SAN DIEGO—CBRE Group Inc. says that investor/manager Dan Floit has diversified his multifamily portfolio with $52 million in commercial exchanges in San Diego. CBRE's Jim Neil, Eric Comer and Merrick Matricardi represented Floit in the sale of five multifamily properties and Tim Kerrigan of CBRE—who has represented Floit for more than twenty-five years—represented him in the acquisition of the Polak Family Portfolio, which consists of four transactions on 21 parcels; an additional shopping center in Jamul was also acquired by Floit.
Floit sold five multifamily properties, located throughout San Diego, totaling 62,000 square feet and 107 units, for $18 million. The properties sold were:
· The six-unit, 4025 Illinois Street was sold to Kroah Investors LLC for $1.32 million.
· The 28-unit, 4816-4828 West Mountain View Drive and 12-unit 610 W. Laurel Street were sold to SRM Investments LLC for $5.1 million and $2.15 million, respectively. SRM was represented by Robert Vallera of Voit Real Estate Services.
· The 16-unit, 4780 Arizona Street was sold to Jonathan Tibbitts for $2.48 million.
· The 45-unit, 8561 & 8605 Mellmanor Drive and 5670-5680 Amarillo Ave were sold to SNM Realty Partners LLC for $6.98 million.
Having sold the multifamily properties, Floit exchanged into the Polak Family Portfolio with the proceeds, and new debt. The portfolio was sold by its manager, Cynthia Polak Baker, whose entities are Bay Investment Co., Montezuma Land Co. LLC and the Harbor Investment Co. LLC. The portfolio is comprised of 21 commercial buildings, including 50 tenants, for a total consideration of $30.5 million. Kerrigan represented both the buyer and seller in the four transactions. The portfolios that were acquired:
· The Bay Investment Co. LLC, located on Pacific Highway and in Otay Mesa, includes two properties with two tenants; most notable is the land under the Pacific Highway leased to Terminix.
· Montezuma Land Co. LLC, located in La Mesa, includes nine properties and 31 tenants, the most notable tenants include: La Mesa Jeep Eagle, and FedEx/Kinko's. This portfolio was financed by Victor Mena at First Republic Bank.
· Harbor Investment Co. LLC, located in the Morena Boulevard area and Kearny Mesa, includes nine properties and ten tenants; the most notable tenants include: Armstrong Garden Centers, Toys “R” Us, San Diego Humane Society and Big 5 Sporting Goods.
· Harbor Investment Co. LLC, sold Fletcher Village Shopping Center (Harbor Investment Co. LLC, was also the seller of the Morena Boulevard and Kearny Mesa properties), a shopping center on a ground lease located at Fletcher Parkway and Johnson Avenue in El Cajon. The center has seven tenants, the most notable tenants include: McDonalds, AmericanWest Bank, Dollar Tree and RAI.
In an earlier transaction, Floit also acquired Jamul Plaza, a 18,636-square-foot shopping plaza for $3.7 million, which is located at 12918-12930 Campo Road in Jamul. Kerrigan represented Floit and the seller Morgan Boardman, Trustee, was represented by Joe Bonin and Pat Geary of ECP Commercial. ECP Commercial is the management and leasing agent for the two shopping centers acquired by Floit.
“Mr. Floit had the experience and financial capability to make a buy one-buy-all bulk sale commitment, on a transaction having many moving parts and property types,” says Kerrigan. “The portfolio consisted of car dealers, incubator industrial, leased land, property headed for eminent domain, a shopping center on a ground lease, small offices and a couple net leased investments. Working with the principals has always been a professionally rewarding experience, but this portfolio sale is the most fun I've had in 33 years of brokerage.”
Floit will operate the properties and continue to pursue commercial property investments to complement his multifamily portfolio.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
