As industrial lease rates climb in Southern California, manufacturers are eyeing commercial real estate south of the border.
Pacific Transformer in Anaheim recently leased a 52,000-square-foot industrial building in Tijuana, just 40 minutes from the border crossing, according to DAUM Commercial.
Terms of the lease in Baja, California, were not disclosed by the brokerage.
PacTran distributes transformers for medical, military and automotive products. The expansion to Mexico should increase its operations capacity by 300%, according to Anthony Bergeman, an executive vice president and principal at DAUM.
Pacific Transformer in Anaheim recently leased a 52,000-square-foot industrial building in Tijuana, just 40 minutes from the border crossing, according to DAUM Commercial. (Courtesy of Arturo Valdes, NAI Mexico)
“Based on ongoing trends related to quality control and time-to-market, compounded by recent severe supply chain disruptions, many U.S.-based firms are shifting a larger percentage of their overseas manufacturing operations to North America, especially to areas that are in close proximity to transportation routes,” Bergeman said.
Bergeman also cited Mexico’s burgeoning STEM program for students, which is putting more skilled workers into the field.
Warehouse tenants in the Southern California region have seen rent rates climb precipitously as demand for e-commerce and soared during the pandemic. The Inland Empire is on track to experience some of the nation’s steepest rent increases, according to a study by CBRE, which tracked five-year, triple-net leases. The brokerage is estimating Inland warehouse rents will climb to $10.92 per square foot from $6.75, the third-highest increase in the U.S.
In Orange and Los Angeles counties, rents are expected to rise 46.6% and 33%, respectively, according to CBRE.
A 32-unit apartment property on Ball Road in Anaheim has been sold to an unidentified, local family trust for $8.65 million, according to CBRE. The complex at 1569-1585 W. Ball Road was built in 1960 and includes renovated one- and two-bedroom units. (Courtesy of CBRE)
Anaheim apartment complex sells for $8.65M
CBRE announced the sale of
A 32-unit apartment property on Ball Road in Anaheim has been sold to an unidentified, local family trust for $8.65 million, according to CBRE.
The complex at 1569-1585 W. Ball Road was built in 1960 and includes renovated one- and two-bedroom units.
CBRE’s Dan Blackwell and Sean Farag represented the seller, an unidentified family LLC.
“Demand for well-located, high-quality apartment buildings continues to soar,” said Blackwell. “We generated multiple offers and were able to go non-contingent on the first day.”
Land and Houses U.S.A. has bought the 120-room Springhill Suites Anaheim Maingate hotel in Anaheim from Anaheim Resort Hotel LLC. Terms of the deal were not disclosed. Rod Apodaca at RJA Hotels brokered the deal. (Courtesy of RJA Hotels)
Anaheim’s Springhill hotel sells
Land and Houses U.S.A. has bought the 120-room Springhill Suites Anaheim Maingate hotel in Anaheim from Anaheim Resort Hotel LLC.
Terms of the deal were not disclosed. Rod Apodaca at RJA Hotels brokered the deal.
The buyer has hired Twenty Four Seven Hotels to manage the hotel.
King Van & Storage has signed a lease for the entire 58,400-square-foot industrial building at 888 W. Crowther Avenue in Placentia, according to JLL. (Courtesy of JLL)
King Van leases in Placentia
King Van & Storage has signed a lease for the entire 58,400-square-foot industrial building at 888 W. Crowther Avenue in Placentia, according to JLL.
Terms of the lease were not disclosed.
King Van will use the space for its moving business, according to JLL.
JLL’s Garrett McClelland represented the landlord, Staley Point Capital. King Van & Storage was represented by CBRE.
Staley Point bought the vacant building in August 2021 for $15 million and made improvements before leasing it.
Newport Beach-based Waterford Property Co., in a partnership with California Statewide Community Development Authority, bought 777 Place, a 472-unit complex in Pomona for $149.4 million. The seller was Picerne Residential. (Courtesy of Waterford Property Co.)
Waterford buys apartments in Pomona
Newport Beach-based Waterford Property Co. has bought another apartment complex it will convert to workforce housing.
The company, in a partnership with California Statewide Community Development Authority, bought 777 Place, a 472-unit complex in Pomona for $149.4 million. The seller was Picerne Residential.
Waterford said it and CSCDA will invest $18 million to improve units.
“Upon taking ownership we are going to immediately lower rents 11% below current market rents on the market rate units … This will be a substantial amount of savings for families, students, and essential workers in Pomona,” said John Drachman, co-founder, Waterford Property Co.
