LOS ANGELES—High home prices are continuing to fuel demand for apartments in the Los Angeles metro, and investors are picking up vintage properties as a result to create more quality product. According to a Marcus & Millichap report, after several years of sizable appreciation in asset values, investors are becoming more tactical. The sharp increase in new apartment supply at the high end of the market has refocused participants on Class B and C offerings with upside potential through renovation. Yield-oriented investors are boosting allocations in the San Fernando Valley, where the highest cap rates in the metro are found. Metrowide, initial returns on closed transactions will range from the low-4 to high-4% band, depending on asset quality and location.

(SOURCE: MARCUS & MILLICHAP)

NEW & NOTABLE

LONG BEACH, CA—The Long Beach Board of Harbor Commissioners has named Port of Long Beach senior executive Sean Gamette as the Managing Director of Engineering Services. Gamette will lead a bureau that oversees and executes engineering and construction projects and maintenance for the Harbor Department. Gamette was selected after a competitive process to replace Doug Thiessen, who retired earlier this year. In his most recent position, Gamette led a team of managers, engineers, inspectors, surveyors, technicians and support staff responsible for the Port's capital investment program. This decade, the Port is undergoing $4 billion in modernization to increase efficiencies, reduce environmental impacts and strengthen competitiveness.

LADERA RANCH, CA—SmartStop Asset Management has appointed Michael S. McClure to serve as the company's president. Former president H. Michael Schwartz, who continues in his capacity as chief executive officer. In addition to his appointment as president of SmartStop, McClure has also been appointed president of the company's various affiliates, including: Strategic Storage Trust II, Inc.; Strategic Storage Growth Trust, Inc.; Strategic Storage Trust IV, Inc.; and Strategic Student Senior and Storage Trust, Inc. Since 2013, McClure served as SmartStop's chief financial officer.

PHOENIX—Randy Pereira has joined Colliers International in Greater Phoenix as a SVP, where he will serve as a lead financial advisor to clients on financial strategies. Pereira previously served as lead financial advisor in Phoenix for one of the largest multi-national commercial real estate companies.

DEALTRACKER

LAS VEGAS—MCA Realty has acquired two assets in the Las Vegas market for a combined total of $18.3 million. The acquisitions include the Harmon Warehouse Center, a 145,491 square-foot multi-tenant industrial building in Southwest Las Vegas, as well as the Gibson Tech Center, a 29,988 square-foot office building in Henderson, Nevada. With these two purchases, MCA Realty now owns 18 assets encompassing nearly one million square feet in Las Vegas. The firm continues to seek out industrial and office acquisitions in the $2 million to $25 million range.

NEWPORT BEACH—Hines and funds managed by Oaktree Capital Management has secured $19 million for the refinance of PacifiCenter, a two-building, mixed-use property totaling 130,207 square feet in Anaheim. HFF worked on behalf of the borrower to secure the three-year, floating-rate loan through CIT Bank. The loan proceeds will be used to reposition the property. The property has a fully leased, four-story, Class A office building; two 58%-leased, single-story retail buildings; and one fully-leased, single-story flex building. The financing put in place by HFF encumbered the Class A office building and flex building.

LAS VEGAS—The Kislak Organization has sold Alicante Villa Apartments in Las Vegas, Nevada, for $35.5 million to Hamilton Zanze. The 232-unit garden-style apartment community built was built in 2001, and is located four miles from Downtown Summerlin. Kislak purchased the property in 2014 for $29.3 million and completed exterior painting and upgraded the clubhouse, fitness center and pool deck, while also making interior upgrades in units throughout the property. Jeffrey Swinger, senior vice president at CBRE Las Vegas, represented Kislak in the sale to Hamilton Zanze, a San Francisco-based real estate investment company.

SOUTH PASADENA, CA—The Jolyn Apartments, a 30-unit apartment building in South Pasadena, California, has traded hands between two unnamed investors for $10.6 million or $352,500 per unit. The apartment community is located at 609 Prospect Ave., minutes north of Downtown Los Angeles, with easy access to the Pasadena Freeway (110) and the South Pasadena light rail station. Marcus & Millichap's Barry Gordon and Justin Forman represented the buyer, a private LLC. The seller is a family trust.

