RIVERSIDE, CA—A five-year stretch of stout job growth has elevated the Inland Empire's employment base by 263,000 positions, driving heightened demand for rentals. Payroll expansions by the retail trade, construction and health-related industries continue to boost earnings and spark relocations, while high housing costs in neighboring Los Angeles and Orange counties influence more households to

migrate inland in search of affordable living spaces. Local home values, while low for Southern California, continue to appreciate at a faster pace than apartments, pricing more residents out of the single-family market and into the rental space. Limited market-rate development enhances appeal of existing apartments. The number of age-restricted and affordable housing units delivered this year is slated to match the volume of market-rate completions, with most submarkets lacking any new conventional product during a span of elevated absorption. Metro vacancy will benefit, compressing to a historically low level. Sub-3% vacancy throughout most submarkets should equate to a fourth year of strong overall rent growth. In light of this increase, the metro's average effective rent will remain roughly $600 per month more affordable than in neighboring counties.

(SOURCE: MARCUS & MILLICHAP)

ONTARIO RANCH, CA—New Haven, a master-planned community in Ontario Ranch, is among 2017's five best-selling communities in California, and among the top 50 nationwide, according to a midyear report by RCLCo. The survey measures master-planned community sales in the first six months of 2017. Developed by Brookfield Residential, the 124-acre New Haven masterplan offers attached and single-family detached residences and resort-style living with abundant recreational amenities, social events and the opportunity for a well-balanced lifestyle. Brookfield Residential has seen approximately over 170 sales for far this year, making it the most successful new community in California's Inland Empire. Sales were particularly strong among first-time buyers and millennials. Among New Haven buyers millennials accounted for 39%, and New Haven's share of first-time buyers was 41% of all sales in Q1and Q2 2017.

(SOURCE: BROOKFIELD RESIDENTIAL)

NEW & NOTABLE

The Wild Horse Pass Development Authority has named Lisa Gonzales as its Real Estate Leasing Manager. Gonzales will be responsible for leading WHPDA's efforts to lease lands within the Wild Horse Pass Development area, which totals more than 3,000 acres. She will advise WHPDA regarding the establishment of competitive target lease rates and leasing strategies based on comparable economic and demographic data. She will also assist with identification of strategic long-term land-use objectives in order to achieve complementary and cohesive land uses while maximizing lease income. Gonzales will take the lead in representing WHPDA through appropriate local and regional real estate channels and will assist with lease/development proposal analysis and lease negotiations.

LOS ANGELES—Meta Housing Corporation promoted Aaron Mandel and Chris Maffris to EVP. These promotions coincide with the firm's ongoing growth and expansion into new housing types, according to Kasey Burke, President of Meta Housing Corporation. Burke explains that Meta Housing has long focused on affordable housing for families and seniors and has recently expanded into developing new affordable housing types such as veterans, homeless and supportive housing. Mandel has been with Meta Housing for more than 13 years. During his tenure, he has overseen the financing and development of more than 2,000 apartment units. In his new role, he will provide strategic direction and management for Meta's development division. He will also continue to oversee all aspects of development projects from initial land acquisition all the way through lease-up, as well as structuring and arranging complex layered financing for these developments. Maffris, who joined Meta in 2003, has supervised the development of more than 3,700 apartment units and 30,000 square-feet of commercial space. In his new role, Maffris will oversee the development team while focusing on urban infill and revitalization projects that strengthen neighborhoods and improve outcomes for residents.

RANCHO CUCAMONGA, CA—XT Green has brought a new technology to recover carpet from landfills to a 126,620-square-foot manufacturing facility in Rancho Cucamonga in San Bernardino County. The new advanced manufacturing operation will also be XT Green's corporate headquarters. The firm plans to employ approximately 60 workers for new “green jobs” that include skilled advanced manufacturing positions plus office support. XT Green shared that between three to four billion pounds of carpet is disposed in U.S. landfills annually along with the resources that make up the carpet. XT Green will divert carpet from landfills and recover these resources through their first-of-its-kind, newly patented, ultra-clean technology that processes the carpet underwater. The primary products produced by XT Green will be nylon and polypropylene pellets. Because these products replace raw material produced from fossil fuels, the XT Green facility will annually save 13.2 million gallons of oil and provide a greenhouse gas emission reduction benefit equivalent to planting 3.5 million trees. Calcium carbonate from the carpet backing will also be recovered and sold as a product. XT Green plans to be operating by early 2018.

