Saturday, March 31, 2018

BLT Enterprises Acquires Golf Manufacturing Facility in San Diego, CA for $38 Million

Industrial Facility, Carlsbad, CA
Bernard Huberman

San Diego, CA  BLT Enterprises, a multi-faceted real estate investment company, has acquired a 166,310 square-foot industrial facility in the Carlsbad submarket of San Diego, California that is fully leased to a global leader in golf equipment and apparel. The property, which serves as a manufacturing facility, was acquired off-market for $38,250,000.
“This was a rare opportunity to invest in a Class A industrial property with a major credit tenant in place, representing a tremendous long-term value proposition,” says Bernard Huberman, Founder and CEO of BLT Enterprises. “The acquisition is well-aligned with our ongoing platform, which is to make strategic investments that deliver value over long hold periods.”
Huberman points to an increasing tightening in the San Diego industrial market, specifically in the North County region, as an indication of why the timing was right for this acquisition.

Ron Jacobson
“Industrial vacancy ended 2017 at 4.97-percent - a 13 basis point drop from the prior quarter,” he says. “That said, development has ramped up, and with more than 1.8 million square feet of product under construction, supply will soon begin to meet demand.  In this case, our new tenant recently renewed its full-building lease for ten years, delivering strong, consistent cash flow for the next decade.”
Ron Jacobson of SD Realty Partners represented BLT Enterprises as the buyer, and Aric Starck of Cushman & Wakefield’s San Diego office represented HGREIT II 2819 LOKER LP as the seller in the transaction.
The property is located at 2819 Loker Avenue in Carlsbad, California.

Aric Starck
Headquartered in Santa Monica, Calif., BLT Enterprises was founded in 1984 and is a multi-faceted real estate investment company with an exceptional track record of success in industrial and commercial real estate. The firm has developed or acquired more than $2 billion in assets to date.
BLT Enterprises specializes in the acquisition, entitlement, development, operation, and property management of industrial, office, retail, mixed-use and special-use properties.

For more information, please contact:

Kat Castagnoli / Lexi Astfalk
(949) 955-7940

Hanley Investment Group Completes Sale of Six Retail Pads at Walmart-Anchored Shopping Center in Inland Southern California Totaling $29.5 Million

Perris Marketplace, Perris, CA

PERRIS, CA - Hanley Investment Group Real Estate Advisors, a nationally-recognized real estate brokerage and advisory firm specializing in retail property sales, announced the firm has completed the sale of six retail pads in separate transactions at Perris Marketplace, a 225,000-square-foot Walmart Supercenter-anchored shopping center in the City of Perris, California.

Bill Asher
The 100-percent-occupied properties totaling approximately 39,000 square feet consisted of three multi-tenant pad buildings and three single-tenant fast-food pad restaurants. The combined sales price for the six pads was approximately $29.5 million.

Hanley Investment Group Executive Vice President Bill Asher and Senior Associate Jeff Lefko represented the seller, owner and developers Evergreen and Trachman Indevco, in the sale of the six retail pads.

 Spanning the last 42 years, Evergreen is a national retail and multi-family development company with heavy emphasis on developing projects in California, Colorado, Arizona, and Utah. Trachman Indevco is a real estate investment and development company that specializes in new ground-up retail development and retail development/repositioning opportunities in southern and central California. 

“On behalf of the partnership we are extremely happy with the professionalism, strategic execution and outstanding results that Bill Asher and Hanley Investment Group exhibited throughout the sales of multiple transactions of both single-tenant and multi-tenant assets,” said Andy Trachman, president of Trachman Indevco.

Perris Marketplace is located at 1820-2000 North Perris Boulevard in Perris, less than ¼ mile from the heavily traveled I-215 freeway. The center was originally planned to include two multi-tenant shop buildings but, due to the high demand, a third approximate 12,500-square-foot shop building was added to accommodate tenant interest.

Jeff Lefco
 The impressive line-up of retailers features a variety of popular food and service tenants including America's Best Contacts and Eyeglasses, Chipotle, Dickey's BBQ, Great Clips, Jamba Juice, Jimmy John’s, Pacific Dental, Panda Express, Pieology, Popeye's, Sally Beauty, Starbucks, T-Mobile, Verizon Wireless, Waba Grill, Wendy’s and Yogurtland.         

