ORANGE COUNTY—Strategic Storage Growth Trust saw continued in total revenues, same-store revenues, net operating income (“NOI”), occupancy and annualized rent per occupied square footage as part of its overall operating results for the three and nine months ended September 30, 2017. The highlights of the quarter include increased total revenue by approximately $1.4 million, or 56%, when compared to the same period in 2016; increased same-store revenues and NOI by 14.7% and 19.3%, respectively, compared to the same period in 2016; increased same-store average physical occupancy by approximately 3.6% to 94.9% from 91.3% compared to the same period in 2016; increased same-store annualized rent per occupied square foot by approximately 11.0% to $12.69 from $11.43 compared to the same period in 2016; increased modified funds from operations to approximately $1.0 million from a loss of approximately $0.1 million compared to the same period in 2016.

PHOENIX—The Greater Phoenix multifamily market continues expanding to unprecedented levels with strong tenant demand, lower vacancy and rising rents as new communities are brought to market. The multifamily vacancy rate ticked up slightly in second quarter, which is typical during the summer months. During third quarter vacancy dipped 20 basis points to 5.7%. This is unchanged from a year ago. The vacancy in multifamily has been at or below six percent for the past two years. Rental rates are rising at a healthy pace. Asking rates rose one percent during third quarter, hitting $987 per month. This marks a 6.4% increase from one year ago. Development of apartments has been occurring at record levels for the past several years. Fortunately, the pace of net absorption has closely tracked the rate of construction. Strong demand continues to spur new development. Currently, more than 12,000 units are under construction, up nearly 60% compared to a year ago. An additional 16,000 units are planned in Greater Phoenix. Construction in the past few years has been focused in just a few key areas. Vacancy tightening and rent escalations have now reached a level to justify development in a large collection of submarkets throughout the Valley. Investment conditions in the Phoenix multifamily market strengthened during third quarter. Sales velocity rose, along with the median price of an apartment unit. Cap rates compressed to an average 5.4 percent in third quarter. During the last three months, the average price per unit sold was $125,800.

(SOURCE: COLLIERS INTERNATIONAL)

NEW & NOTABLE
SAN DIEGO—CBRE has hired Allen Chitayat as first vice president and Nate Pepper as associate of CBRE's Capital Markets team in San Diego. Chitayat and Pepper will focus on enhancing the firm's private client and institutional multifamily investment sales presence in San Diego and adjacent Southern California areas. Chitayat is an accomplished real estate professional with more than 30 years of experience. He joins CBRE from Berkadia Real Estate Advisors, a division of Berkshire Hathaway and Leucadia National, where he held the position of senior director. Pepper exclusively worked with Chitayat as a multifamily analyst at Berkadia, gaining exposure to both brokerage and private equity transactions involving middle-market and institutional quality assets. During his tenure, he has been involved in the sale and purchase of more than $75 million of multifamily properties. Prior to beginning his career in commercial real estate, Nate spent time in the public accounting industry representing clients in real estate, health care and technology.

PHOENIX—BOMA Greater Phoenix has elected its 2018 officers and board members via electronic vote of its membership. Darwyn Harp, General Property Manager with Hines, was elected President. He is joined by Vice President Robert Vincent, Cordia Capital Management; Treasurer Jayme Bartholomew, Development Services of America; and Allied Chair Tim Barber, Maintenance Mart. Board members for 2018: Colleen Leblanc, ATI Restoration; Gina Rouban, Edge Building Services; Michael Chadwick, ViaWest Group; Julie Martens, CBRE; Melissa Scott, Sunbelt Holdings; Maricela Nunez, LBA Realty; Nate Williams, ProServ; Toni Covington, ABM; Chris Vetter, Transcend Security; and Bruce Coomer, Dircks Moving & Logistics.

LOS ANGELES—Mayer Brown has hired Richard Bruckner as a senior land use specialist in its Government Relations & Public Law practice in Los Angeles. Previously, Bruckner was the Director of the Los Angeles County Department of Regional Planning. As Director of Regional Planning for Los Angeles County, Bruckner oversaw advance and current development, ongoing projects and land use regulation for the 2,000 square mile unincorporated area of Los Angeles County, which has a population of approximately one million people. He served as director of planning and development for the City of Pasadena for more than a decade, during which he led citywide economic development, planning, building, code enforcement, cultural affairs, real estate and the management of eight redevelopment projects areas. Prior to that, Bruckner was deputy executive director of the Community Development Department for the City of Anaheim for 11 years. Earlier in his career, he held various city planning and community development positions in Los Angeles and in Enfield, Connecticut.
DEALTRACKER

SAN DIEGO—Berkadia has arranged both the financing and sale of Verse La Mesa, a multifamily property located in La Mesa, California. The property traded hands for $33.9 million between an unnamed investor and Interstate Equities. Managing Director Shane Shafer of the Irvine office, along with Managing Directors Ed Rosen and John Chu and Directors Kyle Pinkalla and Erin Dammen of the San Diego office represented the California-based seller and the buyer. Managing Director David Bleiweiss and Senior Director Anthony Ansevin, also in the Irvine office, secured $21.9 million in financing through Freddie Mac for the buyer. The seven-year acquisition loan features a 2.98 percent adjustable interest rate and a 65 percent loan-to-value ratio.