NEWPORT BEACH, CA—Marcus & Millichap has hired Scott Hook, a top producing commercial real estate investment professional specializing in retail property sales, as senior vice president investments. Before that, he was an executive vice president and top ranked retail investment agent for Coldwell Bank Commercial Advisors. Hook will be based in Marcus & Millichap's Newport Beach, California office where he will lead a team of investment sales professionals focused on working with buyers and sellers of single- and multi-tenant retail properties throughout the western United States, with an emphasis on Southern California.

IRVINE, CA—HCP has a new organizational structure and several updates to its executive leadership team. Tom Klaritch, who currently serves as Senior Managing Director of Medical Office, has been promoted to Chief Operating Officer (COO), and will oversee HCP's streamlined office platform with the life science and medical office businesses reporting to him, and will work closely with the respective teams to continue to advance the competitive performance and growth of this platform. Doug Pasquale will serve the company as a Senior Advisor to the executive team and will also work closely with the senior housing team led by Senior Managing Director, Kendall Young. Pasquale previously was Chairman and CEO of Nationwide Health Properties, Inc., and also served as President and CEO of Atria Senior Living Group and its predecessor company, ARV Assisted Living, Inc. Additionally, Jon Bergschneider, HCP's Senior Managing Director—Life Science, has resigned. Bergschneider has informed the Company that he will be joining BioMed Realty Trust as their Chief Development Officer.

SOUTHERN CALIFORNIA—Mynd has acquired San Diego-based Pacific Shore Management's 595-unit portfolio. The deal makes Mynd one of the fastest growing mid-cap property management companies in the US and will more than double their unit count to nearly 1,100 in just 10 months of operations. The expansion into Southern California, one of the nation's largest rental markets, further demonstrates the company's commitment to overhaul the rental management industry.

PHOENIX—NAI Horizon has hired Kevin Higgins as a VP in the Office Properties

Group. Higgins' primary areas of focus will be office leasing and sales. He possesses more than 26 years of commercial real estate experience and has negotiated more than 1,000 lease transactions. Higgins joins NAI Horizon after stints at Daum Commercial Real Estate and Landmark Commercial Real Estate. A native of Chicago, Higgins is a graduate of Arizona State University.

IRVINE—Auction.com has hired Steve Price as SVP of Foreclosure to lead its integrated Third Party Sales program, which provides a marketing, educational, training and auction disposition service for sellers intending to sell properties in default at foreclosure sales. Price has more than 18 years of proven experience in the mortgage servicing industry, including a previous role with Auction.com, where he helped launch the TPS program, developed Auction.com's industry-leading approach to CWCOT management and oversaw the company's Salesforce implementation. Price also led the Ten-X Homes team, where he established a business strategy to deepen the relationship between residential consumer and agent adoption of the platform. In his new role as head of foreclosure sales, Price will oversee the foreclosure sales team and leverage his in-depth understanding of technology to further grow the integrated TPS program, which is the largest of its kind, spanning over 3,100 counties with a marketing reach nationwide.

DEALTRACKER

RIVERSIDE, CA—Michaels Plaza, a 62,952-square-foot, newly remodeled regional shopping center anchored by Michaels has traded hands for $22.2 million between The Krausz Cos. and a private investor from Fullerton. Hanley Investment Group Real Estate Advisors president Ed Hanley and EVP Bill Asher and Kevin Fryman represented the seller. Jefferson Kim of jKim Group of Buena Park represented the buyer. Built in 1987 on 5.0 acres and located at 10303-10357 Magnolia Avenue in Riverside, Krausz acquired Michaels Plaza in 2013, and implemented a multi-million-dollar renovation in 2016. The property was 98 percent occupied at the time of the sale. Fryman commented that Michaels Plaza has approximately 94 percent national/regional tenants including Michaels, David's Bridal, Lamps Plus, Armed Forces, The Flame Broiler, GameStop and Miracle Ear.

LOS ANGELES—A 20-unit apartment portfolio located at 1511 & 1515 Beloit Avenue in L.A. has traded hands between Wolf Revocable Trust and a private investor for $6 million. VP Kevin Kawaoka with NAI Capital's Multifamily Services Group represented the seller in the deal. 1511 & 1515 Beloit Avenue are a 2-building, two-story 14,014 square foot portfolio. Both properties were built in 1959, with a unit mix consisting of both one and two bedroom apartments. The property is situated in a prime WLA area located just West of the 405 Freeway, between Santa Monica Boulevard on the South and Ohio Avenue on the North. The property is minutes from Westwood, ULCA, and is next door to the VA Greater Los Angeles Healthcare Center. At the time of the sale all of the apartments were 100% occupied. The vacancy on the Westside for apartment units of similar size is extremely low due to rental market demand, which has contributed to escalating rents and strong investor demand.

