LOS ANGELES—Third quarter reports in Los Angeles show industrial demand continues to climb as supply decreases. Even with 6.7 million square feet of new space in the pipeline, availability levels are only expected to rise 40 basis points over the next 12 months. On the retail side, vacancy levels are projected to move up slightly throughout the rest of 2017, while rental rate growth is expected to slow, increasing by 1.5% over the next year. Office rental rates have increased 8% year-over-year, and rents re expected to increase by 1.8% in 2018. In the Inland Empire, retail saw positive net absorption and stable vacancy. Over the next 12 months, the overall average asking lease rate is forecasted to decrease slightly with discount, fitness and food service retailers anticipated to help drive the retail market. Office had positive net absorption in 22 of the past 23 quarters and this trend is expected to continue.

(SOURCE: CBRE)

NEW & NOTABLE

PHOENIX—Phoenix-based Velocity Retail Group has hired Eli Castronova SVP for Investments & Capital Markets. He brings nearly two decades of extensive experience and accomplishments within the investment arena, successfully securing debt and equity financing for a variety of projects, and development services to the firm. In this role, Castronova will focus on consulting with owners and investors to analyze investment properties for sale, as well as provide a capital markets solution for Velocity Retail's clients. As a former EVP and Principal for a prominent development company, Eli secured over $500 million in debt and equity financing for retail, office, residential, multi-family, and master planned community land. Additionally he was responsible for acquiring, entitling, developing, leasing and selling over 30 projects in his career. These projects ran the gamut from grocery anchored centers, shops, and freestanding retailers. His experience spans several real estate cycles and provides insight and foresight to all levels of retail transactions.

DEALTRACKER

LOS ANGELES—A 15,000 square-foot industrial building in Rancho Dominguez, California, has traded hands to Rexford Industrial for $3.94 million. CBRE's Gary Stache, Anthony DeLorenzo, Mark Shaffer and Doug Mack represented the seller Goodman North America and Reford in the deal. The property is located at 19402 South Susana Road in the South Bay area and leased to Flo-Kem, which has occupied the space for the past 35 years.

PHOENIX—Consumer Cellular has signed a 164,000-square-foot lease in a former Sam's Club located at 17500 N. Black Canyon Freeway, following the empty big-box store's conversion to a single-tenant office building. The national cell phone services provider will occupy the space beginning in March 2018 when the company opens its third call center in the Phoenix area. The new call center is expected to create an estimated 850 new jobs. Ashley Brooks with CBRE's Phoenix office negotiated the lease on behalf of the landlord, Scottsdale, Ariz.-based W-EH Crossroads Holdings JV VII. Rick Lee with Lee & Associates and Mike Nye of Capacity Commercial of Portland, Ore. represented Tigard, Ore.-based Consumer Cellular in the transaction.

MESA, AZ—Sonoma View Apartments, a 126-unit multifamily community located in Mesa, AZ, has traded hands for $11.5 million. Marcus & Millichap's Ryan Sarbinoff, regional manager of the firm's Phoenix office, Rich Butler, a multifamily investment specialist in Marcus & Millichap's Phoenix office, had the exclusive listing and negotiated the transaction on behalf of the seller, a local limited partnership and the buyer, an out of state investment company.

CHULA VISTA, CA—Pacific Pointe Active Senior Living, a 110-unit 55 or better community that is located on 4th Avenue in Chula Vista, CA, has traded hands for $9.2 million between two private investors. The Mogharebi Group's Alex Mogharebi and Otto Ozen represented the seller and the buyer. Built on a 1.07-acre site in 1974, the property is located at 171 4th Avenue in Chula Vista. The community is in downtown Chula Vista, within 1 mile of Scripps Mercy Hospital Chula Vista, Interstate-5, and over 1 million square feet of retail. It is a short drive to Naval Base San Diego that has over 20,000 military personnel and 6,000 civilians.

WOODLAND HILLS—A 29,783 square foot medical building located at 3180 Willow Lane in Westlake Village, CA, has traded hands for $8.9 million, which translates to $298.90 per square foot. This property was sold in an off-market transaction, with both sides of the deal represented by SVN – Rich Investment Real Estate Partner's Pacific Bridge Team of Jeff Albee, Travis Albee and Tilden Moschetti.

LOS ANGELES—Harriman Capital has invested $15 million in equity to develop four new coliving properties in New York City and Los Angeles, which will be managed by Common. Harriman's development marks Common's first home announced in Los Angeles.

