FINANCING
SUNNYVALE, CA-Chicago-based Pearlmark Real Estate Partners LLC, has closed a $40 million mezzanine loan on Moffett Towers II here, consisting of three existing class-A office buildings totaling 683,000 square feet. Plans for the project include the development of a fourth building for 357,000 square feet and expansion of an existing parking garage. The property is the second phase of an overall 2.1-million-square-foot office/R&D campus that includes a 48,000-square-foot shared amenity building. The overall development spans 52 acres located in the Sunnyvale submarket of the Silicon Valley, adjacent to the Moffett Airfield. Hewlett-Packard recently executed an 11-year lease on approximately 60% of the existing net rentable area, with occupancy scheduled to commence in April 2012. This investment was made on behalf of Pearlmark Mezzanine Realty Partners III LLC, a fully-discretionary investment fund with $427 million in capital commitments. The borrower, Jay Paul Co., is the developer and manager of Moffett Towers. US Bank and three participants, including Wells Fargo, Bank of America, and JP Morgan Chase, also provided a total senior loan commitment of $284.2 million in the refinancing. Bill Swackhamer, managing director of Pearlmark Real Estate Partners, arranged the transaction. Swackhamer says that the investment was attractive “due to the high-end nature of the development, attractive market fundamentals, its credit tenancy and strong sponsorship with significant cash equity i
SEATTLE-CBRE Capital Partners, the debt investment platform of CBRE Global Investors, has acquired Smith Tower, a 42-story iconic office building, and the adjacent Florence Building, a retail/mixed-use building, in Seattle’s downtown Pioneer Square. CBRE Capital Partners acquired two non-performing mortgage loans collateralized by these assets in the fall of 2011 and subsequently began the foreclosure process, which has now been completed and resulted in Capital Partners owning the buildings. The firm tells GlobeSt.com that it cannot divulge the acquisition price at this time. Built in 1914, Smith Tower was one of the world’s first skyscrapers and remained the tallest office building west of the Mississippi River until 1931. CBRE Capital Partners expects to engage Goodman Real Estate to asset manage the buildings. CBRE Capital Partners has engaged the Seattle office of CBRE to lease the 262,988-square-foot property, which is currently 30% ccupied. The team will re-introduce the asset to the market and reposition the buildings through a lease-up and capital improvement strategy that includes adding bike racks, showers, a state-of-the-art conference center and catering facility.
SANTA BARBARA, CA-Yardi has acquired Lead Tracking Solutions, creator of the PopCard, a patented and complete lead tracking and lead management software solution. With the acquisition, Yardi Voyager clients will have the opportunity to add the PopCard’s fully integrated lead-to-lease solution that automates the tracking of rental prospects and helps maximize marketing dollars. The PopCard automatically captures prospect leads and instantly alerts users when new leads arrive. Users can view traffic sources and the effectiveness of advertising campaigns, with immediate reporting available at the click of an icon. The PopCard includes built-in follow-up tools for turning leads into leases, and helps manage employee response and effectiveness. “With its prospect and customer relationship management capabilities, the PopCard represents our latest addition to our end-to-end multifamily platform,” says Terri Dowen, senior vice president of sales for Yardi. “Automating prospect management with the PopCard will further help our clients increase efficiency and marketing productivity.” LTS’ staff will be retained by Yardi in their current location to assure a seamless transition.
LOS ANGELES-Kitty Wallace, EVP of Colliers International, just sold the Brockman Lofts, a mixed-use property with 80 residential loft condominiums and 9,968 square feet of retail space. The Brockman Lofts was the second highest price per unit sale in Downtown Los Angeles’ history. The 12-story building is situated on 7th Street Restaurant Row at 520 W. 7th St.t, Los Angeles. The property’s retail space is occupied by Bottega Louie, one of the highest grossing restaurants in the City. Wallace, based in Colliers International’s West Los Angeles office, represented the seller, Wickliffe A. Corp., and the buyer, an institutional company based out of Denver. “The Brockman Lofts attracted an unprecedented amount of attention and we received 26 competitive offers in one month,” says Wallace. “This sale was incredibly exciting given the size, quality, location, and fortuitous timing of the deal. Within the first three weeks of marketing, we hosted 82 tours through the building, which demonstrates the frenzy of activity we experienced during this sale.”
SAN DIEGO-Marking its third Seattle-area acquisition since July, San Diego-based Pathfinder Partners LLC has acquired a 78-unit apartment community at 29421 Pacific Highway S. in Federal Way, WA. The View at Redondo, purchased for $5.1 million from the real estate-owned department of a private lender, is located in a working class neighborhood south of Seattle in close proximity to major employers, including the Port of Tacoma and Weyerhaeuser Co.
