April 22, 2014 | ISSUE 358

Western Real Estate Business E-Newsletter
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JV Buys Two-Acre Development Site
in San Jose for Apartment Development  
The Pierce will include 232 units and 4,300 square feet of ground-floor retail space.
SAN JOSE, CALIF. -- A joint venture between Sares Regis Group of Northern California and Pritzker Realty Group has acquired a two-acre development site in downtown San Jose for an undisclosed sum. The site will soon be home to The Pierce, a mid-rise, luxury apartment community. 
 
The land is located at 60 Pierce Ave. on Market Street between Pierce Avenue and Reed Street in the city's South First Area district. Demolition of the existing industrial and commercial buildings on the site began April 1. 
 
The Pierce will include 232 units and 4,300 square feet of ground-floor retail space. Steinberg Architects designed the property. The new development is scheduled for occupancy in fall 2015. The project will reportedly cost $70 million.  

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Construction Begins on Elevation
at County Line Station in Englewood 
The $44 million Elevation at County Line Station is situated next to the County Line Road Park-n-Ride.
ENGLEWOOD, COLO. -- Construction is underway at Elevation at County Line Station, a 265-unit apartment community in Englewood. The $44 million, transit-oriented development is situated on eight acres next to the County Line Road Park-n-Ride. It also enjoys close proximity to the light rail station and Park Meadows Mall. 
 
The four-story, four-building luxury apartment community is scheduled for completion this fall. It includes many unique amenities, such as a light rail commuter lounge, roof top clubroom, a "paw spa" (dog wash), an electric car charging station and a bicycle-borrowing program. 
 
Grand Peaks Properties is developing Elevation at County Line Station, which was designed by KTGY. 
 
"Today's renters want the exciting, urban lifestyle and convenience -- and access to public transportation enhances both," says Nathan Sciarra, KTGY's studio director and Elevation's project manager. "Transit-oriented communities like Elevation at County Line Station near shopping, dining, entertainment and employment deliver a higher quality of life for their residents, while being more environmentally and financially sustainable." The facility is located at 6050 West 700 South. 

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CBRE Arranges $32.4M Acquisition Loan for Apartment Complex in Colorado 
Advenir @ Spring Canyon LLC purchased the 292-unit Spring Canyon Apartments. 
COLORADO SPRINGS, COLO. -- CBRE has arranged a $32.4 million loan for the acquisition of the 292-unit Spring Canyon Apartments in Colorado Springs. Advenir @ Spring Canyon LLC purchased the community. It is located at 4510 Spring Canyon Heights. 
 
The seven-year Freddie Mac loan features interest-only payments for one year. Charles Foschini of CBRE's Debt & Structured Finance Group secured the financing. Christian Lee of CBRE's Capital Markets Institutional Group and Christopher Apone of CBRE's Debt & Structured Finance Group assisted in this transaction. 
 
"The Spring Canyon acquisition provided an outstanding opportunity for Advenir to expand its Colorado portfolio," says Foschini. "The quality of the asset and the location and strength of the sponsor made it a natural fit for Freddie Mac. Leveraging the relationship with Freddie and CBRE, the borrower, a preferred Freddie designee, was able to secure extremely competitive terms providing an exceptional return for his investors from day one."

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HFF Arranges $21.2M in Acquisition Financing for Hudson's Bay Centre
Hudson's Bay Centre is located in the Midtown East section of Denver's central business district.
 
DENVER -- HFF has arranged a $21.2 million loan for the acquisition Hudson's Bay Centre, a 172,912-square-foot boutique office building in Denver. The Class A office building was acquired by a joint venture between MDC Realty Advisors USA and Artis REIT. 
 
The property is located at 1600 Stout Street in the Midtown East section of the central business district. It sits adjacent to the 16th Street Mall Shuttle and Stout Station RTD light rail station. The transit-oriented property is currently 96.4 percent leased. 
 
The seven-year loan features a fixed interest rate of 3.76 percent. HFF's Josh Simon and Leon McBroom secured the financing, which was placed through Principal Real Estate Investors.

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Starwood Sells Aloft Tucson University Hotel for $19M
The 154-room Aloft Tucson University Hotel is situated next to the University of Arizona in Tucson.
TUCSON, ARIZ. -- Starwood Hotels & Resorts has sold the 154-room Aloft Tucson University Hotel to Lightstone Value Plus Real Estate Investment Trust II for $19 million. The hotel is located at 1900 E. Speedway Blvd., next to the University of Arizona in Tucson. 
 
The hotel will remain under the Aloft Hotels flag. Island Hospitality Management will manage the property. Lightstone Value Plus is a public, non-traded REIT is sponsored by The Lightstone Group. Bill Murney and Mike Cahill of HREC Investment Advisors represented Starwood in the transaction. 
 