LOS ANGELES—Buena Vista Marketplace, a 98.5% occupied 92,346-square-foot grocery-anchored retail center in Duarte, CA, has traded hands for $38.1 million. NKF's Capital Markets retail division Executive Managing Director Pete Bethea, and Senior Managing Directors Rob Ippolito and Glenn Rudy represented the seller, Weingarten Realty. The buyer, Gerrity Group, was self-represented. Built in 1990 and situated on 7.4 acres at 1155 to 1245 Huntington Drive, Buena Vista Marketplace features a new, state of the art Smart & Final Extra grocery store, Dollar Tree, Wells Fargo, AT&T, UPS, Subway, Flame Broiler and Jamba Juice, among other tenants.

PHOENIX—Equus Capital Partners and iStar have acquired McDowell Mountain Business Park in Scottsdale, AZ, for $53.2 million. McDowell Mountain Business Park is a premier Class A office complex comprised of two identical three-story office buildings totaling 255,573± rentable square feet, located at 16425 and 16552 N. Pima Road, Scottsdale, Arizona. Mesa West Capital has funded $42.6 million in first mortgage debt for the acquisition of the project. The venture acquired the REO property from RAIT Financial Trust. McDowell Mountain Business Park was built in 2006 and 2007. The property was 74% leased at acquisition to a diverse group of tenants. This upscale property is situated in a prime central location on the Loop 101 just north of Frank Lloyd Wright Blvd, providing easy access, excellent visibility and exposure. Each L-shaped building offers expansive common areas with upscale finishes and floor plates that allows for maximum flexibility in layout and design. In addition to its mountain views, the amenity-rich office complex is just minutes from a variety of nearby resorts, hotels and golf courses. A wide range of restaurants and retail stores are also nearby, and the buildings are only three miles from the Scottsdale Municipal Airport.

BUILDING BLOCKS

LOS ANGELES—World Oil Corporation and developer Trammell Crow Company have unveiled plans for Bakersfield Commons, a new pedestrian-oriented, master-planned mixed-use community located in the heart of Bakersfield, California. The 260-acre project will include office, retail, residential, recreational and industrial space, as well as a wellness campus. Construction will begin in 2018; with the first development pads delivered in late 2018 and anticipated delivery of Phase I in 2019.

PHOENIX—USAA Real Estate of San Antonio and developer Sunbelt Holdings of Scottsdale have broken ground on Norterra. The 400-acre mixed use community located at the northwest corner of 19th Avenue and Happy Valley Road, is adjacent to the existing retail core, The Shops at Norterra and USAA's Phoenix Corporate Campus. Union Park at Norterra's first phase is scheduled to open in late 2018 and will feature 309 single-family homes, a resort-style recreation center and pool, and a community park. Future components proposed for the master plan include up to 1,100 single-family homes, 1,100 multi-family units, a hotel, office space, a school site and a boutique retail corridor including specialty restaurants, shopping experiences and gathering spaces with an outdoor lifestyle that will artfully blend retail, dining and entertainment, all within steps of Union Park at Norterra's homes. Named after its Union Peak Sonoran Preserve backdrop, Union Park at Norterra will feature timeless architectural designs that are reminiscent of historic neighborhoods.

PHOENIX—P.B. Bell is preparing to begin construction on a senior housing community in the Aspera mixed-use community in Glendale, Arizona. Inspira Arrowhead marks P.B. Bell's return to the senior housing market, and will complement Velaire at Aspera, a 286-unit luxury apartment community P.B. Bell opened within that community about a year ago. Inspira Arrowhead will feature 165 total units, split among 123 units that offer independent and assisted living apartment homes, and an additional 42 designed for residents who require memory care. Inspira Arrowhead will be located in the southwest corner of the 75-acre Aspera development, which is located at the Agua Fria Loop 101 Freeway and 75th Avenue.

The Phoenix market has continued to soar and dominate the sales and leasing activity for the week. Multifamily is still the darling of the market, but industrial activity is also picking up. Additionally, a report from Colliers International shows that the retail market is also picking up, with record-breaking leasing activity and increasing property values. In Los Angeles, the retail rental rate growth declined in the third quarter. Here's a look at this week's trends, announcements and deals that you may have missed in Southern California, Utah, Arizona and Nevada.

