PHOENIX—The Phoenix market saw 175,000 square feet of positive net office absorption achieved during Q3 and approximately 350,000 additional square feet of absorption projected for Q4. The market has had 18 straight quarters of expansion, the longest expansion record in the market's history. In quarter three, there was 10.8 million square feet of Phoenix office absorption between Q3 2013 and Q3 2017. This is 9% higher than the market's previous 9.9 million-square-foot absorption high point recorded between Q3 2003 and Q3 2007. Barring any major move-outs, Phoenix should exceed 2.0 million square feet of total office space absorption by yearend. This would be the fourth year in a row that the local market hits this benchmark.

(SOURCE: CBRE)

INLAND EMPIRE—Retailer expansion and tightening vacancy has spurred rent growth in the Riverside and San Bernardino area. Robust hiring over the past six years has expanded the metro's employment base by 288,000 workers while reducing the unemployment rate to a 10-year low. Job growth has bolstered earnings, with the median household income recently increasing by $1,500 year over year. As a result, there is increased retail spending and heightened retailer demand for space, prompting sustained leasing activity, as nearly 2.2 million square feet were absorbed during the past 18 months. Leasing velocity will reduce vacancy to a cycle-low rate in 2017, supporting a second year of rent growth.

(SOUCRE: MARCUS & MILLICHAP)

NEW & NOTABLE

SAN DIEGO—Renovate America has named 40-year financial services industry leader Roy Guthrie as CEO. Gutherie will replace founding CEO JP McNeill, rounding out a new leadership team for the nation's leading energy efficiency and renewable energy home improvement financing platform. McNeill will move into a long-term strategy role, becoming Vice Chair of the company's Board of Directors.

DEALTRACKER

TUCSON AZ—Bascom Arizona Ventures has acquired a three-property apartment portfolio located in Tucson & Sierra Vista, Arizona for $70.3 million. Bascom Arizona Ventures assumed the existing HUD loans for all three properties. Hamid Panahi of Marcus & Millichap represented the buyer and seller in the transactions. The onsite property management will be overseen by Arizona based Morrison, Ekre & Bart Management Services (MEB). All three properties have a resort-style swimming pool, spa, 24-hour fitness center, business center and private garages. Summit Vista, a 288-unit complex was built in 2008; and Crescent Ridge, a 272-units complex was built in two phases (2001 & 2008). The third property is the 252-unit Port Royale, which was built in 2004 and 2008.

SAN DIEGO—Rancho Hills apartment community, located at 915 Brooktree Lane in the Shadowridge master plan in the North San Diego city of Vista, California, has traded hands between a global investment advisor and TH Real Estate. Kevin Mulhern and Rachel Parsons of the CBRE Multifamily team represented the seller in the deal. Constructed in 1986, the property consists of 148 apartment homes with a density of only 20 units to the acre. The community includes a large pool deck with a sparkling pool, spa, gas barbecues, a state-of-the-art laundry facility and covered carport parking. Additionally, Rancho Hills is contiguous to the 4.57-acre Shadowridge Park. The property is strategically located to neighborhood shopping, major employers and the 78 Freeway.

PHOENIX—Two different apartment communities in Tucson have traded hands for a total sales price of $6.2 million. Jesse Hudson, Trevor Koskovich and Bill Hahn of Colliers International in Greater Phoenix marketed the properties and negotiated the sales. The apartment properties include Georgetown Apartments, a 96-unit 1972 property located at 2510 N. Winstel Blvd., and Park Village, a 60-unit 1985 property located at 5290 S. Park Ave.

PHOENIX—Citymark Capital and partner with InterCapital Group has acquired West Town Court, a 274-unit apartment community located in Phoenix. The property is in Phoenix's West Valley near numerous employers, retail establishments, and entertainment centers.

LAS VEGAS—A nine-building class-A property has traded hands for $78.3 million between Washington Capital Management and buyers PCCP and The Brookhollow Group. The campus totals 383,701 square feet located at 8311-8395 W. Sunset Road and 6655 S. Cimarron Road in Las Vegas, NV. NKF's capital markets president of the West Coast Kevin Shannon, executive managing director Ken White, and senior managing director Brunson Howard represented the seller. Built between 2004 and 2006, Centra Point is situated on over 25 acres and is 72% occupied by diverse mix of tenants including Ticor Title, Tropicana Entertainment, Valley Health Systems and Dickinson Wright. The campus is composed of seven multi-tenant office buildings, two retail buildings and is served by ample onsite parking.

