Friday, March 10, 2017

Hanley Investment Group Completes Sale of Grocery-Anchored Shopping Center in Upland, CA for $17.2 Million

Upland Village, Upland, CA

Ed Hanley
UPLAND, CA – Hanley Investment Group Real Estate Advisors, a nationally-recognized real estate brokerage and advisory firm specializing in retail property sales, announced the firm completed the sale of Upland Village, a 60,857-square-foot grocery-anchored shopping center in Upland, Calif. 

The sale price of $17.2 million represented a cap rate of 5.83 percent, a record low cap rate for a stabilized grocery-anchored shopping center in the Inland Empire. Grocery Outlet and Dollar Tree anchor the neighborhood retail center.

Hanley Investment Group President Ed Hanley and Executive Vice President Bill Asher, along with the seller’s exclusive advisor Joe Miller, a vice president at Voit Real Estate Services of Anaheim, Calif., represented the seller, Outpost Village, LLC, based in Orange County, Calif.

The buyer, a southern California-based private investor, was represented by Peter Loh of RE/MAX Realty 100 of Diamond Bar, Calif. and Paul Yang of RE/MAX Vantage of Eastvale, Calif.

Bill Asher
Built in 1972 on 3.92 acres, Upland Village is located at 110, 130, 140 and 180 Mountain Avenue, at the northeast corner of Mountain Avenue and West 8th Street in the city of Upland in San Bernardino County. 

The neighborhood shopping center was 100 percent occupied at the time of the sale. Grocery Outlet and Dollar Tree represent over 50 percent of the occupied square footage.

“We procured multiple competitive and qualified offers and were able to close at 99 percent of the list price despite rising interest rates during the escrow,” said Asher.

“Upland Village offered a 100 percent-occupied, grocery-anchored shopping center with a synergistic mix of national and regional tenants in a dense, infill Southern California location,” said Asher. 

“Approximately 71 percent of the current tenancy had occupied space at the shopping center since 2010 or before and 60 percent of the tenants had more than five years remaining on their current term.” 

Joe Miller

According to Asher, Grocery Outlet having a new long-term corporate guaranteed lease and Dollar Tree having occupied its space at the property for 10 years and recently exercising its five-year option, were key attributes to the asset that attracted a multitude of investors to the property.

“With interest rates increasing 50-75 basis points in the last three months, Upland Village could very well represent one of the last stabilized grocery-anchored shopping centers to sell for a sub-six percent cap in San Bernardino and Riverside counties,” commented Asher. 

“Interest rates are going to have a substantial impact on values moving ahead for anchored shopping centers priced at $10 million and above in the Inland Empire. 

"Unless there are compelling metrics such as reported high-volume store sales for anchor tenants within the shopping center, we anticipate values for the similar type of assets like Upland Village to transact at a six-percent cap and above moving ahead, if interest rates continue to stay at their current levels.”

Hanley adds, “Neighborhood shopping centers with successful grocers that satisfy the daily and weekly needs of consumers are a great hedge against an economic downturn. This type of well-located shopping center will continue to be in high demand across southern California and the U.S. for the foreseeable future.”

For a complete copy of the company’s news release, please contact:

Continental Partners Arranges Office Acquisition and Renovation Financing in Downtown San Francisco, CA


     Downtown San Francisco office property. Financing arranged by Continental Partners.                                                                                                      
 (Photo Credit: Architectural renderings provided by sponsor).

Eugene Rutenberg
SAN FRANCISCO, CA  – Commercial real estate investment banking firm Continental Partners has successfully secured $5.3 million in bridge to mini-perm financing for a 7,500 square-foot value-add office building located in the financial district of downtown San Francisco, to be converted into multifamily micro-units.

The financing was arranged by Continental Partners Director Eugene Rutenberg.

“Downtown San Francisco’s tremendous job growth in the tech and financial services industries is driving demand for quality housing in this thriving market,” says Rutenberg.

 “Due to the high cost of new construction and rising rental rates, however, San Francisco’s affordability crisis continues to place enormous pressure on renters. As demand for more affordable housing options continues to outpace supply, there is a unique opportunity for investors to capitalize on this demand by converting existing office space into more affordable micro-units.”

Continental Partners secured the $5.3 million loan from a regional bank to finance the total project cost of approximately $7.54 million. The bridge loan was sized to 103 percent of the purchase price, with a loan-to-cost leverage ratio of 71 percent.

For a complete copy of the company’s news release, please contact:

Lauren Burgos / Katie Kea
Brower, Miller & Cole
(949) 955-7940

Newcastle Partners Now Under Construction on Two Inland Empire Industrial Facilities Totaling More than 570,000 Square Feet

Phil Lombardo

San Francisco, CA (March 10, 2016) -- Newcastle Partners, a San Francisco-based real estate development company, recently commenced construction of two industrial facilities totaling in excess of 570,000 square feet in the Inland Empire cities of Riverside and Chino.

The first facility, Meridian Distribution Center II, totals 503,500 square feet and is situated on a 26.93-acre land parcel at 22000 Opportunity Way in Riverside. Completion is anticipated for summer 2017 and its value upon build-out is estimated to be approximately $38 million.

The Class A industrial facility will include 88 dock high doors, two ground-level doors, 150 trailer parking stalls, and 217 car parking spaces. It offers immediate access to the 215 freeway and corporate neighbors include Sysco Corp., Kia Motors, UPS, and Kraft Foods.

