MCA Realty Acquires Five Multi-Tenant Industrial Assets Totaling $71 Million in Washington, Nevada and California

Tyler Mattox

   ORANGE COUNTY, CA – MCA Realty, a full-service real estate investment and management company based in Orange County, California, has announced the recent acquisitions of five assets: two in Washington; two in Las Vegas, Nevada; and one in Orange, California, for a total consideration of just over $71 million.

Jared Gordon

The five properties were acquired through the firm’s first fund, ‘MCA Realty Industrial Growth Fund, LP’ [MCA], which met its target of $50 million in equity commitments within just three months earlier this year, resulting in approximately $130 million in acquisition capability, according to Tyler Mattox, Principal at MCA Realty.

 “Due to our long-established track record within the multi-tenant industrial space, we were able to identify, source, and deploy capital to acquire these assets relatively quickly after meeting the $50 million target for the first fund in July,” says Mattox.

 “Drawing upon our experience in the sector, we will implement upgrades and improve operational efficiencies to enhance the properties, creating long-term value and capitalizing on high demand.”

Peter Cheng

Mattox, Jared Gordon, and Peter Cheng, MCA Realty's principals, have successfully navigated a full spectrum of market conditions, and pride themselves on building and maintaining strong relationships with industry partners.

 The five recent acquisitions include:

 A 136,350 Square-Foot Multi-Tenant Industrial Asset in Puget Sound Metro

Rebecca Perlmutter

 MCA has acquired Lakewood Business Center, a 136,350 square-foot multi-tenant industrial asset located in Lakewood, Washington, a submarket of the Puget Sound metro area, for $18.2 million. The property is located at 10107 South Tacoma Way in Lakewood, Washington.

MCA would like to thank Rebecca Perlmutter, Eric Cox, and Monte Decker with CBRE for their guidance on the transaction.

Eric Cox

According to Mattox, this property was the firm’s first acquisition in the state of Washington and was also the first within its fund.

“We have been active in multiple markets throughout the Western region over the last several years, including California, Arizona, and Nevada,” says Mattox.

 “With this acquisition, we are now expanding our portfolio into Washington state and plan to increase our presence in the Pacific Northwest based on continuing market growth.”

 Lakewood Business Center consists of six buildings comprising a total of 36 units.

Monte Decker

 Prior to purchase, the property was approximately 80% leased. During the escrow period, the firm increased occupancy at the property and the property is currently 100% leased, notes Mattox.

“Since acquiring the property, we have completed capital improvements including resurfaced parking fields, a new paint scheme, an overhaul of the HVAC systems, and the fencing and grading of an acre of undeveloped land, which we have leased as an outdoor storage area,” continues Mattox.

A 66,000 Square-Foot Multi-Tenant Industrial Property in Seattle Metro

Kyle Schipper 

 MCA recently acquired Spectrum Business Park, a 66,000 square-foot, six-building industrial park in the greater Seattle metro area submarket of Federal Way, Washington, for $8.25 million. 

The property is located 20 miles north of the firm’s Lakewood Business Center asset at 1800 S 341st Place in Federal Way, Washington.

Kyle Schipper and Kyle Sterling with NAI represented both parties to the transaction.

     “The property is currently 90% occupied by automotive tenants,” says Mattox. “There are not many options in the area for these tenants to relocate, so we anticipate long-term occupancy and believe there will continue to be upward pressure on rents.”

Kyle Sterling

The firm plans to continue to lease remaining vacant space and implement a series of strategic improvements to enhance the property’s overall value.

“Spectrum Business Park is currently leased at rates 35% below market,” says Mattox. “We plan to implement capital upgrades to improve the property and ultimately bring rents to market.

 "These renovations will include new paint, new signage, new landscaping, upgraded interiors, and the addition of security cameras and exterior lighting.”

Industrial Park Totaling 143,000 Square Feet in Las Vegas, NV

Adam Malan

            MCA acquired a 143,000 square-foot industrial park in Northwestern Las Vegas, for $16.205 million in an off-market transaction.

 “We were able to draw upon close broker relationships to secure the asset off market,” says Mattox. 

“We were attracted to this property based on strong in-place cashflow and potential for rental growth due to its superior location,” says Mattox.

The property is 100% leased to three long-term tenants, Mattox adds.

 During ownership, MCA will implement a series of capital upgrades to the property, including HVAC improvements, new exterior paint, and landscaping.

Deana Marcello 

 The asset is located at 7350 Prairie Falcon Road in Las Vegas, Nevada.

Adam Malan and Deana Marcello at Logic Commercial Real Estate represented both parties to the transaction.

 A 126,000 Square-Foot Industrial Park in North Las Vegas

 MCA has also acquired a 126,000 square-foot, six-building industrial park in North Las Vegas, Nevada for $19.15 million, according to Tyler Mattox.

 “The property is currently 75% occupied with recently vacated units having a high concentration of office buildout,” explains Mattox.

 

Michael (Mike) Kendall

“We plan to subdivide the heavily improved units and renovate them to be equipped for more traditional industrial uses, in order to meet high market demand.”

MCA also strategically negotiated a lease buyout with a tenant that did not plan to renew, facilitating an accelerated repositioning of the property.

 “This asset is located in a low-vacancy submarket and is across from a new, state-of-the-art industrial project that was recently sold to a large institutional investor,” says Mattox.

Dan Doherty

The property is located at 3825-3985 West Cheyenne Ave, North Las Vegas, Nevada.

  MCA would like to thank Mike Kendall, Dan Doherty, Gian Bruno and Jerry Doty at Colliers for their guidance on the transaction.