SAN DIEGO—Cruzan has secured a $41.2 million bridge loan the financing of make, a 176,900-square-foot high utility office campus in Carlsbad, California. CBRE's Mark McGovern, Scott Peterson and Brian Cruz secured an aggressive three-year floating rate loan through a regional debt fund. Located at 5600 Avenida Encinas, the property was redeveloped from industrial to high utility office space that houses strong corporate tenants. The property is 400 yards from the ocean and the building features an outdoor amphitheater, Copa Vida café, Move fitness facility, resort-style locker room facilities, outdoor work spaces, common area WI-FI, a fire feature, bike sharing program, horseshoes and more.

SAN DIEGO—Greystone has provided $41.7 million in Fannie Mae financing on a Malik Corporation property portfolio in Southern California. The loans were originated by Matt Stevens of Greystone's San Diego office with Don Salka of First Pacific Financial acting as correspondent on the transaction. The refinanced properties, which all contain between 8 and 32 units, all received 10-year fixed rate Fannie Mae small loans. The class-A properties are located in Brentwood, Studio City, Beverly Hills adjacent, Century City, and Hancock Park.

RANCHO DOMINGUEZ, CA—Vanguard Logistics Services has signed a long-term lease renewal for a 201,450 square foot building in Rancho Dominguez, CA. Vanguard Logistics Services will continue to occupy a concrete tilt-up building located at 2665 E. Del Amo Blvd. for use as a distribution hub. The company began negotiating the recently signed 62-month lease with one year remaining on its current lease. Frank Schulz, managing principal for The Klabin Co., with firm colleagues David Prior, senior managing principal, and Todd Taugner, executive vice president/principal, represented Prologis, the property owner in the lease transaction, which is valued at $9.8 million. Savills Studley represented the tenant.

SCOTTSDALE—Xenia Hotels & Resorts has acquired two hotel properties—Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch, a 493-room upper upscale resort located in Scottsdale, Arizona, and Royal Palms Resort & Spa, a 119-room luxury resort located in Phoenix, Arizona that is part of The Unbound Collection by Hyatt—for a total of $305 million. The investor acquired the two hotels from affiliates of Hyatt Hotels Corporation. The purchase price represents an estimated 12.6x multiple on 2017 forecasted Hotel EBITDA. The hotels are expected to generate approximately $6 million of Hotel EBITDA for the remainder of 2017.

LONG BEACH—Two multifamily portfolio transactions in Long Beach, California, have traded hands for a total of $17.4 million. The first portfolio transaction totals 45 units on East Wardlow Road, and the second portfolio transaction totals 52 units on Chestnut Avenue in Downtown Long Beach. Kipp, along with Tyler Leeson, senior managing director, represented the seller in both transactions and procured the buyer for the East Wardlow Road portfolio sale.

LOS ANGELES/LAS VEGAS—Dekel Capital has arranged $18.4 million in financing on behalf of Moonwater Capital for the acquisition of two adjacent class-A, low-rise office buildings located in the burgeoning Southwest Las Vegas submarket. The first mortgage floating rate loan was funded by MidCap Financial for a term of up to four years. Loan proceeds were used to acquire the property and fund lease-up expenses, a portion of which has been allocated towards a newly executed lease. The balance of the capitalization was funded through a joint venture with an institutional value-add private equity fund that was arranged by Dekel.

SAN DIEGO—Torrey Highlands Plaza, a 14,042-square-foot retail center, has traded hands for $10.4 million between TH Plaza LLC and Santa Monica Property Investors. CBRE retail experts Reg Kobzi, Joel Wilson and Michael Peterson represented the seller, and Tim Mills, VP of CBRE in San Diego, represented the buyer. The property is 100% leased by ten service-base tenants. The center is located at 13350 Camino Del Sur, near the 56 Freeway adjacent to Westview High School.