 Phil Lombardo, Chuck Belden, and Andrew Starnes of Cushman & Wakefield’s Ontario office are responsible for marketing the asset for lease.

The second facility totals 71,000 square feet and is situated on approximately 3.6 acres of land at 5490 Schaefer Avenue in Chino. Completion is anticipated for fall 2017 and its value upon build-out is estimated to be approximately $10.3 million.

 The facility will consist of a state-of-the-art concrete tilt-up, high cube warehouse/distribution building and is convenient to the 71 and 60 freeways. Patrick Bogan and Steve Coulter of Lee and Associates are responsible for marketing the asset for lease.

Over the past two years, Newcastle has acquired, developed or sold in excess of four million square feet of industrial property in the region, and the firm plans to be even more aggressive in 2017.

Jackson Smith
“Newcastle Partners continues to see opportunity to help satisfy the strong demand by industrial users for quality facilities in the Inland Empire,” said Jackson Smith, partner with Newcastle Partners.

“The region is one of the top for job growth in the nation and much of that is fueled by manufacturing, logistics and warehouse/distribution activity. We see the industrial market continuing on its upward trajectory over the coming years, especially due to e-commerce.”

Newcastle has completed the acquisition and/or development of a diversified portfolio of over 50 projects totaling over 15 million square feet, representing a total investment of over $1.1 billion.
 For a complete copy of the company’s news release, please contact:

Darcie Giacchetto
Spaulding Thompson & Associates


Wyndham promotes Barry Goldstein to Chief Marketing Officer and appoints Scott Strickland as Chief Information Officer

Barry Goldstein

PARSIPPANY, NJ – Wyndham Hotel Group,  the hotel giant with an unmatched global presence of more than 8,000 hotels, announced two new appointments advancing its continued transformation: Barry Goldstein has been promoted to chief marketing officer and Scott Strickland has been appointed as chief information officer.

As chief marketing officer, Goldstein is responsible for all aspects of marketing and revenue generation for the company and its 18 global brands, leading the brand marketing, loyalty, digital marketing, global sales, communications, customer care, and revenue management functions for a portfolio of more than 8,000 hotels in 77 countries.

Goldstein was previously chief digital and distribution officer for Wyndham Hotel Group supporting the company’s digital marketing strategies. Prior to joining Wyndham, Goldstein was chief revenue officer for Dolce Hotels and Resorts (later acquired by Wyndham Hotel Group) and vice president, global sales strategy, technology and operations, at Starwood Hotels & Resorts Worldwide.

“Our mission to democratize travel starts with our powerhouse brands, and Barry’s expertise marketing world-class brands inspires new momentum in our continued transformation on the quality, technology and marketing fronts,” said Geoff Ballotti, Wyndham Hotel Group President and CEO.

Scott Strickland
 “Technology is critically important for enabling our owners to deliver on each unique brand promise and Scott’s experience with major global brands and Fortune 500 organizations makes him the ideal champion to revolutionize technology for economy and midscale hoteliers.”

Strickland will spearhead the ongoing effort to enhance and implement Wyndham’s overall technology strategy and the continued migration of the company’s 18 brands to the Sabre SynXis property management and central reservation system. 

Wyndham Hotel Group was the first global hospitality company of its scale to roll out the system helping economy and midscale hoteliers grow their business by more efficiently managing pricing and inventory.

With 25 years of experience in the field of information technology, Strickland joins Wyndham from D+M Group where he led the company’s information technology function as chief information officer. 

Prior to this position, Strickland held the role of executive director, information technology with Nissan North America. Previously, he held technology roles at Stanley Black & Decker, IBM and Mars, Inc.

For a complete copy of the company’s news release, please contact:

Maire Griffin
Wyndham Hotel Group
22 Sylvan Way
Parsippany, NJ  07054
(973) 753-6590

ATTOM Data Solutions Reports U.S. Home Flipping Increases 3 Percent in 2016 to a 10-Year High

Daren Blomquist
 IRVINE, CA — ATTOM Data Solutions, curator of the nation’s largest fused property database, released its 2016 Year-End U.S. Home Flipping Report, which shows that 193,009 single family homes and condos were flipped — sold in an arms-length transfer for the second time within a 12-month period — in 2016, up 3.1 percent from 2015 to the highest level since 2006, when 276,067 single family homes and condos were flipped.

“Home flipping was hot in 2016, fueled by low inventory of homes in sellable or rentable condition along with a flood of capital — both foreign and domestic — searching for the returns and stability available with U.S. real estate,” said Daren Blomquist, senior vice president at ATTOM Data Solutions.

“The combination of more home flips and a greater share of financing for flip purchases resulted in a 19 percent jump in the estimated dollar volume of financing for home flip purchases, up to $12.2 billion for the flips completed in 2016 — a nine-year high.”

“Investors in search of flipping returns are increasingly willing to move to secondary and tertiary housing markets and neighborhoods with older, smaller properties that are available at a deeper discount,” Blomquist continued.

“Given that many of these markets are more affordable, we are also seeing a higher share of the flipped homes sold to FHA buyers, with that share reaching a four-year high of 19.6 percent in 2016.”

For a complete copy of the company’s news release, please contact:

Jennifer von Pohlmann
949.502.8300, ext. 139