BEVERLY HILLS, CA—Sonnenblick-Eichner Company has arranged three separate long-term fixed rate loans totaling $35.4 million for the refinancing of Best Western Plus Hotels located in Lake Tahoe, Sacramento and San Diego, CA, on behalf of developer and operator of hospitality properties, Vista Investments LLC. Sonnenblick-Eichner Company secured $15 million in first mortgage debt on the 100-room Best Western Plus Truckee-Tahoe hotel and a separate non-cross-collateralized $7 million loan on the 105-room Best Western Plus Rancho Cordova in the Sacramento metro area. After acquiring the Tahoe property in 2013, the borrower reflagged the hotel as a Best Western Plus following a two-year multi-million dollar renovation. The Best Western Rancho Cordova has undergone several renovations since being acquired in 2006.
SAN DIEGO—San Ysidro Health, a non-profit organization committed to providing high quality, compassionate, accessible and affordable health care services for the entire family, has acquired a 61,052-square foot industrial property in South San Diego for $8.2 million. Chris Holder and Mark Lewkowitz of Colliers International San Diego Region represented San Ysidro Health Inc. The San Diego-based seller was San Diego HD, LLC. The 4.66-acre property is located at 1601 Precision Park Lane, San Diego, CA (92173).

MISSION VIEJO, CA—La Paz Plaza, a 51,766-square-foot low-rise retail and medical office campus located in the affluent master-planned community of Mission Viejo in South Orange County, has sold to Combined Investments for $32.4 million. Matt Berres and G. Ryan Smith of JLL Capital Markets represented the seller, Flinn West, a private real estate company based in Newport Beach, California. La Paz Plaza is situated in a charming and well-landscaped brick and stone courtyard plaza and is comprised of four beautifully constructed Spanish-style buildings. The property is 96 percent leased with close to 75% of NRA occupied by a diversified mix of medical tenants and 25% retail users.

DENVER—Paul Bruder, senior vice president of NorthMarq Capital's Denver regional office, has arranged the $25 million refinancing of Metro Art Brentwood Apartments, a 62-unit multifamily property located at 11771 Montana Avenue in Los Angeles, California. The transaction was structured with a 10-year term on a 30-year amortization schedule. NorthMarq arranged financing for the borrower through its correspondent relationship with a life insurance company.

SAN DIEGO, CA—A 109,807-square-foot FedEx shipping facility located in Carlsbad, California has sold for $24.5 million. Berdan Holdings, LLC acquired the single-tenant industrial asset located at 2495 Faraday Ave. from Leonard Living Trust. Aric Starck of Cushman & Wakefield's San Diego office represented the seller and Ron Jacobson of SD Realty Partners represented the buyer. Built in 1999, the asset consists of a single-story industrial property situated on 7.96 acres in San Diego's desired North County market. The facility is fully leased on a net lease basis to FedEx, which is a longtime tenant of the property. The facility is located within a few blocks of El Camino Real, and is convenient to Interstate 5 and Highway 78 (which provides a direct and proximate route to Interstate 15). Other key property features include 32-feet clear height, 10,900 square feet of office space, and nine dock and nine grade level doors.

IRVINE, CA—Duke Realty has signed a long-term lease with a major retailer for its new 201,207-square-foot warehouse in Lynwood. Delivered in early November, the building, located at 11600 Alameda Avenue in Lynwood in the highly sought-after South Bay submarket, was developed on a speculative basis on a remediated in-fill site. Located adjacent to the company's 323,374-square-foot building at 2700 East Imperial Highway, Duke Realty's newest building fronts the 105 Freeway and is located three miles from both the 710 and 110 Freeways, providing direct access to LAX and the Ports of Los Angeles and Long Beach, which are approximately 12 miles to the south.

LOS ANGELES—George Smith Partners has arranged $50 million in construction financing for the redevelopment of a 258,000 square-foot, 13-story office tower. The property will be converted into a 129-key Hyatt House and a 272-key Hyatt Place Hotel adjacent to LAX. The senior construction financing, on behalf of 5959 LLC, an affiliate of California Real Estate Regional Center was arranged by George Smith Partners' Vice President Zachary Streit. The property is located on West Century Boulevard, one block away from LAX – the seventh busiest airport in the world. Streit notes that the timing is right for this redevelopment, citing a 2016 report from STR Global showing a 91.5% hotel occupancy rate and a 12.7% year-over-year increase in average daily rate. According to Streit, George Smith Partners was able to source a lender with both extensive experience in ground-up hospitality transactions, and a deep understanding of the supply-constrained LAX submarket.

