July 17, 2014 | ISSUE 383

Western Real Estate Business E-Newsletter
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Levi's Stadium Celebrates 
Grand Opening in Santa Clara 
The new eco-friendly structure features a green roof with 544 solar panels. It was built to LEED-Gold standards.

SANTA CLARA, CALIF. -- The San Francisco 49ers led the grand opening celebration for their new home, the $1.2 billion Levi's Stadium in Santa Clara. The new 1.8 million-square-foot stadium is located at 4900 Marie P. DeBartolo Way. 


The 68,500-seat stadium will host its first sporting event Saturday,  Aug. 2. The stadium is replacing Candlestick Park in San Francisco as the home of the 49ers. The Bay Area team played at that stadium for the past 43 years. Levi's Stadium will also host the Pac-12 Conference's annual football championship game for at least the next three years. 


Levi's Stadium was built by Turner/Devcon for the Santa Clara Stadium Authority. It was designed by HNTB. 


The new eco-friendly structure features a green roof with 544 solar panels that sits atop the suite tower on the stadium's west side. The site also contains three solar bridges that connect the main parking area to the stadium. These features will allow the stadium to be partially powered by solar energy. The goal, according to energy provider NRG, is to ultimately provide a net-zero energy use. 


The stadium was built to achieve LEED-Gold certification. It is the first stadium in the nation (that is home to a professional football team) to incorporate LEED certification standards into its original design and architecture. 


"The vision for an energy-efficient and visually stunning stadium has been realized," says Paraag Marathe, president of the San Francisco 49ers. "We've never strayed from what we wanted Levi's Stadium to represent, and that is a place to comfortably enjoy exciting sports and entertainment events and a venue that sparks a new view of what sustainability and being environmentally conscious can look like."

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U.S. Equities Realty, CBRE Group Combine Chicago Operations 
Bob Wislow, chairman and CEO of U.S. Equities
LOS ANGELES -- CBRE Group Inc. and U.S. Equities Realty LLC have announced they will combine their Chicago area operations. U.S. Equities Realty leases and manages 17 million square feet of commercial space in Chicago, including the Willis Tower (formerly Sears Tower) and 2.5 million square feet along Michigan Avenue. 
It also has completed real estate transactions with companies such as Winston & Strawn, Boston Consulting Group, IBM, Hinshaw & Culbertson, Ventas, Lurie Children's Hospital, Taft, Stettinus & Hollister, Nike, Verizon Wireless and Crate & Barrel. 
"Throughout our 36-year history, U.S. Equities has aggressively pursued every opportunity to anticipate the changing needs of our clients," says Bob Wislow, chairman and CEO of U.S. Equities.

"CBRE's global platform, along with its extensive service offering and broad expertise, will expand and enhance our ability to serve clients -- in Chicago and around the world -- and to provide additional growth opportunities for our professionals," continues Wislow. "In turn, the development/program management, owner's representation and consulting services we provide will strengthen the services CBRE can provide to its clients. Joining CBRE builds upon our solid foundation of success while enabling us to continue our strong, historic commitment to the city of Chicago and its important civic, professional and cultural institutions." 
Founded in 1978, U.S. Equities offers commercial real estate services including agency leasing, property and facilities management, tenant representation, investment sales, development and project management, owner's representation, sustainability consulting and advisory services. 
The company has been responsible for Chicago-area projects, including the development, renovation, repositioning, management or leasing of buildings such as the Willis Tower, the John Hancock Center, Harold Washington Library, Stroger Hospital, One Financial Place, Comer Children's Hospital and Millennium Park. 
The company's U.S. portfolio includes more than 500 properties across the office, retail, institutional, dormitory and residential sectors. U.S. Equities principals Camille Julmy and Nancy Pacher will join as vice chairmen of CBRE Chicago. Katie Scott and Marty Stern will join CBRE as senior managing directors and Wislow will serve as chairman of CBRE Chicago. 
Together with the other members of U.S. Equities' senior leadership, they will work with Connelly and CBRE's Chicago leadership team. Under the agreement, CBRE has acquired U.S. Equities' United States operations, effective immediately. 
U.S. Equities has approximately 400 professionals in Chicago who will continue to service their clients in the same capacities with the combined firm.
Click here to read the rest of Haisten Willis' story.

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Old Pasadena Collection Mixed-Use Portfolio Trades Hands
The 48-unit Palermo apartment community includes four ground-floor retail suites occupied by a paint-your-own-pottery store, a restaurant and a dance company.

PASADENA, CALIF. -- A private investor has purchased the Old Pasadena Collection, a mixed-use portfolio that contains two residential buildings and two retail buildings, for $42.6 million. 


The two residential buildings contain a total of 91 units at 22 W. Green St. and 65 W. Dayton St. The two freestanding retail buildings are located at 60 and 70 W. Green St. All four of the properties are situated in the historic district of Old Town Pasadena. 


The 48-unit Palermo apartment community was built in 2003. It includes four ground-floor retail suites occupied by a paint-your-own-pottery store, a restaurant and a dance company. 


The 43-unit Messina apartment community was built in 2004. It has one ground-floor retail suite currently occupied by a tutoring and college test preparation business. This space also serves as the leasing office for both the Messina and Palermo. 


The former Green Street retail space is occupied by Design Within Reach, while the latter property is home to Gyu-Kaku, a Japanese barbecue restaurant. Both buildings were constructed with reinforced brick masonry in 1916 and 1921, respectively. Each contains 5,750 square feet of leasable space. 


