MORENO VALLEY, CA-USAA Real Estate Co. acquires 26 acres of land here for the immediate development of a 522,772-square-foot, state-of-the-art distribution center. Southern California-based Overton Moore Properties will act as developer for the project. Millie and Severson Inc. will serve as contractor and the architect on the project is HPA Inc. Centerpointe Logistics Center will feature 32’ clear height concrete tilt construction, cross-dock configuration and 113 dock positions and 126 trailer storage spaces. The site, located at the northwest corner of Cactus Avenue and Frederick Street, offers convenient access to I-215 and 60 freeways, and will benefit from the demand driven by the Ports of Los Angeles and Long Beach.

LOS ANGELES-Sterling Construction Co. Inc. revealed a joint venture in which Sterling’s California affiliate, Myers and Sons Construction LP, has a 30% interest, was apparent low bidder on a $102.6-million highway construction project for Caltrans. Shimmick Construction Co. is lead partner on this joint venture with a 70% interest. The three-year project, which begins this summer, entails rebuilding Highway 710 for a nine mile stretch south of Los Angeles including 8 bridge widenings, 3,300 concrete panel replacements and 90,000 cubic yards of concrete paving.

LEASES

SAN FRANCISCO-Highridge Partners and Montgomery Capital Partners signed two significant leases in January with 6 Waves for 26,405 square feet and iCrossing for 19,119 square feet at 550 Kearny St. “When we acquired 550 Kearny we saw the potential for the building to be upgraded and repositioned as an attractive location option for technology companies. As South of Market was rapidly running out of class A space, we developed a plan to take advantage of this building’s premier location and large flexible floor plates and make design changes that enhance the appeal to technology companies,” explains Jim Clifford of San Francisco-based Montgomery Capital Partners which is responsible for Bay Area properties acquired by the partnership. A complete renovation of the building entrance, lobby and the 9,800 square feet of ground floor retail space is underway and should be completed in the second quarter of this year. The 10-story office building comprises approximately 196,000 rentable square feet. “In addition to the new leases, we also executed 36,285 square feet of lease renewals since we took ownership,” says Clifford. “The combined leasing activity brings the building to 70% leased versus approximately 40% leased when it was acquired.”

SALES

SAN DIEGO-Two class A medical buildings have changed hands for $147.5 million. The buildings, sold by Kilroy Realty Corp., total 253,676 square feet. The buyer was LaSalle Investment Management. The properties are located at 15004 Innovation Dr. in Rancho Bernardo and 10243 Genetic Center Dr. here in San Diego.

LOS ANGELES-Pendo Investments, a Los Angeles-based real estate investment firm has acquired a four property, 89-unit apartment portfolio, located in the Inglewood/Southbay and Bellflower submarkets of Los Angeles. Pendo acquired the portfolio with financing from Chase and Fannie Mae and equity from Pendo principals and outside investors. The portfolio has a total value in excess of $13 million. The properties were acquired “off-market” from “mom and pop” private owners and provide Pendo the opportunity to add value through capital improvements and “hands-on,” active management, according to a prepared statement. Pendo will focus on upgrading unit interiors by installing new flooring, counters, cabinets, lighting fixtures, and paint schemes and will implement exterior improvements including, new roofs, landscaping, parking/paving upgrades, signage, painting and other fa