Sunday, July 28, 2019

Phoenix hits 24th straight quarter of positive net office space absorption


 Chris Latvaaho

PHOENIX, AZ – The Phoenix office market has achieved 24 straight quarters – or six straight years – of positive net office space absorption, according to the JLL Q2 Phoenix Office Insight report.

At the same time, vacancy has decreased by 11 basis points, marking its lowest level in almost 12 years.

According to JLL, the Phoenix office market ended the second quarter with 2.17 million square feet of year-to-date net absorption, a rate that exceeds the last peak in the market, which occurred in 2016.

The overall vacancy rate sits at 17.8 percent and average asking rents have reached $27.18 per-square-foot, a notable 22 percent increase year-over-year.

There is currently 1.9 million square feet of active new office construction underway. This adds to 546,000 square feet of new space delivered during the second quarter, including two Allred buildings totaling 270,000 square feet within the Price Road Corridor in Chandler and the 123,020-square-foot Chaparral III building on Pima Road in Scottsdale.

123,020-SF Chaparral III building on Pima Road in Scottsdale, AZ
According to projections, however, this still falls short of meeting the demands of prospective tenants who collectively are looking for 3.2 million square feet of space and already have signed one million square feet in leases that are expected to occupy by year end.

“The Phoenix office market continues to have unprecedented leasing activity, making it one of the top in the nation for positive net absorption,” said JLL Senior Vice President Chris Latvaaho.

“The demand for space continues to outpace our existing supply and includes a growing list of premier, out-of-state companies who have planted a corporate flag here in the Valley.”

Companies establishing a new Valley location this year alone include Benchmark Electronics from Texas and Bridgepoint Education from California.

Allred buildings totaling 270,000 SF within the Price Road Corridor in Chandler, AZ 

Demand among organizations like these keep REITS, institutional investors, private and foreign capital interested and active in the metro Phoenix market, particularly within the Camelback Corridor, Downtown/Midtown and Southeast Valley submarkets.

Together, this activity represented more than $271 million in transactions during the second quarter, a 36 percent increase over the first quarter.

To access JLL research for Phoenix and across the U.S., visit the company’s research page at https://www.us.jll.com/en/trends-and-insights#research.

For more news, videos and research resources on JLL, please visit www.jll.com.

Contact: 

Stacey Hershauer
Phone: +1 480 600 0195

JLL arranges $20.7 million refinancing of select-service hotel in Oceanside, CA


SpringHill Suites by Marriott San Diego Oceanside/Downtown, 
a 149-room, all-suite, LEED-certified Silver, select-service hotel 
located at 110 N. Myers Street in downtown Oceanside, CA

SAN DIEGO, CA – JLL announces it has arranged a $20.7 million refinancing for SpringHill Suites by Marriott San Diego Oceanside/Downtown, a 149-room, all-suite, LEED-certified Silver, select-service hotel located in downtown Oceanside, California.

Olga Walsh

JLL worked on behalf of the borrower to arrange the five-year, fixed-rate loan with Umpqua Bank. Loan proceeds will be used to retire existing loan, cover transaction costs and return portion of borrower equity.

SpringHill Suites by Marriott San Diego Oceanside/Downtown was developed in 2014 and features a rooftop lounge along with a pool and spa. 

Aldon Cole

Additionally, the six-story hotel houses the Hello Betty Fish House, 2,235 square feet of meeting space, a 24-hour fitness center, business center, game room, complimentary breakfast buffet and two levels of subterranean parking. 


Aaron Lapping

Situated on 1.03 acres at 110 N. Myers Street, SpringHill Suites by Marriott San Diego Oceanside/Downtown in the center of Oceanside’s ongoing renaissance.

The JLL Capital Markets team representing the borrower was led by senior managing director Aldon Cole, director Olga Walsh and associate Aaron Lapping.


 Jones Lang LaSalle Americas is a licensed real estate broker with the California Department of Real Estate license #01223413.

 Hello Betty Fish House, San Diego, CA
For more news, videos and research resources on JLL, please visit the firm’s U.S. media center Web page: U.S. newsroom.