The seller, a private party, was represented by Ron Harris, Paul Darrow and Michael DiSimone of Institutional Property Advisors. 


"The Old Pasadena Collection is a portfolio of high-quality assets in a market known for its upscale homes, rich cultural history and thriving downtown," says Harris. "The properties' pedestrian-friendly Old Town Pasadena location and proximity to some of the world's most pioneering companies position them well to provide durable cash flow and above-average rent growth."  

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Pearl West Office Building in Portland Receives $41.7M in Financing 

Once completed in early 2016, Pearl West will be the first speculative office building delivered to Portland since the recession.

PORTLAND, ORE. -- Pearl West, the first speculative office building to be built in Portland since the recession, has received $41.7 million in permanent construction financing. The 146,500-square-foot building will be located on Irving Street and NW 14th in the Pearl District. 


The Class A building is scheduled to break ground July 18. It is slated for completion in early 2016. The building has already secured two unnamed tenants. 


Pearl West will be built by BPM Real Estate Group and designed by GBD Architects. Walter C. Bowen of BPM Real Estate Group is the developer, while BDC/NW Irving LLC is the borrower. 


The loan was secured by Ken Griggs and Paddy Ryan of NBS Financial Services. NBS represented the lender, Washington Capital Advisors, a pension fund advisor for labor unions. 


"Funding was provided through various union labor pension funds represented by Washington Capital Advisors," says Griggs. "Washington Capital Advisors recognized Pearl West as a secure investment that will protect and grow union pensions. Another positive for this project is the creation of local union jobs for the city."

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Palisades Capital Realty Advisors Buys 

Brea Office Building for $21M

The 121,143-square-foot office building in Brea is fully leased to companies such as Zodiak Inflight Innovations and Underwriters Laboratories.

BREA, CALIF. -- Palisades Capital Realty Advisors has acquired a 121,143-square-foot office building in Brea for $21 million. The building is located at 2929 E. Imperial Highway. 


The property was built in 1985 and renovated in 2013. The office building is fully leased to companies such as Zodiak Inflight Innovations and Underwriters Laboratories. 


The seller, a joint venture between Rialto Capital and the Koll Co., was represented by Bob Prendergast and Baker Morphy of JLL's capital markets team. 


"We continue to see an uptick in investor interest for stabilized office assets in Orange County and throughout Southern California," says Prendergast. "Investor competition will continue to be heated with very few properties expected to come to market in the next several months."

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Luther Burbank Savings in Santa Rose Names New Chief Lending Officer  

Jason Pendergist, chief lending officer of Luther Burbank Savings.


SANTA ROSA, CALIF. -- Luther Burbank Savings has named Jason Pendergist as its new chief lending officer. Pendergist will oversee all of the bank's commercial and consumer lending functions. 


The 12-year commercial and multifamily lending veteran previously served as managing director and head of the Eastern region for the commercial term lending business at JPMorgan Chase. 


"We are delighted to have Jason join the Luther Burbank Savings senior management team," says John Biggs, Luther's president and CEO. "His industry experience and lending expertise will be a tremendous asset to our organization as we continue to expand our commercial, multifamily and single-family real estate businesses." 


Luther Burbank Savings has 10 California locations, including eight branches and two loan offices. The FDIC-insured, privately held savings association is based in Santa Rosa.

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Schoeller Arca Leases Space at Goodyear Crossing Industrial Park 

Schoeller Arca Systems leased this warehouse and distribution space situated across from its 150,000-square-foot manufacturing facility.

GOODYEAR, ARIZ. -- Schoeller Arca Systems has leased 77,046 square feet of space at Goodyear Crossing Industrial Park. The park is located at 3801 S. Cotton Lane in Goodyear. 


The Netherlands-based plastic injection molding manufacturer leased this warehouse and distribution space because it is situated across from its 150,000-square-foot manufacturing facility. 


Schoeller Arca Systems represented itself in this transaction, while the landlord, Duke Realty, was represented by Pat Feeney, Dan Calihan and Rusty Kennedy of CBRE's Phoenix office. 


"The metropolitan Phoenix industrial market is definitely improving," says Feeney. "We've seen net positive absorption of 2.1 million square feet through the second quarter and 3.7 million square feet year-to-date. The valley is proving an attractive place for major industrial users to locate and expand. This lease is a prime example of that trend. With this transaction, SAS brings its total footprint in metro Phoenix to over 227,046 square feet, which is a sizable investment. Activity is up because companies like SAS recognize the benefits of operating in the Valley."   

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Theranos Leases 200,000 SF 

at Skysong 3 in Scottsdale 

Theranos will be one of the largest tenants at Skysong 3. The project is now more than 80 percent leased.

SCOTTSDALE, ARIZ. -- Theranos has leased a 20,000-square-foot wing at SkySong 3 in Scottsdale. Skysong, the ASU Scottsdale Innovation Center, is located at 1475 N. Scottsdale Road, next to the Arizona State University campus. 


The consumer healthcare technology company will be one of the largest tenants at the project. Skysong 3 is now more than 80 percent leased. 


Theranos was represented by CBRE. Plaza Cos. is the landlord. 


"The Phoenix community's reception to our company has been excellent," says Sunny Balwani, president and COO of Theranos. "Our commitment to innovation will create hundreds of new jobs and positively impact Arizona over the coming months and years. The SkySong center is an ideal fit for our company, and we are excited to be a part of the project."   

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


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