NORTH SAN JOSE, CA-TMG Partners, one of the Bay Area’s largest mixed-use property developers, and real estate investor Alcion Ventures LP have acquired an 111,000-square-foot property located at 3055 Orchard Drive here for a price not disclosed to GlobeSt.com. The seller of the property was a joint venture of Lane Partners and JER Partners, a real estate investment management firm based in McLean, Va. Currently vacant, the building will receive a $2-million to $3-million renovation due to an investment from the new owners. Planned improvements include all new mechanical systems, complete replacement of glass and glazing systems throughout the building, as well as a new two-story lobby and renovated landscaping.

SALT LAKE CITY-Laurus Corp. has acquired the Hilton Salt Lake City, a 288-room full service hotel at Salt Lake City International Airport, for a price undisclosed to GlobeSt.com. The hotel is located 2 miles from the airport, 10 minutes from downtown and immediately adjacent to I-80 and the Salt Lake International Center. Laurus formed SLC Hotel Partners LLC as an investment vehicle to acquire the asset and plans to implement a renovation program to upgrade the property, as well as to rebrand it under the Doubletree by Hilton franchise. The hotel was built in 1985 and renovated in 2007, and it sits on a 7.2-acre highly visible site.

DEVELOPMENT

LOS ANGELES-Greystar Real Estate Partners has completed a $5-million, nine-month construction project on the adaptive re-use of a recently acquired historic Downtown Los Angeles landmark, now known as the Roosevelt Lofts. The high-rise in the heart of the Financial District has undergone construction to complete unfinished units and to update amenities in order to transform it into a 222-unit boutique apartment community. The project has its own parking garage and is built over a Metro station. Amenities include a rooftop pool and lounge with panoramic city views, a fitness center, Zen garden, business center with conference rooms, various concierge services and valet parking. When the Roosevelt opened in 1927, it was the largest office building in Southern California. The building was subsequently purchased in 1998 and partially converted to condos in 2006, leaving 71 units unfinished before falling into bankruptcy in 2008. Greystar acquired the property in Fall 2011 for $95 million in a complex off-market transaction in which the firm purchased the underlying mortgage note and eventually the property through a negotiated bankruptcy reorganization plan.

REDMOND, WA-Resmark Apartment Living, a division of the Resmark Cos., in joint venture with Greystar, has started construction on a new 134-apartment community, Elan Town Center. The six-story, urban mixed-use development, located at 16355 Cleveland St. here, is close to retail and restaurants at Redmond Town Center as well as recreation and entertainment at the 640-acre Marymoor Park. In addition, the center is adjacent to the Redmond Regional Connector, a 27-mile walking and biking trail dotted with sculptures and paved public plazas that will connect Old Town with Redmond Town Center when completed in spring 2013.

FOSTER CITY, CA-Trammell Crow Co. and Partners Health Trust, a joint venture between TCC and a separate account client advised by Bentall Kennedy, has completed construction on Foster City Medical Pavilion, a 40,000-square-foot medical-office building located at 1241 E. Hillsdale Blvd. here. The building, which was originally constructed in 1984 and at one point served as the Peninsula office location for TCC, has since been converted to medical-office space. The new ownership has implemented a significant capital renovation program, including upgrades to core systems, common areas, landscaping, and other aspects of the building highlighted by a dramatic, open three-story lobby structure with gurney-accessible elevator.

VICTORVILLE, CA-Stirling Capital Investments has begun construction on a 176,800-square-foot facility expansion at the Southern California Logistics Centre, a 2,500-acre industrial and commercial complex here. The developer tells GlobeSt.com that the total approximate construction cost is $6.5 million. With anticipated completion slated for year’s end, the expansion is being completed on Distribution Centre 3 to accommodate the increased nationwide distribution needs of an existing, major tenant who was originally located at SCLC in 2007 and recently signed a 10-year lease extension. Once complete, the construction efforts will bring the current 407,612-square-foot facility at SCLC to a total of 584,412 square feet.

LEASES

COMPTON, CA-Forever Collectibles California LLC has leased a 146,362-square-foot facility here for its area distribution center. The tenant recently occupied a new building located at 1600 Anderson Ave. David Prior, president of Klabin/CORFAC International, Todd Taugner, firm partner, and Frank Schulz, all in the firm’s Torrance office, represented Prologis, the property owner, while Barry Hill of Jones Lang LaSalle represented the tenant. Terms of the transaction were not disclosed.

FREMONT, CA-Cushman & Wakefield Inc. has arranged two leases totaling 42,768 square feet here for Warm Springs Constructors, Inc., a Kiewit Infrastructure West Co. joint venture. The tenant was represented in both signings by Walter Stephenson of C&W’s Silicon Valley office; Mitchell Hertz, Matt Bracco, Christopher Burns and Joshua Nelson of the firm’s Walnut Creek office; and Glen Dowling of the San Rafael office. The new leases include 28,800 square feet of industrial space at 45401 Research Ave., a 107,000-square-foot asset owned by Workspace LLC. The second lease is for 13,968 square feet of office space at the nearby 47212 Mission Falls Court, a 43,000-square-foot building owned by East Warren Park LLC.

FINANCE

WEST COVINA, CA-Beech Street Capital LLC has closed a $25-million Fannie Mae DUS loan to refinance Woodside Village, a 460-unit property here. The fixed-rate loan has a 30-year term with 29.5 years of yield maintenance, and 30-year amortization. Kristen Croxton and Greg Reed, SVPs in Beech Street’s Newport Beach, CA, office, originated the transaction, and Paul Conzelman of SC Development represented the borrower. The teams rate-locked the loan 14 days from application and closed 45 days thereafter, as requested by the borrowers, who have owned the complex since 1972.

SACRAMENTO-The California Public Employees’ Retirement System has reported a 1% return on investments for the 12 months that ended June 30, falling short of its benchmark that returned 1.7%. CalPERS assets at the end of the fiscal year stood at more than $233 billion. The small gain, despite continued volatility in world markets and economies, was helped by improved performance of CalPERS real estate investments. Investments in income-generating properties like office, industrial and retail assets returned approximately 15.9%, outperforming the pension fund’s real estate benchmark by more than 3%. CalPERS performance was negatively impacted by significant allocations to U.S. and international public equities. The 1% return is below the fund’s discount rate of 7.5%, a long-term hurdle lowered recently in response to a steady decline in inflation and as part of CalPERS routine evaluation of economic assumptions. CalPERS 20-year investment return is 7.7%.