"The Aloft, the newest hotel in the Tucson market, features a premier location next to the University of Arizona campus and Medical School," says Murney. "The Aloft brand is perfect for this location. All in all, a terrific asset for Lightstone and one that will be an excellent performer." 

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Horne Named President of CBRE's Greater Los Angeles Region
Horne oversees eight offices and more than 1,200 CBRE employees in the Greater Los Angeles region.
LOS ANGELES -- Lewis Horne has been named president of CBRE's Greater Los Angeles region. He has overseen the firm's Los Angeles and Orange County regions since 2007. Horne is responsible for eight offices and more than 1,200 employees in the firm's 15 primary business lines and specialty practice groups. 
 
CBRE professionals in the region complete more than 12,000 property sale and lease transactions per year. The firm also manages about 87 million square feet of commercial property in the area. Horne recently oversaw the relocation of CBRE's downtown Los Angeles headquarters to 400 Hope St. 
 
Horne began his commercial real estate career in 1984 as an industrial broker. He is a graduate of the University of Southern California.  

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CBRE Arranges $29M Refinancing Loan
for San Marbeya Apartments in Tempe
San Marbeya apartments features resort-style amenities and high-touch finishes.

TEMPE, ARIZ. -- CBRE has arranged a $29 million loan for the refinancing of the 276-unit San Marbeya Apartments in Tempe. The Class A luxury community is located at 1720 E. Broadway Road near Arizona State University. San Marbeya is owned by The Premiere Residential Communities. 

 

The seven-year loan features a 3.85 percent interest rate. CBRE San Diego's Debt & Structured Finance Group arranged the loan through Cornerstone RE Advisers. 

 

"San Marbeya's resort-style amenities and high-touch finishes would make it a trophy property in most portfolios, but it is right at home in The Premiere's stable of Class A assets," says CBRE's Barry Petro.


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Hanes Leases 36,381-Square-Foot
Distribution Facility in Phoenix
The company plans to use the new facility as a local distribution hub for both Hanes products and its subsidiary, Leggett & Platt.

PHOENIX -- Hanes Cos. has leased a 36,381-square-foot distribution facility in Phoenix. The Class B space is located at 4441 W. Polk Street in the Papago Industrial Park. 

 

The company plans to use the new facility as a local distribution hub for both Hanes products and its subsidiary, Leggett & Platt. 

 

Jerry McCormick, John Werstler and Cooper Fratt of CBRE's Phoenix office represented Hanes in the transaction. Amr Ceran of Lincoln Property Co. represented the landlord, Columbia Industrial Properties West LLC. 


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Construction Employment Continues
to Expand in Many Metro Areas

 

Construction employment expanded in 175 metro areas, declined in 106 and was stagnant in 58 between February 2013 and February 2014, according to a new analysis of federal employment data released this month by the Associated General Contractors of America. Despite the gains, construction employment remained below peak levels in all but 19 metro areas. 

 

Houston-Sugar Land-Baytown, Texas added the largest number of construction jobs in the past year (9,600 jobs, 5 percent), followed by Santa Ana-Anaheim-Irvine, Calif. (8,600 jobs, 12 percent) and Los Angeles-Long Beach-Glendale, Calif. (8,000 jobs, 7 percent). 

 

The largest percentage gains occurred in Monroe, Mich. (65 percent, 1,300 jobs), El Centro, Calif. (32 percent, 600 jobs); Reno-Sparks, Nev. (31 percent, 2,600 jobs) and Pascagoula, Miss. (26 percent, 1,400 jobs). 

 

Greeley, Colo. experienced the largest percentage increase among the 19 cities that hit a new February construction employment high from the prior February peak (17 percent higher than in 2013). Phoenix-Mesa-Glendale experienced the largest drop in total construction employment compared to its prior peak in February 2006 (-83,800 jobs), while Lake Havasu City-Kingman, Ariz. experienced the largest percentage decline compared to its February 2006 peak (-69 percent). 

 

Association officials say the fact that many metro areas were adding new jobs was welcome news for the hard-hit construction industry. But they cautioned that many parts of the United States no longer have robust career and technical education programs that once existed across the country and that many firms already report having a difficult time finding skilled workers. 

 

"During the last four years alone, over 800,000 construction workers have left the profession," say Stephen Sandherr, CEO of the association. "Unless we find a way to prepare the next generation, we are going to get to a point in the near future when there aren't enough workers to meet demand on schedule or on budget." 

 

View construction employment figures by state and rank.  

 

Click here to read the rest of this staff report.


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Commercial Real Estate Conference

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IREM Signature ICON Event

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20th-Annual Golf Tournament

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Expanding Retailers In The Inland Empire

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Nellie Day, Editor
Western Real Estate Business 
France Media Inc.
Main Office: 404-832-8262


nday@francemediainc.com
www.rebusinessonline.com



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