Western Real Estate Business magazine covers the multifamily, retail, office, healthcare, industrial and hospitality sectors in the Western United States.
Issue link: https://westernrealestatebusiness.epubxp.com/i/595440
C A L I F O R N I A 10 • November 2015 • Western Real Estate Business www.REBusinessOnline.com TRIO PURCHASES LAND IN SAN JOSE FOR MULTI-PHASE DEVELOPMENT SAN JOSE, CALIF. — Multi-Employer Property Trust (MEPT), Bentall Ken- nedy and Trammell Crow Company have purchased an 8.2-acre land par- cel in San Jose for $58.5 million. The land is located at 374-384 West Santa Clara Street. The land sits adjacent to the Diridon Station master plan, which is zoned for two, 10-story ofce buildings and a nine-story multifamily building. Diridon Station links Caltrain to San Francisco, the ACE train service to the Central Valley and the Amtrak Capital Corridor train to the north. It will also house the future extension of BART, and will serve as the frst Northern California stop for the potential high- speed rail service that would connect Los Angeles to the Bay Area. Diridon Station's master plan will eventually create a transit hub similar to San Francisco's Transbay District, according to Bentall Kennedy. The new development may include up to 960,000 square feet of tech-oriented ofce space, more than 30,000 square feet of retail and 325 multifamily resi- dential units. MONTANA AVENUE CAPITAL BUYS EL SEGUNDO OFFICE BUILDING FOR $33.5 MILLION EL SEGUNDO, CALIF. — Montana Avenue Capital has purchased a 119,484-square-foot ofce building in El Segundo for $33.5 million. The building is located at 1700 Walnut Ave. It is currently 99 percent leased to tenants like Fuhu and iSupply. The seller, USAA Real Estate, was repre- sented by CBRE's Kevin Shannon, Ken White and Mike Moore. CBRE BROKERS $13.2 MILLION SALE OF ROSEWOOD SHOPPING CENTER IN BELLFLOWER BELLFLOWER, CALIF. — CBRE Group has arranged the sale of Rose- wood Shopping Center, a retail center located in Bellfower. Bristol Central LP acquired the 60,094-square-foot property for $13.2 million. Currently 74 percent leased, the property is occupied by Fresenius Medical Care, Carl's Jr., Health Care Partners, Papa John's Pizza and Mon- tano Family Dentistry. Arthur Flores of CBRE represented the seller, Rosecrans Bellfowers LLC, in the transaction. PCCP PROVIDES $48.5 MILLION LOAN FOR SPROUTS @ BROKAW IN SAN JOSE SAN JOSE, CALIF. — PCCP LLC has provided a $48.5 million senior loan to Dollinger Properties for the de- velopment of Sprouts @ Brokaw, a 143,000-square-foot shopping center to be anchored by Sprouts Farmers Market in San Jose. Construction has begun on the proj- ect, which is set to open in summer 2016. CREATIVE OFFICE CAMPUS IN COSTA MESA SELLS FOR $48 MILLION COSTA MESA, CALIF. — A 180,000-square-foot ofce campus in Costa Mesa has sold to Steelwave & Goldman Sachs for $48 million. The property is located at 3333 South Su- san Street. The largest of the three buildings is occupied by the seller, Emulex Cor- poration. The remaining two vacant buildings contain a total of 84,000 square feet that will be repositioned as creative ofce space. The site features 14.2 acres with 3.2 acres that can be used for future de- velopment. Emulex was represented by CBRE's Paul Jones, Kevin Shan- non, Gary Stache, Anthony Delorenzo and Blake Bokosky. RLJ LODGING TRUST BUYS RESIDENCE INN BY MARRIOTT IN LOS ALTOS FOR $70 MILLION LOS ALTOS, CALIF. — RLJ Lodging Trust has purchased Los Altos Hotel Associates LLC's interest in the 156- room Residence Inn by Marriott in the Silicon Valley submarket of Los Altos for $70 million. The hotel is located at 4460 El Camino Real. The Residence Inn opened in 2000. It recently underwent a renovation that included upgrades to the public areas and guestrooms. The hotel caters to extended-stay travelers visiting near- by Palo Alto and Stanford University. Major corporate employers in the area include Hewlett Packard, VM- ware, SAP, Google, Intuit, Stanford University and Hospital and Linke- dIn. Scott Griemsmann of Paramount Lodging Advisors represented the seller in this transaction. NEWPARK MALL IN NEWARK RECEIVES $135 MILLION REFINANCE NEWARK, CALIF. — Rouse Proper- ties Inc., a retail REIT based in New York, has closed a new $135 million frst mortgage loan for NewPark Mall, a 1 million-square-foot retail property located in Newark, roughly 25 miles south of Oakland in San Francisco's East Bay market. Rouse Properties has withdrawn $114.3 million from the fnancing, with approximately $65 million of proceeds used to pay of the property's previ- ous mortgage loan and $49.3 million used for closing costs and general corporate purposes, including paying down the company's revolving credit facility. The remainder of the refnanc- ing will be used for renovations and additional leasing. The new loan has a three-year term and a one-year extension option. The non-recourse mortgage carries an in- terest rate at Libor plus 2.1 percent, with a forward starting swap fxed at 3.26 percent efective on Jan. 1, 2016. Rouse Properties has recently ar- ranged new leasing at NewPark Mall totaling more than 182,000 square feet. The recent transactions include 120,000 square feet of entertainment tenants such as AMC Theater, and new tenants such as Jack's Restaurant and Bar, H&M;, Footlocker, Torrid, Shoe Palace and Daniel's Jewelers. According to Wain, many of the mall's existing tenants will remodel their stores with the latest prototypes. These include Victoria's Secret, Pink, Champs, Disney, Starbucks, Hollister and Hot Topic. The new AMC theater is slated to open in time for the holidays in 2015, and a new indoor/outdoor restaurant pavilion is expected to open in the frst half of 2016. According to Wain, Rouse Properties assets in California account for 25 percent of the company's net operating income. Rouse Properties' portfolio includes 35 malls and retail centers in 21 states encompassing approximately 24.1 million square feet. NORTHMARQ CAPITAL ARRANGES $22.5 MILLION IN ACQUISITION BRIDGE FINANCING FOR LOS ANGELES SHOPPING CENTER LOS ANGELES — NorthMarq Capital has arranged $22.5 million in acquisi- tion bridge fnancing for a 60 percent occupied, 100,000-square-foot infll re- tail center located in Los Angeles. The non-recourse transaction arranged by Joe Giordani of NorthMarq's New- port Beach ofce had an 80 percent loan-to-cost ratio and was structured with a two-year, interest-only term. Tenants at the center include 99 Cents, AutoZone and Starbucks Cofee. CREW-ORANGE COUNTY SAYS THANK YOU! Celebrating 25 years of leadership, mentorship and networking, CREW-Orange County is grateful to the sponsor companies that contribute to the organization's ongoing success in the commercial real estate industry. Platinum Gold Silver www.crew-oc.org We extend our gratitude to our 2015 Platinum, Gold and Silver Sponsors: Sprouts @ Brokaw is situated at the intersection of East Brokaw and Oakland Road in San Jose, California.