www.REBusinessOnline.com October 2018 • Volume 16, Issue 2

THE PORT OF SAN DIEGO PULLS IN NEW OPPORTUNITIES The Port of San Diego has taken back ownership of Seaport Village, providing new opportunities on the San Diego bayfront. By Nellie Day

Giving the development a “reason to exist” — whether it be historical, futuristic, fantastical or cultural — and applying this principle throughout a redevelopment’s entire design process can simulate an immersive theme-park-esque world. REINVENTING THE DEAD MALL Integrating entertainment and adding mixed uses are two ways to reinvigorate a flailing mall. Seaport San Diego developer 1HWY1 anticipates this new project will be a mixed-use By Bill Coan program that may contain such programmatic components as hotels, restaurants, retail and attractions. he downward spiral of brick- The most common plan for West- Tand-mortar retail and the grow- ern commercial real estate developers ing number of dead malls offer has been transforming these proper- he Port of San Diego has a new are very clear on their vision for Sea- real estate developers a unique op- ties into mixed-use centers and/or Trole. Now that the 40-year port Village during the four- to six- portunity to reinvent the vast shop- integrating themed entertainment ground lease with TRC (former- year interim period before the project ping center wastelands. These empty elements. This method of breath- ly Terramar) for Seaport Village has is ultimately redeveloped. and closed properties have key ad- ing new life into dead malls through ended, the self-supporting public- “We want locals, visitors and ten- vantages, including strategic loca- multifaceted entertainment enhances benefit corporation has stepped into ants to understand that Seaport Vil- tions, existing infrastructure, trans- property marketability, increases foot the shoes of “owner.” The port and its lage is and will be open as a vibrant portation stops and large parking traffic and drives additional revenue officials are tasked with looking after and prosperous destination for sever- lots, which make them seem like wor- streams. For example, the Sherman the 14-acre shopping, dining and en- al more years,” says Penny Maus, de- thy investments. However, attempt- Oaks Galleria in Los Angeles — fea- tertainment complex on behalf of the partment manager of real estate and ing to reinvent dead malls can often tured in films like “Back to the Future public. Though the port only regained business development for the Port of be a real estate developers’ biggest Part II” and “Terminator II” — was control of the site on Oct. 1, officials see SAN DIEGO, page 53 trap. You must know your audience. see MALLS, page 54 INSIDE THIS ISSUE Economic Development Spotlight: Socal, the Southwest are Primed for More Development page 34

Colorado Brick-and-Mortar Retail Can Three Trends Impacting Market Highlight Survive…and Here’s How Industrial Real Estate page 24 page 46 page 47 THE BEST IN THE WEST NKF Capital Markets ranked #1 retail investment firm in the West* for first half 2018.

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PETE BETHEA BILL BAUMAN NICHOLAS BICARDO BILLY SLEETH T +1 858 875 3630 T +1 213 298 3593 T +1 415 445 5172 T +1 206 518 9567 [email protected] [email protected] [email protected] [email protected] CA RE Lic #00922535 CA RE Lic #00969493 CA RE Lic #01380524

ROB IPPOLITO KYLE MILLER BRANDON ROGOFF PAUL SLEETH T +1 858 875 5925 T +1 213 298 3597 T +1 415 445 5163 T +1 206 518 9547 [email protected] [email protected] [email protected] [email protected] CA RE Lic #01242854 CA RE Lic #01716644 CA RE Lic #01949914

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GLENN RUDY CJ OSBRINK T +1 949 608 2014 T +1 602 952 3841 [email protected] [email protected] CA RE LIc #1412484 AZ RE Lic #BR672532000 CA RE Lic #01900338

GREG MAY PHIL BRODKIN CHUCK SEUFFERLEIN EVP, Regional Managing Director EVP, Managing Director President, Northwest Orange County Los Angeles San Francisco +1 949 608 2101 +1 213 596 2270 +1 408 982 8406 [email protected] [email protected] [email protected]

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© Copyright 2018 Opus Bank, All rights reserved. OpusBank.com/LetsDoThis PUBLISHERS’ NOTE October 2018 • Volume 16, Issue 2 DEVELOPING A REPUTATION There are a few reminders through- out this issue that we are now 10 years removed from the Lehman Brothers col- lapse, noted as the unofficial start of the Great Recession. The following few years FRANCE MEDIA, INC. Western Real Estate Business (ISSN were a period of great trials and tribula- Jerry France ...... Chairman & CEO/Publisher 1547–965X) is published monthly by tions for global companies to individuals Scott France ...... President/Co-Publisher France Publications, Inc., d/b/a France alike. Michael Jacobs...... Chief Financial Officer Media, Inc. Editorial and advertising While not every business and person Jaime Lackey...... Vice President, Marketing offices are located at Two Securities emerged unscathed, our industry and the & Digital Strategy Centre, 3500 Piedmont Rd., Suite 415, professionals in it have gained a knowl- Randall Shearin...... Senior Vice President, Atlanta, GA 30305. Telephone (404) edge and perspective that will hopefully Editorial & Operations 832-8262, facsimile (404) 832-8260. Jerry France Scott France mitigate some of the negative aspects that Chairman & CEO/ President/ E-mail: [email protected]. come with an inevitable downturn. But Publisher Co-Publisher EDITORIAL POSTMASTER: Send address changes that was 10 years ago… Matt Valley...... Editorial Director, Real Estate Regionals to: Western Real Estate Business, P.O. Box Today, development is absolutely thriv- ter and the development of SteelCraft, an Nellie Day...... Editor 47065, Plymouth, MN 55447-0065. ing in nearly every region out West. We outdoor food court in repurposed ship- Amy Bigley Works ...... Associate Editor Western Real Estate Business is know this because we sat down with some ping containers, which will debut in their John Nelson...... Assistant Editor a registered trademark of France of the region’s top economic development respective cities soon. Meanwhile, Indio Julie Hunt ...... Graphic Designer Publications, Inc. Periodicals postage teams. They were chalked full of so much and Peoria are hard at work cementing paid at Atlanta GA, and additional activity that we couldn’t possibly fit all their identities with bustling downtowns ADVERTISING mailing offices. Subscription rates: USA 1 their projects into this already hefty story. and business-friendly development zones. Scott France ...... Co-Publisher year $67; 2 years: $116. Single copies are Industrial activity is booming in the High Just as development has changes, so, Robin Reimold...... Media Advisor $10.00. For subscriber services, including Desert, where Moreno Valley recently ap- too, has marketing. It’s not a subject we Craig McIntosh...... Media Advisor change of address or subscriptions, proved the World Logistics Center, the touch on often, but technology is so preva- Ryan Nixon ...... Media Advisor please email [email protected] or largest corporate industrial park in Cali- lent in all aspects of our industry that we Barbara Sherer ...... Media Advisor call (800) 869-6882. fornia’s history, while Apple Valley is set wanted to make sure you were up to date ©2018 France Publications, Inc. For to receive the Big Lots Distribution Center, on the latest innovative marketing strate- INTERFACE CONFERENCE GROUP reprints or to photocopy articles, please the largest facility of its kind in the High gies that will usher your business into the Richard Kelley...... Senior Vice President contact Barbara Sherer, manager of Desert. digital age. Alicia Lewis...... Conference Manager special advertising at (404) 832-8262. Henderson is preparing for the Las Ve- We were pleasantly surprised to see just The opinions and statements made by gas Raiders as the city will be home to its how busy developers, city officials and con- ADMINISTRATION $75 million corporate office and training tractors have been out West, and we think authors, contributors and advertisers field. Burbank and Bellflower are focused you will be, too. If you have a project you Teresa Hennington...... Office Manager to Western Real Estate Business are not on attracting more visitors with the $60 think we should be covering, be sure to tell Jim Clark...... Advertising Traffic necessarily those of the editors and million renovation of Burbank Town Cen- us about it at [email protected]. Vally Smith...... Circulation Assistant publishers.

is centrally located in the heart of Southern California and is less than an hour to everything SoCal has to offer including beaches, mountains, theme parks, Downtown LA and Hollywood, desert playgrounds and more.

With 177,000 residents and growing, Ontario will nearly double its population over the next 30 years, making it a top destination for shoppers and retailers in Southern California.