SAN DIEGO—CBRE Group has completed a 160,000-square-foot lease to Renovate America at the Rancho Vista Corporate Center, located at 16409 West Bernardo Drive in Rancho Bernardo. The approximately seven-year deal was one of San Diego's largest office leases in 2016. CBRE's Brad Black represented Swift Real Estate Partners, which recently acquired Rancho Vista Corporate Center from Hewlett-Packard, and CBRE tenant representation experts Courtney Murphy, Andrew Ewald, David Viani and Bill Dolan represented Renovate America.
BUILDING BLOCKS

UPLAND, CA—Ware Malcomb has broken ground on the new Upland Industrial Centre, a three-building industrial development located at 1037 West 9th Street in Upland, CA, from PAMA Management Inc. Ware Malcomb provided architecture and civil engineering design services for the project, which is expected to be completed and ready for tenant occupancy in June 2017. The new 88,338 square foot light industrial business park design features three buildings that will be available to single or multiple users. Building A consists of a 41,488 square-foot facility designed to accommodate a single or multiple tenants with six dock-high doors and two drive-in doors; Building B is 20,315 square feet with two dock-high doors and two drive-in doors; and Building C is comprised of 26,535 square feet, three dock-high doors and one drive-in door. Speculative tenant improvements are being completed on the first floor of each facility in addition to large mezzanines. The facilities also incorporate two-story built-to-suit office suites, 30' clear heights, multiple skylights, and ESFR sprinkler systems. All three buildings are being constructed using tilt-up concrete panels. Decorative formliner accents and architectural steel canopies at the office entrances enhance the overall design. The 4.74-acre site is located within easy access to the I-10 and I-210 freeways.

LOS ANGELES—Here is a look at some of the top deals from the Southwest, in Southern California, Utah, Arizona and Nevada.

BY THE NUMBERS

PHOENIX—New residents are arriving to the Phoenix market, causing an elevated transaction velocity. According to a new report from Marcus & Millichap, more than 200,000 new residents came to the metro since 2014, a level that rivals in-migration trends prior to the recession. Many are coming to work in higher-paying professional fields or the area's expanding insurance industry. Class-A vacancy in the Valley dipped last year to the 5% range, indicating that strong demand persists, and vacancy in newly built units also fell. Completions are due to rise this year and the unit tally features a heavy dose of market-rate units in central Phoenix and Mesa. The increased transactions have lifted the average price to a post-recession high during the past 12 months. Equity flows will likely persist in the coming year, with investors seeking to take advantage of new opportunities or strong rental housing demand in specific sections of the metro.

(SOURCE: MARCUS & MILLICHAP)

LOS ANGELES—High home prices are continuing to fuel demand for apartments in the Los Angeles metro, and investors are picking up vintage properties as a result to create more quality product. According to a Marcus & Millichap report, after several years of sizable appreciation in asset values, investors are becoming more tactical. The sharp increase in new apartment supply at the high end of the market has refocused participants on Class B and C offerings with upside potential through renovation. Yield-oriented investors are boosting allocations in the San Fernando Valley, where the highest cap rates in the metro are found. Metrowide, initial returns on closed transactions will range from the low-4 to high-4% band, depending on asset quality and location.

(SOURCE: MARCUS & MILLICHAP)

NEW & NOTABLE

LONG BEACH, CA—The Long Beach Board of Harbor Commissioners has named Port of Long Beach senior executive Sean Gamette as the Managing Director of Engineering Services. Gamette will lead a bureau that oversees and executes engineering and construction projects and maintenance for the Harbor Department. Gamette was selected after a competitive process to replace Doug Thiessen, who retired earlier this year. In his most recent position, Gamette led a team of managers, engineers, inspectors, surveyors, technicians and support staff responsible for the Port's capital investment program. This decade, the Port is undergoing $4 billion in modernization to increase efficiencies, reduce environmental impacts and strengthen competitiveness.

LADERA RANCH, CA—SmartStop Asset Management has appointed Michael S. McClure to serve as the company's president. Former president H. Michael Schwartz, who continues in his capacity as chief executive officer. In addition to his appointment as president of SmartStop, McClure has also been appointed president of the company's various affiliates, including: Strategic Storage Trust II, Inc.; Strategic Storage Growth Trust, Inc.; Strategic Storage Trust IV, Inc.; and Strategic Student Senior and Storage Trust, Inc. Since 2013, McClure served as SmartStop's chief financial officer.