SAN DIEGO—The Courtyard I, a 50,405 square foot office building located in Sorrento Mesa has traded hands between Courtyard Mira Mesa and Plaza Del Norte for $9.16 million. The sale was the buyer's upleg as part of a 1031 Exchange. The property was 68% leased at the time of sale to a dynamic collection of tenants. Mark Avilla, Bill Cavanaugh and Mike Novkov of Cushman & Wakefield represented the seller with Peter Curry and Brooks Campbell also of Cushman & Wakefield representing the buyer. The new owner also retained Cavanaugh and Novkov for continued leasing services for the property.

BUILDING BLOCKS

LOS ANGELES—Thornton Tomasetti has been selected to provide structural engineering and performance-based design services for Perla on Broadway, SCG America's 35-story, 740,000-square-foot tower at 400 South Broadway in Los Angeles. Designed by architect CallisonRTKL. The 450-unit condo complex includes 7,000 square feet of ground-level retail and commercial space. The property has a hotel-like design that includes a fitness center, media room, WeWork office spaces, outdoor game room/conference area, a multi-level amenity space inside the atrium and a dog walk. A 10-story podium provides six levels of parking for up to 450 vehicles and 500 bikes. The podium and tower's combined 48,000 square feet of outdoor space accommodates lounge areas with fire pits, kitchens and grills, and a pool deck atop of the podium.

PASADENA—C.W. Driver Companies has broken ground on the new $82 million Science and Innovation building at California State University, Dominguez Hills. The 91,000-square-foot project is scheduled to complete in the winter of 2020. The project will achieve LEED Gold Certification or greater, and include laboratories, faculty offices, classrooms and facilities for new graduate programs through the CSUDH College of Natural and Behavioral Sciences. Funded by a $4 million gift from Toyota USA, the building's Toyota Center for Innovation in STEM Education will include a fabrication lab, K-12 teacher demonstration and training labs, SMART classrooms, collaborative workspaces and outdoor work areas.

LONG BEACH, CA—Co-developers Ledcor Properties and Anderson Pacific have scheduled the ground breaking of Shoreline Gateway, a 35-story, mixed-use luxury apartment complex, for early 2018. Shoreline Gateway is the companion building to the recently completed The Current, 17-story, mixed-use, 223-unit luxury apartment tower on Ocean Blvd. in Downtown Long Beach. The project will feature 315 ultra-luxury residential apartment homes, along with approximately 6,700 square feet of commercial space, five levels of subterranean parking spaces for 467 vehicles, a myriad of amenities and community living spaces, including a 33rd floor community room offering amazing 180 degree panoramic views of the Pacific Ocean, the Downtown Long Beach skyline and Orange County.

LOS ANGELES—California Landmark Group has started construction on “G8”, a 230-unit apartment development in the Marina Arts District adjacent to Marina del Rey, CA. G8 will be one of the largest multifamily developments to be built on Los Angeles' Westside in several years. Located at 13448 West Beach Avenue with access along Beach, Glencoe and Del Rey Avenues, G8 will feature a mix of single, one-, two- and three-bedroom units ranging in size from 550 to 1,500 square feet. G8 will feature more than 15,000 square feet of common area amenities, including a pocket park, three courtyards with pools, collaborative indoor and outdoor workspaces, a fully equipped fitness center and a rooftop deck offering unobstructed city and ocean views. Unit interiors will feature contemporary industrial finishes typical in many “byCLG” projects. Incorporated into the development will be 25,000 square feet of renovated creative office space.

Activity in the Phoenix market returned this week with strong sales and leasing activity and third quarter reports showing the strength of the market. Apartment sales dominated in the Phoenix market this week, however, the star transaction was a two-property Hyatt Hotel portfolio that traded hands for $305 million. A quarterly report from CBRE shows that there is also growth in the office sector, although there were no specific sales to report for the week. The office sector has seen tremendous growth this year, and the report expects the market to perform strongly through the end of the year. The Phoenix market isn't the only second tier market to see a bump in activity. As pricing increases in primary markets like San Francisco and Los Angeles, investors are also heading to the Inland Empire, where employment growth is spurring office, retail and multifamily demand. That isn't to say activity has declined in other markets. This week saw significant sales in Los Angeles and San Diego as well. 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

PHOENIX—The Phoenix data center market continued its steady growth in the first half of 2017. Investment in the U.S. data center sector reached record levels in the first half of 2017, totaling $18.2 billion, more than double that for all of 2016. Construction activity in metro Phoenix is scheduled to add an additional 28 million square feet of supply to its current base of 169 MW. Arizona's potential as a destination market remains strong, as several providers and large-scale users continue to explore expansion and market entry options. An influx of new competitors and a diverse wholesale supply are generally viewed as positive.

