Middle Market Digest: This Week in Southwest
Here’s a look at this week's trends, announcements and deals that you may have missed in Southern California, Utah, Arizona and Nevada.
NEW & NOTABLE
LOS ANGELES—Stepp Commercial has hired Darin Beebower as EVP. In his 25 years of experience, Darin has completed in excess of $2 billion in multifamily sales transactions totaling more than 7,500 units. In his new role with Stepp Commercial, Beebower will be responsible for expanding the firm’s market share in key Los Angeles submarkets with a focus on Hollywood, Koreatown, and the San Fernando Valley. Beebower most recently served as a senior executive director with Madison Partners and had been with the firm since 2001. In that role, he was instrumental in developing the firm’s multifamily service offering. Over the years, Beebower has established a strong reputation as an expert advisor who has represented some of Southern California’s most active institutional and large private investors and developers.
IRVINE, CA—Shopoff Realty Investments has closed its Shopoff Commercial Growth and Income Fund III offering after meeting the fund’s closing deadline, raising more than $20 million in equity. Shopoff Commercial Growth and Income Fund III is a private placement offering that invests in opportunistic and value-add commercial real estate across the United States. The fund intends to acquire select real estate and real estate related investments, with the goal of repositioning and creating value for each asset, ultimately increasing long-term values and cash flow. It is anticipated that each property will be sold to a buyer of stabilized commercial real estate once the property’s business plan is complete. To date, the fund has invested in five commercial assets, located in California, Nevada and Texas.
DEAL TRACKER
PHOENIX—A 106-guestroom Holiday Inn Ocotillo located in Chandler, Arizona has traded to CH Ocotillo for an undisclosed price. The Holiday Inn is only a 20-minute drive from downtown Phoenix, Mesa, Tempe, and Scottsdale and is located roughly five miles south of downtown Chandler, in the upscale neighborhood of Ocotillo. Bill Murney, managing director at HREC Investment Advisors, represented the buyer in the deal.
PHOENIX—Maricopa Marketplace, a 38,877 square foot shopping center in Maricopa, Arizona, has sold for $10.1 million CC Fund II Maricopa, LLC., in a sale directed by Jeff Levine. The seller, LNR Partners, as special servicer was represented in the transaction by Kidder Mathews commercial real estate brokers, Darren Tappen, Peter Beauchamp, and Matthew Ault. Maricopa Marketplace consists of five buildings located at 20917, 20987, 21083, 21101, 21141 N John Wayne Parkway in Maricopa, Arizona. It is a class-A, multi-tenant shopping center, shadow anchored by a top performing Fry’s Marketplace. It was 96 percent occupied at the time of sale with notable tenants including UPS, Verizon, Leslie’s Pool Supply, Pizza Hut, and Sprint.
GLENDALE, AZ—Institutional Property Advisors has brokered the sale of Velaire at Aspera, a 286-unit core multifamily asset in Glendale, Arizona. The property sold for $64.35 million, which equates to $225,000 per unit. Steve Gebing and Cliff David, Marcus & Millichap senior managing director, represented the seller, P.B. Bell, and procured the buyer. Built in 2016, Velaire at Aspera is located approximately 20 miles northwest of Downtown Phoenix. Nearby attractions include the Arrowhead Towne Center shopping mall, the Westgate Entertainment District and the University of Phoenix Stadium.
SAN DIEGO—An office center in Carlsbad, CA, has traded hands to Coseo Properties Inc. for $17.4 million. CBRE’s Matt Pourcho, Gary Stache, Anthony DeLorenzo and Doug Mack represented the unidentified seller in the transaction. Coseo, a San Diego-based real estate investment firm, represented itself. The “best-in-market” creative space is designed as two buildings, co-joined by a landscaped atrium, located at 2382 and 2386 Faraday Avenue. Features include collaborative gathering areas, views of the mountains and abundant on-site parking. Common areas have recently been upgraded to include indoor/outdoor space integrations, private courtyards, beach cruiser access, and fiber optics.
DALLAS—Hunt Realty Investments has acquired the Headquarters Ranch from the Estate of Bert Fields, Jr. The 2,544 acre site is located on the northern edge of Frisco with significant frontage along the Dallas North Tollway, Preston Road, and Highway 380 and is the largest, contiguous land assemblage in Frisco.
Hunt Realty led the off-market acquisition and purchased the site along with its lead investment partner, Chief Partners L.P. Other investors include CrossTie Capital, The Karahan Companies and the Estate of Bert Fields, Jr. Hunt Realty will master develop the large, mixed-use planned development, alongside the Karahan Companies, led by Fehmi Karahan. Anticipated development uses will include commercial, office, retail, single-family and multifamily residential, and education, amongst other potential uses.