4 • October 2018 • Western Real Estate Business www.REBusinessOnline.com

FINANCE FINANCIAL SCOREBOARD Loans Recently Closed For Western Properties

LOCATION PROPERTY CLASS SIZE AMOUNT LENDER ARRANGED BY (CITY, STATE)

CopperWynd Resort Hospitality Scottsdale, Ariz. 177 units $53 million HALL Structured Finance George Smith Partners

Undisclosed life insurance Eastlake Of‚ce Building Of‚ce Seattle 80,365 SF $27 million Newmark lender

Ready Capital Structured Undisclosed Mulitfamily Peoria, Ariz. 153 units $21.5 million Undisclosed Finance

129,550 SF Industrial KeyBank Real Estate De Soto Industrial Industrial Los Angeles $17 million Undisclosed 21,280 SF Of‚ce Capital

Latitude 33 Mulitfamily Palm Springs, Calif. 121 units $10.8 million Undisclosed Walker & Dunlop

Bailey Court Townhomes Mulitfamily Lynnwood, Wash. 26 units $5.3 million Freddie Mac Hunt Real Estate Capital

BeeHive Homes Assisted living Millcreek, Utah 44 beds total $5 million Live Oak Bank Hunt Real Estate Capital (two properties)

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6 • October 2018 • Western Real Estate Business www.REBusinessOnline.com CALIFORNIA MAJESTIC ASSET CIM GROUP DELIVERS AMAZON OPENS 85,000 SF MANAGEMENT BUYS FLEX 525-UNIT APARTMENT TOWER OFFICE EXPANSION ASSET FOR $16.5 MILLION LOS ANGELES — CIM Group has com- SAN DIEGO — Amazon has opened GOLETA, CALIF. — Majestic Asset pleted the construction of 888 at Grand an 85,000-square-foot office within Management has acquired a flex in- Hope Park, a 34-story apartment tower Alexandria Real Estate Equities’ Cam- dustrial/office park, located at 839- located at 888 S. Hope Street in Down- pus Pointe, located in the University 879 Ward Drive in Goleta, for $16.5 town Los Angeles. The property fea- Town Center neighborhood of San million. The buyer plans to improve tures 525 apartment units, 6,000 square Diego. The new space will house the and reposition the 124,754-square- feet of ground-floor retail space and a company’s expanded San Diego Tech foot asset to include the warehouse, Majestic Asset Management plans to public park. Additionally, the apart- Hub, which will include 300 new R&D and office space. Consisting of improve and reposition the three-building ment tower features a 30,000-square- high-tech jobs in fields in the soft- three buildings situated on 5.6 acres, flex park located at 839-879 Ward Drive foot rooftop deck with thousands of ware development, machine learning, the property was vacated in 2016 by in Goleta. plants and more than 132 trees; an in- cloud computing and digital enter- Channel Industries, which had oc- door lounge; and a large outdoor ter- tainment. Amazon’s San Diego Tech cupied the site since its original con- race. The tower is adjacent to a seven- Hub is one of 17 Tech Hubs outside of struction in the 1960s. Recent leases by HINES SELLS 345,775 SF story, 650-stall parking structure and a Seattle that employ more than 17,500 Gavial Holdings, Sonatech and Reac- OFFICE PORTFOLIO 5,000-square-foot Petco. people across North America who tion35 have backfilled a portion of the SACRAMENTO, CALIF. — Hines has invent and build new products and property, with about half of the rent- completed the sale of Point West, a DEALPOINT MERRILL services for Amazon customers. Em- able space remaining vacant. Francois three-building office portfolio located NEGOTIATES SALE OF ployees at the San Diego Tech Hub DeJohn, Steve Hayes and Liam Mur- in Sacramento. Basin Street Properties 109,098 SF CENTER develop software systems for Ama- phy of Hayes Commercial represent- acquired the asset for an undisclosed SACRAMENTO, CALIF. — DealPoint zonFresh, Prime Now, Amazon Web ed the undisclosed seller and buyer in price. Totaling 345,775 square feet, the Merrill has arranged the sale of El- Services and supply chain tech. The the deal. properties are located at 1545 River verta Crossing I, a shopping center software will also help prevent fraud Park Drive, 1601 Response Road and located adjacent to Antelope Greens and abuse on Amazon. Additionally, FARIS LEE BROKERS 1610 Arden Way. At the time of sale, Golf Course in Sacramento’s Antelope San Diego-based engineers and sci- $3.9 MILLION SALE OF the portfolio was 78 percent occupied submarket. The property features entists recently played a key role in IHOP-OCCUPIED PROPERTY by a diverse tenant base, including 109,098 square feet of retail space. Da- the launch of Whole Foods Market PALM SPRINGS, CALIF. — Faris Lee UBS, GSA, WestAmerica Bank and vid Frank of DealPoint negotiated the pickup and delivery via Prime Now, Investments has arranged the sale Covered CA. Grant Lammersen, Steve transaction, while Sterling McGregor, Alexa features for grocery shopping, of a restaurant property located in Golubchik, Edmund Najera and Tyler also of DealPoint, handled the due and data-drive and machine-learning Palm Springs. An undisclosed buyer Meyerdirk of NKF Capital Markets diligence for the sale. The acquisition innovations. acquired the asset for $3.9 million. represented the seller in the deal. was completed by DealPoint’s Jason IHOP occupies the 4,600-square-foot Limbert. freestanding building on a triple-net MCCLELLAN PARK BREAKS lease. The restaurant has occupied the GROUND ON 417,000 SF building for more than 26 years, with DISTRIBUTION WAREHOUSE a recent 10-year lease extension. Nick SACRAMENTO, CALIF. — McClellan Coo, Matt Brooks, Tom Chichester Business Park LLC has broken ground and Joe Chichester of Faris Lee rep- on McClellan Distribution Center, a resented the undisclosed seller in the speculative warehouse facility located deal. at 2400 McClellan Park Drive in Sacra- mento. Slated for completion in mid- ROSS DRESS FOR LESS 2019, the 417,214-square-foot Class TO OPEN THREE NEW STORES A property will be divisible and able GLENDALE, SOUTH LOS ANGELES to accommodate up to 22,000 square AND SANTA FE SPRINGS, CALIF. — feet of customizable office space. -Ad Ross Dress for Less is slated to open ditionally, the property will feature three stores in downtown Glendale, cross-dock loading with 135-foot truck South Los Angeles and Santa Fe courts, 95 dock doors, four grade-lev- Springs in October. The 27,000-square- el doors, 36-foot clear heights, 50-foot foot Glendale store is located in the by 54-foot column spacing, rail spur Glendale Marketplace at the corner potential (Union Pacific Railroad and of North Brand Boulevard and East BNSF Railway) and ESFR sprinklers. Broadway; the 30,000-square-foot The property is being constructed on South Los Angeles location is in the 22.9 acres on McClellan Park’s west Vermont-Slauson shopping center at side industrial district. McClellan Park the corner of South Vermont Avenue LLC has more than 500 acres of devel- and West Slauson Avenue; and the opable land in this specific district and 23,000-square-foot Santa Fe Springs is entitled to construct more than 5 store is located in Gateway Plaza at million square feet of industrial space. the corner of Telegraph Road and Car- Since the official closure of McClellan menita Road. With these new open- Air Force Base in 2001, the privatized ings, Ross will operate 300 stores in McClellan Park has grown to include California for a total of 1,459 locations. a mix of companies that span its 8.5 Together, Ross Dress for Less and dd’s million square feet of leasable space Discounts currently operate nearly and 500 acres of developable land. A 1,700 off-price apparel and home fash- total of $580 million has been invested ion stores is 38 states, the District of across the project in infrastructure and Columbia and Guam. In late August, building improvements. The project Ross Stores, the parent company of includes a mix of residential, office, Ross Dress for Less, signed a lease warehouse, event venue, retail and for 1 million square feet of industrial restaurant space, as well as Sacramen- space at 4100 Express Ave. in Shafter, to McClellan Airport. Calif. www.REBusinessOnline.com Western Real Estate Business • October 2018 • 7 CALIFORNIA KELEMEN CO. PURCHASES CHELSEA PACIFIC GROUP BUCHANAN STREET PROVIDES THE ATRIUM OFFICE PROPERTY ACQUIRES MARIN SQUARE $4.1 MILLION LOAN FOR FOR $106.7 MILLION MIXED-USE PROPERTY APARTMENT COMPLEX IRVINE, CALIF. — Kelemen Co. has SAN RAFAEL, CALIF. — Chelsea Pa- LOS ANGELES — Newport Beach, purchased The Atrium, an office cific Group has purchased Marin Calif.-based Buchanan Street Partners property located at 19100 and 19200 Square, a retail, office and commercial has provided $4.1 million in short- Von Karman Ave. in Irvine. Barings property located at 75 Bellam Blvd. in term bridge financing for the acqui- Real Estate, part of Barings LLC and San Rafael. Tiburon, Calif.-based Sut- sition and repositioning of Pacific acting on behalf of institutional inves- ter Health sold the property. Situated Apartments, a multifamily property tors, sold the building for $106.7 mil- on 11.3 acres, Marin Square was devel- located in the Mar Vista neighbor- lion. Kevin Shannon, Paul Jones, Ken oped in 1984 as a neighborhood shop- hood of Los Angeles. The borrower White, Brunson Howard and Blake ping center. The property was later plans to renovate and reposition the Bokosky of NKF Capital Markets rep- Located at 19100 and 19200 Von expanded to include an office and 13-unit property, which was vacant at resented the seller, while the buyer Karman Ave. in Irvine, The Atrium multi-tenant commercial component. the time of sale. Renovations will in- was self-represented in the transac- features 302,877 square feet of Dan Wald, Don LeBuhn and Trevor clude all new kitchens, plank flooring, tion. Situated on 6.1 acres, the 10-sto- office space. Buck of Cushman & Wakefield repre- modern lighting, energy-efficient air ry building was constructed in 1986 sented the seller, while the buyer was conditioning, landscaping, paint and and underwent an extensive renova- self-represented in the transaction. façade improvements. Additionally, tion in 2015. The $5.3 million capital BENDERSON DEVELOPMENT the borrower plans to add more rental improvement program included up- BUYS VACANT RETAIL LEVIN JOHNSTON NEGOTIATES units to the property. grades to the atrium lobby, common PROPERTY IN BAY AREA $3.4 MILLION SALE areas, exterior courtyards, restrooms, FOR $15.6 MILLION OF WAREHOUSE HANLEY INVESTMENT GROUP elevator cabs and lobbies. At the time EMERYVILLE, CALIF. — Benderson SAN JOSE, CALIF. — Levin Johnston of BROKERS $23 MILLION SALE of sale, the 302,877-square-foot prop- Development has acquired a retail Marcus & Millichap has arranged the OF RETAIL BUILDING erty was 90 percent leased to a variety property located at 3938 Horton Street sale of a vacant industrial/flex ware- PASADENA, CALIF. — Hanley In- of tenants, including Premier Business in Emeryville, a city between Berkeley house located at 524 E. Brokhaw Road vestment Group Real Estate Advisors Centers and Severson & Werson. The and Oakland, Calif., for $15.6 million. in San Jose. A private local investor sold has arranged the $23 million sale of building features a 10-story atrium Toys ‘R’ Us and Babies ‘R’ Us for- the property to an undisclosed buyer a 39,290-square-foot retail building with interior and exterior balconies, merly occupied the now-vacant prop- for $3.4 million. Adam Levin of Levin in Pasadena. Carlos Lopez and Lee 24/7 security and access, a café and erty. The asset is part of the East Bay Johnston represented the seller in the Csenar of Hanley Investment Group ample surface and structured parking. Bridge Shopping Center, situated at transaction. Situated on 0.73 acres, the arranged the transaction on behalf of Additionally, Bistango, a well-known the convergence of interstates 880, 580 10,000-square-foot facility features 800 the seller, AEGON USA Realty Advi- restaurant, has occupied the ground- and 80/San Francisco – Oakland Bay ampere, 120-240-volt heavy power, on- sors. John Repstad of Realty Advisory floor space since 1988. Bridge. site parking and a fenced yard. Group Inc. represented the buyer, a private investor based in Beverly Hills. The first and second floor of the free- standing building — totaling 27,025 square feet — are triple-net-leased to Walgreens until 2027. Walgreens sub- leased the 14,057-square-foot second floor to Sit ‘n Sleep. The building’s 12,265-square-foot basement space is leased to Premier Dental Care Group. The sale also included a portion of the parking lot behind the property and the use of the adjacent reciprocal park- ing managed by the City of Pasadena. VOIT REAL ESTATE SECURES $33 MILLION LEASE FOR INDUSTRIAL PROPERTY ONTARIO, CALIF. — Voit Real Estate Services has arranged the lease of an industrial warehouse located within Shea Center Ontario, a five-building business park located at 5400 Shea Center Drive in Ontario. The lease is valued at $33 million. Canada-based Dorel Home Furnishings, a global manufacturer and distributor of prod- ucts in the juvenile, sports and home furnishings sectors, will occupy the 750,000-square-foot space and utilize it as a distribution center for the com- pany’s home furnishings division. Aliso Viejo, Calif.-based Shea Proper- ties owns the business park, which is fully occupied. Other tenants include Emser Tile, Restoration Hardware and Neovia Logistics. Frank Geraci, Juan Gutierrez and Adam Geiger of Voit’s Inland Empire office represented the landlord, while Chuck Belden and Kyle Kehner of Cushman & Wakefield represented the tenant. 8 • October 2018 • Western Real Estate Business www.REBusinessOnline.com INVESTED IN THE WEST, Invested in you.

