LOS ANGELES—The multifamily market remains the highlight of the Southwest markets, with continued increases in rental rates and historically low vacancy rates. Multifamily transactions were very active this week, with several major deals closing in markets like Las Vegas and Phoenix, as well as outlying Los Angeles and San Diego markets. Industrial also continues to boom, especially in the Riverside and Inland Empire markets, which posted record growth for the third quarter.

BY THE NUMBERS

The Salt Lake City apartment rental market remains strong with a 4.5% vacancy rate recorded at mid-year. Rental rates also continue to be on an upswing with 26% growth since 2011, reaching an all-time high of $1.15 per square foot in 2016. As a result, the area has seen a boom of new apartment construction, with more than 9,500 new units currently under development and more than 12,000 identified as potential starts.

(Source: CBRE)

Riverside's manufacturing and distribution buildings in the East Valley markets posted their strongest quarter yet in 3Q16. Despite a lack of inventory, Gross activity in the third quarter was just under 9.3 million square feet, with investment purchases and lease renewals accounting for 61% of the total, while the third quarter 2016's absorption figures were just under 3.7 million square feet, compared to 2.9 million square feet during the same period last year. Vacancy rates remained at all-time lows, however development, especially for buildings less than 100,000 square feet, picked up.

(Source: Lee & Associates)

NEWS & NOTABLES

NEWPORT BEACH, CA—NAIOP SoCal's Young Professionals Group held its 4th annual Y Games, Go for the Gold or Go Home. 200 real estate professionals competed on 20 teams in events like Parachute Volleyball, Hungry Hungry Hippo, Water Balloon Launch, Triathlan Relay. Viking Quest was the winning team.

IRVINE, CA—WNC has promoted Kristin Han to VP of compliance and Tammy Bliss to director of construction risk management. The firm has also promoted Ben Cornejo to director of asset management within its subsidiary, Community Preservation Partners. All three employees were hailed as outstanding leaders and playing valuable roles in the organization.

IRVINE, CA—Design firm Taylor Design received two awards at the 2016 AIAOC Orange County Design Awards. The firm was awarded the Citation Award in the Commercial Interiors Category for its work on the San Francisco Vein and Vascular Institute's new Vascular Surgery Clinic and Ambulatory Surgery Center. The firm was also recognized with a Merit Award in the Commercial Interiors Category for its work on the UC San Francisco Ambulatory Care Center (ACC) 5 Heart & Vascular Clinic.

FLORANCE, AZ—Pinal Partnership has named Chairman of the Board Harold Christ as the firm's new president and CEO. Christ will succeed Sandie Smith, current CEO and president, and will take the new position in January 2017. Smith has served in the position since 2008. Smith will serve as an ambassador for the Partnership, while Christ will continue to serve as chairman of the board.

DEAL TRACKER

LAS VEGAS—Shopoff is investing in the Las Vegas market. The firm has acquired a 624-unit apartment complex in northwest Las Vegas for $72.6 million. Called Sky Pointe Landing Apartments, the property is a Class B community constructed in 1996. “Our recent acquisitions success is the result of several years of diligent effort pursuing these opportunities. Each of our recent acquisitions represents a unique opportunity to effect our strategy,” William A. Shopoff, president and CEO of Shopoff, tells GlobeSt.com.

LOS ANGELES—Episource, a healthcare payer solutions firm, has signed a 17,551-square-foot office lease in Gardena, CA, with landlord Tireco. The lease has a 77-year term, but the value of the lease was not disclosed. The firm will occupy the 2nd and 4th floors starting November 2016. Avison Young Principal Ted Simpson and Vice-President Michael Ma represented the tenant in the transaction.

LOS ANGELES—The Levitt Family Trusts has sold the Holloway Center, an 8,790-square-foot strip mall, to an unnamed buyer for $11 million or a 3.4% cap rate. The property has three tenants, including Hollyway Cleaners and Earthbar, which have occupied the property for 26 years. SVN-Rich Investment Real Estate Partners' David Chasin represented the seller in the deal.

NEWPORT BEACH, CA—Douglas Emmett has purchased a 128,935-square-foot office asset located at 233 Wilshire Blvd. in Santa Monica. The name of the seller and the sales price was not disclosed. HFF investment team's senior managing directors Ryan Gallagher and Michael Leggett, who is also co-head of HFF's West Coast team, directors Andrew Harper and Tim Geiman and real estate analyst Michael Matchett represented the seller in the transaction.

