Sunday, August 1, 2021

In NCLA Amicus Win, Sixth Circuit Affirms Decision Invalidating CDC’s Eviction Moratorium

Caleb Kruckenberg
 

 Tiger Lily, LLC, et al. v. United States Department of Housing and Urban Development, et al.

 

Washington, DC – On July 23, the U.S. Court of Appeals for the Sixth Circuit affirmed the March 2021 decision of the Western District of Tennessee in Tiger Lily, LLC, et al. v. United States Department of Housing and Urban Development, et al.

 

The ruling invalidates the eviction moratorium order imposed by the Centers for Disease Control and Prevention (CDC).

 

 The Sixth Circuit held that the nationwide moratorium issued by CDC, stopping residential evictions, exceeds the agency’s statutory authority.

 

 The New Civil Liberties Alliance, a nonpartisan, nonprofit civil rights group, filed a successful amici curiae brief in the federal district court in Tiger Lily.

 

NCLA’s brief—signed by amici NCLA, the Beacon Center of Tennessee, the National Apartment Association, and the National Association of Residential Property Managers—argued that Congress never granted CDC the unlimited authority to take any conceivable action it deems necessary to fight infection.

 

Congress never anticipated that CDC would intrude into the operations of state landlord-tenant courts under the pretense of protecting public health.

 

 Ultimately, the District Court—and now the Sixth Circuit—adopted NCLA’s argument.

 

The court concluded that Congress did not authorize the CDC to “shut down evictions across the country.” Absent an exceedingly clear congressional mandate, the Sixth Circuit ruled, “the CDC cannot nationalize landlord-tenant law.”


Judge Amul Thapar

Judge Amul Thapar agreed with the panel’s decision but wrote separately to highlight the separation-of-powers concerns that arise when an administrative agency oversteps its bounds. 

 

As Judge Thapar explained, the Founders designed Congress to be the branch that is “most responsive to the will of the people.”

 

 “By shifting responsibility to a less accountable branch, Congress protects itself from political censure—and deprives the people of the say the framers intended them to have. 

 

"And yet, over the years, the guardrails have crumbled.” 

 

Judge Thapar called on the Supreme Court to “consider breathing new life” into the nondelegation doctrine. 

 

The case against CDC proves why a strong nondelegation doctrine is so important, Judge Thapar concluded: “It is not our job as judges to make legislative rules that favor one side or another. 

 

"But nor should it be the job of bureaucrats embedded in the executive branch. While landlords and tenants likely disagree on much, there is one thing both deserve: for their problems to be resolved by their elected representative.”


Philip Hamburger 


NCLA released the following statement:

 

“The Sixth Circuit has rejected CDC’s view that it has unlimited power to prohibit or require anything it can imagine. CDC has taken a terrifying view of its own authority, and the court wisely understood that our constitutional protections must be protected most in times of crisis.”

— Caleb Kruckenberg, NCLA Litigation Counsel


Judy Pino

 

ABOUT NCLA

 

NCLA is a nonpartisan, nonprofit civil rights group founded by prominent legal scholar Philip Hamburger to protect constitutional freedoms from violations by the Administrative State.

 

 NCLA’s public-interest litigation and other pro bono advocacy strive to tame the unlawful power of state and federal agencies and to foster a new civil liberties movement that will help restore Americans’ fundamental rights.

 

 

CONTACT:

           

Judy Pino

202-869-5218

 judy.pino@ncla.legal

 

KBS Assists in the Acquisition of Sorrento Towers, a 296,327 Square-Foot Class A Office Complex in San Diego, California, for $146 Million on Behalf of Prime US REIT

 

Sorrento Towers, a 296,327-square-foot
 Class A office complex 
at 5355
and 5375 Mira Sorrento Place
  
in the heart of Sorrento Mesa,
 San Diego, CA
 

 SAN DIEGO, CA – KBS, one of the largest investors in commercial real estate, announced  the company assisted in the acquisition of Sorrento Towers, a 296,327 square-foot Class A office complex in the heart of Sorrento Mesa, San Diego, California’s life science and technology marketplace. 

 Tatyana Litovsky

The property was acquired from real estate investment company Shorenstein Properties for $146 million by Prime US REIT (PRIME), which trades on the Singapore Exchange Securities Trading Limits ticker as: OXMU.