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Commercial mortgage loan banking and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. This advertisement is not intended to solicit commercial mortgage loan brokerage business in Nevada. Investment sales / real estate brokerage business is conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. In California, Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701, Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116, and Berkadia Real Estate Advisors Inc. under CA Real Estate Broker Lic. #01931050. For state licensing details for the above entities, visit: http://www.berkadia.com/legal/licensing.aspx © 2018 Berkadia Proprietary Holding LLC. Berkadia® is a registered trademark of Berkadia Proprietary Holding LLC. CALIFORNIA REALTY ADVISORY GROUP SAN FRANCISCO GIANTS BROKERS SALE OF 78,600 SF SELECTS PARTNER INDUSTRIAL ASSET IN SAN FOR 28-ACRE WATERFRONT GABRIEL VALLEY MIXED-USE DEVELOPMENT CITY OF INDUSTRY, CALIF. — Realty SAN FRANCISCO — The San Francis- Advisory Group has arranged the sale co Giants has selected Tishman Speyer of an industrial property located at as its joint venture partner to develop 15250 Don Julian Road in City of In- Mission Rock, a waterfront mixed- dustry. Cordia Capital Management use neighborhood near AT&T Park acquired the 78,600-square-foot prop- in San Francisco. The development erty for an undisclosed price. Situated is a public-private partnership with on 3.8 acres, the facility features 25- to the Port of San Francisco and the City 29-foot ceiling heights, seven dock- and County of San Francisco. Serv- height positions and future divisibil- ing as the centerpiece of the emerg- ity. At the time of sale, Golden West ing Central Waterfront neighborhood, Packaging Group fully occupied the Mission Rock will span 28 acres and property. Mark and John Repstad of feature about 1,400 residential rental Realty Advisory Group represented units, with 40 percent affordable to the undisclosed seller and the buyer low- and moderate-income families; Situated along San Francisco’s waterfront, Mission Rock will feature 250,000 square in the transaction. eight acres of parks and open space, feet of neighborhood-serving retail and local manufacturing space. including a waterfront park; up to

COMMERCIAL REAL ESTATE DEBT, EQUITY & SERVICING 1.4 million square feet of office space; heights, private terraces, an urban 250,000 square feet of retail and lo- plaza and is built to LEED Silver stan- cal manufacturing space; a parking dards. Once completed, Santana Row structure to serve ballpark and neigh- will offer a total of 690,000 square feet borhood needs; rehabilitation of the of Class A office space, which is fully historic Pier 48; and public waterfront leased; 50 shops; 30 restaurants; nine access and improvements, includ- personal service businesses; 615 rental High-touch service ing a segment of the Blue Greenway apartments; 219 residential condo- trail connection from Embarcadero to miniums; and the 215-room Hotel Va- from the highest-caliber Hunters Point. lencia. SPLUNK SIGNS 301,000 SF CHARLES DUNN CO. professionals... OFFICE LEASE AT ARRANGES $2.8 MILLION 700 SANTANA ROW SALE OF LAND PARCEL FOR SAN JOSE, CALIF. — Splunk Inc. has MULTIFAMILY DEVELOPMENT Always. signed a long-term lease for 301,000 LOS ANGELES — Charles Dunn Co. square feet of office space at 700 San- has arranged the sale of a develop- tana Row. The 319,000-square-foot ment site located at 729 S. Park View mixed-use building is under construc- Street in Los Angeles. Salem Mis- tion at the intersection of Santana sionary Baptist Church sold the as- Row and Olsen Drive in San Jose. De- set to Safeco LLC for $2.8 million. veloped by Federal Realty Investment The 18,000-square-foot site features a Trust, 700 Santana Row is scheduled 4,100-square-foot building, which the for delivery in 2019. The property will seller formerly occupied. The buyer, feature seven levels of office space who owns an adjacent parcel, plans above ground-floor retail space and a to develop 150 residential units and parking garage with about 1,300 spac- potentially ground-floor retail at the es. San Francisco-based WRNS Studio site. Chris Giordano, Chris Steck and designed the asset, which Devcon John Anthony of Charles Dunn Co. Construction is building. The all-con- represented the seller and buyer in crete structure features 13-foot ceiling the deal.