Contacts: 

Aldon ColeJLL Senior Managing Director
California License No: 01457351
Phone: +1 858 812 2344

Olga WalshJLL Director
California License No: 2052171
Phone: +1 858 812 2371

 Kimberly Steele, JLL Digital Content/PR Specialist
Phone: +1 713 852 3420
Email: kimberly.steele@am.jll.com

jll.com.

JLL closes $35 million sale of mixed-use asset on Los Angeles’ Melrose Avenue


Melrose Crossing, a two-building, 24,549-SF assemblage of high-street retail and creative office space positioned across Melrose Avenue from each other in the heart of Los Angeles, California.

Bryan Ley
LOS ANGELES, CA – JLL announced it has closed the $35 million sale of Melrose Crossing, a two-building, 24,549-square-foot assemblage of high-street retail and creative office space positioned across Melrose Avenue from each other in the heart of Los Angeles, California.

JLL represented the seller in the transaction, and Sterling Organization purchased the asset.

The property at 8378-8880 Melrose Avenue houses 15,244 square feet of creative office space and 6,182 square feet of retail, and the 8379 Melrose Avenue building contains 3,222 square feet of retail and a billboard generating advertising revenue.

 Current tenants at the property include Rachel Zoe, Electric Feel and Casper.

 Located at the intersection of Melrose Avenue, Melrose Place and Orlando Avenue, the buildings are visible to approximately 33,000 vehicles per day and positioned on two hard corners across the street from one another. 

Geoff Tranchina
The immediate trade area surrounding the assemblage is both affluent, with average household incomes within a three-mile radius exceeding $124,000, and densely populated, with more than 272,000 people live within a three-mile radius.

The JLL Capital Markets team representing the seller was led by managing director Bryan Ley and associate Tony Ensbury. The JLL Capital Markets team representing the buyer was led by Geoff Tranchina, executive vice president of Capital Markets.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. 

The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether a sale, financing, repositioning, advisory or recapitalization execution. 

The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries. Jones Lang LaSalle Americas is a licensed real estate broker with the California Department of Real Estate license #01223413.

For more news, videos and research resources on JLL, please visit the firm’s U.S. media center Web page: U.S. newsroom.

Deal secured by Holliday GP Corp. prior to being acquired by JLL on July 1, 2019. California Department of Real Estate license #01385740.


Bryan LeyJLL Managing Director
CA License: #01458927
Phone: +1 310 407 2120

 Kimberly Steele, JLL Digital Content/PR Specialist
Phone: +1 713 852 3420
Email: kimberly.steele@am.jll.com

http://sterlingorganization.com
jll.com.

JLL closes sale of University Square in Princeton, NJ


University Square, a five-story, trophy office building totaling nearly 330,000 SF in Princeton, NJ

MORRISTOWN, NJ – JLL announces that it has closed the sale of University Square, a five-story, trophy office building totaling nearly 330,000 square feet in Princeton, New Jersey.  The sale also included the adjacent one-story, 33,600 square foot 115 Campus Drive. 

Jose Cruz
JLL represented the seller, RXR Realty and The Blackstone Group, and procured the buyer, NYC-based Argent Ventures.

 Completed in 2008, University Square is a state-of-the-art office building featuring a two-story cherry and granite atrium lobby, gourmet cafeteria, large media/conference room and fitness center with locker rooms.  

Tenants at the 85%-leased property include BlackRock, Axis Reinsurance and Mercer.  Located on 18.5 acres at 1 University Square Drive, the property is positioned equidistant between Philadelphia and New York City along Princeton’s Route 1 Corridor.  

Andrew Scandalios
This location is conveniently located less than two miles from downtown Princeton as well as the Princeton Junction train station with AMTRACK/NJ Transit/Conrail serving the Northeast corridor from Washington, D.C. to Boston. 

The JLL Capital Markets team representing the seller included senior managing directors Jose Cruz, Andrew Scandalios and Kevin O’Hearn and senior directors Stephen Simonelli and Michael Oliver and associate J.B. Bruno.

“The quality of University Square along with its location and tenant line up brought investors from all over the country,” Cruz stated.  “We are seeing many more buyers for suburban office product these days as attractive current going in yields and upside in the leasing continue to drive interest.”

Kevin O'Hearn
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. 
The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether a sale, financing, repositioning, advisory or recapitalization execution. 
The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
 For more news, videos and research resources on JLL, please visit the firm’s U.S. media center Web page: U.S. newsroom.



