Tuesday, May 10, 2016

Intercontinental Acquires Large Creative Office Campus in Dynamic El Segundo, CA Market of Silicon Beach

Jessica Levin

EL SEGUNDO, CA – Intercontinental Real Estate Corporation (“Intercontinental”), a national real estate investment, development, and management firm headquartered in Boston, Massachusetts, has acquired the Apollo at Rosecrans, a recently renovated four-building creative office campus totaling 546,833 square feet of office space set on more than 13 acres in El Segundo, California.

CBRE and Kevin Shannon of Newmark Grubb  Knight  Frank represented the sellers, Invesco Real Estate and Second Street Ventures in the transaction.  The purchase price was not disclosed.

“The Apollo is a one-of-a-kind property.  We were able to source and purchase a rare gem that is the definition of the most desired office product in the Silicon Beach area of the Los Angeles market,” says Jessica Levin, Director of Acquisitions at Intercontinental.

“In addition, the asset’s location in a dense geography that provides walkability to surrounding restaurants, stores, transportation and housing options makes this precisely the environment today’s tech and creative company owners and employees are seeking.”

Following its high-end renovation, which was completed in 2015, the property has demonstrated its appeal with a remarkable 537,548 square feet already leased, bringing the asset to 98 percent occupancy in just 18 months, according to Levin.

The Apollo is situated along the Rosecrans Corridor, which is a major hotspot for the growing tech and creative companies in LA. 

Apollo at Rosecrans Office Campus, El Segundo, CA
Levin notes that the Apollo at Rosecrans is also poised for strong rent growth based on favorable market fundamentals, including positive net absorption and the lowest vacancy rates that the El Segundo office market has seen in years.

“Demand for creative office space in Westside LA is on the rise,” explains Levin. “Continuing rent hikes in neighboring markets such as Playa Vista is driving tenants to El Segundo, resulting in a vast migration of businesses to the Rosecrans Corridor. This bodes extremely well for future rent appreciation in this submarket.”

“Despite its unparalleled location and creative appeal, rents at The Apollo are considerably below market rate values based on comparable product in the surrounding areas,” Levin adds, noting that while the property commands the highest rents in the Rosecrans Corridor, the Apollo currently leases office space at a 20 percent discount to average Silicon Beach rates.

The Apollo at Rosecrans is located at 2150 Park Place, 2120 Park Place, 2121 Park Place and 2175 Park Place in El Segundo, near the I-105 and the 110 Freeways.

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

Katie Kea / Jenn Quader
Brower, Miller & Cole
(949) 955-7940

HFF closes sale of trophy Trader Joe’s-anchored retail center in the San Francisco Bay Area

Los Gatos Village Square Retail Center, Los Gatos, CA

Nicholas Bicardo
 SAN FRANCISCO, CA, May 10, 2016 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has closed the sale of Los Gatos Village Square, a 100-percent-leased, 46,235-square-foot, Trader Joe’s-anchored retail center in the San Francisco Bay Area community of Los Gatos, California.

HFF marketed the property on behalf of an institutional seller. Donahue Schriber purchased the asset free and clear of existing debt.      

Los Gatos Village Square is located along Los Gatos Boulevard, which is the most prominent commercial thoroughfare in the city.  

The property’s infill, high barriers to entry location and outstanding demographics of the region has driven a very high rate of tenant retention and historical occupancy at the site, presenting an extremely stable cash flow.

  Anchored by Trader Joe’s, Los Gatos Village Square benefits from outstanding sales productivity from one of the most dominant grocery brands in the country.

 The HFF retail investment sales team representing the seller was led by Nicholas Bicardo, Danny Reddin and Brandon Rogoff.

“Demand for San Francisco Bay Area retail continues to be at an all-time high,” Bicardo said.  “Los Gatos Village Square generated interest from every buyer profile, both domestic and offshore. Retail properties in Los Gatos seldom come available for sale, making this a truly rare opportunity.”

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

Kristen M. Murphy
Director, Marketing
HFF | One Post Office Square, Suite 3500 | Boston, MA 02109
Main: 617-338-0990 | Direct: 617-848-1572 | Cell: 617-543-4873 | www.hfflp.com

Post Properties Announces Christopher J. Papa to Step Down as Chief Financial Officer

David P. Stockert
ATLANTA, GA --(BUSINESS WIRE)-- Post Properties, Inc. (NYSE:PPS) announced today that Chief Financial Officer, Christopher J. Papa, will be stepping down from his role, effective May 31, 2016, in order to assume the position of Chief Financial Officer of Liberty Property Trust (NYSE:LPT). Mr. Papa has served as Post’s Chief Financial Officer since 2003.

Post plans to immediately begin the search for Mr. Papa’s replacement. Until such replacement is identified, Mr. Papa’s responsibilities will be assumed by other members of Post’s senior management team, including Arthur J. Quirk, who has been Post’s Chief Accounting Officer since 2001.

Said David P. Stockert, Post’s CEO and President, “Chris has been an effective and valued member of the leadership team here at Post, and has been instrumental in shaping what is one of the strongest balance sheets in the REIT sector. We all wish Chris every success with this new opportunity.”

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

Post Properties, Inc.

Dave Stockert, 404-846-5000