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WESTERN REGION ALBUQUERQUE DENVER LAS VEGAS LOS ANGELES PHOENIX SAN DIEGO SALT LAKE CITY SAN FRANCISCO SEATTLE Splunk will occupy 301,000 square feet of office space at 700 Santana Row, a 319,000-square-foot office and retail property in San Jose. NORTHMARQ CAPITAL, LLC – NEVADA LIC. #3728 10 • October 2018 • Western Real Estate Business www.REBusinessOnline.com Tired of Waiting to Close? You deserve a lender that can close your loan quickly and with certainty.

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STERLING ORGANIZATION million, or $309 per square foot. A EL TIGRE HOLDINGS Outlet as its new anchor. Current ten- BUYS 76,797 SF SHOPPING 43,350-square-foot Food 4 Less gro- ACQUIRES WOODLAND ants include Ross Dress for Less, Party CENTER FOR $23.7 MILLION cery store anchors the 76,797-square- CROSSROADS SHOPPING City, Harbor Freight and Tractor Sup- HUNTINGTON PARK, CALIF. — foot shopping center, which was built CENTER FOR $18 MILLION ply. Dan Wald and Don LeBuhn of Sterling Organization, on behalf of in 1989 and renovated in 2014. Addi- WOODLAND, CALIF. — Affiliates Cushman & Wakefield’s The Wald | Sterling United Properties I LP, has tional national retail tenants include of El Tigre Holdings has purchased LeBuhn Team represented the seller, acquired Margarita Plaza. The gro- Little Caesar’s Pizza and Jackson Woodland Crossroads, a shopping while the Yorba Linda, Calif., office of cery-anchored shopping center lo- Hewitt. At the time of sale, the prop- center located in Woodland within the Keller Williams represented the buyer cated at the northeast corner of Santa erty was 93 percent occupied. Ster- Sacramento Valley. Woodland Cross- in the deal. Fe Avenue and East Florence Avenue ling United Properties I LP is Palm roads TIC – Engstrom Properties sold in Huntington Park, about four miles Beach, Fla.-based Sterling Organiza- the asset for $18 million. Originally from downtown Los Angeles. Pri- tion’s institutional grocery-anchored developed in 1985 with K-Mart as its vate investors sold the property in shopping center core fund. anchor, the property was substantial- an off-market transaction for $23.7 ly redeveloped in 2016 with Grocery

Southern California's most Important Regional Hub & for Trucking, logistics, Housing Retail Opportunities. Grocery Outlet, Ross Dress for Less, Party City, Harbor Freight and Tractor Supply are tenants at Woodland Crossroads in Woodland.

PACWEST MANAGEMENT PURCHASES 89,473 SF SHOPPING CENTER NORTHRIDGE, CALIF. — PacWest The Right City at Management has purchased North- ridge Promenade, a neighborhood the Right Time shopping center located at 19510- 19530 Nordhoff Street in Northridge. The buyer acquired the property for The Fiscal Times ranking of $16.4 million through the Ten-X on- U.S. Cities with populations line auction platform. The seller was over 200,000: LNR Partners. Situated on 4.9 acres, the 89,473-square-foot property was 82 percent occupied by 25 tenants at #1 Irvine, CA the time of sale. Guitar Center is the anchor tenant. Additionally, the prop- #2 Fontana, CA erty sold as a “covered land play,” which provides the opportunity for #9 Washington, DC potential residential and/or mixed- #29 Las Vegas, NV use development while receiving a definable income stream in the inter- #115 New York, NY im. Dixie Walker and Charley Simp- son of Cushman & Wakefield repre- sented the seller, while the buyer was self-represented in the deal. STARPOINT BUYS 12-STORY OFFICE BUILDING FOR $193 MILLION, PLANS RENOVATIONS BEVERLY HILLS, CALIF. — StarPoint Properties has purchased an office building, located at 433 N. Camden Drive in Beverly Hills. The origi- nal owner sold the 12-story asset for $193 million. StarPoint plans to reno- vate the property, which was built in 1972 and is known as the Wells Fargo Building due to the banking tenant’s rooftop signage. The 207,432-square- foot building has not been renovated Jerry Edgett in 15 years and falls 25 percent below the market’s average rent of $48.24 (909) 350-6741 per square foot. Renovation plans, although not finalized, include trans- [email protected] forming a 6,500-square-foot deck on the fourth floor into an open-air lobby FONTANA www.fontana.org that emphasizes natural light and fea- CALIFORNIA tures sculpture gardens and an im- proved façade.

12 • October 2018 • Western Real Estate Business www.REBusinessOnline.com Market knowledge, experience and financial strength.

Owners, developers, investment funds and real estate companies rely on the expertise of our Real Estate Finance Group for a full suite of commercial loan and financing programs.

$35,520,000 $92,500,000 $125,000,000 $47,200,000 $37,683,000

Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet

Office Retail Multifamily Office Multifamily

Vance & Sterling Southlands Next on Sixth Corporate Center I & II Alterra

Seattle, WA Aurora, CO Los Angeles, CA Concord, CA San Jose, CA

$8,650,000 $13,250,000 $5,000,000 $13,500,000 $22,000,000

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Office Multifamily Industrial Industrial Office

Cabrillo Plaza Tuscany at St. Francis Liberty Business Park Trade Center Offices at Sam Houston

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Barry Schumacher David Traina Trevor Beauclair Managing Director Executive Director Director 949 885-8724 949 885-8717 949 885-8718 [email protected] [email protected] [email protected] https://us.cibc.com/en/commercial/commercial-real-estate-lending.html New York | Chicago | Newport Beach

CIBC Capital Markets is a trademark brand name under which different legal entities provide different services. Products and/or services offered through CIBC Capital Markets include products and/or services offered by the Canadian Imperial Bank of Commerce and various subsidiaries. In the United States, CIBC World Markets Corp. is a member of the Financial Industry Regulatory Authority and the Securities Investor Protection Fund. CIBC Capital Markets and the CIBC Cube Design are trademarks of CIBC, used under license. CALIFORNIA

