Hampton Bay Apartments Gets $25M Loan for Acquisition

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

FINANCING

KENT, WA-The Portland office of CBRE Capital markets has arranged the funding of a $25-million loan to finance the acquisition of the Hampton Bay Apartments here. CBRE was able to provide the loan through Freddie Mac’s Capital Markets Execution program. The borrower, a joint venture between Vancouver, WA-based Holland Partner Group and HPK Multifamily LLC, obtained a loan at 80% of value/cost with a 10-year, fixed rate term at 4.21%, including two years of interest-only payments. “Certainty and speed of execution were very important components of the transaction for the buyer and seller,” says Nick Santangelo, VP of the Portland office of CBRE capital markets. “We were able to lock the interest rate within a week and a half of receiving the loan application and close just over a week later. The entire process took less than three weeks from application to closing.” The Hampton Bay Apartments are a 304-unit garden-style apartment community that were built in 1987. Hampton Bay is centrally located, and provides excellent access to freeway, shopping and employment opportunities.

COSTA MESA, CA-Shelley Magoffin and Max Sauerman of Q10 Dwyer-Curlett’s L.A. office have arranged an $11.2 million permanent loan on an industrial building in Costa Mesa, CA. The property is more than 300,000 square feet and at funding of the loan the building was 83% leased to two tenants with near term rollover. The 10-year loan provided the borrower a rate reset after year five-year and 30-year amortization. The rate was locked in the low 4% range at execution of the application and there were no reserves or impounds for TI's, LC's, real estate taxes or insurance. The borrower for this transaction is a TIC with multiple assets and is controlled by a privately owned West LA-based investor. This non-recourse loan was arranged with Nationwide Life Insurance Co.

DEVELOPMENT

LAS VEGAS- International Development Management and CSST Smart Cities International, with the support of their Chinese banking partners, have signed a Memorandum of Understanding providing for the full financing and construction of the 750,000-square-foot, 17,500-seat, $650 million state-of-the-art Silver State Arena in Las Vegas. Construction of the Silver State Arena will now commence in mid-2012 and be completed by mid-2014. IDM and CSST understand that in the world today, cooperation between U.S and Chinese companies is critical to their mutual success. The agreement between affiliates of IDM and CSST will give IDM a strong partner in China, and CSST an excellent foothold from which to grow in the construction sector in the US.

KAUA’I, HI-Davidson Hotels & Resorts revealed that the Courtyard Kaua’i at Coconut Beach has completed a $13-million renovation project. The 311-room oceanfront property has undergone a top-to-bottom rejuvenation of its public spaces, restaurants, meeting rooms, lobby and recreational amenities. With the completion of the property enhancement, fully executed and managed by the San Diego office of one of the co-owners, JMI Realty, the Courtyard Kaua’i at Coconut Beach has added a new level of quality and sophistication to the intimate and affordable property, according to a prepared statement.

SALES

CITY OF INDUSTRY, CA-Overton Moore Properties has sold two buildings at Baldwin & Amar Distribution Center located in the City of Industry, CA. 760-780 Baldwin Park Blvd., a 96,888-square-foot warehouse/distribution building, sold for $8.2 million to Asia Direct, which was represented by Brian McLoughlin of Voit Real Estate Services. 13280 Amar Ave, a 92,488-square-foot warehouse/manufacturing building, sold for $6.57 million to American Foam, Fiber & Supplies, which was represented by Jason Chao of CBRE. OMP was represented by Phil Lombardo and Ty Newland of Cushman & Wakefield on both transactions. Located in the West City of Industry, Baldwin & Amar Industrial Center was acquired by OMP in 2010. OMP subsequently completed an extensive renovation of the project, which resulted in modern aesthetics, enhanced loading, large secured truck yards, enhanced offices, and an upgrade of building, lighting, and roof systems. OMP has one remaining available 108,000-square-foot building in the project. Located at 730 Baldwin Pak Blvd, the building is for lease or sale with an asking price of $84 per square foot.

SEATTLE-Skanska USA’s Commercial Development business unit has purchased a 43,000-square-foot parcel at 400 Fairview Ave. North. The site is located in the heart of South Lake Union, on the edge of the Cascade neighborhood. “400 Fairview is a pivotal location to create a development response that today’s dynamic tenants and the community crave,” explains Lisa Picard, EVP and regional manager of Skanska USA Commercial Development in Seattle. “We are passionate about creating places that foster inspiration, innovation and interaction and we see the Fairview corridor, with its planned developments, establishing a new major retail spine between the lake and downtown.” This purchase represents Skanska’s second project in Seattle since the commercial development group started operations in February of last year.

STOCKTON, CA-Buzz Oates has sold a 512,000-square-foot industrial building at 811 Zephyr St. here for $25 million. Ron Thomas and the capital markets group at Cushman & Wakefield marketed the property. The buyer was AP Zephyr St. LLC.

LEASES

SAN DIMAS, CA-Jumping Jacks, a children's entertainment business that hosts birthday parties, fundraisers and school field trips, has leased 20,000 square feet for 10 years at 186 Village Court, Unit B here in San Dimas. John Scruggs of Grubb & Ellis Co. represented R&W San Dimas LLC., while Eric Chavez, managing broker of RE/MAX Commercial-Division, represented the tenant.

LOS ANGELES-Wilson Commercial Real Estate has secured a 23,153-square-foot lease with PetSmart for a new store at One Westside Shopping Center located at 11250 Olympic Blvd. Parker Champion of Wilson Commercial represented the landlord, Champion Real Estate Cos. Jeff Nichols of Western Retail Advisors represented PetSmart. One Westside is a 100,000-square-foot power center that is 100% leased to several tenants including: Marshalls, Starbucks, Panda Express and Baja Fresh.

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