GARDENA, CA—Storm Properties Inc has signed German discount grocer Aldi at Redondo Plaza located at 1550 W. Redondo Beach Blvd. in Gardena, California. Aldi has already begun renovating the 20,000 square-foot space previously occupied by Smart & Final and is scheduled to open in fall 2018. Aldi will anchor the 100%-leased center that boasts a desirable mix of regional, national and credit tenants comprised of T-Mobile, Domino’s Pizza, Super Laundry, Crazy Rock N’ Sushi, and Jackson Hewitt Tax Services. The center is located on one of the main thoroughfares in Gardena that boasts more than 33,000 vehicles per day, and more than 230,000 residents within a three-mile radius.
PHOENIX—Institutional Property Advisors has brokered the sale of Azura, a 387-unit apartment asset in North Phoenix, Arizona. The property sold for $38.2 million. Steve Gebing, IPA senior managing director, represented the seller, Jevan Capital and procured the private buyer. Situated on the northwestern border of the 2,500-acre North Mountain Redevelopment Area, Azura is immediately west of Interstate 17, approximately four miles from Arizona State University’s West Campus and near the Interstate 17 and Deer Valley Employment Corridors, which encompass 38 million square feet of office, industrial, and flex space. Nearby prominent employers include Blue Cross Blue Shield of Arizona, General Dynamics, UnitedHealthcare, Wells Fargo, USAA, Discover Financial Services, and Honeywell Aerospace. Developed in 1980, the property features studio, one- and two-bedroom apartment homes, a dog park, gated entry and access to Lake Biltmore.
SAN DIEGO—Pathfinder Partners has acquired Verona Park Apartments, a 119-unit multifamily community located in the Denver metro area at 12000 East Kansas Drive, Aurora, CO, for $18.3 million. Built in 1972, the community is situated on 8.9 acres and includes seven two-story residential buildings comprised of 62 one-bedroom/one-bathroom units and 57 two-bedroom/one-bathroom units averaging 881 square feet. The community offers a variety of amenities including a heated indoor pool, resident clubhouse, business center, 24-hour fitness center, children’s playground area, BBQ area with covered picnic seating, on-site laundry facility and parking. Pathfinder plans to implement a comprehensive interior renovation program and perform upgrades to the landscape, hardscape and common area amenities.
BUILDING BLOCKS
PASADENA, CA—C.W. Driver Companies has broken ground on the Crown Valley Park Community Building, a 30,000-square-foot, three-story building in Laguna Niguel, California. The $25 million project marks the final phase of a three-tier improvement plan for Crown Valley Community Park, with full completion anticipated for Spring 2020. The new facility will include offices, a multi-purpose room for up to 300 people, a kitchen, classrooms and other spaces designated for art, technology, dance and fitness. Adding to the building’s appeal is a rooftop patio overlooking the adjacent community pool. Integrated design firm LPA Inc. worked alongside C.W. Driver Companies to create a facility for the City of Laguna Niguel that is cost effective, reflects a timeless design and improves operational efficiencies. The city aims to deliver a best-in-class recreational facility where residents can gather and experience a wide range of community events and activities.
RIVERSIDE, CA—The University of California, Riverside landmark known as the Barn is receiving a $20 million renovation and expansion with SVA Architects serving as the Executive Architect and Fernau & Hartman Architects serving as the Design Architect. Among the oldest structures on the UC Riverside campus, the Barn, formerly a popular eatery, has been a cherished element of the collective campus memory. Reimagined as a central gathering space to create a sense of community, the new Barn will bring together dinning, events, and entertainment for the enjoyment of students, faculty, staff, and the entire region. SVA Architects has become well known for its community-centered approach, which honors the input of the stakeholders and the experience of the users when designing spaces for public and civic uses.
COSTA MESA, CA—Legacy Partners has held the grand opening of 580 Anton, a five-story, 250-unit luxury apartment community in Costa Mesa. 580 Anton features a mix of studio, one-, and two-bedroom residences with top-of-the-line luxury finishes and amenities. Legacy Partners acquired the land in May 2015 in a joint venture with Prudential Real Estate Investors and broke ground in 2016. Residents at 580 Anton will enjoy a clubhouse with gameroom, full service coffee bar, conference rooms, and business center enhanced by original art by California artists. There is also a concierge entry, dog-wash station, a lake-view fitness center featuring top-of-the-line equipment with Aktiv Virtual video training on demand, and yoga/Pilates studio.
Chandler, AZ—The Statesman Group is preparing to launch the third phase of construction at The Cays at Downtown Ocotillo, a $90 million luxury condominium community located within the sought-after Ocotillo neighborhood in Chandler. The upcoming phase will break ground this fall and include the third of four buildings featuring 64, one- and two-bedroom condominium homes and top-floor penthouses ranging in size from 862 to1,512 square feet and priced from the mid $300,000s. A VIP interest list is now being generated with sales to launch this fall. Completion of the third building is expected for the first quarter of 2020. When The Cays opened in June 2015, it was the only for-sale condominium community of its kind in the East Valley with resort-style amenities and direct access to the restaurants, wine bars, a coffee shop and retailers in the neighboring Downtown Ocotillo district. Now, Statesman has sold more than 128 homes with just 17 remaining in the second phase.