Saturday, May 13, 2017

Passco Cos. Acquires Value-Add Neighborhood Shopping Center in Corona, CA for $16.95 Million

Dixie Walker
                IRVINE, CA    Passco Companies , a privately held Calif.-based real estate company that specializes in the investment, acquisition, development and management of commercial properties throughout the U.S., has acquired Temescal Village, a 102,976 square-foot neighborhood shopping center in Corona, California, for $16.95 million.

 A retail brokerage team led by Dixie Walker and Charley Simpson of Cushman & Wakefield’s Irvine office represented the seller, a private investor, in the transaction.

            “Temescal Village is a prime retail asset with strong value-add potential,” says Todd Siegel, Vice President of Retail Acquisitions for Passco Companies. “The retail center is located in a densely populated residential community along the 15 freeway in a market with significant barriers to entry for new retail supply and incredibly low retail vacancy.”

            According to Siegel, at the close of Q4 2016, the immediate corona retail market had a vacancy rate of 4.4 percent.

            “This is one of the lowest vacancy rates we’ve seen throughout the region,” he explains noting that it is lower than the vacancy rates of the Inland Empire, Orange and Los Angeles counties.

Charley Simpson
Located at 1181-1199 Magnolia Avenue and built in 1983, Passco plans to modernize the property through a series of strategic renovations and capital improvements. 

Planned renovations include redesigning the landscaping and updating the façade throughout the center, as well as adding a variety of social gathering, outdoor dining, and seating areas throughout the center.

“There continues to be a major push within the retail industry for centers that cultivate the ultimate experience for shoppers,” says Siegel. “Shoppers today are demanding environments where they can gather and socialize with friends and family. 

"We plan to integrate these social components into the center by incorporating more outdoor seating and gathering spaces for shoppers.”

Siegel adds, “In doing so, we will be able to increase foot traffic to the center, as well as attract and retain high-quality retailers. This will drive the long-term value of the asset and allow us to grow rents as leases roll. Many of the current tenants have been located at the center since the 1980s and have rents that are well-below market value, providing a strong opportunity for upside potential.”

Todd Siegel
According to Siegel, Passco is continuing to identify and source value-add opportunities where they can significantly enhance the value of a center by integrating a series of capital improvements and experience-driven amenities.

            “As the retail market continues to evolve, we see tremendous opportunity to reposition and bring value to older, well-located centers,” says Siegel. “This acquisition is demonstrative of that fact and will be a strong addition to our existing portfolio.”

            Walker, a Managing Director with Cushman & Wakefield, adds, “Temescal Village is an asset that is truly positioned for future upside and growth. It has proven stable cash flow, a diversity of credit worthy tenants, and is located in a market with an established trade area. 

The region experienced a much quicker recovery post-recession compared to other areas in the Inland Empire, which is indicative of the future economic health of the region, strongly positioning the asset to continue to perform well over the long-term.”

The retail center is currently 93.5 percent leased to a mix of 19 well-known tenants including CVS Pharmacy, Citibank, Carl’s Jr., Wells Fargo, H&R Block, the UPS Store, County of Riverside and Metro PCS, among others.

The architectural firm involved in the renovations for the center is the Architecture Design Collaborative. Chris Black of KeyBank Real Estate Capital’s Commercial Mortgage Group arranged acquisition financing for Passco Companies through Fannie Mae.

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

Lauren Burgos/ Lexi Astfalk
Brower, Miller & Cole
(949) 955-7940

Financial Tech Company Upgrade Coming to Downtown Phoenix, AZ; JLL completes 38,000 s.f. lease bringing San Francisco firm, 300 jobs to Valley

                             Renaissance Center One Office Complex, Downtown Phoenix, AZ

Ryan Bartos
PHOENIX, AZ – The Phoenix office of JLL has completed a new, 38,000-square-foot lease that will relocate FinTech company Upgrade Inc. from San Francisco into two floors at Renaissance Center I in downtown Phoenix.

The move is the latest example of a Silicon Valley company expanding its essential business functions in Phoenix instead of taking more space in the Bay Area.

Upgrade – a new consumer credit platform that combines marketplace lending with tools that help consumers understand and monitor their credit – is in the process of hiring 100 customer service, credit operations and collections professionals in Phoenix, and expects to add an additional 200 employees by the end of 2018.

“Downtown Phoenix offered everything we were looking for in a new office location, both for our company and our employees,” said Renaud Laplanche, Upgrade Co-founder and CEO.

“It is at the center of a dynamic business environment, is convenient to workforce living throughout the Valley and is surrounded by amenities, including a light rail stop right at the building. This is going to help us recruit talent who want to work in a fast-growing company that also cares about offering a great work environment.”