(SOURCE: JLL)

PHOENIX—The Phoenix market saw 175,000 square feet of positive net office absorption achieved during Q3 and approximately 350,000 additional square feet of absorption projected for Q4. The market has had 18 straight quarters of expansion, the longest expansion record in the market's history. In quarter three, there was 10.8 million square feet of Phoenix office absorption between Q3 2013 and Q3 2017. This is 9% higher than the market's previous 9.9 million-square-foot absorption high point recorded between Q3 2003 and Q3 2007. Barring any major move-outs, Phoenix should exceed 2.0 million square feet of total office space absorption by yearend. This would be the fourth year in a row that the local market hits this benchmark.

(SOURCE: CBRE)

INLAND EMPIRE—Retailer expansion and tightening vacancy has spurred rent growth in the Riverside and San Bernardino area. Robust hiring over the past six years has expanded the metro's employment base by 288,000 workers while reducing the unemployment rate to a 10-year low. Job growth has bolstered earnings, with the median household income recently increasing by $1,500 year over year. As a result, there is increased retail spending and heightened retailer demand for space, prompting sustained leasing activity, as nearly 2.2 million square feet were absorbed during the past 18 months. Leasing velocity will reduce vacancy to a cycle-low rate in 2017, supporting a second year of rent growth.

(SOUCRE: MARCUS & MILLICHAP)

NEW & NOTABLE

SAN DIEGO—Renovate America has named 40-year financial services industry leader Roy Guthrie as CEO. Gutherie will replace founding CEO JP McNeill, rounding out a new leadership team for the nation's leading energy efficiency and renewable energy home improvement financing platform. McNeill will move into a long-term strategy role, becoming Vice Chair of the company's Board of Directors.

DEALTRACKER

TUCSON AZ—Bascom Arizona Ventures has acquired a three-property apartment portfolio located in Tucson & Sierra Vista, Arizona for $70.3 million. Bascom Arizona Ventures assumed the existing HUD loans for all three properties. Hamid Panahi of Marcus & Millichap represented the buyer and seller in the transactions. The onsite property management will be overseen by Arizona based Morrison, Ekre & Bart Management Services (MEB). All three properties have a resort-style swimming pool, spa, 24-hour fitness center, business center and private garages. Summit Vista, a 288-unit complex was built in 2008; and Crescent Ridge, a 272-units complex was built in two phases (2001 & 2008). The third property is the 252-unit Port Royale, which was built in 2004 and 2008.

SAN DIEGO—Rancho Hills apartment community, located at 915 Brooktree Lane in the Shadowridge master plan in the North San Diego city of Vista, California, has traded hands between a global investment advisor and TH Real Estate. Kevin Mulhern and Rachel Parsons of the CBRE Multifamily team represented the seller in the deal. Constructed in 1986, the property consists of 148 apartment homes with a density of only 20 units to the acre. The community includes a large pool deck with a sparkling pool, spa, gas barbecues, a state-of-the-art laundry facility and covered carport parking. Additionally, Rancho Hills is contiguous to the 4.57-acre Shadowridge Park. The property is strategically located to neighborhood shopping, major employers and the 78 Freeway.

PHOENIX—Two different apartment communities in Tucson have traded hands for a total sales price of $6.2 million. Jesse Hudson, Trevor Koskovich and Bill Hahn of Colliers International in Greater Phoenix marketed the properties and negotiated the sales. The apartment properties include Georgetown Apartments, a 96-unit 1972 property located at 2510 N. Winstel Blvd., and Park Village, a 60-unit 1985 property located at 5290 S. Park Ave.

