AvalonBay Walks Centerline for $105 Mil

An AvalonBay Communities-led development entity received $105 mil in financing for construction of the second phase of a mixed-use development known as Avalon at Mission Bay, in San Francisco’s Mission Bay area. The funding was provided by Centerline Capital Group.

Mission Bay, a 303-acre neighborhood between San Francisco Bay and I-280, was long an abandoned rail yard until the city of San Francisco deemed the site a redevelopment project in 1998. Just 10 years later, the community is sought after for its luxury residences, high-end restaurants and retail centers. Avalon at Mission Bay contributes to the high-end quality of the community, providing residents with a classy and convenient place to call home with its upscale amenities and sophisticated designs.

Construction on Phase 2 of Avalon at Mission Bay was completed in 2006. The 2nd phase is made up of a 17-story high-rise tower and an eight-story mid-rise building that contain 313 apartment units, three retail/office spaces and a parking garage. Construction on Phase 1, comprising 250 apartment units and approximately 7.8k sf of commercial retail space, was finished in 2002.

Centerline provided the pre-stabilized first mortgage loan utilizing Freddie Mac's Premier Lease-Up Program. Centerline Urban Capital (CUC), Centerline's equity investment fund partnership with the California Public Employees Retirement System ("CalPERS"), formed a joint venture with AvalonBay to contribute $17.7 mil in equity toward the construction of Phase 2.

"We are very excited to have been part of such a grand-scale redevelopment project for the Bay Area. Avalon at Mission Bay adds another option for San Francisco residents searching for a desirable place to live with an easier commute," said Rachel Diller, Director in Centerline's Commercial Real Estate Group. "The combination of the transaction's excellent sponsorship, premier location and strong initial lease-up phase was a perfect match for Freddie Mac's Premier Lease-Up Program - a program specifically designed to take-out construction loans on properties currently in lease-up."

The property is located 10 blocks south of Market Street in downtown San Francisco near the new Third Street Light Rail, the Muni extension and the Cal Train Station. According to the San Francisco Redevelopment Agency, the total development program for Mission Bay is expected to exceed $4 bil.

The residential component of Avalon at Mission Bay Phase 2 consists of efficiency and one- to three-bedroom units. Units range in size from 432 sf to 1.8k sf, with rents starting at $1,986 per month. Common area amenities include a landscaped spa and deck area, sport court with a climbing wall facility and a state-of-the-art fitness center. In-unit amenities include walk-in closets, floor-to-ceiling glass windows, granite countertops and private balconies in select units.

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source: rentv.com

Cypress Industrial Sale has $32 Mil Price Tag

An industrial investment sale in the northwest OC city of Cypress closed at a price of $215/sf, in a recent T-I-C acquisition. The property, Mammoth Cypress II, is a four-building, 149.9k sf Class B office project located at 5796, 5815, 5836 and 5856 Corporate Ave, near the intersection of Valley View St and Katella Ave. The buildings were purchased by USA Build LLC for a total price of $32.3 mil.

Mammoth Cypress II is well located in West Orange County with immediate access to Interstates 5 and 405, the Garden Grove (22) and Riverside (91) Freeway. The buildings were constructed in 1990, with the exception of 5796 Corporate Avenue, which was built in 1988. At the time of the sale, the property was 100 percent leased.

"Mammoth Cypress II houses a plethora of key tenants like the State of California, Pacificare Health and Rockwell International," said Alan Pekarcik, Senior Vice President of Voit Commercial Brokerage's Irvine office. "In addition, the buildings provide office space for construction, telecommunications and electronics corporations."

Pekarcik, along with Voit’s Dan Vittone and Jeff Williams, represented Mammoth Equities Capital Group LLC, the asset manager for the tenant-in-common owners of record. Simon Dillon of CB Richard Ellis' Newport Beach office assisted the Voit team. Rick Heller of Urban West Commercial Real Estate repped the buyer in the transaction. This transaction represents the third sale of the office park brokered by Pekarcik and Vittone.

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source: rentv.com

Torrance Office Lease Valued at Over $21 mil

With asking rates for office space in LA’s Westside continuing to skyrocket, activity in the South Bay has started picking up. In a sizable deal that just closed, CCH Inc, a provider of information services, software and workflow tools for tax, accounting, legal and business professionals, took 67.5k sf of space at Hamilton Place, a 250k f property at 20101 Hamilton Ave in Torrance. The 11-year deal has a total value of $21.7 mil ($2.44/sf/mo).