BY THE NUMBERS

PHOENIX—The retail sector in Greater Phoenix area hit its highest net absorption in several years and vacancy dropped to its lowest level in nearly a decade during the third quarter. Net absorption totaled more than 680,000 square feet, bringing the year-to- date net absorption figure to more than 1.6 million square feet. Vacancy dipped this past three months to 8.9%. This is the lowest vacancy rate in eight years. Home furnishing stores have stimulated net absorption in the market. Asking rental rates are up 3.2% to $14.53 per square foot for the past 12 months. Scottsdale continues to post some of the strongest rental rates. North Scottsdale rates have risen more than 6% this year and are approaching $20 per square foot. Sales of shopping centers slowed by 40%, but the median price rose more than 20% last quarter to $146 per square foot. The bulk of properties sold during third quarter were $10 million and less.

(SOURCE: COLLIERS INTERNATIONAL)

LOS ANGELES—Third quarter reports in Los Angeles show industrial demand continues to climb as supply decreases. Even with 6.7 million square feet of new space in the pipeline, availability levels are only expected to rise 40 basis points over the next 12 months. On the retail side, vacancy levels are projected to move up slightly throughout the rest of 2017, while rental rate growth is expected to slow, increasing by 1.5% over the next year. Office rental rates have increased 8% year-over-year, and rents re expected to increase by 1.8% in 2018. In the Inland Empire, retail saw positive net absorption and stable vacancy. Over the next 12 months, the overall average asking lease rate is forecasted to decrease slightly with discount, fitness and food service retailers anticipated to help drive the retail market. Office had positive net absorption in 22 of the past 23 quarters and this trend is expected to continue.

(SOURCE: CBRE)

NEW & NOTABLE

PHOENIX—Phoenix-based Velocity Retail Group has hired Eli Castronova SVP for Investments & Capital Markets. He brings nearly two decades of extensive experience and accomplishments within the investment arena, successfully securing debt and equity financing for a variety of projects, and development services to the firm. In this role, Castronova will focus on consulting with owners and investors to analyze investment properties for sale, as well as provide a capital markets solution for Velocity Retail's clients. As a former EVP and Principal for a prominent development company, Eli secured over $500 million in debt and equity financing for retail, office, residential, multi-family, and master planned community land. Additionally he was responsible for acquiring, entitling, developing, leasing and selling over 30 projects in his career. These projects ran the gamut from grocery anchored centers, shops, and freestanding retailers. His experience spans several real estate cycles and provides insight and foresight to all levels of retail transactions.

DEALTRACKER

LOS ANGELES—A 15,000 square-foot industrial building in Rancho Dominguez, California, has traded hands to Rexford Industrial for $3.94 million. CBRE's Gary Stache, Anthony DeLorenzo, Mark Shaffer and Doug Mack represented the seller Goodman North America and Reford in the deal. The property is located at 19402 South Susana Road in the South Bay area and leased to Flo-Kem, which has occupied the space for the past 35 years.

PHOENIX—Consumer Cellular has signed a 164,000-square-foot lease in a former Sam's Club located at 17500 N. Black Canyon Freeway, following the empty big-box store's conversion to a single-tenant office building. The national cell phone services provider will occupy the space beginning in March 2018 when the company opens its third call center in the Phoenix area. The new call center is expected to create an estimated 850 new jobs. Ashley Brooks with CBRE's Phoenix office negotiated the lease on behalf of the landlord, Scottsdale, Ariz.-based W-EH Crossroads Holdings JV VII. Rick Lee with Lee & Associates and Mike Nye of Capacity Commercial of Portland, Ore. represented Tigard, Ore.-based Consumer Cellular in the transaction.

MESA, AZ—Sonoma View Apartments, a 126-unit multifamily community located in Mesa, AZ, has traded hands for $11.5 million. Marcus & Millichap's Ryan Sarbinoff, regional manager of the firm's Phoenix office, Rich Butler, a multifamily investment specialist in Marcus & Millichap's Phoenix office, had the exclusive listing and negotiated the transaction on behalf of the seller, a local limited partnership and the buyer, an out of state investment company.

CHULA VISTA, CA—Pacific Pointe Active Senior Living, a 110-unit 55 or better community that is located on 4th Avenue in Chula Vista, CA, has traded hands for $9.2 million between two private investors. The Mogharebi Group's Alex Mogharebi and Otto Ozen represented the seller and the buyer. Built on a 1.07-acre site in 1974, the property is located at 171 4th Avenue in Chula Vista. The community is in downtown Chula Vista, within 1 mile of Scripps Mercy Hospital Chula Vista, Interstate-5, and over 1 million square feet of retail. It is a short drive to Naval Base San Diego that has over 20,000 military personnel and 6,000 civilians.

