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 8 • November 2015 • Western Real Estate Business www.REBusinessOnline.com SABRA ACQUIRES NINE SENIORS HOUSING FACILITIES FOR $84.7 MILLION IRVINE, CALIF. — Sabra Health Care REIT Inc. has acquired two portfolios in Illinois, Oregon and Washington for a total cost of $84.7 million. The REIT acquired a fve-commu- nity portfolio in Illinois for $19.7 mil- lion. The portfolio includes 149 units, mostly memory care. Concurrent with the purchase, Sabra entered into a triple-net master lease agreement with Life's Journey Senior Living to operate the portfolio. The lease has an initial term of 10 years with two fve- year renewal options and provides for an annual rent escalator equal to the greater of the Consumer Price Index or 3 percent. The second portfolio included four communities in Washington and Or- egon totaling 196 assisted living units and 18 independent living units. The purchase price was $65 million. Sabra entered into a triple-net master lease agreement with Radiant Senior Liv- ing to operate the portfolio. The lease has an initial term of 10 years with two fve-year renewal options and provides for an annual rent escalator of 3 percent, resulting in annual lease revenues, determined in accordance with GAAP, of $5 million and an ini- tial yield on cash rent of 6.75%. Based in Irvine, Sabra is the 26th largest owner of seniors housing properties in the U.S., according to 2015 data from the American Seniors Housing Association. MARCUS & MILLICHAP ARRANGES $10.2 MILLION SALE OF SUNRISE CENTER IN PALM SPRINGS PALM SPRINGS, CALIF. — Marcus & Millichap has brokered the sale of Sunrise Center, a retail center located at 100 S. Sunrise Way in Palm Springs. The property sold for $10.2 million, or $206 per square foot. Renovated in 2009, the property is occupied by Fresh & Easy Market, VIP Urgent Care, Palm Liquors, Power of Fitness and Regal Cleaners. At the time of sale, the property was 96 per- cent leased. Jack Hopkins and Matthew Hardke of Marcus & Millichap represented the buyer, an investor in an 1031 ex- change, while Gregory Mills and Dave Lincoln, also of Marcus & Mil- lichap, represented the undisclosed seller. Sharone Sabar of Marcus & Mil- lichap arranged debt placement for the acquisition. CITY OF HAYWARD BREAKS GROUND ON THREE NEW MULTIFAMILY COMMUNITIES HAYWARD, CALIF. — The City of Hayward recently celebrated the ground breakings of three new mul- tifamily communities. The properties are situated on the site of the former South Hayward BART overfow park- ing lots. Eden Housing is developing two afordable communities of Mission Boulevard that will provide a total of 151 afordable apartments near the South Hayward BART station. AM- CAL Equities is developing a market- rate community of 206 luxury apart- ments of Dixon Street, adjacent to the BART station. Both developments re- ceived transit-oriented development grants from the California Depart- ment of Housing and Community De- velopment. The Eden Housing development is known as the South Hayward BART Family & Seniors Communities. The two afordable rental communities will be composed of adjacent fve-sto- ry, stand-alone buildings that share a common courtyard. They will provide 87 afordable rental apartments for families and 64 afordable rental apart- ments for seniors, ages 62 or older. AMCAL's development is known as Cadence. The 206-unit luxury apartment community will feature one- and two-bedroom, market-rate apartments. Amenities will include a state-of-the-art ftness center with sep- arate yoga room, a resident lounge, luxurious pool and spa deck, club- house, business center, pet spa, self- service bike parking and repair and package concierge service. MERIDIAN BUYS MEDICAL OFFICE BUILDING IN OAKLAND OAKLAND, CALIF. — Meridian has purchased a 19,202-square-foot medi- cal ofce building in Oakland for an undisclosed sum. The building is located at 380 W. MacArthur Blvd. Meridian plans to invest about $2.2 million into the building. This is the frm's frst value-add medical ofce acquisition in the Oakland area. It is Meridian's frst speculative purchase this year. The seller was BIC Oakland. WESTCORE PROPERTIES BUYS METLIFE'S SOCAL INDUSTRIAL PORTFOLIO FOR $69.4 MILLION SAN DIEGO — Westcore Properties has acquired an eight-building indus- trial portfolio from MetLife for $69.4 million. The properties contain a total of 634,289 square feet throughout four projects in Southern California. The acquisition includes a 300,896-square-foot business park in Buena Park that is leased to ten- ants like Isuzu Motors and Hochiki America Corp.; a 165,070-square-foot, single-tenant warehouse/distribu- tion building in San Dimas that's leased to Western Pacifc Storage; an 88,323-square-foot, multi-tenant in- dustrial building in Ontario leased to NGOC Hoang Gia LLC and Kelleher Corporation; and an 80,000-square- foot, single-tenant industrial building leased to Spartech Polycom. MetLife was represented by CBRE's Darla Longo and Barbara Emmons. Thanks to this latest transaction, San Diego-based Westcore Properties now owns more than 2.5 million square feet of commercial space throughout Southern California. VITALITY BOWLS TO OPEN THREE NEW LOCATIONS SAN RAMON, CALIF. — San Ramon- based Vitality Bowls, a superfood café, is set to open three new locations in Colorado and California. New restaurants include a 1,400-square-foot location at Cherry Creek Shopping Center in Denver, Colorado; a 1,100-square-foot location at 9700 Vallco Parkway in Cupertino, California; and a 796-square-foot loca- tion at 20668 Rustic Dr. in Castro Val- ley, California. These openings come as part of a plan to open 100 locations by the end of 2016.