Basin Street Buys 95% Occupied Bank-Owned Office

(Mark Your Calendars: RealShare REAL ESTATE 2012, March 22^nd in Los Angeles).

SALES

ROSEVILLE, CA-Basin Street Properties, a Northern Nevada and Northern California real estate investor of commercial and mixed-use properties, has acquired Stone Point Plaza, a 95,612-square-foot, three-story class-A office building here, for $17 million. The bank-owned property, sold by Belgian financial institution Dexia Group, is 95% occupied by a host of well-known and diverse tenants. Stone Point Plaza is located at 1420 Rocky Ridge Dr. and “is the single best building in the market, as demonstrated by its location and high occupancy,” according to Matt White, president of Basin Street. “Our goal for the building is to offer our current and future tenants their best real estate experience by working with them to provide optimal options and solutions. This has long been at the core of our values.” The Palmer Team represented both Basin Street and Dexia Group in the transaction. Basin Street began investing in the Greater Sacramento office market in 2007 with the acquisitions of the 89,500-square-foot Capitol Oaks building in South Natomas and California Center Business Park, a 168,000-square-foot, three-building corporate campus. PCCP LLC provided a $14-million senior loan for the acquisition.

RIVERSIDE, CA-Phoenix Realty Group has added a 12th apartment community to its Southern California portfolio with the acquisition of the $36.4-million Canyon Creek Apartments here. The 24-acre site apartment property features 70 buildings surrounded by hundreds of mature trees and offers 288 rental units, a 24-hour fitness center, pool, spas and a community car wash. Investing on behalf of an institutional real estate fund, PRG has targeted middle-market multifamily properties in the greater Los Angeles area, according to a prepared statement. “We will continue to add value to our portfolio with an increased focus on project management using our development expertise,” says Edward Ratinoff, PRG managing director and head of national acquisitions. “Owning so many units in close proximity will help us benefit from economies of scale in renovations and on-site management,” he adds. Project financing was arranged by Allan Freedman, senior vice president with Berkadia in Los Angeles.

HONOLULU-Mauka Shopping Center complex from Castle & Cooke Properties for $8.2 million. The parcel includes approximately four acres of land zoned for commercial development and a 5,880-square-foot multi-tenant retail building, which is fully occupied. A&B Properties plans to develop an additional 28,000 square feet of retail space on the newly acquired site to provide a quality shopping and dining experience for this popular Central Oahu community.“Through this transaction, A&B Properties has secured a very well-located development parcel in Central Oahu within the only retail shopping area in the new Mililani Mauka community,” says Christopher Benjamin, president of A&B. “The acquisition and proposed development of the Gateway site is well-aligned with our overall real estate strategy. Not only does it allow us to utilize 1031 tax deferred proceeds to acquire an income producing property in a thriving local community, but it also enables us to further employ our real estate expertise in Hawaii to develop an important community resource while creating value for our shareholders.”

OREM, UT-The Ensign Group Inc. has acquired the underlying real estate and other operating assets of Orem Rehabilitation & Nursing Center, a 108-bed skilled nursing facility here. An Ensign subsidiary has been operating the facility since May of 2008 under a lease that did not include a purchase option. “With this fortuitous addition to our real estate portfolio we now own 75% of the facilities operated under the Ensign banner,” says Christopher Christensen, Ensign's president and CEO. He states that the purchase further demonstrates Ensign's deep and long-term commitment to the Utah County healthcare community. The purchase was made with cash and brings Ensign's growing portfolio to 101 healthcare facilities, 76 of which are Ensign-owned, three hospice companies and four home health businesses in 10 states. Further financial details weren’t given to GlobeSt.com by press time.

SACRAMENTO-Voit Real Estate Services has successfully completed the $6.6 million sale of the Mammoth Professional Building, a 94,267-square-foot office property located at 5701 Lonetree in Rocklin, CA. The executive-class office building was built in 2009 and has 78 office suites with upgraded finishes that will accommodate small or large business tenants, according to Dan Vittone, Senior Vice President in Voit’s Irvine office. Vittone and Alan Pekarcik, executive vice president in Voit’s Irvine office, worked with Robb Osborne, senior vice president, in Voit’s Sacramento office to represent the seller, a major US financial institution. The buyer, Bai Zhi Yan, a company that intends to lease the remaining office space in the multi-tenant building, was represented by Anton Qiu of TRI Commercial.

HONOLULU-The Mills Group has completed the sale of the Waikiki Galleria to Sanno USA Inc. The project located in Waikiki along Kalakaua and Royal Hawaiian Avenues is home to the DFS Galleria, and includes a 15 story multi-tenant office tower. “The project has been an outstanding investment for our group and represents some of the best, institutional quality real estate in Hawaii,” says Bill Mills, chairman of the Mills Group. “Despite all of the ups and downs of the commercial real estate market and global economic turmoil, the Waikiki Galleria project has always performed well.” The Waikiki Galleria had not been listed for sale, but an inquiry from the buyer resulted in meaningful discussions and ultimately the sale. The buyer was represented by Steve Sombrero of NAI Chaney Brooks.

PORTLAND, OR-Watumull Properties Corp., a Honolulu based real estate investment firm, recently completed the $13-million purchase of Brooklyn Yards, a 81,224-square-foot anchored community retail center located at the intersection of SE Mcloughlin Blvd. & SE Holgate here. The complex, anchored by a 71,705-square-foot 24 Hour Fitness Sport, features nearly 9,519 square feet of retail space in two buildings and is situated in a prime southeast Portland corridor that sees traffic of approximately 45,000 cars per day.

ONTARIO, CA-A partnership between CT Realty Investors and Behringer Harvard has sold Archibald Business Center, a class-A 231,000-square-foot corporate headquarter distribution center located at 2021 So. Archibald Ave. here. In a $15-million transaction, the business property was sold to Beauty 21 Cosmetics and will serve as their corporate headquarters and primary regional distribution facility. “The sale of Archibald Business Center has resulted in a very favorable return on our investment,” says Samuel A. Gillespie, COO of Behringer Harvard’s opportunity investment platform.

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