Read more: How a workforce rent program aims to plug ‘missing middle’ affordable housing gap
The investment company has bought a number of high-dollar apartment complexes in recent months. The partnership has acquired three complexes in Anaheim and two in Orange. It also bought Westgate Apartments, a 480-unit complex in Pasadena for $280 million.
Newport Beach-based Buchanan Street Partners has sold a 298-unit multifamily community in Herriman, Utah, to an unidentified Southern California-based buyer. (Courtesy of Buchanan Street Partners)
Buchanan sells complex in Utah
Newport Beach-based Buchanan Street Partners has sold a 298-unit multifamily community in Herriman, Utah, to an unidentified Southern California-based buyer.
Terms of the sale of Incline at Anthem were not disclosed by the investment firm.
Located 15 minutes from Salt Lake City, the 298-unit complex includes 214 one-bedroom units and 84 two-bedroom units and was nearly fully occupied at the time of sale.
3 firms buy ‘toy’ storage in Florida
Three investment firms in Newport Beach have bought Adult Toy Storage, a 55-acre recreational vehicle and boat storage facility in Altamonte Springs, Fla.
Terms of the sale to RanchHarbor, Ramser Development Co. and Saunders Property Co. were not disclosed.
The property is being rebranded as RV Storage Depot.
Neal Gussis of CCM Commercial Mortgage and Josh Koerner and Frost Weaver of Weaver Realty Group represented the buyer and seller.
Buchanan Street Partners in Newport Beach has bought a 387-unit apartment complex in Fort Worth, Texas from StoneHawk Capital Partners. Terms of the sale of The Jameson at the Bluffs were not provided by the firm. (Courtesy of Buchanan Street Partners)
Buchanan buys complex in Texas
Buchanan Street Partners in Newport Beach has bought a 387-unit apartment complex in Fort Worth, Texas from StoneHawk Capital Partners.
Terms of the sale of The Jameson at the Bluffs were not provided by the firm.
The deal is Buchanan’s fourth multifamily acquisition in the Dallas-Fort Worth area in the last 12 months. The firm said it plans to expand its footprint in the DFW region over the coming years.
The apartment complex was nearly fully occupied at the time of sale.
CPP completes Arizona properties
Community Preservation Partners, an Irvine-based affordable housing preservation company, has completed its first of three communities in Arizona: Buckeye Villa in Buckeye, Morningside Villa in Phoenix and Tempe Villa in Tempe.
CPP said it acquired the Section 8 properties in February for $30 million, bringing them into a low-income housing tax credit program, which will expand affordability for another 20 years.
The Irvine firm spent $51 million in development costs to complete extensive renovations on the units. All 170 apartments at the three properties got interior and exterior upgrades. CPP also upgraded overall site accessibility including accessible laundry equipment.
Partners include Foundation for Affordable Housing, Greystone, WNC, Arizona Department of Housing, Ware Malcomb, MFRG-ICON, Step Builder and MEB Management.
A new name for Brower Group
The commercial real estate and finance communications firm Brower Group has changed hands and now is called The Smart Agency.
Based in Newport Beach with operations across the U.S., the agency exists to advance commercial real estate and finance through effective communications.
“There is a clear need for more intentional communications throughout the real estate investment industry,” says Jenn Quader, President and CEO of The Smart Agency. “Today’s businesses have major problems to solve and must execute at a faster pace than ever before. This makes the need for professional communications led by subject matter experts more critical than ever.”
Originally founded in 1994 by nationally recognized PR expert Judy Brower Fancher, The Smart Agency understood the need to plan for its succession early on. The firm’s evolution has been a decade in the making, evolving from Brower, Miller & Cole to Brower Group in 2018, and launching as The Smart Agency in 2021.
From left to right: Louis Rogers, founder & CEO of Capital Square, Bhriza Camacho, closing facilitator, Mark Mercado, vice president, Private Offerings, Irene Duarte, closing associate and James Brunger, executive vice president of National Sales. (Courtesy of Capital Square Newport Beach)
Virginia firm expands to NB
Capital Square, a Virginia-based real estate firm specializing in tax-advantaged investments, has opened an office in Newport Beach.
Capital Square provides a range of services including due diligence, acquisition, loan sourcing, property/asset management and disposition for high-net-worth investors, private equity firms, family offices and institutional investors looking to complete 1031 exchanges.
Real estate transactions, leases and new projects, industry hires, new ventures and upcoming events are compiled from press releases by contributing writer Karen Levin. Submit items and high-resolution photos via email to Business Editor Samantha Gowen at [email protected]. Please allow at least a week for publication. All items are subject to editing for clarity and length.