“Investors and the eventual buyers were very attracted to the overall strength of the location and the history of Walmart being established in the area since 1992,” said Asher.

“The original Walmart in Perris was the first to open in all of Riverside County. The relocation to the subject site to build a new Supercenter format store in 2015 showed Walmart’s long-term commitment to the region and was a key driver to investors’ interest in each pad within the project.”

“We were able to maximize value for the owner through individual sales to private non-institutional investors in a price range ($2-$10 million) that in today’s market appeals to arguably the largest buyer pool in the retail investment industry.

"Four of the six buyers satisfied 1031 exchange requirements with most purchasing each asset because of the reliable stable income stream created by internet- resistant, service-based, national and regional credit tenants on new long-term leases,” Asher said.

“In addition to executing a break-up sale strategy, with interest rates rising and the overall retail market continuing to transition in regard to pricing, we implemented a pre-sale marketing process on multiple buildings prior to completion of construction to help the seller retain maximum value for the development.

Andy Trachman
"For multiple transactions, we were able to procure buyers for each asset prior to each building being completed, and structure closings after tenants had finished their build-outs and opened for business,” said Asher.

“Perris Marketplace is one of the best positioned and highest profile new regional retail sites in Riverside County. The combination of the quality of location, draw of Walmart and brand-new construction, were all factors that generated a significant amount of interest in each retail pad,” Asher said.

“Newly-built single-tenant NNN retail investments and multi-tenant retail leased to food and service-based credit tenants, will continue to be highly sought-after in today’s market,” said Asher. “We continue to experience steady demand and values have yet to significantly decline of this size and type over the past four years. Properties priced $10 million or less will remain the most active.”

For more information, please contact:

Anne Monaghan

Continental Partners Secures Competitive Financing for Acquisition of 102,782-SF Retail Asset in Reno, NV

J.M. Grimaldi
 RENO, NV – Commercial real estate investment banking firm Continental Partners has successfully secured a loan for the acquisition of the 102,782 square-foot Mira Loma Shopping Center in Reno, Nevada on behalf of its Sponsor, a Los Angeles-based private investor.
            The $11.3 million loan is priced at 220 basis points over the 10-year swap rate at 69-percent loan-to-cost. It is structured at ten years fixed interest, with four-year interest only payments on a 30-year amortization option.
            The shopping center, which was at has a 92-percent occupancy at the time of acquisition, is located at 3310 South McCarran Boulevard in Reno, Nevada.
 The financing for the transaction was arranged by J.M. Grimaldi, Executive Vice President at Continental Partners.

Mira Loma Shopping Center, Reno, NV
“Lenders continue to take a conservative position when approaching commercial loans, and this is especially true of distressed retail assets, which tend to be viewed as higher risk,” says Grimaldi. 
“To secure competitive financing for this property, we demonstrated to potential lenders the strong fundamentals presented by the shopping center, despite neglect from previous ownership, and how the asset would benefit from the Sponsor’s plans to establish a hands-on landlord approach.”
The Mira Loma Shopping Center is anchored by CVS Pharmacy and local grocer Scolari’s Grocery. The Sponsor plans implement light value-add renovations to the center, as well as remediate environmental contamination issues remaining due to a former tenant. 

 For more information, please contact:

 Lindsay Mackay / Elisabeth Manville
(949) 955-7940

HFF arranges $8 Million acquisition financing for medical office building in Southern California

Redhawk Medical Center, Temecula, CA
Aldon Cole
SAN DIEGO, CA –– HFF announces $8 million in acquisition financing for Redhawk Medical Center, a 32,471-square-foot, multi-tenant medical office in the Southern California community of Temecula.

The HFF team worked on behalf of the borrower, Cypress West Partners, LLC (CWP), to place the seven-year, non-recourse, floating-rate loan with a commercial bank. 

Redhawk Medical Center is situated on 2.5 acres at 44272 George Cushman Court in Temecula, which is in the Inland Empire office market and equidistant between San Diego and Orange County. 