 

Gian Bruno 

Jerry Doty

A 42,000 Square-Foot Multi-Tenant Industrial Building in Orange, CA

            MCA has acquired a 42,000 square-foot, two-building industrial property in the City of Orange in Orange County, California for $9.45 million in an off-market transaction.

The asset is located at 1523 and 1547 Struck Avenue in Orange, California. This was a principal-to-principal transaction with no brokers involved.

^CONTACTS:

Katie Haga / Lexi Astfalk

Brower Group

(949) 438-6262

khaga@brower-group.com

 

www.mca-realty.com.

 

Community Celebrates Grand Opening of $21 Million Ameren Missouri North Metro Operating Center

St. Louis Mayor Tishaura Jones

 St. Louis, MO -- Community leaders and stakeholders gathered on Sept. 23 to celebrate the grand opening of Ameren Missouri’s new $20.7 million North Metro Operating Center, constructed through a joint venture partnership with general contractors PARIC Corporation and minority-owned KAI Build.

 “We appreciate that Ameren Missouri is continuing to invest in this community by keeping an operating center on Geraldine Avenue,” said St. Louis Mayor Tishaura Jones.

 Martin J. (Marty) Lyons Jr.

 

“Reversing decades of disinvestment in North St. Louis is a top priority for my administration, and I hope Ameren Missouri is the first of many to invest in modern facilities and businesses that serve North City residents.”

 

The new North Metro Operating Center, located at 4440 Union Blvd., is built for up to 70 Ameren Missouri employees and serves more than 135,000 customers in North St. Louis and surrounding communities.

 

 It replaces and expands the company’s Geraldine Operating Center, which stood adjacent to the new facility and served the community for more than 60 years.

 Keith Wolkoff

 This is one of many investments Ameren Missouri is making as part of its Smart Energy Plan, a multi-year effort to strengthen the grid and bring more resilient energy to Missouri.

 

“We had long outgrown the Geraldine Operating Center, but it was important to us that Ameren Missouri remain in North St. Louis,” said Ameren Missouri President Marty Lyons.

 

“With the expanded footprint of the North Metro Operating Center, we can keep our crews close to the neighborhoods they are serving, so we can respond safely and quickly to issues as we work to keep energy reliable for our customers.”

Michael Kennedy, Jr.

 

KAI Build and PARIC are proud to have been a part of this transformative project for North St. Louis. This is the eighth joint venture project between PARIC and KAI over the past 20 years.

 

“Ameren Missouri’s origin is that of joining forces to produce a cohesive solution for its community. In that same vein, PARIC Corporation and KAI Enterprises partnered to deliver the North Metro Operating Center,” said Keith Wolkoff, PARIC president.

 

“The outcome of that collaboration is a state-of-the-art facility that will not only help revitalize the North County Region and provide reliable service but is a point of pride for all involved.”

 

Construction on the North Metro Operating Center began in 2019 and provided hundreds of jobs for area workers, while also utilizing the company’s network of diverse suppliers.

 

Ameren Missouri worked with 28 diverse suppliers on the project and spent 38% of project funds with these vendors.

 

The new operating center includes:

·              19,600-square-foot office building for administrative offices and crew areas

·              26,000-square-foot open truck shelter for 42 trucks

·              6,400-square-foot storage building

·              4,400-square-foot, three-sided trailer storage building

“What this facility does is bring hope to this community. Kids drive by this facility with their families and ask, ‘what are they doing over there?’ Something is going on where somebody cares about what happens in this community,” said KAI CEO Michael Kennedy, Jr.

 

“We just went through COVID; we have a tremendous digital divide in our communities, especially on the north side, and these kids had to connect to school and get access to power to do school online.

 

"This is the type of infrastructure and investment that we need in our communities to make sure we can instill hope in these kids.”

 

 

^CONTACT:

Jennifer Beidle

314-607-9459

jennifer@jbeidlepr.com

www.kai-db.com

PARIC.com

Photo credit -- Tom Paule

 

JLL Capital Markets arranges $190 loan for the fully leased 633 Folsom Street office building in the SOMA submarket of San Francisco, CA

 Lillian Roos

 

SAN FRANCISCO, CA – JLL Capital Markets has arranged a $190 million refinancing for 633 Folsom St., a fully leased, 271,000-square-foot, Class A office building in the SOMA submarket of San Francisco, California.

 JLL worked on behalf of the borrower, The Swig Company, to secure the seven-year, fixed-rate loan through Bank of China.

Bruce Ganong

Originally developed in 1967, 633 Folsom St. underwent a significant renovation and expansion completed in 2021 that added five new floors, all new building systems, exterior façade and an outdoor plaza.

 The property is now the new home and corporate headquarters location for Asana, a cloud-based application for workplace management and team collaboration.

 633 Folsom St. is located in the heart of the SOMA submarket offering quick access to local public transportation and Interstates 80 and 280.

Additionally, the property is surrounded by many dining, entertainment and retail amenities throughout San Francisco’s financial district.

 The JLL Capital Markets debt team that represented the borrower was led by Senior Managing Director Bruce Ganong, Associate Lillian Roos and Analyst Spencer Bergthold.

Spencer Bergthold

“It was a privilege to work with the Swig team again to help secure a long-term financing solution to refinance the construction loan that we helped arrange over three years ago,” said Ganong.

 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 investment sales and advisory, debt advisory, equity advisory or a recapitalization.

The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

 For more news, videos and research resources on JLL, please visit our newsroom.

 Jones Lang LaSalle Americas, Inc. ("JLL") is a real estate broker licensed with the California Department of Real Estate, license #01223413.

 ^CONTACT:

 Cierra Lacasse

PR, Capital Markets

JLL

T +1 602 648 8701

M +1 408 318 8021

JLL.com

www.swigco.com