PALM SPRINGS, CA—The Cambridge Inn Palm Springs has traded hands between a personal trust and a private buyer for $2 million. The 65-room property is located at 1277 South Palm Canyon Drive in Palm Spring, and the buyer plans to fully renovate the asset. Gordon Allred as well as Josh Tammen of Marcus & Millichap represented the buyer and the seller in the transaction.

LONG BEACH, CA—The owner of a 156-unit apartment complex in Long Beach has secured a $22.8 million loan to refinance the asset. Bellwether Enterprise Real Estate Capital secured the loan through Fannie Mae with a 10-year, fixed-rate full term with interest only. To meet the program's stipulations and receive the desirable interest rate, the borrower will make improvements over the next two years to increase the buildings' water efficiency.

LAS VEGAS—Las Vegas Multifamily DST has acquired The Wyatt Apartments in Las Vegas for $57.2 million from LV Badura LLC. The Wyatt is a 308-unit luxury apartment property that opened in May of 2015, and is currently nearly fully leased. Berkadia's senior directors Brian Anderson and Angela Powers represented the seller in the transaction.

WILDOMAR, CA—A banking institution has sold the Inland Medical Office Building to an unnamed buyer for $4.8 million. The property sits on 3.75 acres in Wildomar, CA, with a three-story building and a separate land parcel. It also includes parking.

VAN NUYS, CA—The Vallarta Supermarket in Van Nuys has traded hands between a private investor and a private family trust for $13 million. The 35,295-square-foot property is fully occupied by the grocer. Yubin Tao, SVP at Investment Real Estate Associates represented the seller and buyer in the transaction.

LOS BANOS, CA—A Northern California-based buyer has purchased the Shops at Stonecreek Plaza, a 52,171-square-foot strip center in the city of Los Banos, from Rich Development Co. for $12 million representing a 7.1% cap rate. The property is leased to a strong mix of credit tenants, such as Petco, Famous Footwear and Dollar Tree, which comprise 70% of the property. CBRE's retail investment experts Phillip Voorhees, Slusher, Megan Wood, Matt Burson, John Read, Kirk Brummer, and Preston Fetrow and Richard Rizika, represented the seller in the deal. “San Diego County is a perennial favorite for retail investors,” Voorhees tells GlobeSt.com about the deal. “We typically see higher offer volume on our San Diego listings we market with our partner, Reg Kobzi. As was the case with this Taco Bell and shops property, investors from Los Angeles and Orange counties seem equally inclined to make purchases in San Diego. San Diego's coastal location, diverse economy, exceptional quality of life, and strong supply constraints/barriers to entry all point to a bright outlook for San Diego retail assets in the years to come.”

PHOENIX, AZ—Bascom Arizona Ventures has acquired the Springs at Silverbell, a multifamily property located in Tucson, for $31.5 million from Silverbell 290 Limited Partnership. The property has a mix of one-, two- and three-bedroom floor plans. Berkadia senior managing director Mark Forrester and managing director Ric Holway represented the buyer in the transaction.

SAN DIEGO—Oak Springs Ranch LLC has sold Oak Springs Ranch a 312-unit multifamily property in Wildomar, to R&V Management Corp. for $78.5 million. The property was built in 2014 and has a mix of one-, two- and three-bedroom apartments. Both institutional and private capital were interested in the deal, according to Managing Directors Ed Rosen and John Chu and Directors Kyle Pinkalla and Erin Dammen, who represented the seller in the transaction.

ONTARIO, CA—Restoration Hardware has signed a 244,947-square-foot lease with Shea Properties at an Inland Empire industrial warehouse. The lease has a five-year term and is valued at $8 million. The property features a 30-foot clear height, Cross-Dock configuration, ESFR Sprinkler System and is conveniently located adjacent to the I-15 and I-10 freeway interchange.

NEWPORT BEACH, CA—Oaktree Capital Management has secured a $33 million loan to refinance the Raytheon Office Campus, a three-building, 405,130-square-foot office property in Fullerton, California.  The loan has a five-year, floating-rate loan and was funded through a national bank. Senior managing director Kevin MacKenzie and associate Jamie Kline of HFF secured the funds on behalf of the borrower.

BUILDING BLOCKS

RIVERSIDE, CA—Ratkovich Properties has broken ground on Imperial Hardware Lofts, a 91-unit mixed-use complex in Riverside. This is a new type of development in the Riverside market, and will include 8,000 square feet of retail space. It is an adaptive reuse of the Imperial Hardware store building, and the developer will incorporate the façade of the original building.