PHOENIX—Citymark Capital and partner with InterCapital Group has acquired West Town Court, a 274-unit apartment community located in Phoenix. The property is in Phoenix's West Valley near numerous employers, retail establishments, and entertainment centers.

LAS VEGAS—A nine-building class-A property has traded hands for $78.3 million between Washington Capital Management and buyers PCCP and The Brookhollow Group. The campus totals 383,701 square feet located at 8311-8395 W. Sunset Road and 6655 S. Cimarron Road in Las Vegas, NV. NKF's capital markets president of the West Coast Kevin Shannon, executive managing director Ken White, and senior managing director Brunson Howard represented the seller. Built between 2004 and 2006, Centra Point is situated on over 25 acres and is 72% occupied by diverse mix of tenants including Ticor Title, Tropicana Entertainment, Valley Health Systems and Dickinson Wright. The campus is composed of seven multi-tenant office buildings, two retail buildings and is served by ample onsite parking.

SAN DIEGO—Cruzan has secured a $41.2 million bridge loan the financing of make, a 176,900-square-foot high utility office campus in Carlsbad, California. CBRE's Mark McGovern, Scott Peterson and Brian Cruz secured an aggressive three-year floating rate loan through a regional debt fund. Located at 5600 Avenida Encinas, the property was redeveloped from industrial to high utility office space that houses strong corporate tenants. The property is 400 yards from the ocean and the building features an outdoor amphitheater, Copa Vida café, Move fitness facility, resort-style locker room facilities, outdoor work spaces, common area WI-FI, a fire feature, bike sharing program, horseshoes and more.

SAN DIEGO—Greystone has provided $41.7 million in Fannie Mae financing on a Malik Corporation property portfolio in Southern California. The loans were originated by Matt Stevens of Greystone's San Diego office with Don Salka of First Pacific Financial acting as correspondent on the transaction. The refinanced properties, which all contain between 8 and 32 units, all received 10-year fixed rate Fannie Mae small loans. The class-A properties are located in Brentwood, Studio City, Beverly Hills adjacent, Century City, and Hancock Park.

RANCHO DOMINGUEZ, CA—Vanguard Logistics Services has signed a long-term lease renewal for a 201,450 square foot building in Rancho Dominguez, CA. Vanguard Logistics Services will continue to occupy a concrete tilt-up building located at 2665 E. Del Amo Blvd. for use as a distribution hub. The company began negotiating the recently signed 62-month lease with one year remaining on its current lease. Frank Schulz, managing principal for The Klabin Co., with firm colleagues David Prior, senior managing principal, and Todd Taugner, executive vice president/principal, represented Prologis, the property owner in the lease transaction, which is valued at $9.8 million. Savills Studley represented the tenant.

SCOTTSDALE—Xenia Hotels & Resorts has acquired two hotel properties—Hyatt Regency Scottsdale Resort & Spa at Gainey Ranch, a 493-room upper upscale resort located in Scottsdale, Arizona, and Royal Palms Resort & Spa, a 119-room luxury resort located in Phoenix, Arizona that is part of The Unbound Collection by Hyatt—for a total of $305 million. The investor acquired the two hotels from affiliates of Hyatt Hotels Corporation. The purchase price represents an estimated 12.6x multiple on 2017 forecasted Hotel EBITDA. The hotels are expected to generate approximately $6 million of Hotel EBITDA for the remainder of 2017.

LONG BEACH—Two multifamily portfolio transactions in Long Beach, California, have traded hands for a total of $17.4 million. The first portfolio transaction totals 45 units on East Wardlow Road, and the second portfolio transaction totals 52 units on Chestnut Avenue in Downtown Long Beach. Kipp, along with Tyler Leeson, senior managing director, represented the seller in both transactions and procured the buyer for the East Wardlow Road portfolio sale.

LOS ANGELES/LAS VEGAS—Dekel Capital has arranged $18.4 million in financing on behalf of Moonwater Capital for the acquisition of two adjacent class-A, low-rise office buildings located in the burgeoning Southwest Las Vegas submarket. The first mortgage floating rate loan was funded by MidCap Financial for a term of up to four years. Loan proceeds were used to acquire the property and fund lease-up expenses, a portion of which has been allocated towards a newly executed lease. The balance of the capitalization was funded through a joint venture with an institutional value-add private equity fund that was arranged by Dekel.