Executive Vice President Ryan Bartos from the JLL Phoenix office, along with Managing Director Travis James and Vice President Matt Aljets from the JLL San Francisco office, represented Upgrade in its site selection and lease negotiations.

Sandra Watson

“We’ve reached a point where there are more than 70,000 jobs within one mile of downtown,” said Bartos. “That makes it an extremely attractive destination for a company.”

 He adds that Tempe is an equally dynamic location, but with an approximate 5 percent vacancy rate, finding the amount of space a company like Upgrade needs is challenging and expensive. He says that Old Town Scottsdale has large blocks of space as well, but its lease rates are also still high.

“A company saves 15 percent to 30 percent locating in downtown Phoenix,” said Bartos. “Along with that savings, they gain a location where there are significant amenities available within a short walk and access to great talent.”

“Phoenix is rapidly becoming a recognized destination for tech companies looking to expand operations,” said Phoenix Mayor Greg Stanton. “Upgrade is a significant addition to our Downtown tech hub – a Silicon Valley-based online lender that will add 300 employees to the thriving innovation culture that is growing in our high rise-office space and historic warehouses.”

"After a competitive process, I'm pleased that Upgrade has selected Arizona to scale their operation," said Sandra Watson, President and CEO of the Arizona Commerce Authority. "Upgrade’s arrival is a significant addition to Arizona’s already thriving advanced business services sector, and further evidence of the fact that Arizona’s value proposition continues to resonate with companies seeking a location to scale their success rapidly."

Upgrade is the fourth major technology company—the third from San Francisco—to make a Phoenix expansion. A major consideration for Upgrade is the $50 million in renovations underway by new Renaissance owners Cypress Office Properties and Oaktree Capital Management.

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

Stacey Hershauer
Marketing & Public Relations
(480) 600-0195

HFF closes $52.87 million sale of 311-unit Alta at Terra Bella in Land O’Lakes, FL

Alta at Terra Bella Apartments,  23700 Viento Drive, Land O'Lakes, FL

Matt Mitchell
TAMPA, FL  – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has closed the $52.87 million sale of Alta at Terra Bella, a 311-unit, Class A multi-housing community in Land O’Lakes, Florida. 

HFF arranged the sale on behalf of the seller, Wood Partners.  Northland Investment Corporation (Northland) purchased the asset free and clear of existing debt.

Alta at Terra Bella is located at 23700 Viento Drive, which is close to Interstate 75 and approximately 20 miles north of downtown Tampa. 

Completed in 2016, the newly constructed, gated community offers a mix of one-, two- and three-bedroom floor plans averaging 1,091 square feet.  

Units feature granite countertops, stainless steel appliances, island kitchens, vinyl plank flooring, full-size washers and dryers, walk-in closets and screened-in patios. 

Brett Moss

Community amenities include a zero-entry saltwater swimming pool; outdoor summer kitchen; fitness center with yoga room and children’s playroom; clubhouse with sports lounge, game room with billiards, shuffleboard and kitchen/bar seating; cyber café; dog wash and expansive dog park; and breezeway-access garages.

The HFF investment sales team was led by Matt Mitchell, Brett Moss and Zach Nolan.

“As Greater Tampa continues thrive, we are pleased to add this best-in-class, newly constructed property to our portfolio,” said Matthew Gottesdiener, Chief Investment Officer of Northland.  “Pasco County in particular has experienced tremendous growth and rapidly improving demographics in recent years, and we are very excited to expand our local presence in the Tampa market.”

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

Olivia Hennessey
Public Relations Specialist
HFF | 9 Greenway Plaza, Suite 700 | Houston, Texas 77046
tel 713.852.3403 | fax 713.527.8725 |


South Florida Multifamily Market Continues on Record-Setting Pace

Calum Weaver
Cushman & Wakefield Released its 1Q 2017 South Florida Multifamily Market Update, Documenting $3.6 Billion in 2016 Sales and a Strong Start to 2017

MIAMI, FL — Cushman & Wakefield announced it has released its 1Q 2017 South Florida Multifamily Market Update.

The in-depth report, authored by Executive Vice President Calum Weaver of Cushman & Wakefield’s South Florida Institutional Multifamily Team, details the state of the multifamily market in the three counties comprising South Florida — Miami-Dade, Broward and Palm Beach.

The report finds an eighth consecutive year of multifamily expansion in South Florida driven by strong fundamentals. Important highlights of the report can be found below:

There were 278 property sales in South Florida valued at more than $3.6 billion in 2016. This eclipses the annual record of $3.3 billion in sales established in 2015.

South Florida rental demand continues to increase due to population growth, an inventory shortage and the rising costs of single-family homes.

The supply of multifamily housing in South Florida continues to lag demand, with most new development coming in the Class A+ market. The supply of affordable and Class B and C product remains constrained.

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

David A. Meyer 
Meyer Media