Christine Fan 

KBS serves as the U.S.-based asset manager for the portfolio, which included identifying and sourcing this asset on PRIME’s behalf. Sorrento Towers is a Class A property that consists of two seven-story office buildings situated atop a multi-level parking structure.

Amanda Kennedy

Sorrento Towers is one of three assets KBS has assisted PRIME in acquiring for its portfolio since listing on the Singapore Exchange in 2019. 

Gio Cordoves

“At 98.2% occupancy, Sorrento Towers is one of the most sought-after properties in San Diego’s premier innovation hub and is within walking distance of over 60,000 square feet of high-quality retail amenities,” says Gio Cordoves, Western regional president for KBS. 

Tim Helgeson

“Through this transaction, KBS has assisted PRIME in securing another opportunity to add value to this portfolio.”

Kevin Shannon

 The Sorrento Mesa submarket where Sorrento Towers is located is home to San Diego’s largest concentration of technology companies, including those in the life science, biotech and med-tech sectors, telecommunications, wireless applications and healthcare.

Ken White

 Its location just east of Torrey Pines, University Town Center and University of California San Diego, and just south of Del Mar Heights is drawing in such global firms as Google, Apple and Qualcomm, which continue to expand their presence in San Diego. 

Howard W. Chu

The region’s mild climate, desirable lifestyle, highly qualified and educated talent pool, respected universities and research institutions, and lower office rents relative to other coastal California markets is driving the market’s growth in digital technology-focused firms.

 Bruce Fischer

 “Among the top 15 tech-centric markets, San Diego boasts the highest concentration of its population categorized as Millennials at 31.6%, securing a substantial workforce for the future. 

"It also boasts the highest percentage of patent growth, recording an 84.4% increase in the last five years, making it highly innovative and a breeding ground for spin-off tech companies.” says Cordoves. 

“These factors position the office market for strong performance in the foreseeable future.”


 Built in 1990, Sorrento Towers is a LEED Gold-certified state-of-the-art life science/office asset conveniently positioned just south and east of the I-5/I-805 interchange and accessible to I-15 and other major local roadways. 

The property is centrally located in the San Diego region with easy access to surrounding business centers, public transportation, and residential communities. 

 Shorenstein acquired the property in 2018 and increased occupancy to 98%. Over the last few years, the property underwent significant upgrades including state-of-the-art tenant improvements, updates to the common areas, a fully renovated open-air plaza, an upgraded fitness center, conference spaces, training center and collaborative meeting areas.

Sorrento Mesa submarket

 The Sorrento Mesa office market in particular is well-positioned for ongoing growth thanks to significant barriers to entry, according to Tim Helgeson, asset manager for Sorrento Towers and senior vice president of KBS.

 “Soaring demand, limited supply, and increasing conversions from office to life science are causing office vacancy rates in Sorrento Mesa to drop significantly,” says Helgeson. 

“In fact, from Q4 2020 to Q1 2021, Class A office inventory in this submarket experienced a 3.5% reduction in direct office vacancy due solely to life science conversions. This makes best-in-class assets like Sorrento Towers increasingly in demand among office users in the market.”

University Town Center, metro San Diego, CA

“Sorrento Towers is a high-quality asset in a thriving tech submarket in one of the most coveted regions in the country,” says Helgeson. “Office tenants in the San Diego market are eager to occupy space at properties like Sorrento Towers that have so much to offer.”

 Kevin Shannon, co-head of U.S. capital markets, Brunson Howard, executive managing director and Ken White, executive managing director at Newmark brokered the sales transaction.

 “KBS has once again demonstrated its deep expertise in recognizing markets with solid fundamentals and acquiring assets in those markets that are positioned for strong performance,” says Shannon.

 

Attorneys Bruce Fischer, Tatyana Litovsky, Christine Fan and Howard Chu, and paralegal Amanda Kennedy, of global law firm Greenberg Traurig, LLP’s Orange County office represented PRIME as legal counsel in the acquisition.

 “We were very pleased to represent KBS in this significant strategic transaction,” says Fischer, Greenberg Traurig’s Chair of the West Coast Real Estate Practice and Co-Managing Shareholder of the Orange County office, who led the Greenberg Traurig team and represented KBS.

