The Deal Sheet
Now’s the time for buy-and-hold, Hager Pacific Properties managing partner Rob Neal tells us. That’s because it’s always the right time, if the deal is good, whether the economy’s getting better or not. (That's a business lesson from romance novels: "If it's love, don't let anything get in your way.")
“Everything we acquire we expect to hold for the long term,” Rob says. (With that kind of patience, don't expect to beat him at a staring contest.) If a deal meets the company’s acquisition criteria, it will close regardless of macroeconomic conditions. Lately Newport Beach-based Hager Properties has been in an accelerated buying mode, spending about $20M to add eight properties to its portfolio in the last three months, including a distribution building in Central LA, an R&D complex in Pasadena, two SoCal land sites near ports, and four multi-tenant industrial buildings in Texas.
The R&D facility is the 68k SF 2900 Bradley St building. The seller, Avery Dennison Corp, used the property as its research center since it was built in 1987. DTZ’s Brian Denton repped Hager Pacific in the deal, and is currently marketing the property. Rob says the facility offers lab space as well as high-clearance warehouse space, offices, and excess land for parking, so he expects it to be absorbed quickly.
SALES
Faris Lee Investments oversaw the completion of a complex JV between New York-based American Realty Capital (ARC) and Irvine-based ValueRock Realty Partners for the ownership of The Commons at Aliso Viejo Town Center. Built in 2004 on 14.5 acres, the 181k SF shopping center in Aliso Viejo is fully occupied by Lowe’s, Michaels, and Tuesday Morning. Faris Lee originally listed property with previous owner CapLease in mid-2013 and attracted multiple offers, none of which were acceptable to the seller. The firm introduced CapLease to ValueRock as a potential JV partner alternative to selling the property. During the negotiations for the new ownership structure, ARC acquired CapLease.
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A newly formed JV between Irvine-based CIP Real Estate and Oaktree Capital Management acquired a 14-building, 703k SF flex industrial portfolio in the Hughes Airport Center in Las Vegas, from a JV between CIP Real Estate and Buchanan Street Partners, which had owned the portfolio since 2006. The deal signifies CIP Real Estate and Oaktree’s long-term commitment to the Las Vegas market, CIP principal Eric Smyth tells us. “We plan to be an active buyer in this market in 2014 and beyond.”
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The Bascom Group acquired the 114-unit Huntington Villas Senior Apartments at 16171 Springdale St in Huntington Beach for $19M from Jubilee Management Co. The property is 95% occupied. George Smith Partners' Gary Mozer and Katie Rodd arranged the debt financing with California Bank and Trust providing the new loan, while Marcus & Millichap's Joe Berkson repped both the buyer and the seller.
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Bixby Land acquired a two-story building at 1501 Quail St in Newport Beach from the Realty Associates Fund VIII LP. Bixby says it will have a total of $16.5M invested in the project following significant renovations scheduled to be completed later this year.
LEASING
Intense Lighting leased 154k SF at 3340 E La Palma Ave in Anaheim in the first industrial deal of 2014 in Orange County larger than 100k SF. Intense Lighting will manufacture and distribute commercial lighting products in the space. JLL’s Zach Niles, Louis Tomaselli, and Steve Wagner repped the landlord, LBA Realty, while the tenant was repped by Chris Coyte of Lee & Associates. More than 60% of the lease deals greater than 100k SF in OC in 2013 were for manufacturing and non-warehouse/distribution uses, according to Zach.
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DRS Sensors and Targeting Systems, a division of DRS Technologies, inked an 11-year lease renewal for more than 91k SF at 10600 Valley View St in Cypress that affords the company the ability to upgrade the facility. The Saywitz Co prez Barry Saywitz repped DRS in the deal, while CBRE’s Brian DeRevere repped the landlord, Warland Investments.
BUSINESS
The Resort at Pelican Hill and The Spa at Pelican Hill have both earned Five Stars in the 56th annual ratings by Forbes Travel Guide, formerly Mobil Travel Guide. Located along the coast in Newport Beach, Pelican Hill remains the first and only five star property in the city, among 97 hotels and resorts worldwide to earn the top Forbes Travel Guide Five Star Award this year.
EXECS IN MOTION
Hughes Marino, a SoCal tenant rep specialist, hired Jeffrey Shepard as principal and SVP. Jeffrey, who will work in the company’s OC office, was previously the chairman of the board and a co-founding partner of Cresa, a firm in the same industry. An industry vet of 25 years, he's managed and negotiated large office and industrial leases, acquisitions and dispositions, and build-to-suit projects, as well as developing about 2M SF of industrial properties.
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Daum Commercial Real Estate Services EVP Rick (RJ) John has been elected the 2014 president of the SIOR, Inland Empire/Orange County Chapter. This is John’s second term as president, having held the position in 1998.