About RXR Realty

RXR Realty LLC (“RXR”) is a New York-based, nearly 500-person, vertically integrated private real estate company with expertise in a wide array of value creation activities. 

Stephen Simonelli
Those include ground up real estate development, uncovering value in underperforming properties, repurposing well-located iconic properties, incorporating cutting edge real estate technologies and value added lending. 

 RXR’s primary investment strategy is focused on New York City and the surrounding region.  

The RXR platform manages 68 commercial real estate properties and investments with an aggregate gross asset value of approximately $18.8 billion. 

The portfolio comprises approximately 30.4 million square feet of commercial properties, inclusive of approximately 6.0 million square feet of buildings securing debt and preferred equity investments, a multi-family residential portfolio of approximately 2,600 units under operation or development, and control of development rights for an additional approximately 3,700 multi-family and for sale units in the New York Metropolitan area as of March 31, 2019. 

Michael Oliver
 Gross asset value is compiled by RXR in accordance with company fair value measurement policy and is comprised of capital invested by RXR and its partners, as well as leverage.  

For more information about RXR, visit rxrrealty.com.

Argent Ventures

Argent Ventures is a vertically integrated, diversified real estate investment and development firm specializing in opportunistic and value add transactions throughout the United States.  

Founded in 1997 and headquartered in New York City, the firm pursues debt- and equity-related investments in any asset class.  Since its inception, Argent has purchased more than $2.5 billion in real estate assets and debt instruments in major markets in the United States and Europe.

J.B. Bruno

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. 

Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. 

JLL is a Fortune 500 company with annual revenue of $16.3 billion, operations in over 80 countries and a global workforce of over 91,000 as of March 31, 2019. 

JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.


Jose Cruz, JLL Senior Managing Director
New Jersey License No: 8743725
Phone: +1 973 549 2000

 Kristen Murphy, JLL Director, Public Relations
Phone: +1 617 338 0990



JLL arranges $76.8 million financing for development of 1554 Market Street in San Francisco, CA


1554 Market Street, a 109-unit condominium project 
located in downtown San Francisco.

SAN FRANCISCO, CA – JLL announces that it has arranged $76.8 million in financing for the development of 1554 Market Street, a 109-unit condominium project located in downtown San Francisco.

JLL worked on behalf of the borrower, Z&L Properties, Inc., to place the five-year, floating-rate construction loan with Barings, on behalf of one of its managed accounts.

Brandon Roth
1554 Market Street is a fully-entitled project positioned near the intersection of Market Street and Van Ness Avenue directly across from the Van Ness Muni Metro Station in San Francisco’s Hub District. 

The transit-oriented development’s prime location has earned it a Walk Score® of 99, a Transit Score of 100 and Bike Score of 99 and positions it within eight blocks of more than 400 restaurants and bars. 

Due for completion in 2021, the property will encompass two 12-story buildings connected by a concrete corridor that will house 109 condominium units situated above a ground-floor lobby and 5,010 square feet of retail space as well as a 28-space subterranean parking garage.

The JLL Capital Markets team representing the borrower included senior director Brandon Roth and senior managing director Charles Halladay.

Charles Halladay
“The San Francisco condo market continues to be strong with record pricing achieved in the second quarter of 2019,” Roth said. 

“Lenders recognize that a severe housing shortage combined with employment growth and IPO’s from Uber, Lyft, Pinterest and others will lead to sustained demand from new buyers.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. 

The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether a sale, financing, repositioning, advisory or recapitalization execution. 

The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries. Jones Lang LaSalle Americas is a licensed real estate broker with the California Department of Real Estate, License Number 01223413.done deals

For more news, videos and research resources on JLL, please visit the firm’s U.S. media center Web page: U.S. newsroom.


Contacts:

 Brandon RothJLL Senior Director
CA License No: 01767532
Phone:  +1 415 276 6300

 Charles HalladayJLL Senior Managing Director
CA License No: 01756300
Phone:  +1 415 276 6300

Olivia Hennessey, JLL Public Relations Specialist
Phone: +1 713 852 3403

Kelly Smith, Barings Media Relations
Phone: +1 980 417 5648

 Rachel White, Barings Media Relations
Phone: +1 980 417 5886

jll.com.
http://zlproperties.com/