Industrial & Investment Real Estate Brokerage

Pacific Industrial Breaks   Ground


  on Sierra Pacific   Center in Fontana

                             

Sierra     Pacific Center will be situated near the facilities of notable companies     like Target, Nordstrom, Under Armor, Black & Decker and OHL.

   

FONTANA,   CALIF. — Pacific Industrial has broken   ground on Sierra Pacific Center, a 744,032-square-foot logistics and   distribution facility in Fontana. The Class A facility will be located at   5565 Sierra Ave., near the 15 and 210 freeways.

The new   center will be situated near the facilities of notable companies like Target,   Nordstrom, Under Armor, Black & Decker and OHL. The center is expected to   be complete by the first quarter of 2015.

 ”It’s important to   understand the changing dynamics of users in this market,” says Dan   Floriani, Pacific Industrial’s co-founder. “We have emphasized designing   facilities that will not only provide best-in-class today, but will remain   relevant 10-plus years from now… We are firm believers that tenants are not   just looking at warehouse functionality, but also want to occupy facilities   that create great working environments for their employees with   office-oriented features, aesthetics and nearby retail amenities.”

Bixby Buys Two Industrial Buildings
  in Rancho Cucamonga for $26.8M 

                             

Both     buildings are fully leased to GiTi Tire USA Ltd. The company uses the     buildings for storage and distribution of automobile and truck tires.

   

RANCHO   CUCAMONGA, CALIF. — Bixby Land Co. has acquired   two contiguous industrial buildings in Rancho Cucamonga for $26.8 million.   The buildings are located at 10404 Sixth St. and 10401 Seventh St. They total   316,197 square feet. 

Both buildings are fully   leased to GiTi Tire USA Ltd. The company uses the buildings for storage and   distribution of automobile and truck tires. Both properties also underwent   recent improvements, which included new paving, upgrades to the sprinkler   systems, improvements to the office areas and landscaping upgrades. 

 

"The disposition of the   Rancho Cucamonga industrial buildings represents the culmination of our plan   to acquire both properties and reposition them as a campus environment in   keeping with our value-add opportunistic strategy," says Marc   Belluomini, CT’s executive vice president. "The western Inland Empire   submarket remains very attractive to us, and we are actively seeking   additional industrial properties in similarly well-located locations."

Rexford Industrial Realty Acquires
                      

The     industrial property at 9455 Cabot in San Diego is one of nine properties     acquired by Rexford Industrial Realty. It is 84 percent leased to one     tenant. (Photo courtesy of LoopNet)

   

LOS   ANGELES — Rexford Industrial Realty Inc., a real   estate investment trust focused on owning and operating industrial properties   in Southern California, has acquired an industrial portfolio for $88.5   million, or about $108 per square foot. 

The   nine properties, all located in Southern California, total 817,166 square   feet. The portfolio is currently 87 percent leased. 

"The   properties are strategically located within Los Angeles County, Orange County   and San Diego County with convenient access to key regional, interstate,   rail, and airport infrastructure to support local and regional   distribution," says Howard Schwimmer and Michael Frankel, co-CEOs of   Rexford Industrial Realty. "We plan to execute on a range of   opportunities to drive occupancy while enhancing functionality, cash flow and   value through strategic repositioning," 

Eight   of the nine properties are 96 percent leased on average, with the remaining   property at 40 percent occupancy. Collectively, the nine properties contain   24 units leased to 17 tenants with staggered lease expirations. 

The   nine properties include: 

Salt   Lake, a 126,036-square-foot building located in City of Industry.   The asset was built in 1979 and includes clear heights of 24 to 30 feet, as   well as dock-high loading. The property is fully leased to four   tenants. 

Valley, a   108,703-square-foot building located in Pomona. The property was built in   1980 and includes clear heights of 22 feet and excess land. The property is   fully leased to one tenant. 

Hunter, a   119,692-square-foot building located in Anaheim. The property was built in   1987 and includes clear heights of 24 feet. The property is fully leased to   three tenants. 

Alton, a   124,000-square-foot building located in Irvine. The property was built in   1974 and includes clear heights of 28 feet. The property is currently 40   percent leased to one tenant. 

9340   Cabot, an 86,564-square-foot building located in San Diego. The   property was built between 1975 and 1976 and includes clear heights of 22 to   24 feet. The property is currently 84 percent leased to two tenants. 