IRVINE, CA—Sperry Commercial Global Affiliates has sold Garden Grove Manor Apartments in Garden Grove, California, for $13.2 million. Frank Dinari of Sperry's Irvine office represented the seller, Garden Grove Manor, Inc., and the buyer in the transaction. Built in 1971, Garden Grove Manor Apartments consists of 78 cooperative apartment units. The community sits on Bolsa Avenue between Ward and Starboard Street in the City of Garden Grove. Unique to this transaction is the fact that this property was originally built and designed as a cooperative community, whereby each resident is an individual shareholder and not a tenant. Upon close of escrow, the property will be converted into an affordable housing community and the residents who qualify under the California Income Level Tax Credit program will then become tenants. Unlike New York, cooperative properties are extremely rare in California.

SIMI VALLEY, CA—The Simi Valley Unified School District has acquired a 120,075-square-foot industrial building for $13.5 million to relocate and consolidate its administrative offices under one roof. The new headquarters building, which was renovated in 2000, includes warehouse space, office space, conference rooms and sound studios. It sits on seven acres of land with abundant parking. Formerly used for film production, the property will not only accommodate the many administrative uses the school district requires, it will also allow SVUSD to hold community events and public meetings in the space. The Lee & Associates-LA North/Ventura team Mike Tingus and Grant Fulkerson transacted the sale on behalf of the school district. With the proceeds of those sales, $10.2 million, plus an earlier sale of the Wood Ranch Conference Center, SVUSD was able to raise the funds needed for its new headquarters, which is just a mile from its previous location.

PHOENIX—Globe Management Company has sold 550 E. Elliot Road in Chandler, Arizona for $10.75 million to IPT Acquisitions LLC. Will Strong, Mike Haenel, Andy Markham, SIOR and Phil Haenel of Cushman & Wakefield represented the seller. 550 E. Elliot Road is a state-of-the-art, 91,204-square-foot, last mile logistic center in the Southeast Valley. In logistics terms, 'last mile' is the distance between a fulfillment center and the customer's doorstep. The distribution center is well positioned in Metro Phoenix, resulting in customer orders being picked, packed and shipped to the customer's doorstep within the same day if orders are received before a certain cut-off time.

OCEANSIDE, CA—Capital One has provided a $49.8 million Freddie Mac fixed-rate loan to refinance Riverview Springs, a 358-unit apartment community in Oceanside, California, a city in the San Diego MSA. Chuck Christensen, SVP in Capital One Multifamily Finance's office in Newport Beach, California, originated the transaction. The sponsors, Spruce Grove, Inc., are repeat Freddie Mac borrowers and have an existing Freddie Mac loan through Capital One. Spruce Grove is a privately held, diversified real estate company that has built and managed more than 4,500 apartment units, 200,000 square feet of office space, and one million square feet of retail shopping space. The 10-year, interest-only loan has standard defeasance prepayment. Built by Spruce Grove in 1990, Riverview Springs has one, two, and three-bedroom units on more than 23 acres.

LOS ANGELES—Madrona Business Campus, a four building Class-A office/medical property totaling 211,407 square feet in Torrance, CA, has traded hands for $48.8 million. NKF's Capital Markets President, West Coast Kevin Shannon, Executive Managing Director Ken White, Managing Director Michael Moore, and Managing Director Rick Stumm, along with leasing market assistance from Tim Vaughn of CBRE, represented the seller, Dominguez Investment Company LLC. The buyer, Continental Development, was self-represented. Built in 1990 and situated on 11.46 acres, the property features high-end finishes and quality construction. Located at 20780, 20790, 20800, and 20810 Madrona Avenue, it is 95 percent leased predominantly to three major credit tenants; American Honda Finance Corporation, John Deere Company and Kaiser Foundation Health Plan.

TEMPE, AZ—The Lofts at Rio Salado, a 466-unit apartment complex in Tempe, Arizona, has traded hands for $75.5 million. Institutional Property Advisors' Steve Gebing and Cliff David represented the seller, a global leader in wealth and asset management services and procured the buyer, Weidner Apartment Homes. The property is located with freeway visibility at 1033 North Parkside Drive in Tempe, adjacent to the Center Parkway/Washington Street metro station and Grand at Papago Park Center, a 3.2 million-square-foot mixed-use urban development project. Tempe Town Lake and Arizona State University are within walking distance and eight of the Valley's most prominent employment corridors, including Marina Heights and downtown Phoenix, are within a 10-mile radius.