 Sorrento Towers is located at 5355 and 5375 Mira Sorrento Place in San Diego, California.

 CONTACT:

 Katie Haga · Account Manager

O 949 438 6262 

Brower Group, Inc. 
The Smart Agency® for Smart Clients who want Smart Work 
220 Newport Center Drive, Suite 22 · Newport Beach, CA 92660

  www.kbs.com.

Email · Website · Facebook · Twitter · Instagram

 

 

Saturday, July 31, 2021

Stos Partners Turns $48 Million in Investments into Nearly $83 Million in Sales

SOLD: 228,912 square-foot industrial
 asset at
 42301 Zevo Drive in the Inland
Empire submarket 
of Temecula, Ca 

 CJ Stos
 Temecula, CA – Stos Partners, one of the most active commercial real estate investment and management firms in Southern California, has announced the $40.75 million sale of a 228,912 square-foot industrial asset in the Inland Empire submarket of Temecula, California, bringing its total sale volume for the month of July 2021 to $82 million.

 “Our two most recent sales demonstrate the magnitude of value creation that is possible in the current market with the right industrial investment strategy,” says CJ Stos, Principal at Stos Partners.

 “We were able to successfully turn $50 million in investments into $82 million in sales within an 18-month ownership period.

 "This reflects the strength of our investment platform as well as the ever-increasing institutional appetite for well-positioned, well-located industrial product.”

Darla Longo


 Stos’ most recent sale in Temecula was to a San Diego-based private institution. Stos initially acquired the asset for $28.9 million in April of 2020 and implemented a value-add program through which the firm successfully secured a long-term tenant and ultimately achieved a 41% value increase.

Jason Richards
 “We recognized early on that this asset was located on a path of growth, with a tremendous amount of unrealized value,” says Stos.

  “This sale speaks to our expertise in acquisitions and execution, and to the depth of our broker relationships, through which we were able to identify this asset and complete its strategic lease-up and sale.”

 The firm’s recent transactions also reflect continued demand in the industrial sector, buoyed by strong local fundamentals, as well as emerging and accelerated trends over the past year and a half, notes Jason Richards, Partner at Stos Partners.

 “We are extremely well-capitalized and have an exceptional understanding of these Southern California industrial markets, so we are able to move and act quickly to close deals and execute our business plans when the timing is right,” says Richards.

Barbara Perrier

 According to Jay Boyle, Executive Vice President at Stos Partners: “While many firms hit pause and sidelined early in the pandemic, we had the foresight, confidence, and expertise to forge ahead.

 Jay Boyle
 "Because of this, we were able to create rapid value for our partners and investors, and ultimately achieve these respective 123% and 41% value increases in a relatively short hold period.

 "These fundamentals bode well for the future, as we continue to actively acquire well-located industrial and office properties throughout Southern California and Texas.”

 The firm’s most recently sold property is located at 42301 Zevo Drive in Temecula, California.

 Darla Longo, Barbara Perrier, Louay Alsadek and Hunter Rowe with CBRE represented the buyer.

Louay Alsadek
Bob Willingham with Kidder Matthews and Scott Stewart with Lee & Associates represented Stos Partners as the seller in this transaction.

About Stos Partners

Stos Partners is a privately held commercial real estate investment and management firm that invests in real estate directly and in partnership with high net worth and institutional investors. 

Hunter Rowe
With a track record spanning over one billion in transactions to date, the firm targets the most competitive risk-adjusted returns in the marketplace through opportunistic acquisitions, strategic redevelopment, and ground-up development of both institutional and small-to-mid-cap commercial properties.

        Bob Willingham 


 



CONTACTS:

           

  Katie Haga / Elisabeth Manville

Brower Group

(949) 438-6262

khaga@brower-group.com  

 

www.stospartners.com.

 

 

Hold-Thyssen Negotiates $7 Million Sale of High-Profile Winter Springs, FL Office Building

Nicholas B. O’Shea 

 WINTER SPRINGS, FL  --- Hold-Thyssen, Inc., a full service commercial property firm based in Winter Park, recently closed on the sale of Vistawilla Office Center built in 2006 at 1511 E. SR 434 at the intersection of State Road 417.   

 

Hold-Thyssen’s Transaction Specialist Nicholas B. O’Shea negotiated the sale representing the seller Vistawilla Office Center , LLC. 