MARINA DEL REY, CA-The former office of Carroll Shelby, who made the AC-based Shelby American Cobra and later the Mustang-based performance cars for Ford Motor Co., was sold along with two other office buildings for $6.5 million. Brokers James Wilson and Patrick Ayau of Lee & Associates West Los Angeles, representing the buyer, 1038 Princeton Drive MDR LLC, and the seller, Patton Investments, negotiated the transaction of the 34,000-square-foot industrial/office property at 1038-1040 Princeton Dr. and 1042 Princeton Dr. in Marina Del Rey, Calif.
ONTARIO, CA-Rexford Industrial has acquired two manufacturing buildings with a single tenant in an off-market, sale-leaseback transaction on 8.93 acres of land adjacent to the Ontario International Airport. The purchase was made on behalf of Rexford Industrial Fund V REIT. The property was purchased from the current tenant, Plastics Research Corp. Plastics Research has made a 10-year commitment to lease and occupy 100% of the properties which feature a spacious loading dock door layout and allow for efficient goods movement. The buildings are located at 1400 South Campus Avenue in Ontario.
ONTARIO, CA-Clyde Stauff, senior executive vice president, and Ian DeVries, executive vice president of Colliers International represented the buyer Industrial Income Trust Inc., a real estate investment trust based in Denver, and the seller the Caldwell Co. in the $8.3 million sale of a 102,878-square-foot distribution facility located at 5505 Concours St. in Ontario, CA. The class-A industrial facility included 65,572 square feet of cooler space.
GRESHAM, OR-Hendricks & Partners revealed the sale of Parkside, located at
2831 Palmquist Rd. here. The 225-unit apartment community was sold for $16.45 million in a transaction that included a loan assumption. Built in 1999, Parkside features 36 one-bedroom, 168 two-bedroom, and 21 three-bedroom units. The seller was Parkside Gresham LLC of Clackamas, OR. The buyer was Parkside CAF LLC of Bethesda, Md.
SAN FRANCISCO- San Francisco-based DivcoWest completed the purchase of 701 Gateway Blvd., a 170,173-square-foot, class-A office building located in South San Francisco. DivcoWest acquired the office property through a discounted loan payoff in a partnership with the previous sponsor, San Francisco-based Broadway Partners. Broadway was advised by Premia Capital, which brought the transaction to DivcoWest and provided due diligence support. Terms of the transaction were not disclosed, but is reported to be around $41 million. Constructed in 1999, 701 Gateway is approximately 80% leased with a tenant base comprised primarily of healthcare and technology-focused tenants. 701 Gateway was acquired for DivcoWest Fund III, an $871 million fund raised late last year to invest primarily in tech-oriented real estate markets.
LEASES
COMPTON, CA-Cushman & Wakefield Inc. has arranged a full-building, 111,000-square-foot industrial lease with PR Logistics at 220 W. Victoria St. within Prudential Real Estate Investors’ Dominguez Hills Industrial Park here. PREI was represented in the transaction by Cushman & Wakefield’s Los Angeles South team of Rooney Daschbach, Steve Bohannon, and Rusty Smith. The transaction represents a relocation and expansion from PR Logistics’ previous 70,000-square-foot site, and the building at 220 W. Victoria St. includes a 10,000-square-foot office component.
BEAUMONT, CA-CT Realty Investors revealed that Beaumont Logistics Center, located at 520 Fourth St. and 415 Nicholas Rd. here has been fully leased to Updike Distribution Logistics and Hand Air Express. Combined, the two lease transactions represent one of the largest industrial leasing accomplishments in the Inland Empire in 2012, according to a prepared statement. CT Realty acquired the 572,143-square-foot project, which includes two new state-of-the-art LEED certified industrial warehouse buildings, in August 2011. At the time of purchase, the property was entirely vacant. The all-cash transaction also included 30 acres of fully entitled land which will accommodate another 611,000-square-foot cross-dock warehouse building. The project, completed in 2008, is located at the confluence of the 60 and 10 Freeways adjacent to the 60-acre Lowe’s Distribution Center.
LOS ANGELES-Classic Party Rentals, considered the nation’s premier special event rental company whose credits include Hollywood awards shows and movie premieres, has signed a long-term lease for a 96,039-square-foot industrial building in the Los Angeles International Airport area for relocation and expansion of its fulfillment center and headquarters from Culver City, CA. The Klabin Co./CORFAC International reveals that Classic Party Rentals schedules a July occupancy of its new fulfillment center and headquarters located at 901 Hillcrest Blvd. In excess of 200 people are expected to be employed at the site.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