LOS ANGELES—The multifamily market remains the highlight of the Southwest markets, with continued increases in rental rates and historically low vacancy rates. Multifamily transactions were very active this week, with several major deals closing in markets like Las Vegas and Phoenix, as well as outlying Los Angeles and San Diego markets. Industrial also continues to boom, especially in the Riverside and Inland Empire markets, which posted record growth for the third quarter.

BY THE NUMBERS

The Salt Lake City apartment rental market remains strong with a 4.5% vacancy rate recorded at mid-year. Rental rates also continue to be on an upswing with 26% growth since 2011, reaching an all-time high of $1.15 per square foot in 2016. As a result, the area has seen a boom of new apartment construction, with more than 9,500 new units currently under development and more than 12,000 identified as potential starts.

(Source: CBRE)

Riverside's manufacturing and distribution buildings in the East Valley markets posted their strongest quarter yet in 3Q16. Despite a lack of inventory, Gross activity in the third quarter was just under 9.3 million square feet, with investment purchases and lease renewals accounting for 61% of the total, while the third quarter 2016's absorption figures were just under 3.7 million square feet, compared to 2.9 million square feet during the same period last year. Vacancy rates remained at all-time lows, however development, especially for buildings less than 100,000 square feet, picked up.

(Source: Lee & Associates)

NEWS & NOTABLES

NEWPORT BEACH, CA—NAIOP SoCal's Young Professionals Group held its 4th annual Y Games, Go for the Gold or Go Home. 200 real estate professionals competed on 20 teams in events like Parachute Volleyball, Hungry Hungry Hippo, Water Balloon Launch, Triathlan Relay. Viking Quest was the winning team.

IRVINE, CA—WNC has promoted Kristin Han to VP of compliance and Tammy Bliss to director of construction risk management. The firm has also promoted Ben Cornejo to director of asset management within its subsidiary, Community Preservation Partners. All three employees were hailed as outstanding leaders and playing valuable roles in the organization.

IRVINE, CA—Design firm Taylor Design received two awards at the 2016 AIAOC Orange County Design Awards. The firm was awarded the Citation Award in the Commercial Interiors Category for its work on the San Francisco Vein and Vascular Institute's new Vascular Surgery Clinic and Ambulatory Surgery Center. The firm was also recognized with a Merit Award in the Commercial Interiors Category for its work on the UC San Francisco Ambulatory Care Center (ACC) 5 Heart & Vascular Clinic.

FLORANCE, AZ—Pinal Partnership has named Chairman of the Board Harold Christ as the firm's new president and CEO. Christ will succeed Sandie Smith, current CEO and president, and will take the new position in January 2017. Smith has served in the position since 2008. Smith will serve as an ambassador for the Partnership, while Christ will continue to serve as chairman of the board.

DEAL TRACKER

LAS VEGAS—Shopoff is investing in the Las Vegas market. The firm has acquired a 624-unit apartment complex in northwest Las Vegas for $72.6 million. Called Sky Pointe Landing Apartments, the property is a Class B community constructed in 1996. “Our recent acquisitions success is the result of several years of diligent effort pursuing these opportunities. Each of our recent acquisitions represents a unique opportunity to effect our strategy,” William A. Shopoff, president and CEO of Shopoff, tells GlobeSt.com.

LOS ANGELES—Episource, a healthcare payer solutions firm, has signed a 17,551-square-foot office lease in Gardena, CA, with landlord Tireco. The lease has a 77-year term, but the value of the lease was not disclosed. The firm will occupy the 2nd and 4th floors starting November 2016. Avison Young Principal Ted Simpson and Vice-President Michael Ma represented the tenant in the transaction.

LOS ANGELES—The Levitt Family Trusts has sold the Holloway Center, an 8,790-square-foot strip mall, to an unnamed buyer for $11 million or a 3.4% cap rate. The property has three tenants, including Hollyway Cleaners and Earthbar, which have occupied the property for 26 years. SVN-Rich Investment Real Estate Partners' David Chasin represented the seller in the deal.

NEWPORT BEACH, CA—Douglas Emmett has purchased a 128,935-square-foot office asset located at 233 Wilshire Blvd. in Santa Monica. The name of the seller and the sales price was not disclosed. HFF investment team's senior managing directors Ryan Gallagher and Michael Leggett, who is also co-head of HFF's West Coast team, directors Andrew Harper and Tim Geiman and real estate analyst Michael Matchett represented the seller in the transaction.