 

The buyer, an Orlando-based investor, paid $7,000,000 for the 39,877 square foot, fully-leased building on a five-acre site. 

 

Noteworthy long-term tenants include The Seminole County-University of Central Florida Business Incubator, leasing 10,000 square feet, Alpha EMC, leasing 9,428 square feet and Snap-On Tools Company, with 3,140 square feet.

 

Hold-Thyssen, Inc. provides commercial property brokerage and leasing and management services to institutional and private investor clients nationwide.  The 40-year old firm’s current portfolio includes more that 100 commercial properties throughout the United States .

 

CONTACTS:

           

Anthony Fisher, Vice President, Hold-Thyssen Inc.,

 407-691-0505, afisher@HoldThyssen.com

 

Robert P. Hold, Principal, Hold-Thyssen, Inc.,

407-691-0505, bhold@HoldThyssen.com

 

Beth Payan, Larry Vershel Communications Inc. 

407-644-4142 Beth@larryvershel.com.

 

 

MLILY commits to 1.25 million SF lease at largest Hines single-building development in Glendale, AZ

Courtney Schneider
 

 GLENDALE, AZ – Globally recognized mattress manufacturer MLILY has committed to a 1.25 million-square-foot lease at Glendale 303 (G303).

 The lease fills a just-completed, 569,520-square-foot industrial building and initiates an expansion of G303 to fulfill the tenant’s larger, single-building lease requirement.

 

Glendale 303, when completed in 2022
in Glendale, AZ, the building 
will become
the largest single-building Hines
 developmentto date in the U.S.

The Class A industrial project is a development of international real estate firm Hines, with funds managed by Oaktree Capital Management L.P. (Oaktree). 

 When completed, G303 will become the largest single-building Hines development to date in the U.S.

 Managing Director Bill Honsaker and Senior Vice President John Lydon from the Phoenix office of JLL represented Hines in the lease transaction.

Bill Honsaker
 

 Payson MacWilliam and Yang Chen of Colliers International represented the tenant. The Southwest Division of Graycor Construction Company serves as the project’s general contractor.

 “The rise of e-commerce that we experienced during the pandemic has created a new, steady level of demand for modern logistics and supply-chain-savvy industrial space, particularly in prime geographic and demographic locations like Phoenix,” said Courtney Schneider, Director at Hines who oversees industrial development for Arizona and Colorado.

 “G303 was designed to meet the needs of a modern industrial user just like MLILY. We are thrilled to welcome them.”

 According to the latest JLL Phoenix industrial market report, the Valley recorded more than five million square feet of positive net absorption during the first two quarters of 2021, marking the 31st and 32nd straight quarters of positive Phoenix industrial absorption dating back to the second quarter of 2013.

Payson MacWilliam

 “Within the Phoenix industrial market, requirements for Class A warehouse and distribution space have been particularly high – easily outpacing demand for any other type of industrial product,” said Honsaker.

 “G303 was in a prime position to capitalize on that trend with a high-quality building that was designed to expand and is strategically located within the Valley’s hottest industrial corridor – at the center of a very young and diverse talent pool.”

Yang Chen 

G303 is located immediately off the Loop 303 freeway between Glendale Avenue and Bethany Home Road. Conceived as a two-phase project, the building was designed with the ability to combine into a larger building for a single, significant user like MLILY.

 “Hines and Oaktree wisely created scalability at G303,” said Todd Ostransky, Graycor Construction Company Vice President of the Southwest Division.

 “That is a very attractive option for a company looking to plant a flag and grow in our immensely popular industrial sector and was the perfect solution for MLILY.”

Todd Ostransky

The newly completed G303 building features 40-foot clear height, 60-foot speed bays, abundant dock-high loading doors and highly functional footprints.

 It features a sleek exterior design, with the ability to accommodate more than 550 cars. The project also includes a basketball court amenity for employees to enjoy during break times.

 Construction on the G303 building expansion will begin during Q4 2021 and complete by Q4 2022.

John Lydon

CONTACT: 

Stacey Hershauer

Phone: +1 480 600 0195               

Email: stacey@focusaz.com

 

www.jll.com.

www.hines.com 

www.graycorconstruction.com

http://www.oaktreecapital.com.