9404   Cabot, a 46,846-square-foot building in San Diego. The property was   built between 1975 and 1976 and includes clear heights of 22 to 24 feet. The   property is fully leased to one tenant. 

9455   Cabot, a 96,840-square-foot building in San Diego. The property was   built between 1975 and 1976 and includes clear heights of 22 to 24 feet. The   property is currently 84 percent leased to one tenant. 

Distribution   I, a 47,666-square-foot building located in San Diego. The   property was built in 1974 and includes clear heights of 27 feet. The   property is fully leased to two tenants. 

Distribution   II, a 60,819-square-foot building in San Diego. The property was   built in 1983 and includes clear heights of 22 to 24 feet. The property is   fully leased to two tenants.

Click here to read the   rest of John Nelson’s story.

Rexford Industrial Buys Nine Buildings

By Andrew Edwards           Monday, June 30, 2014    

Rexford Industrial Realty has acquired a nine-building portfolio of Southern California properties, the company announced Monday.

The buildings are in Los Angeles, Orange and San Diego counties. Together, they encompass more than 817,000 square feet and are 87 percent occupied. Rexford, headquartered in West L.A., paid $88.5 million for the buildings.

The Los Angeles County properties are in Industry and Pomona. The 126,000-square-foot Industry property is fully leased to four tenants. The Pomona building encompasses nearly 109,000 square feet and is fully leased to a single tenant.

The portfolio also includes one building each in Anaheim and Irvine and four buildings in San Diego.

The transaction was financed in part by a $48.5 million loan from JPMorgan Chase & Co. The remainder of the purchase price was financed by an existing line of credit.

Shares of Rexford Industrial Realty rose by a fraction of a percentage point Monday to close at $14.24 on the New York Stock Exchange.


Former FedEx Canada president to run Port of Long Beach

             Port of Long Beach Executive Director Jon W. Slangerup             

                                

                               

LONG BEACH » Former FedEx Canada President Jon Slangerup will run the Port of Long Beach as executive director, officials announced Thursday.

A special meeting will be held Monday to confirm the appointment of Slangerup, whose experience in global logistics and environmental technology made him the top candidate to lead “The Green Port,” officials said. He is expected to start as early as next week.

“He’s an extremely capable leader, proven team builder and expert at managing a world-class organization,” board President Doug Drummond said in a statement. “In our highly competitive, quickly changing industry challenged by major environmental and energy issues, he’s the perfect person for the job.”

The Board of Harbor Commissioners decided on Slangerup in a closed-session meeting June 23 after an extensive national search. Slangerup will earn $350,000 to oversee a staff of about 490 full-time Harbor Department employees and a projected $858 million budget.

He also will be managing the nation’s second-busiest seaport, which handles more than $180 billion in trade annually and supports hundreds of thousands of jobs regionally.

Slangerup replaces Christopher Lytle, who left almost a year ago to lead the Port of Oakland.

Before coming to Long Beach, Slangerup had headed public and private firms ranging from tech startups to corporations such as FedEx, where he served for seven years as president of FedEx Canada. He had been with the company for 20 years.

There he is credited for turning “a small regional domestic courier operation into Canada’s leading international express logistics company,” according to the port.

Slangerup, who graduated with honors and a bachelor’s degree in aeronautics from Embry-Riddle Aeronautical University and a master’s degree in business administration from Kennedy-Western University, has helmed tech firms that brings to market products in the realm of industrial software, alternative fuels, renewable energy, distributed generation and water treatment, according to his biography.

“I am extremely pleased to be joining the Port of Long Beach team, which has a long and distinguished record of operational excellence, technological innovation and environmental stewardship,” Slangerup said in a statement.  “The Port of Long Beach is investing billions of dollars in advanced technology and infrastructure development, and I look forward to working with our team to flawlessly execute our capital plans and deliver exceptional value to our customers and community stakeholders to ensure the continued growth and expansion of our Port.”

John McLaurin, president of Pacific Merchant Shipping Association, congratulated Slangerup on his appointment.

“We look forward to working closely with him to address the unique challenges and opportunities faced by the port,” McLaurin said. 

Mayor Bob Foster said he liked the idea of someone with logistics and private sector experience and added that Slangerup has a reputation for being “a turnaround guy.”

Slangerup’s biggest challenge will be handling the port’s extensive construction projects and keeping them on budget, Foster said. The port is in the middle of a 10-year, $4.5 billion capital projects program.

Earlier this week, port officials announced that completion of the bridge to replace the aging Gerald Desmond Bridge will be delayed by more than a year because of design engineering issues, which will likely drive up the cost of the hefty $1.263 billion project.