WOODLAND HILLS—A 29,783 square foot medical building located at 3180 Willow Lane in Westlake Village, CA, has traded hands for $8.9 million, which translates to $298.90 per square foot. This property was sold in an off-market transaction, with both sides of the deal represented by SVN – Rich Investment Real Estate Partner's Pacific Bridge Team of Jeff Albee, Travis Albee and Tilden Moschetti.

LOS ANGELES—Harriman Capital has invested $15 million in equity to develop four new coliving properties in New York City and Los Angeles, which will be managed by Common. Harriman's development marks Common's first home announced in Los Angeles.

LOS ANGELES—Buena Vista Marketplace, a 98.5% occupied 92,346-square-foot grocery-anchored retail center in Duarte, CA, has traded hands for $38.1 million. NKF's Capital Markets retail division Executive Managing Director Pete Bethea, and Senior Managing Directors Rob Ippolito and Glenn Rudy represented the seller, Weingarten Realty. The buyer, Gerrity Group, was self-represented. Built in 1990 and situated on 7.4 acres at 1155 to 1245 Huntington Drive, Buena Vista Marketplace features a new, state of the art Smart & Final Extra grocery store, Dollar Tree, Wells Fargo, AT&T, UPS, Subway, Flame Broiler and Jamba Juice, among other tenants.

PHOENIX—Equus Capital Partners and iStar have acquired McDowell Mountain Business Park in Scottsdale, AZ, for $53.2 million. McDowell Mountain Business Park is a premier Class A office complex comprised of two identical three-story office buildings totaling 255,573± rentable square feet, located at 16425 and 16552 N. Pima Road, Scottsdale, Arizona. Mesa West Capital has funded $42.6 million in first mortgage debt for the acquisition of the project. The venture acquired the REO property from RAIT Financial Trust. McDowell Mountain Business Park was built in 2006 and 2007. The property was 74% leased at acquisition to a diverse group of tenants. This upscale property is situated in a prime central location on the Loop 101 just north of Frank Lloyd Wright Blvd, providing easy access, excellent visibility and exposure. Each L-shaped building offers expansive common areas with upscale finishes and floor plates that allows for maximum flexibility in layout and design. In addition to its mountain views, the amenity-rich office complex is just minutes from a variety of nearby resorts, hotels and golf courses. A wide range of restaurants and retail stores are also nearby, and the buildings are only three miles from the Scottsdale Municipal Airport.

BUILDING BLOCKS

LOS ANGELES—World Oil Corporation and developer Trammell Crow Company have unveiled plans for Bakersfield Commons, a new pedestrian-oriented, master-planned mixed-use community located in the heart of Bakersfield, California. The 260-acre project will include office, retail, residential, recreational and industrial space, as well as a wellness campus. Construction will begin in 2018; with the first development pads delivered in late 2018 and anticipated delivery of Phase I in 2019.

PHOENIX—USAA Real Estate of San Antonio and developer Sunbelt Holdings of Scottsdale have broken ground on Norterra. The 400-acre mixed use community located at the northwest corner of 19th Avenue and Happy Valley Road, is adjacent to the existing retail core, The Shops at Norterra and USAA's Phoenix Corporate Campus. Union Park at Norterra's first phase is scheduled to open in late 2018 and will feature 309 single-family homes, a resort-style recreation center and pool, and a community park. Future components proposed for the master plan include up to 1,100 single-family homes, 1,100 multi-family units, a hotel, office space, a school site and a boutique retail corridor including specialty restaurants, shopping experiences and gathering spaces with an outdoor lifestyle that will artfully blend retail, dining and entertainment, all within steps of Union Park at Norterra's homes. Named after its Union Peak Sonoran Preserve backdrop, Union Park at Norterra will feature timeless architectural designs that are reminiscent of historic neighborhoods.

PHOENIX—P.B. Bell is preparing to begin construction on a senior housing community in the Aspera mixed-use community in Glendale, Arizona. Inspira Arrowhead marks P.B. Bell's return to the senior housing market, and will complement Velaire at Aspera, a 286-unit luxury apartment community P.B. Bell opened within that community about a year ago. Inspira Arrowhead will feature 165 total units, split among 123 units that offer independent and assisted living apartment homes, and an additional 42 designed for residents who require memory care. Inspira Arrowhead will be located in the southwest corner of the 75-acre Aspera development, which is located at the Agua Fria Loop 101 Freeway and 75th Avenue.