PHOENIX—Randy Pereira has joined Colliers International in Greater Phoenix as a SVP, where he will serve as a lead financial advisor to clients on financial strategies. Pereira previously served as lead financial advisor in Phoenix for one of the largest multi-national commercial real estate companies.

DEALTRACKER

LAS VEGAS—MCA Realty has acquired two assets in the Las Vegas market for a combined total of $18.3 million. The acquisitions include the Harmon Warehouse Center, a 145,491 square-foot multi-tenant industrial building in Southwest Las Vegas, as well as the Gibson Tech Center, a 29,988 square-foot office building in Henderson, Nevada. With these two purchases, MCA Realty now owns 18 assets encompassing nearly one million square feet in Las Vegas. The firm continues to seek out industrial and office acquisitions in the $2 million to $25 million range.

NEWPORT BEACH—Hines and funds managed by Oaktree Capital Management has secured $19 million for the refinance of PacifiCenter, a two-building, mixed-use property totaling 130,207 square feet in Anaheim. HFF worked on behalf of the borrower to secure the three-year, floating-rate loan through CIT Bank. The loan proceeds will be used to reposition the property. The property has a fully leased, four-story, Class A office building; two 58%-leased, single-story retail buildings; and one fully-leased, single-story flex building. The financing put in place by HFF encumbered the Class A office building and flex building.

LAS VEGAS—The Kislak Organization has sold Alicante Villa Apartments in Las Vegas, Nevada, for $35.5 million to Hamilton Zanze. The 232-unit garden-style apartment community built was built in 2001, and is located four miles from Downtown Summerlin. Kislak purchased the property in 2014 for $29.3 million and completed exterior painting and upgraded the clubhouse, fitness center and pool deck, while also making interior upgrades in units throughout the property. Jeffrey Swinger, senior vice president at CBRE Las Vegas, represented Kislak in the sale to Hamilton Zanze, a San Francisco-based real estate investment company.

SOUTH PASADENA, CA—The Jolyn Apartments, a 30-unit apartment building in South Pasadena, California, has traded hands between two unnamed investors for $10.6 million or $352,500 per unit. The apartment community is located at 609 Prospect Ave., minutes north of Downtown Los Angeles, with easy access to the Pasadena Freeway (110) and the South Pasadena light rail station. Marcus & Millichap's Barry Gordon and Justin Forman represented the buyer, a private LLC. The seller is a family trust.

SAN DIEGO—CBRE Group has completed a 160,000-square-foot lease to Renovate America at the Rancho Vista Corporate Center, located at 16409 West Bernardo Drive in Rancho Bernardo. The approximately seven-year deal was one of San Diego's largest office leases in 2016. CBRE's Brad Black represented Swift Real Estate Partners, which recently acquired Rancho Vista Corporate Center from Hewlett-Packard, and CBRE tenant representation experts Courtney Murphy, Andrew Ewald, David Viani and Bill Dolan represented Renovate America.
BUILDING BLOCKS

UPLAND, CA—Ware Malcomb has broken ground on the new Upland Industrial Centre, a three-building industrial development located at 1037 West 9th Street in Upland, CA, from PAMA Management Inc. Ware Malcomb provided architecture and civil engineering design services for the project, which is expected to be completed and ready for tenant occupancy in June 2017. The new 88,338 square foot light industrial business park design features three buildings that will be available to single or multiple users. Building A consists of a 41,488 square-foot facility designed to accommodate a single or multiple tenants with six dock-high doors and two drive-in doors; Building B is 20,315 square feet with two dock-high doors and two drive-in doors; and Building C is comprised of 26,535 square feet, three dock-high doors and one drive-in door. Speculative tenant improvements are being completed on the first floor of each facility in addition to large mezzanines. The facilities also incorporate two-story built-to-suit office suites, 30' clear heights, multiple skylights, and ESFR sprinkler systems. All three buildings are being constructed using tilt-up concrete panels. Decorative formliner accents and architectural steel canopies at the office entrances enhance the overall design. The 4.74-acre site is located within easy access to the I-10 and I-210 freeways.