Slangerup’s confirmation will take place at 6 p.m. in the Harbor Department’s interim headquarters, 4801 Airport Plaza Drive.

Contact Karen Robes Meeks at 562-714-2088.

Developer of Pacific City Retail Center
                      

Pacific City’s two-story open design     will grant most of the tenants ocean views.

   

HUNTINGTON   BEACH, CALIF. — DJM Capital Partners, the   developer of Pacific City, a 191,000-square-foot retail center project in   Huntington Beach, has received $93 million in construction financing. The   shopping center will be located along Pacific Coast Highway, just three   blocks south of Main Street. It will be bound by Pacific View Avenue, as well   as by 1st and Huntington streets. 

The   new development is situated on a site that overlooks the Huntington Beach   Pier and Pacific Ocean. Its two-story open design will grant most of the tenants   ocean views. 

The   tenant roster will include a mix of national retailers that represent   “iconic California lifestyle brands,” in addition to several   well-known restaurants and an Equinox fitness center. The adjacent Lot 579   marketplace will feature local and regional food artisans in a farmer’s   market-style setting. 

Pacific   City is scheduled to open next summer.

"What   attracted us to this investment was the location and opportunity to create a   special place that provides an experience beyond the usual shopping   trip," says Lindsay Parton, DJM’s president. "As a developer and   owner of major retail projects in Orange County, including Bella Terra   Shopping Center in Huntington Beach and Lido Marina Village in Newport Beach,   we are bullish on coastal Orange County." 

The   non-recourse financing, which consisted of a $56.5 million senior loan and a   $37 million mezzanine loan, was arranged by George Smith Partners. Only a   minimal amount of pre-leasing was required for the funding.

JP Morgan Buys Pacific Place
                      

The     office portion of Pacific Place was recently renovated. It now contains a     new coffee bar and cafe concept by Small Foods.

   

SAN   FRANCISCO — JP Morgan Chase & Co. has   acquired Pacific Place, a 430,000-square-foot office, retail and hotel   property in downtown San Francisco for an undisclosed sum. The property is   located at the intersection of 4th and Market streets at the nexus of the   Union Square, South of Market and Financial District neighborhoods. 

Pacific   Place contains three adjacent properties. They include 16 floors of office   space, about 200 feet of Market Street retail storefront and the Palomar   Hotel, a five-floor, 198-room luxury boutique hotel. 

The 202,000-square-foot office portion was leased to Intuit last year after the building was repositioned. It is currently home to Demandforce, which is a part of Intuit’s Small Business Division. The renovation included enhancements to the lobby, in addition to a new coffee bar and cafe concept by Small Foods. 

The   retail portion contains flagship stores for Levi’s and Old Navy, as well as   space for The Container Store. 

The   asset was held by the Jamestown Premier Property Fund, the firm’s flagship   core and core-plus investment vehicle for institutional investors. Eastdil   Secured represented Jamestown in the transaction. 

"The   great collaboration with our team allowed us to position Pacific Place as a   dynamic retail and office asset," says Michael Phillips, Jamestown’s   COO. "The addition of a signature tenant like Intuit and its long-term   lease created an attractive investment for a buyer. We remain committed to   the San Francisco Bay Area as we are very engaged in the community through   our other local properties."

THE WAR FOR TALENT’S EFFECT ON REAL ESTATE

By Scott Reid

One of the largest challenges facing the business world in the upcoming decades will be recruiting the right talent to help organizations compete and innovate, while at the same time providing the necessary amenities to retain them, according to a recently released report by Cushman & Wake…
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ZEPHYR BUYS CITY BLOCK IN DOWNTOWN SAN DIEGO FOR MIXED-USE PROJECT
Western Region News

