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/566807
C A L I F O R N I A 10 • September 2015 • Western Real Estate Business www.REBusinessOnline.com SAN DIEGO OFFICE CAMPUS PORTFOLIO SELLS FOR $258 MILLION SAN DIEGO — Kilroy Realty Corp., a publicly traded real estate investment trust (REIT) based in Los Angeles, has closed the $258 million sale of four of- fce campuses totaling nine buildings and 933,134 square feet in San Diego. The properties were 83 percent leased at the time of sale. The buyer was John Hancock, the U.S. division of Manulife Financial Corp. (NYSE: MFC), a global life in- surance company and real estate in- vestor. The ofce portfolio consists of Se- quence Technology Center at 6260, 6290, 6310, 6340 and 6350 Sequence Drive; Scripps Wateridge at 10770 Wateridge Circle; Sorrento Gateway at 4921 Directors Place; and Governor Pointe at 6200 and 6220 Greenwich Drive. The assets sold in separate transactions. The portfolio comprises two- and three-story ofce buildings located in central San Diego's Sorrento Mesa and Governor Park ofce submarkets. Two of the nine buildings were vacant as of July, and the remaining seven buildings were leased to tenants in technology-based industries. Nick Psyllos, Ryan Gallagher, Mi- chael Leggett and Nick Frasco of HFF marketed the portfolio on behalf of Kilroy Realty. In addition to the portfolio sale to John Hancock, Kilroy Realty recently sold an ofce building leased to Mi- crosoft in Redmond, Wash., for $51.2 million. The REIT has committed to selling its non-core real estate hold- ings to facilitate new development, according to John Kilroy. As of March 31, Kilroy Realty's sta- bilized portfolio totaled 13 million square feet of ofce properties, all lo- cated in the coastal regions of greater Seattle, the San Francisco Bay Area, Los Angeles, Orange County and San Diego. At the end of the frst quarter, the company's properties were 42 per- cent LEED-certifed, and 60 percent of eligible properties were Energy Star- certifed. The REIT has approximately 1.7 million square feet of new ofce and mixed-use development under con- struction as well, with a total estimat- ed investment of approximately $1.1 billion. Kilroy Realty Corp.'s stock price closed at $71.60 per share on Wednes- day, Aug. 5, up from $60.90 per share at this time last year. Manulife Real Estate operates under the moniker John Hancock in the U.S. and as Manulife in all other parts of the world. As of March 31, Manulife's assets under management totaled $648 billion, and the company's real estate holdings totaled roughly $13.2 billion and spanned 57 million square feet. BURGER KING BUILDING IN HIGHLAND SELLS FOR $2 MILLION HIGHLAND, CALIF. — Progressive Real Estate Partners has arranged the sale of a 3,541-square-foot Burger King in Highland for $2 million. The building was purchased by a Pasade- na-based private investor. Frank Vora of Progressive represented the seller, a private investor, in this transaction. ONE WORLD TRADE CENTER IN LONG BEACH SELLS FOR $105 MILLION LONG BEACH, CALIF. — Greenlaw Partners has acquired One World Trade Center, a 575,000-square-foot ofce building in Long Beach, for $105 million, according to the Los Angeles Times. The 27-story ofce building is located at 601 W. Ocean Blvd. One World Trade was built in 1989. It is the tallest building in Long Beach. The Class A building features the World Trade Center Heliport heli- pad on its roof. The structure is also attached to the 20-story Hilton Long Beach through its two-story retail plaza. The Hilton was not included in this transaction. Notable tenants at the building in- clude the Food and Drug Adminis- tration, Morgan Stanley and law frm Ford, Walker, Haggerty & Behar. The building is situated near the Pike at Rainbow Harbor & City Place Shop- ping Center. The seller, SteelWave, purchased the tower for $148.9 million in 2007 at the peak of the market. The frm operated as Legacy Partners at the time. The company made signifcant improve- ments to the tower's common areas and lobby. One World Trade was 88 percent occupied when it was purchased by Legacy. As of today, there are 37 ofce units listed as available for lease on LoopNet, with a listed monthly rental rate of $2 to $3 per square foot. Irvine, Calif.-based Greenlaw Part- ners acquires, develops and manages commercial real estate properties throughout the Western United States, with a core focus on the acquisition and management of income assets and land entitlement projects. STEVENSON REAL ESTATE SERVICES BROKERS $4.1 MILLION RETAIL CENTER SALE IN LOS ANGELES LOS ANGELES — Stevenson Real Estate Services has arranged the sale of a retail center located at 5581 Hun- tington Drive North in Los Angeles. 11305 West Moorpark LLC acquired the property for $4.1 million from San- dale LLC. Situated on a 28,807-square-foot land parcel, the property ofers 9,689 square feet of retail space. Built in 2008, the property is 100 percent oc- cupied by tenants, including Antigua Bread Bakery & Café, Jackie's Closet, Subway, Rite-Optics, Prodigy Hari Sa- lon, Burrito Place, Boost Mobile and Tips 2 Toes. Randy Stevenson, Stephen Baker and Kris Hons of Stevenson Real Es- tate Services represented the seller, while Andrew Awaida of RE/MAX Optima represented the buyer in the transaction. Governor Pointe is located at 6200 and 6220 Greenwich Drive in San Diego. Services include: KZ Companies is a full service commercial real estate development and investment company. We specialize in vertically integrating our company with a tenant's real estate department to lead in all aspects of new store development and new store roll out programs. Market strategy & Research Site Location, Selection & Acquisition Purchase & Lease Negotiations Project Management & Budgeting Project Documentation New Store Delivery Entitlements Design Financing Tyler Reeves Real Estate Manager (949) 477-5859 tr@companies.com www.kzcompanies.com KZ Companies, LLC 18818 Teller Avenue Suite 100 Irvine, CA 92612 KZ Companies "Building Excellence" William Shuman Assistant Vice President (949) 275-6376 ws@kzcompanies.com