PALM SPRINGS, CA—The Cambridge Inn Palm Springs has traded hands between a personal trust and a private buyer for $2 million. The 65-room property is located at 1277 South Palm Canyon Drive in Palm Spring, and the buyer plans to fully renovate the asset. Gordon Allred as well as Josh Tammen of Marcus & Millichap represented the buyer and the seller in the transaction.

LONG BEACH, CA—The owner of a 156-unit apartment complex in Long Beach has secured a $22.8 million loan to refinance the asset. Bellwether Enterprise Real Estate Capital secured the loan through Fannie Mae with a 10-year, fixed-rate full term with interest only. To meet the program's stipulations and receive the desirable interest rate, the borrower will make improvements over the next two years to increase the buildings' water efficiency.

LAS VEGAS—Las Vegas Multifamily DST has acquired The Wyatt Apartments in Las Vegas for $57.2 million from LV Badura LLC. The Wyatt is a 308-unit luxury apartment property that opened in May of 2015, and is currently nearly fully leased. Berkadia's senior directors Brian Anderson and Angela Powers represented the seller in the transaction.

WILDOMAR, CA—A banking institution has sold the Inland Medical Office Building to an unnamed buyer for $4.8 million. The property sits on 3.75 acres in Wildomar, CA, with a three-story building and a separate land parcel. It also includes parking.

VAN NUYS, CA—The Vallarta Supermarket in Van Nuys has traded hands between a private investor and a private family trust for $13 million. The 35,295-square-foot property is fully occupied by the grocer. Yubin Tao, SVP at Investment Real Estate Associates represented the seller and buyer in the transaction.

LOS BANOS, CA—A Northern California-based buyer has purchased the Shops at Stonecreek Plaza, a 52,171-square-foot strip center in the city of Los Banos, from Rich Development Co. for $12 million representing a 7.1% cap rate. The property is leased to a strong mix of credit tenants, such as Petco, Famous Footwear and Dollar Tree, which comprise 70% of the property. CBRE's retail investment experts Phillip Voorhees, Slusher, Megan Wood, Matt Burson, John Read, Kirk Brummer, and Preston Fetrow and Richard Rizika, represented the seller in the deal. “San Diego County is a perennial favorite for retail investors,” Voorhees tells GlobeSt.com about the deal. “We typically see higher offer volume on our San Diego listings we market with our partner, Reg Kobzi. As was the case with this Taco Bell and shops property, investors from Los Angeles and Orange counties seem equally inclined to make purchases in San Diego. San Diego's coastal location, diverse economy, exceptional quality of life, and strong supply constraints/barriers to entry all point to a bright outlook for San Diego retail assets in the years to come.”

PHOENIX, AZ—Bascom Arizona Ventures has acquired the Springs at Silverbell, a multifamily property located in Tucson, for $31.5 million from Silverbell 290 Limited Partnership. The property has a mix of one-, two- and three-bedroom floor plans. Berkadia senior managing director Mark Forrester and managing director Ric Holway represented the buyer in the transaction.

SAN DIEGO—Oak Springs Ranch LLC has sold Oak Springs Ranch a 312-unit multifamily property in Wildomar, to R&V Management Corp. for $78.5 million. The property was built in 2014 and has a mix of one-, two- and three-bedroom apartments. Both institutional and private capital were interested in the deal, according to Managing Directors Ed Rosen and John Chu and Directors Kyle Pinkalla and Erin Dammen, who represented the seller in the transaction.

ONTARIO, CA—Restoration Hardware has signed a 244,947-square-foot lease with Shea Properties at an Inland Empire industrial warehouse. The lease has a five-year term and is valued at $8 million. The property features a 30-foot clear height, Cross-Dock configuration, ESFR Sprinkler System and is conveniently located adjacent to the I-15 and I-10 freeway interchange.

NEWPORT BEACH, CA—Oaktree Capital Management has secured a $33 million loan to refinance the Raytheon Office Campus, a three-building, 405,130-square-foot office property in Fullerton, California.  The loan has a five-year, floating-rate loan and was funded through a national bank. Senior managing director Kevin MacKenzie and associate Jamie Kline of HFF secured the funds on behalf of the borrower.

BUILDING BLOCKS

RIVERSIDE, CA—Ratkovich Properties has broken ground on Imperial Hardware Lofts, a 91-unit mixed-use complex in Riverside. This is a new type of development in the Riverside market, and will include 8,000 square feet of retail space. It is an adaptive reuse of the Imperial Hardware store building, and the developer will incorporate the façade of the original building.