MESA, AZ—Newmark has arranged permanent financing in the amount of $30 million for the acquisition of a 236,000 square foot “Class A” retail asset located just off a full-diamond interchange in one of the fastest growing cities in the United States, Mesa, Arizona. The property offers a diverse shopping experience including numerous national tenants, 92% of the subject's tenancy, and signature casual dining options. National tenants include Petsmart, Office Max, Michaels, Starbucks, and Party City. In addition, the subject has a long history of being a landmark retail center in the east valley of metropolitan Phoenix. Tim Storey, Principal in Newmark Realty Capital's Phoenix office, worked with the borrower to arrange the 10-year, non-recourse, acquisition financing with one of Newmark's correspondent relationships. In addition, Newmark assisted in arranging the mezzanine loan as part the purchase. Pricing and other terms were not disclosed.

IRVINE, CA—A fully leased 144,906-square-foot class-A office/R&D building located at 26200 Enterprise Way in Lake Forest, California, has traded hands. Since its construction and build-to-suit design in 2000, the property has long served as the main corporate headquarters building for Panasonic Avionics Corporation as part of its larger 18-acre, seven-building 500,000-sf global headquarters campus in Lake Forest. Barings Real Estate Advisers, part of Barings LLC, sold the single-tenant net lease investment property to Drawbridge Realty, a San Francisco-headquartered real estate investment company. A Cushman & Wakefield brokerage team consisting of Capital Markets specialists Jeffrey Cole, Ed Hernandez, and Nico Napolitano of the firm's local Irvine office represented the seller in the disposition, with John Harty of the same office also providing local market advisory.

BUILDING BLOCKS

BEVERLY HILLS, CA—Developer Empire Property Group has completed luxury apartment project Empire at Burton Way. The property has 23 modern multifamily apartment homes in the heart of Beverly Hills, adjacent to the renowned Viceroy L'Ermitage Hotel. One-bedroom units start at $5,800, and two-bedrooms at $7,500, Empire at Burton Way offers its' residents 11 unique and spacious one, two and three-bedroom floorplans to choose from. One-bedrooms ring in at 1,075 square feet and two bedrooms start at 1,525 square feet, and each feature floor to ceiling windows, private balconies and terraces, high ceilings, in-unit washers and dryers, spa-like bathrooms and large customizable walk-in closets. Located at 9265 Burton Way, the property is within walking distance to some of the finest dining, shopping and entertainment venues Beverly Hills has to offer.

CARLSBAD—The Hoehn Porsche project, a new state-of-the-art Porsche sales and service facility located in Carlsbad, is currently under construction. It consists of the complete demolition of the existing 18,800-square-foot Porsche dealership and construction of the new facility. Improvements are under way to deliver a 4-story, 71,614 Square Foot, dealership facility with 2 levels of showroom and service areas and 2 levels of parking above. The 1^st floor will contain a showroom, sales offices and administrative offices. The 2nd floor will contain an “exclusive” show room, sales offices and vehicle service area, and the 3^rd floor and rooftop deck will provide vehicle parking. The building will be constructed of poured-in-place concrete (Type II-A) and CMU complimented by a large curtain wall with large format stone veneer, ACM panels and perforated metal paneling. The project is currently under construction and the new Porsche facility will makes its debut in late 2018.

LOS ANGELES—C.W. Driver Companies has completed construction of Fountainview at Gonda West, a luxury senior living community in Los Angeles' Playa Vista neighborhood. Located at 12490 Fielding Circle in Playa Vista, the $120 million, 460,000-square-foot community features a total of 199 units in addition to a variety of amenities. Designed by Gensler, the Jewish Home for the Aging's Continuing Care Retirement Community (CCRC) serves more than 250 seniors with a full range of active living, healthcare and in-home services. CCRCs are a housing option that incorporates independent and assisted living with healthcare services, offering a tiered approach to the aging process as residents' needs change. C.W. Driver Companies' scope of work for the complex included overseeing construction in addition to managing site logistics, scheduling and safety quality control of all subcontractors. C.W. Driver Companies also constructed the 257-space subterranean parking garage, which includes parking stackers and electric vehicle parking spots, as well as integrated sustainability components such as solar panels and a system that uses reclaimed water for landscaping.

SAN DIEGO—Legacy Partners and The Resmark Companies has broken ground on 168 apartments in the highly desirable Marina District of downtown San Diego, just one block west of the Gas Lamp Quarter's 5th Avenue and the newly acclaimed Pendry Hotel by Montage, at 372 4th Avenue. The site, one of the best locations in all of downtown, is a short walk to the Convention Center Trolley Station, Gas Lamp Quarter, Petco Park and Horton Plaza. The six-story residential building has been uniquely designed with a large portion of creative micro unit studios, along with one- and two-bedroom apartment and lofts.