DERMODY PROPERTIES gistics tenants. The asset will feature CADENCE LIVING ACQUIRES ACQUIRES 14-ACRE 36-foot clear heights, and extra trail- SENIORS HOUSING PARCEL FOR INDUSTRIAL er and car parking to accommodate COMMUNITY IN BAY AREA, DEVELOPMENT ecommerce companies. LogistiCenter PLANS RENOVATIONS VACAVILLE, CALIF. — Dermody at Vacaville will be located midway MILLBRAE, CALIF. — Cadence Liv- Properties has purchased a 14-acre between the San Francisco Bay area ing, a senior living development land parcel on Icon Way in Vacaville and the Sacramento markets, offering and management company based in for an undisclosed price. The com- access to interstates 550 and 80. Jason Arizona, has acquired Marymount pany plans to develop LogistiCenter Ovadia of JLL represented Dermody Greenhills Retirement Center for an at Vacaville on the site. Construction in the land transaction, which was fa- Slated for completion in June 2019, undisclosed price. The independent is scheduled to commence in Octo- cilitated by Tom Schaal of Schaal Re- LogistiCenter at Vacaville will feature living, assisted living and memory ber and finish in June 2019. The facil- alty Advisors. The name of the seller 252,160 square feet of Class A space care community is located in Millbrae, ity will include 252,160 square feet of was not released. for industrial and logistics tenants. a suburb near San Francisco Interna- Class A space for industrial and lo- tional Airport. The new owner has rebranded the property as Cadence Millbrae and plans extensive renova- tions for the next year. The project is part of the city’s plans to redevelop areas into hubs for commercial and residential activity. The renovation project will include fully modernized apartments and common-area corri- dors, as well as renovation of all com- mon area spaces, such as the dining room, activity spaces and lobby. Ca- dence Living currently owns and op- erates communities in California and is expanding its footprint throughout the South and West. SBH REAL ESTATE GROUP ACQUIRES VACANT RETAIL PROPERTY FOR $5.2 MILLION BURBANK, CALIF. — SBH Real Estate Group has purchased a retail property located at 810-822 S. San Fernando RETAIL Blvd. in Burbank. Pacific Group sold the property for $5.2 million in an all-cash transaction. Situated on a 29,050-square-foot site, the property includes a 21,447-square-foot build- ing, which was constructed in 1939 and updated in 1985. A market previ- ously occupied the property, but it was vacant at the time of sale. Since the acquisition, SBH has leased the site to Harbor Freight Tools. Renovations to the property will include a new roof, as well asconverting the building to a more functional structure consist- ing of about 14,500 square feet. Tony Maniscalchi and Mike Maniscalchi of Stevenson Real Estate Services rep- resented the buyer and seller in the Hesperia, CA could be the perfect fit for your business, because, transaction. CHARLES DUNN CO. Quite Simpl, Hesperia Works for Business. NEGOTIATES $5.6 MILLION SALE OF RETAIL PROPERTY • Pro-business Southern California community • A City Council committed to commerce NORWALK, CALIF. — Charles Dunn • 17 miles of freeway frontage ripe for development • Trade area population: 269,000 Co. has brokered the sale of a single- • Interstate 15 daily traffic counts: 202,000 • Average household income: $62,000 tenant retail property located at 12419 • Huge selection of prime sites • Retail Potential $2.5 billion Norwalk Blvd. in Norwalk. TIMSA LLC sold the property to Hope & Happy LLC for $5.6 million, or $421 per square foot. Kyle Gulock and C1ty Ob 9:iespe1t1a To learn more about how Matt Kramer of Charles Dunn Co.’s Rod Yahnke, EDFP Hesperia can work for you, visit Bank Property Group represented the [email protected] cityofhesperia.us/econdev seller, while Juliet Shoham of Nelson Shelton & Associates represented the buyer. Bank of America has occupied the 13,298-square-foot, single-tenant property for more than 50 years. It has four years remaining on its lease.

14 • October 2018 • Western Real Estate Business www.REBusinessOnline.com

CALIFORNIA NKF CAPITAL MARKETS IPA NEGOTIATES SALE OF BROKERS SALE OF 142,856 SF 288-UNIT APARTMENT OFFICE COMPLEX PROPERTY FOR $78.5 MILLION NOVATO, CALIF. — NKF Capital Mar- SAN DIMAS, CALIF. — Institutional kets has arranged the sale of Rowland Property Advisors (IPA), a division of Plaza, located at 75 and 88 Rowland Marcus & Millichap, has arranged the Way in Novato. Buchanan Street Part- sale of The Trails at San Dimas, a multi- ners sold the asset to Pinnacle Capi- family property located 444 N. Amelia tal Management Services and Har- Ave. in San Dimas. Stockbridge Capital rison Street for an undisclosed price. Group and CNS Focused Investments The property features 142,856 square sold the property to Korda Group for feet of office and medical office space $78.5 million, or $272,569 per unit. The spread across two three-story build- Trails at San Dimas features 288 apart- ings. At the time of sale, the asset was ment units in a mix of studio, one- and 82 percent leased to 12 tenants rep- two-bedroom layouts. On-site ameni- resenting medical, finance, govern- ties include a resident lounge with Wi- ment and software firms. Grant Lam- Fi, resort-style swimming pool, dog mersen, Steven Golubchik, Edmund park with dog wash station, fitness Najera and Tyler Meyerdirk of NKF center, outdoor grilling area, covered Capital Markets represented the seller parking, laundry facilities and tennis in the deal. Rowland Plaza in Novato features 142,856 square feet of office and medical office courts. Kevin Green, Greg Harris and space. Joseph Grabiec of IPA represented the DAUM COMMERCIAL sellers and procured the buyer in the BROKERS SALES OF NINE CALBAY DEVELOPMENT HANLEY INVESTMENT GROUP transaction. INDUSTRIAL ASSETS BUYS TWO RESTAURANT BROKERS SALE OF TWO LOS ANGELES — DAUM Commer- PROPERTIES FOR $5.8 MILLION STARBUCKS PROPERTIES RIDGE CAPITAL DIVESTS cial Real Estate Services has brokered ONTARIO, CALIF. — CalBay Devel- FOR $5.5 MILLION OFFICE PROPERTY the sales of nine adjacent industrial opment has acquired two restaurant RIPON AND PARADISE, CALIF. — FOR $32.2 MILLION properties totaling more than 145,000 properties in Ontario for a total of Hanley Investment Group Real Estate SACRAMENTO, CALIF. — Ridge square feet in Central Los Angeles. $5.8 million. In June, the company Advisors has negotiated the sale of two Capital has completed the sale of A private investor sold the proper- purchased a to-be-vacated restaurant newly constructed, single-tenant retail Creekside Oaks, an office complex lo- ties to three separate buyers for a to- building, located at 2345 S. Grove properties in two separate transactions cated at 1740, 1750 and 1760 Creekside tal of about $18.5 million. James Vu, Ave., for $2 million. MGR Real Estate in Northern California. In the first Oaks Drive in Sacramento. An undis- Michael Collins and Ben Spinner of represented the seller, an owner-user, transaction, Bill Asher and Jeff Lefko closed buyer acquired the property DAUM represented the seller. in the deal, while MidFirst Bank pro- of Hanley Investment Group repre- in a 1031 exchange for $32.2 million. vided acquisition financing. In May, sented a Glendale, Calif.-based pri- Kevin Partington, Ron Thomas, Bruce AHF BUYS HISTORIC HOTEL the City of Ontario Planning Commis- vate developer in the disposition of a Hohenhaus, Chris Schwarze, Seth Sie- TO REPURPOSE AS sion approved CalBay’s application to 1,550-square-foot drive-thru property gel, Steven Hermann, Eric Fox, Adam AFFORDABLE HOUSING change the use of the property from located at 338 E. Main Street in Ripon. Lasoff and George Eckard of Cush- LOS ANGELES — AIDS Healthcare restaurant to express car wash. Con- A Northern California-based private man & Wakefield’s Sacramento and Foundation (AHF), through Healthy struction for the new Fast5Xpress Car investor acquired the property for $2.7 Bay Area offices represented the seller Housing Foundation by AHF, has Wash is scheduled to begin in Novem- million. Starbucks Coffee occupies in the transaction. The three-building purchased the historic Biltmore hotel ber. In a separate transaction, CalBay the property. Steve Zakula of Pacific property has undergone significant in- located at 501 S. Los Angeles Street acquired a Chevy’s Fresh Mex Restau- Union International in San Francisco terior and exterior renovations within in downtown Los Angeles. The pur- rant, located at 4551 Mills Circle, for represented the buyer. In the second the past decade to include revamped chase price and seller were not dis- $3.8 million. Situated on a two-acre transaction, a Los Angeles-based pri- commons areas, high-end tenant im- closed. The buyer plans to convert outparcel of Ontario Mills Mall, the vate investor sold a 2,482-square-foot provements, mechanical upgrades 204-room hotel into residential units restaurant building totals 8,000 square drive-thru property, located at 6344 and new rooftops on all buildings. At for homeless or extremely low-income feet. CAPRE Brokerage arranged the Skyway Road in Paradise, to a So- the time of sale, the 178,694-square- individuals. Built in 1910, the hotel is transaction, while Comerica Bank pro- noma, Calif.-based private investor for foot asset was 99 percent leased to a the fourth property acquired by the vided financing for the acquisition. $2.7 million. Starbucks Coffee occupies variety of tenants in healthcare, tech- Healthy Housing Foundation since the property. Asher and Lefko of Han- nology and financial services sectors. October 2017 for use as homeless or STERLING ORGANIZATION ley Investment Group represented the low-income housing. Currently, the BUYS 86,520 SF SHOPPING seller, while Harry Dematatis of CBRE S.R. PROPERTIES ACQUIRES hotel has 76 tenants in residence, who CENTER FOR $35 MILLION represented the buyer. APARTMENT ASSET will remain in place. WESTLAKE VILLAGE, CALIF. — FOR $4.6 MILLION Sterling Organization has purchased SALVATION ARMY SELLS LOS ANGELES — Stepp Commercial LEVIN JOHNSTON ARRANGES North Ranch Gateway, a shopping 199,156 SF OFFICE TOWER I has arranged the sale of Washington $7.6 MILLION ACQUISITION center located at the intersection of LONG BEACH, CALIF. — The Salva- Place Apartments, a multifamily prop- OF MULTIFAMILY COMMUNITY Lindero Canyon Road and Thousand tion Army has completed the sale of erty located at 11852 Washington Place SANTA CLARA, CALIF. — Levin John- Oaks Boulevard in Westlake Village. an office tower, located at 180 E. Ocean in Los Angeles. Los Angeles-based Ve- ston of Marcus & Millichap has negoti- The asset was acquired on behalf of Blvd. in downtown Long Beach. An netian Place LLC sold the property to ated the purchase of Claddagh Apart- Sterling Value Add Partners LLL, one affiliate of Thrifty Oil Co. acquired Los Angeles-based S.R. Properties for ments, a multifamily property located of Sterling’s latest institutional funds, the 199,156-square-foot property for $4.6 million, or $575,000 per unit. Built at 1408 Reeve Street in Santa Clara. A for $35 million. Preston Fetrow and an undisclosed price. Completed in in 1990, the 11,482-square-foot prop- local apartment group acquired the Sam Alison of CBRE brokered the 1984, the 12-story building features erty features six two-bedroom units asset from an undisclosed seller for transaction. Originally built in 1989, an ocean view, granite-clad lobby, and one one-bedroom unit, as well as $7.6 million. Constructed in 1958, the the 86,520-square-foot center recently 16,000-square-foot octagonal floor a three-bedroom single-family house. property features 20 apartments in a underwent significant renovations. plates and above-standard parking. Units feature balconies, wood floors, mix of one- and two-bedroom layouts, T.J. Maxx, Bank of America, Dunkin’ The buyer plans to further improve vaulted ceilings with skylights, stone a community pool, on-site laundry Donuts, Subway, Baja Fresh Mexican the building. Jeffrey Cole, Robert countertops and a community back- and covered parking. The buyer plans Grill, 9 Round Kickboxing, Mathna- Gary, Ed Hernandez and Nico Na- yard. Kimberly Stepp and Mark Ven- to reposition and renovate the prop- sium and Domino’s Pizza are tenants politano of Cushman & Wakefield’s tre of Stepp Commercial represented erty. Levin Johnston represented the at the property, which was 74 percent Capital Markets Group represented the seller in the transaction. buyer in the deal. occupied at the time of sale. the seller in the disposition. 16 • October 2018 • Western Real Estate Business www.REBusinessOnline.com >>ACTIVELY ACQUIRING