Designed in the shape of a diamond, Hamilton Place includes an interior courtyard and extensive free on-grade parking. The building, which was purchased by Chase Partners Ltd earlier this year, is centrally located at the intersection of the San Diego (405), Harbor (110) and Artesia (91) freeways and is visible from the Harbor freeway. It also has convenient access to the LAX airport, the ports of Los Angeles and Long Beach as well as to Orange County and the submarkets of Los Angeles.

John Anthony and Robert Wood of Charles Dunn Company, along with Bill Bloodgood of CB Richard Ellis, represented the landlord, Chase Hamilton LLC. Greg Gill, Greg Bendis, Eugene Page and Kim Emery of Charles Dunn’s Long Beach office handled matters for the tenant. Chase retained Anthony, Wood and Bloodgood as the exclusive leasing agents for Hamilton Place. The team recently leased 40k sf of space to Applied Signal Technologies.

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source: rentv.com

Bixby Invests another $36 Mil in Silicon Valley Office Properties

SoCal investors are finding much to their liking in Silicon Valley these days. One company that has really focused on the region over the past year is Long Beach-based Bixby Land Company, led by Bill Halford, which just closed on its fourth office acquisition in the area over the past year or so. In this latest buy, Bixby paid $36.4 mil for a two-building, 118.4k sf ($307/sf) office/R&D campus located in Santa Clara.

“The Silicon Valley’s economic recovery since 2004 has been significant with its increase in venture capital funding and employment,” said Mike Severson, Vice President of Acquisitions and Development for Bixby. “The resurgence represents a unique opportunity for Bixby to purchase property like this and capitalize on the market and in-place income.”

Located at 3111 and 3141 Coronado Dr, the two-story buildings sit on over six acres of land with access to the prime transit routes in Silicon Valley including all major South Bay freeways, access to commuter rail, light rail and multiple bus routes. Ideally suited for a single tenant, the buildings are divisible to accommodate multiple tenants. The parking ratio is 3.5 spaces per 1,000 square feet allowing for ample parking for tenants and visitors.

The buildings are presently 100 percent occupied by Applied Materials Inc. (Nasdaq: AMAT) on a triple net lease until July 2009. The company creates and commercializes the nanomanufacturing technology that helps produce virtually every semiconductor chip and flat panel display in the world.

The deal was brokered by Eric Fox and Joe Moriarty of CPS and Peter Castleton of Voit Commercial.

Bixby closed on its first Silicon Valley acquisition in October 2006 with the purchase of Bixby Tech Center in San Jose. The center has five R&D buildings totaling 302.2k sf and is occupied by Tivo Inc and Foundry Networks, among others. In January 2007, the company acquired Bixby University Station, four R&D and two retail buildings totaling 223.9k sf. The properties are located at 451-495 El Camino Real in Santa Clara. Then, in September 2007, Bixby acquired Santa Clara’s Airport Technology Park. The five buildings are located on 17 acres of land and feature approximately 300k sf of office space.

“Rents are continuing to push higher with demand outpacing the supply of new product, making the Silicon Valley a market that Bixby will continue to invest in for the foreseeable future,” said Severson.

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source: rentv.com

LBA Switches Over to Verizon in Conejo Valley Deal

A notable office building in the Conejo Valley was acquired by LBA Realty, out of Orange County. Known as the Verizon Building, the 261k sf facility sits on 22 acres of land at 112 S. Lakeview Canyon Rd, about midway between Thousand Oaks Blvd and the 101 Fwy in Thousand Oaks, and is occupied by the seller, Verizon. The price was not disclosed.

The building was constructed in 1986 by GTE, which eventually became Verizon. Surrounded by Lakeview Canyon Rd, Thousand Oaks Blvd and Via Merida, the campus offers large floor plates and free 4 per 1000 square foot parking. It also has excess land capacity for the potential additional development of over 200k sf of new building area.

Lee Black of NAI Capital took care of negotiations for LBA, while Verizon represented itself in the deal. NAI will handle the leasing of the project for new tenants looking for space in the 20k sf to 130k sf range. Currently, Verizon occupies the entire structure but they plan to vacate half the space in the first half of 2008.

In a smaller Conejo Valley sale, Frontline Medical Associates Inc purchased a 5.8k sf office building at 345 South “A” St in Oxnard. Although the sales price was not given out, the property was listed at $1.3 mil which would give it a price tag of $224/sf. The property was sold by the Scheinberg Trust.

David Kim, John Ochoa and Grant Harris of Lee & Associates represented the seller. Kelly Park of Sherwood Financial & Investment repped the buyer, a full-service medical facility offering urgent-care, drug-screening, internal medicine, physical therapy and family practice services.

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source: rentv.com