June 18, 2014   ROCKWOOD CAPITAL BUYS MOUNTAIN VIEW CORPORATE CENTER CAMPUS

  MOUNTAIN VIEW, CALIF. — Rockwood Capital has acquired a five-building office campus near downtown Mountain View for a reported $154 million. The 17-acre Mountain View Corporate Center campus is located at 301-381 E. Evelyn Ave. It is one of only a few large-scale office campuses in Silicon Valley where employees can walk or bike to Caltrain and nearby retail amenities.  The campus was previously occupied by Hewlett-Packard Co., though it is now home to multiple tenants like Mozilla and Coursera. Like many other Silicon Valley tech campuses, Mountain View Corporate Center provides outdoor amenities like volleyball and basketball courts, along with easy access to nearby trails such as Stevens Creek.   Rockwood plans to enhance the property over time. This wouldn’t be the first time the firm has employed this strategy in Silicon Valley. It has a history of acquiring, repositioning and developing transit-oriented office properties in this area. Rockwood transformed the former Mayfield Mall into a 520,000-square-foot office property. It also took 690 E. Middlefield Road and turned it into a 340,000-square-foot, build-to-suit development for Synopsys’ global headquarters, among other transactions. Mountain View Corporate Center’s seller, a global investment manager, was represented by Greg Cioth, Andy Zighelboim, Edmund Najera, Nate Jones and Tommy Kim of Eastdil Secured.

          HANOVER STREET OFFICE BUILDING IN SAN FRANCISCO RECEIVES $86.5M IN FINANCIN

  SAN FRANCISCO – A 128,678-square-foot office building at 3175 Hanover Street in San Francisco has received $86.5 million in acquisition financing. The single-tenant building is located within the Stanford Research Park, which is home to companies like VMware and Hewlett-Packard. The 700-acre Stanford Research Park includes 10 million square feet throughout 160 buildings and facilities. It contains more than 23,000 employees at 150 companies, including Tesla, which uses the park for its headquarters and research facility. The park was originally developed by the adjacent Stanford University in 1951. The building is fully leased to global law firm Cooley LLP. It was acquired by a Sand Hill Property Company joint venture. The non-recourse financing was arranged by John Nelson of CBRE’s San Francisco office. It was provided by a Wall Street lender.

          99 CENTS ONLY STORES LEASES 615,000 SF CORPORATE HEADQUARTERS IN COMMERCE

  COMMERCE, CALIF. — 99 Cents Only Stores has leased a 615,000-square-foot industrial building in the Los Angeles submarket of Commerce. The building is situated on 27.5 acres at 6100 Garfield Ave. within the Garfield Corporate Center. This is the largest industrial lease in Los Angeles County so far this year, according to CBRE, which represented 99 Cents. The transaction was also the largest industrial infill lease ever signed in Los Angeles County, according to JLL, which represented the landlord, KTR Capital Partners. Once completed in the second quarter of this year, the Garfield Corporate Centerwill be the largest new free-standing industrial development in the Central Los Angeles market. It will serve as the company’s new corporate headquarters. 99 Cents Only was represented by CBRE’s John Privett, Cameron Merrill and Richard Rizika. KTR was represented by JLL’s Barry Hill, Paul Sablock, Tim O’Rourke, Mike Fowler and Zac Sakowski.

          TRUMARK BUYS SOUTH PARK CONDO PROJECT IN DOWNTOWN LA FOR $100M

  LOS ANGELES — Trumark Urban has acquired a 151-unit condominium project in Downtown Los Angeles’ South Park neighborhood for $100 million. The community will be located at the corner of West 11th Street and South Grand Avenue. The project was originally entitled in 2007. It stalled during the financial crisis. Trumark plans to complete the design and entitlement processes this year, before breaking ground this January. The condos are scheduled to hit the market in 2016. This is Trumark Urban’s first foray into the Los Angeles market. Trumark Urban is an offshoot of San Francisco Bay Area-based Trumark Companies. The newest iteration now has 10 projects with more than 1,200 residential units in the process between Los Angeles and San Francisco. The total investment cost is more than $750 million. Trumark Urban is also in the middle of purchasing a second condo development site in Downtown Los Angeles.  Construction is expected to begin on that project in the third quarter of this year.

          MENLO PARK OFFICE BUILDING SELLS FOR $50M

  MENLO PARK, CALIF. – An unnamed buyer has acquired a 41,933-square-foot office property in Menlo Park for $50 million. The Class A property is located at 200 Middlefield Road, near downtown Palo Alto’s retail core and the Palo Alto and Menlo Park Caltrain stations. The property was originally built in 1967. It underwent a full rebuild in 2012. The building is now fully leased to private equity and technology firms like Summit Partners, Optum Soft, Blackstone and Rubicon. The seller, Menlo Equities, was represented by HFF’s Steven Golubchik, Michael Leggett and John Simerlein, who worked in conjunction with Kevin Cunningham of Cornish and Carey. 

- See more at: http://www.rebusinessonline.com/main.cfm?id=17&date=20140618&region=Western#sthash.IM9n1Fns.dpuf