ACQUISITIONS

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PREP Property Group is actively acquiring lifestyle centers, power centers and enclosed malls that are capital-starved, poorly merchandised and/or distressed. PREP is also expanding its Net Lease Investments division, which acquires well-located, triple-net lease retail properties. For more information, please visit us at www.preppg.com.

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(844) 877-4153 www.preppg.com CALIFORNIASOUTHWEST NORTHCAP COMMERCIAL CBRE GLOBAL INVESTORS EVERGREEN DEVCO BREAKS BROKERS $11.5 MILLION BUYS INDUSTRIAL CENTER GROUND ON 258-UNIT SALE OF MIXED-USE ASSETS FOR $48.5 MILLION APARTMENT COMMUNITY LAS VEGAS³1RUWKFDS&RPPHUFLDO PHOENIX ³ /RV $QJHOHVEDVHG PHOENIX ³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ocated in Phoenix, Parc at South PXOWLIDPLO\ XQLWV  VTXDUH IHHW  WKH VTXDUHIRRW IDFLO- ZRRGLQVSLUHGSODQNÁRRULQJTXDUW] Mountain will feature 258 luxury RIUHWDLOVSDFHDQGDFUHVRIODQG LW\ IHDWXUHV IRRW FOHDU KHLJKWV DQG FRXQWHUWRSVDQGVWDLQOHVVVWHHODSSOL- apartments and a resort-style pool 'HYLQ /HH RI 1RUWKFDS 0XOWLIDPLO\ &ODVV$FURVVGRFNGLVWULEXWLRQVSDFH DQFHV 2QVLWH DPHQLWLHV ZLOO LQFOXGH and spa. 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DQG2UHJRQ 18 • October 2018 • Western Real Estate Business www.REBusinessOnline.com INTERFACE CONFERENCE GROUP AND FRANCE MEDIA PRESENT ANCILLARY RETAIL EXPO 2019 JANUARY 14-15 · HILTON DAYTONA BEACH

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The Ancillary Retail Expo will be held January 14 - 15, 2019, at the Hilton Daytona Beach in Daytona Beach, Florida, and will feature two full days of exhibitors, networking opportunities and educational sessions focused on topics such as specialty retail, sponsorships, pop-ups, entrepreneurship, marketing, experiential retail and OOH media.

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SPONSORSHIP, Exhibit & SPEAKING OPPORTUNITIES: REGISTRATION & GENERAL INFO: Terri Kelly Debbie Huard Heather James-Wyrick 781-724-0159 404-832-8262 404-832-8262 [email protected] [email protected] [email protected]