SAN DIEGO—Torrey Highlands Plaza, a 14,042-square-foot retail center, has traded hands for $10.4 million between TH Plaza LLC and Santa Monica Property Investors. CBRE retail experts Reg Kobzi, Joel Wilson and Michael Peterson represented the seller, and Tim Mills, VP of CBRE in San Diego, represented the buyer. The property is 100% leased by ten service-base tenants. The center is located at 13350 Camino Del Sur, near the 56 Freeway adjacent to Westview High School.

SAN DIEGO—The Courtyard I, a 50,405 square foot office building located in Sorrento Mesa has traded hands between Courtyard Mira Mesa and Plaza Del Norte for $9.16 million. The sale was the buyer's upleg as part of a 1031 Exchange. The property was 68% leased at the time of sale to a dynamic collection of tenants. Mark Avilla, Bill Cavanaugh and Mike Novkov of Cushman & Wakefield represented the seller with Peter Curry and Brooks Campbell also of Cushman & Wakefield representing the buyer. The new owner also retained Cavanaugh and Novkov for continued leasing services for the property.

BUILDING BLOCKS

LOS ANGELES—Thornton Tomasetti has been selected to provide structural engineering and performance-based design services for Perla on Broadway, SCG America's 35-story, 740,000-square-foot tower at 400 South Broadway in Los Angeles. Designed by architect CallisonRTKL. The 450-unit condo complex includes 7,000 square feet of ground-level retail and commercial space. The property has a hotel-like design that includes a fitness center, media room, WeWork office spaces, outdoor game room/conference area, a multi-level amenity space inside the atrium and a dog walk. A 10-story podium provides six levels of parking for up to 450 vehicles and 500 bikes. The podium and tower's combined 48,000 square feet of outdoor space accommodates lounge areas with fire pits, kitchens and grills, and a pool deck atop of the podium.

PASADENA—C.W. Driver Companies has broken ground on the new $82 million Science and Innovation building at California State University, Dominguez Hills. The 91,000-square-foot project is scheduled to complete in the winter of 2020. The project will achieve LEED Gold Certification or greater, and include laboratories, faculty offices, classrooms and facilities for new graduate programs through the CSUDH College of Natural and Behavioral Sciences. Funded by a $4 million gift from Toyota USA, the building's Toyota Center for Innovation in STEM Education will include a fabrication lab, K-12 teacher demonstration and training labs, SMART classrooms, collaborative workspaces and outdoor work areas.

LONG BEACH, CA—Co-developers Ledcor Properties and Anderson Pacific have scheduled the ground breaking of Shoreline Gateway, a 35-story, mixed-use luxury apartment complex, for early 2018. Shoreline Gateway is the companion building to the recently completed The Current, 17-story, mixed-use, 223-unit luxury apartment tower on Ocean Blvd. in Downtown Long Beach. The project will feature 315 ultra-luxury residential apartment homes, along with approximately 6,700 square feet of commercial space, five levels of subterranean parking spaces for 467 vehicles, a myriad of amenities and community living spaces, including a 33rd floor community room offering amazing 180 degree panoramic views of the Pacific Ocean, the Downtown Long Beach skyline and Orange County.

LOS ANGELES—California Landmark Group has started construction on “G8”, a 230-unit apartment development in the Marina Arts District adjacent to Marina del Rey, CA. G8 will be one of the largest multifamily developments to be built on Los Angeles' Westside in several years. Located at 13448 West Beach Avenue with access along Beach, Glencoe and Del Rey Avenues, G8 will feature a mix of single, one-, two- and three-bedroom units ranging in size from 550 to 1,500 square feet. G8 will feature more than 15,000 square feet of common area amenities, including a pocket park, three courtyards with pools, collaborative indoor and outdoor workspaces, a fully equipped fitness center and a rooftop deck offering unobstructed city and ocean views. Unit interiors will feature contemporary industrial finishes typical in many “byCLG” projects. Incorporated into the development will be 25,000 square feet of renovated creative office space.