del Taco and Orange Theory Fitness.
LOS ANGELES—Chino Spectrum Towne Center, a 459,969-square-foot power center located in the affluent community of Chino in San Bernardino County, California, traded hands. The property was purchased by MetLife Investment Management, and the seller was a partnership between Vestar Development Co and an institutional entity. Chino Spectrum Towne Center is located at the intersection of Grand Avenue and the 71 Freeway in the City of Chino. Anchor tenants include Wal-Mart, Kohls, Best Buy, Marshalls, Nordstrom Rack, DSW, Party City, Pier One Imports, and Aki Home. Savills Studley's Bill Bauman, EVP, and Kyle Miller, corporate managing director, handled the sale.

BEVERLY HILLS—Quantum Capital Partners has arranged $31.75 million in CMBS debt to refinance a 10-story, 137,254-square-foot mixed-use building in Downtown Los Angeles. The 10-year interest only, non-recourse loan was secured by The Metropolitan, a historic building constructed in 1913 at 499 S. Broadway at the intersection of Fifth Street. The building was acquired in 1996 by the Sponsor, a local investor operating as 499 S. Broadway LLC,. The top eight floors were converted for residential use in 2011 under the City of Los Angeles' Adaptive Reuse Ordinance. Designed by renowned architect John Parkinson, whose other well-known local projects include Los Angeles City Hall, the Los Angeles Memorial Coliseum, and Los Angeles Union Station; The Metropolitan is considered one of the finest examples of Beaux Arts Style architecture in Southern California.

BUILDING BLOCKS

HENDERSON, NV— ASCAYA, a residential development set in the foothills of the McCullough Range outside of Las Vegas, has completed its first inspiration home. The 6,641-square-foot estate, designed by SB Architects, includes four bedrooms, six and a half baths, and an office and entertainment room. Based in San Francisco with offices in Miami and Shenzhen, the firm is globally known for site-sensitive designs and creating thought-provoking and well-crafted architectural projects. Six of the country's leading architects were commissioned to design one-of-a-kind homes to showcase to prospective buyers the unique sites available at ASCAYA. In an exercise of collective creativity, each home introduces a different interpretation of contemporary design. Four additional inspiration homes are currently under construction, with the final home scheduled to start construction later this year.

DENVER— CityView has acquired a property in Denver that it will develop in partnership with The Dinerstein Companies. The proposed class-A, 350-unit multifamily development will be named Colorado Station, replacing an underutilized retail center, which currently exists on the site. The property is located minutes from Cherry Creek and is a short light rail ride to both Downtown and the Denver Tech Center, Denver's primary employment hubs. The transit-oriented development will anchor the southeast corner of Colorado Boulevard and Evans Avenue.