BUILDING BLOCKS

SCOTTSDALE, AZ—Real estate investment firm Caliber and its subsidiaries Caliber Development and Caliber Realty and Property Management have begun pre-leasing GC Square Apartments, a completely renovated off-campus apartment community designed for students near Grand Canyon University (GCU) in Phoenix, Arizona. GC Square marks Caliber's entrée into the student living/housing commercial sector. The first 80 units will open in January 2018. Studio and one-bedroom models are available to view. The 164-unit apartment project is a mix of studio, one-bedroom and three-bedroom apartments. Located one block from GCU at 3535 W. Camelback Road, GC Square is a gated community with a diverse range of outdoor and indoor amenities. Community amenities include an expansive clubhouse with large screen HDTVs and pool table, workout room, a clothing care center, business center, resort-style pool and spa, pet-friendly washing stations, BBQ gas grills, outdoor fire pit, movie theater as well as property access control, video surveillance and alarm system. The modern interior designed apartment homes are fully furnished and feature new kitchens with Energy Star appliances, quartz countertops, hardwood-style plank flooring, energy efficient windows and trendy fixtures/furnishings. Units are pet-friendly with all utilities along with high-speed Internet access and cable television included. Pricing starts at $995 a month furnished.

LOS ANGELES—MVE + Partners and developer Holland Partner Group have top out 732 Spring Street, the second mixed-use tower in the Historic Core, as part of the Spring Street transformation. 732 Spring Street was designed to honor the rich past of Historic Downtown Los Angeles and is driving the transformation of the Spring Street community into a modern urban living experience. Breaking ground in May of 2016, this is a unique experience to be a part of and a major milestone for the iconic structure. The tower is a 24-story, 300-unit apartment community featuring 7,500 square feet of ground‑floor retail and an abundance of luxury amenities. 732 Spring Street will deliver an unmatched urban experience in conjunction with its sister tower located across the street at 755 Spring Street.

SAN DIEGO—Affirmed Housing has celebrated the grand opening of Eastgate today. Located at 16 Creekside Drive in San Marcos, Eastgate is an affordable community serving low-income families and veterans. Eastgate offers sustainable, affordable housing paired with on-site services to improve the quality of life of its resident The property consists of 42 units in studio, one-, two- and three-bedroom designs. The affordable units, ranging from 577 to 1,546 square feet, are designated for those who earn 50-60 percent of San Diego's area median income. Units feature plank flooring and plush carpeting, fully equipped kitchens with stainless steel appliances, and ample windows for natural light. Shared amenities include a clubhouse with kitchen, tech stations, a tot lot, barbecue areas, and laundry facilities. Residents will have case management services and access to educational programming. The urban infill project also features eight commercial spaces for local businesses. Eleven residences are designated as HOME units targeting income-qualified veterans. The project was designed by Dahlin group and built by Wermers Construction. Landscape design was by Darsono Design Associates and the civil engineer was Masson & Associates.

EL SEGUNDO, CA—Welbrook Senior Living has completed construction and licensing of their newest memory care facility located in Santa Monica California. Interest from the local community has been high, and the first residents have moved in. Welbrook has been, and will continue to support Alzheimer's Association groups in the area to help those families in need of assistance in caring for elderly loved ones with memory issues. Welbrook anticipates this project will ultimately bring approximately 35 new jobs to Santa Monica.

PHOENIX—San Diego-based Parallel Capital Partners is planning to add a 200-room AC Hotel by Marriott to the class-A, mixed-use property, located at 3rd St. and Van Buren in downtown Phoenix to Arizona Center. Las Vegas-based LaPour Partners is currently under contract for an undisclosed amount for the 49,190-square-foot parcel on 5th Street between Fillmore Street and Van Buren Street with construction of the hotel slated to begin in April 2018. A 200-key upscale, urban-inspired select-service property, AC Hotel Downtown Phoenix at Arizona Center will soar 15 stories into the Phoenix skyline. The design will be classic, yet modern and includes a fitness center as well as the only rooftop bar, pool, and lounge in downtown Phoenix. The hotel overlooks a three-acre urban park lined with exciting new restaurants, retail and entertainment at the heart of Arizona Center.

PHOENIX—Lincoln Property Company plans to break ground on Lincoln Logistics 40, metro Phoenix's first ever speculative industrial project to offer a 40-foot clear height ceiling, with more than 20 acres of space under one roof, designed to serve ultra-modern e-commerce and distribution tenants. Located along Interstate 10 at Bullard Avenue in Goodyear, Arizona, Lincoln Logistics 40 will total 901,700 square feet on approximately 50 acres within The Airport Gateway at Goodyear business park. In addition to 40' clear heights, the project will feature 169 dock and grade-level doors, 185 trailer storage stalls, up to 660 parking stalls, fiber optic data and energy efficient clearstory windows in lieu of skylights. Completion is slated for mid-2018. Lincoln Logistics 40 is a Foreign Trade Zone Magnet Site, offering up to 75 percent personal property tax savings. It sits one mile south of two I-10 full diamond interchanges and is minutes from Loop 101, Loop 303, Highway 85 and the Phoenix Goodyear Airport.