The medical office is proximate to the 140-bed Temecula Valley Hospital, which opened in 2013 and offers a comprehensive range of services.  The two-story building was completed in 2003 and is anchored by Vantage Oncology, which was recently acquired by the McKesson Corporation. 

The 95.1 percent-leased property is also home to a diverse range of tenants, including Pediatric Partners, California Imaging and Diagnosis, San Diego Fertility Center, New Point Wellness and Crescent Healthcare. 

Chris Cumella
The HFF debt placement team representing the borrower included senior managing director Aldon Cole. 

“HFF has continued to produce compelling debt terms for our healthcare assets,” said Chris Cumella, founder and principal of CWP.  “The team is in touch with the market and got us across the finish line.  This acquisition represents a chance for CWP to increase its profile in the Southern California market.”

Holliday GP Corp. ("HFF") is a real estate broker licensed with the California Department of Real Estate, License Number 01385740.

 For more information, please contact:

HFF Digital Content/Public Relations Specialist
(713) 852-3420

HFF announces $385 Million refinancing for Genesis North and South Towers in South San Francisco, CA

Olga Walsh
SAN DIEGO, CA –– HFF announces the $384.86 million refinancing of Genesis North and South Towers, two office and life science buildings totaling 717,883 square feet in South San Francisco, California.

The HFF team worked on behalf of the borrower, Phase 3 Real Estate Partners, Inc., to secure a $199.86 million, three-year loan through one of its life company relationship lenders for the recently completed Genesis North Tower. 

 The team secured a $185 million, five-year, floating-rate loan through a national commercial bank for the fully stabilized Genesis South Tower, the campus’s first phase. 

Genesis North and South Towers are located at One and Two Tower Place immediately adjacent to and visible from Highway 101 in South San Francisco’s life science hub. 

 This location is less than 10 minutes from the San Francisco Airport and proximate to the Bart/Caltrain lines of the San Bruno and South San Francisco stations. 

Todd Sugimoto
Due for completion in 2018, Genesis North Tower is a 21-story, 390,000-square-foot life science building.  Genesis South Tower was completed in 2016 and has 12 stories of laboratory and office space.  The project will include additional tenant and community amenities and offers panoramic views of the San Francisco Bay.

The HFF debt placement team representing the borrower included senior managing director Tim Wright, managing director Todd Sugimoto, senior director Zack Holderman and senior associate Olga Walsh.

Holliday GP Corp. ("HFF") is a real estate broker licensed with the California Department of Real Estate, License Number 01385740.

 For more information, please contact:

HFF Director, Public Relations
(617) 338-0990

HFF announces sale of Naugatuck Valley Shopping Center in Waterbury, CT

Jim Koury
BOSTON, MA –– Holliday Fenoglio Fowler, L.P. (HFF) announces the sale of Naugatuck Valley Shopping Center, a 382,864-square-foot, grocery-anchored shopping center in Waterbury, Connecticut.

The HFF team marketed the property on behalf of the seller, and procured the buyer, Premium Property LLC and BH Premium Quality Waterbury LLC.

Naugatuck Valley Shopping Center is 77.1 percent leased and is anchored by the region’s highest grossing Walmart as well as a full service Stop & Shop.  The 50.5-acre site offers 2,155 parking spaces and features additional tenants such as Panera Bread, Bob’s Stores and Wendy’s. 

 Located at 950 Wolcott Street, the center is within close proximity of Interstates 84 and 95, the primary routes between Boston, Hartford and New York City.  The center benefits from a trade area comprising 100,000 residents within three miles of the center and 368,000 residents earning an average household income of $87,400 within 10 miles of the center. 

Naugatuck Valley Shopping Center,
Waterbury, CT
The HFF investment advisory team representing the seller included senior managing director Jim Koury

“As with many retail centers today, Naugatuck is going through a transitionary phase, which presents an exciting opportunity for the next owners to reposition the center by re-merchandising the tenancy to reflect the new wave of concepts in retailing,” according to Koury.

 For more information, please contact:

HFF Director, Public Relations
(617) 338-0990