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SRS REAL ESTATE DIRECTS foot property was 90 percent occupied sold the property to Phoenix-based MAYO CLINIC TO DOUBLE $14.7 MILLION ACQUISITION at the time of sale. Christ’s Church of Rose Garden III PL for an undisclosed SIZE OF PHOENIX CAMPUS OF RETAIL CENTER the Valley is the anchor tenant of the price. Mindy Korth, Kirk Kuller and WITH $648 MILLION PROJECT CHANDLER, ARIZ. — SRS Real Estate property, which is situated on 17 acres. John Jackson of Colliers represented PHOENIX — Mayo Clinic has an- Partners has brokered the purchase of the seller, while Jim Edwards of Scott- nounced plans to double the size of its Laguna Village, a neighborhood shop- COLLIERS BROKERS SALE sdale-based Rein and Grossoehme Phoenix medical campus with a $648 ping center located at 5965 W. Ray OF 66,516 SF RETAIL CENTER Commercial Real Estate represented million expansion over the next five Road in Chandler. Sean Thomas of SURPRISE, ARIZ. — Colliers Interna- the buyer in the transaction. Built in years. Dubbed the Arizona Forward SRS’ Phoenix office represented a pri- tional has arranged the sale of Green- 2006, the property features 66,516 Project, the plan will add 1.4 million vate investor in the $14.7 million ac- way Crossings, a lifestyle retail center square feet of retail space. The sale square feet of building space to the quisition. Scottsdale, Ariz.-based Ber- located at 16572-16630 W. Greenway included three retail buildings and existing 1.7 million square feet, with nsteinMurphy represented the seller, Road in Surprise. Cedar Rapids, Iowa- three undeveloped retail parcels. At expanded clinical capacity, support a private investment group, in the based Transamerica Life Insurance the time of sale, the property was 85 services and infrastructure near Loop deal. Built in 1988, the 102,033-square- Co. (Aegon USA Realty Advisors) percent leased. 101 and 56th Street in North Phoenix. Highlights of the expansion include a six-story patient tower; three-floor ad- dition to the existing four-story Mayo Clinic Building; three-story building to house an expanded Emergency De- partment, Laboratory Medicine, Ra- diology and Pharmacy departments; 1,000-space underground patient parking garage; 1,600-space multi- level staff parking garage; and new MARK’S infrastructure space. New patient ar- eas are projected to open as early as June 2020, with the final phase open- ing in April 2023. The expansion plan increases the number of inpatient beds from 280 to 374 by 2023 and cre- ates close to 2,000 new jobs, including nearly 200 physicians by 2029. VANTRUST ACQUIRES 20-ACRE LAND PARCEL FOR GOT MIXED-USE DEVELOPMENT CHANDLER, ARIZ. — VanTrust Real Estate has purchased 20 acres of land, located at Chandler Boulevard and the Loop 101 in Chandler. The Rock- efeller Group, New York City, sold the land parcel for $12.2 million. VanTrust plans to build a mixed-use develop- ment with office, hotel and retail space on the site. This transaction continues the company’s development pipeline THIS. in the Arizona market, which consists of projects for industrial, multifam- ily and office space. The company re- cently completed Chandler Corporate Center, a 117,000-square-foot office asset located at 350. N. McClintock Drive in Chandler, and it plans to break ground on the second phase of the development soon. SIORs Every time walk into a ORION INVESTMENT room, their reputation precedes REAL ESTATE BROKERS SALE them. Experienced, knowledgeable, OF MEDICAL OFFICE FACILITY SIORs and focused, represent the PHOENIX — Orion Investment Real absolute best in commercial real Estate has arranged the sale of a medi- estate. Access the world’s most elite cal office and surgery center facility, network and open the door to game- located at 15401 N. 29th Ave. in Phoe- changing opportunities. nix. Nashville, Tenn.-based Monte- cito Medical Real Estate acquired the SIOR . Your next big win is just four property for $14.4 million, or $392 letters away. per square foot. Built in 1988 and renovated in 2017, the 36,796-square- foot property is occupied by Retinal Consultants of Arizona, occupying 72 percent, and Spectra Eye Institute, occupying the remaining 28 percent. www.SIOR.com Braxton Glass and J.T. Taylor of Orion represented the undisclosed seller and buyer in the deal. 20 • October 2018 • Western Real Estate Business www.REBusinessOnline.com PACIFIC NORTHWESTCALIFORNIA JOINT VENTURE COMPLETES NON-TRADED REIT ACQUIRES $190 MILLION CANCER 286-UNIT SENIORS HOUSING RESEARCH BUILDING COMMUNITY PORTLAND, ORE. — The construc- FOR $92 MILLION tion joint venture team of McCarthy PORTLAND, ORE. — Strategic Stu- Building Cos. and Andersen Con- dent & Senior Housing Trust Inc. struction, along with SRG Partner- (SSSHT) has acquired Courtyard at ship and Oregon Health & Science Mt. Tabor, a seniors housing com- University (OHSU), has completed munity in Portland, for $92 million. the Knight Cancer Research Building The property offers 286 units of in- on OHSU’s campus. The $190 million dependent living, assisted living and research and development confer- memory care. The new owners will ence center facility features 320,000 execute an existing plan to add 23 square feet of space, with science and additional memory care units, with data analysis offerings on each floor groundbreaking scheduled for fall to maximize interaction and the po- 2018. The buyer is a non-traded REIT tential of deeper innovation and idea sponsored by SmartStop Asset Man- sharing. The facility also features agement. Located on 7.1 acres in the open-air balconies, communicating Mt. Tabor submarket of Portland, the stairs, a rooftop terrace and a central property was constructed in 1999 and collaboration kitchen. Located in Portland, Knight Cancer Research features 320,000 square feet of renovated in 2009. The community research and development conference center space. was 94 percent occupied at the time of COMPASS COMMERCIAL sale. Integral Senior Living, which has NEGOTIATES $1.4 MILLION KEYBANK PROVIDES NEWMARK ARRANGES operated the asset since 2011, will stay SALE OF APARTMENT $30.9 MILLION IN FINANCING $42 MILLION IN FINANCING on as manager under the new own- BUILDING TO BUILD TWO AFFORDABLE FOR 107,000 SF MIXED-USE ership. SSSHT now owns a portfolio PRINEVILLE, ORE. — Compass HOUSING PROJECTS PROPERTY of four seniors housing communities Commercial Real Estate Services has SEATTLE — KeyBank Community SAMMAMISH, WASH. — New- and two student housing communi- brokered the sale of Rio Vista Apart- Development Lending & Investment mark has secured $42 million in ties acquired for an aggregate price of ments, a multifamily property located (CDLI) has provided $30.9 million in permanent financing for the Vil- approximately $275 million. at 940 NW Second St. in Prineville. financing to Community House Men- lage at Sammamish Town Center, a Steven and Maria Whitrock acquired tal Health Agency for the construction 107,000-square-foot mixed-use prop- JCH NEGOTIATES the 19,296-square-foot property from of two affordable housing properties erty located in Sammamish. The prop- $16.5 MILLION SALE OF an undisclosed seller for $1.4 million. located at the corner of 23rd and Jack- erty features 37,000 square feet of 152-UNIT SENIORS HOUSING Terry O’Neil and Gardner Williams of son streets in Seattle. KeyBank funded medical office space, a 35,000-square- PORTFOLIO Compass Commercial Real Estate Ser- a $13.6 million construction loan for foot Metropolitan Market and 35,000 WASHINGTON AND OREGON — vices represented the buyers. the development of Judkins Junc- square feet of retail space. The newly JCH Senior Housing Investment tion, a 74-unit multifamily property. completed property is the only new Brokerage has arranged the sale of SECURITY PROPERTIES, Additional funding was provided by commercial development on the four assisted living and memory care PACIFIC LIFE INSURANCE BUY the City of Seattle and King County. Sammamish plateau in more than 20 communities in Washington and Or- MULTIFAMILY ASSET The tax credit investor is the National years, according to Newmark. Mi- egon. The existing operator matched HILLSBORO, ORE. — Security Prop- Development Council. KeyBank will chael Taylor, Skip Slavin and Patrick the top offer of $16.5 million for the erties and Pacific Life Insurance Co. also provide the borrower with a $5.6 Taylor of Newmark’s Seattle office -ar properties and will now take over have acquired Tessera at Orenco Sta- million private placement permanent ranged the non-recourse financing on ownership from the industry vet- tion, a multifamily property located loan. Additionally, KeyBank provided behalf of the property owner. The 14- erans selling the communities. The at 6523 NE Cherry Drive in Hillsboro, a $11.7 million construction loan for year term, 30-year amortization loan portfolio totals 152 units. The specif- a suburb of Portland. An undisclosed the development of Patricia A. Apart- was placed with one of Newmark’s ic names and locations of the assets seller sold the asset for $85 million. ments. The property will offer 52 units correspondent lenders, and Newmark were not disclosed. Jim Hazzard and Built in 2014, the property features 304 of permanent supportive housing for will service the loan. Nick Stahler were the lead advisors apartment units and is within walking individuals with mental illnesses. on the transaction. distance of The Orenco Station Town The City of Seattle, King County and Center, a retail center. The buyers plan Washington State Housing Trust Fund to upgrade all eight of the property’s provided additional funding. Victoria designated common area spaces and Quinn of KeyBank’s CDLI group ar- UPCOMING MARKET HIGHLIGHTS renovate the unit interiors with vinyl ranged the financing for both proper- plank flooring throughout all living ties. areas, under-cabinet access lighting NOVEMBER DECEMBER and a technology package. Security ÁEGIS LIVING OPENS Orange County Inland Empire Properties Residential, an affiliate of 83-UNIT SENIORS HOUSING Security Properties, will manage the COMMUNITY IN SEATTLE Reno Las Vegas property. SEATTLE — Áegis Living has opened the doors on Áegis of West Seattle, an 83-unit assisted living and memory UPCOMING FEATURES care community in Seattle. The project was designed to look like a Mediter- Green/Sustainability Trends ranean resort. Áegis’ most recent com- munities are designed on such themes. Technology in Real Estate Its community under construction on CRE Outlook & Opportunities in 2019 nearby Mercer Island is lodge-themed, and the company recently opened an Italian-themed community in Seattle. EDITORIAL OPPORTUNITIES: ADVERTISING OPPORTUNITIES: Áegis Living is a Bellevue-based de- Nellie Day Scott France Located in Hillsboro, Tessera at Orenco veloper and operator with 31 seniors [email protected] [email protected] Station features 304 apartment units. housing communities in Washington, California and Nevada. www.REBusinessOnline.com Western Real Estate Business • October 2018 • 21 MOUNTAINCALIFORNIA STATES UNICO PROPERTIES DELIVERS READY CAPITAL ARRANGES 96,000 SF MIXED-USE $9.5 MILLION LOAN FOR BUILDING IN DENVER APARTMENT COMPLEX DENVER — Unico Properties, with MIDVALE, UTAH — Ready Capital Confluent Development as construc- Structured Finance has secured a $9.5 tion manager, has delivered The Circa million loan for the acquisition, reno- Building, a 96,000-square-foot mixed- vation and stabilization of an apart- use building located at 1615 Platte St. ment complex located in the Union in Denver. The four-story building Park District of Midvale. The undis- features 80,000 square feet of office closed borrower plans to renovate the space on the top three levels, 10,000 96-unit property. The plan includes in- square feet of Class A retail and res- terior upgrades to most units, the addi- taurant space on the ground level, and tion of a swimming pool to the court- three levels of underground parking. yard and the construction of a new Xero, an online accounting software leasing office and fitness center. The provider, has leased 30,000 square feet non-recourse, part floating-rate/part of space at the property and will occu- Photo credit: Ellen Jaskol Photography fixed-rate loan features a 60-month py the entire top floor of the building. Located on Platte Street in Denver, The Circa Building features 80,000 square feet of term, flexible pre-payment terms and Unico Properties is the owner and de- office space, 10,000 square feet of retail and restaurant space and three levels of is inclusive of a facility to provide fu- veloper of the project, with Confluent underground parking. ture funding for capital expenditures Development managing the project’s and working capital reserves. entitlement and construction. Swin- erton Builders served as general con- ARROWROOT REAL ESTATE EQUITY RESIDENTIAL PINNACLE ARRANGES tractor and Open Studio Architecture BUYS 64-UNIT MULTIFAMILY ACQUIRES 372-UNIT ALEXAN $1.2 MILLION ACQUISITION served as architect. JLL is the broker PROPERTY UPTOWN APARTMENT TOWER OF SINGLE-TENANT PROPERTY for the office space, and Cushman & SALT LAKE CITY — Santa Monica, DENVER — Equity Residential has CAÑON CITY, COLO. — Pinnacle Wakefield serves as the retail lease Calif.-based Arrowroot Real Estate acquired Alexan Uptown, a luxury Real Estate Advisors has brokered the broker. has purchased Edgewood Park Apart- apartment tower located at 1935 Lo- acquisition of a retail property locat- ments, a multifamily property located gan St. in Denver’s Uptown neigh- ed at 2765 E. Main St. in Cañon City. ARA NEWMARK BROKERS in the Cottonwood Heights submar- borhood. Trammel Crow Residential An undisclosed buyer purchased the $7.6 MILLION SALE OF ket of Salt Lake City, for an undis- sold the 12-story property for an un- property for $1.2 million, or $56.82 APARTMENT PROPERTY closed price. Built in 1994, the value- disclosed price. Completed in 2017, per square foot. Zach Wright, Rob Ed- BOULDER, COLO. — ARA Newmark add property features 64 apartments. the tower features 372 units in a mix wards and Tom Ethington of Pinna- has arranged the sale of 2037 Walnut, The asset is the fourth investment of studio, one- and two-bedroom floor cle’s The Edwards | Enthington Team a multifamily asset located one block made by Arrowroot Real Estate Fund plans averaging 771 square feet. Indi- represented the buyer, while Jeffrey from Pearl Street in Boulder. An un- I thus far in 2018. James Wadsworth vidual units feature high-end finishes, Hirschfield of Antonoff & Co. Broker- disclosed buyer acquired the property and Greg Barratt of Berkadia facili- including premium cabinetry, quartz age represented the undisclosed seller from Boulder-based Element Prop- tated the transaction. The name of the countertops, stainless steel appli- in the deal. Office Depot occupies the erties for $7.6 million. Constructed seller was not released. ances, oversized windows, high ceil- 20,679-square-foot building. in 1981 and renovated in 2014, the ings, mudrooms, custom closets and property features 26 one-bedroom IBORROW PROVIDES balconies. On-site community ameni- NEWMARK KNIGHT FRANK units with private patios. Recent reno- $6.4 MILLION LOAN ties include a resort-style pool and spa ARRANGES $7 MILLION SALE vations included new kitchens and FOR CO-WORKING with views of downtown, Coors Field OF INDUSTRIAL PROPERTY bathrooms, stainless steel appliances, OFFICE CONVERSION and the Rocky Mountains; a state- ENGLEWOOD, COLO. — Newmark engineering hardwood floors and en- DENVER — iBorrow, a nationwide of-the-art fitness center with yoga, Knight Frank has arranged the sale of ergy-efficient appliances. Andy Hell- private direct lender for commercial cross training and spin studios; a an industrial property located at 8640 man and Justin Hunt of ARA New- real estate, has funded a $6.4 million fifth-floor games lawn; clubhouse; ca- S. Peoria St. Building No. 6 in Engle- mark represented the seller. for an industrial property slated for tering kitchen; resident lounge; busi- wood, a suburb of Denver. IBC Con- conversion into a co-working office ness center; pet spa; and electric car cord IV LLC sold the 42,720-square- HFF ARRANGES building. Located at 3950 Wynkoop charging stations. Jordan Robbins and foot asset to Peoria Street Properties CONSTRUCTION FINANCING St. in Denver, the asset includes a Anna Stevens of HFF represented the LLC for $7 million. Keith Bell, Jason FOR SENIORS HOUSING 16,646-square-foot warehouse and seller and procured the buyer in the Addlesperger and David Lee of New- COMMUNITY a parking lot. The undisclosed bor- deal. The acquisition marks Equity’s mark Knight Frank represented the DENVER — HFF has arranged financ- rower plans to construct a two-story re-entry into the Denver market since seller, while CBRE represented the ing for the development of Solera at structure above the current parking exiting in area in January 2018. buyer in the transaction. Cherry Creek, a Class A seniors hous- lot and a second story above the cur- ing development in the Cherry Creek rent warehouse. VINTAGE CAPITAL PARTNERS neighborhood of Denver. Solera at SELLS 265-BED STUDENT Cherry Creek will comprise 64 assist- QUANTUM REAL ESTATE HOUSING COMMUNITY ed living apartments and 32 memory ARRANGES $1.2 MILLION ST. GEORGE, UTAH — Vintage Capi- care units within a three-story build- SALE OF RETAIL BUILDING tal Partners, an investment affiliate of ing totaling approximately 55,000 GUNNISON, COLO. — Quantum Redstone Residential, has sold Vintage rentable square feet. A joint venture Real Estate Advisors has arranged the Tabernacle, a 265-bed student housing between affiliates of Banner Senior, sale of a multi-tenant retail building community located near Dixie State Solera Senior Living and Wheelock located at 720-730 N. Main St. in Gun- University in St. George. The property Street Capital are developing the nison. A Crested Butte, Colo.-based opened in 2018 and offers two-, four- property. Rosemann & Associates is individual investor acquired the and five-bedroom units with shared designing the community, which is property for $1.2 million. At the time amenities. An investor based in Cali- scheduled for completion in 2019. The of sale, the 8,848-square-foot prop- fornia acquired the community for an HFF team representing the borrower erty was fully occupied by a variety Located in Denver’s Uptown undisclosed price. Brock Zylstra and included David Fasano, Sarah Ander- of tenants, including Domino’s and neighborhood, Alexan Uptown features Danny Shin of Marcus & Millichap son and Brock Yaffe. A national bank Verizon. Zack Hilgendorf of Quantum 372 apartments, a resort-style pool, brokered the transaction. Redstone is providing the nonrecourse loan. Real Estate represented the seller, a fitness center, resident lounge, pet spa Residential will continue to manage The amount of the financing was not Phoenix-based individual investor, in and business center. the project for the new owner. disclosed. the transaction. 22 • October 2018 • Western Real Estate Business www.REBusinessOnline.com MOUNTAINCALIFORNIA STATES

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QLWLHV 7KH SURSHUW\ ZDV SXUFKDVHG XQGHUD)UHGGLH0DFJUHHQSURJUDP OVER $93 BILLION IN REAL ESTATE ASSETS UNDER MANAGEMENT ,Q DFFRUGDQFH WKH QHZ RZQHUVKLS AND ADMINISTRATION* ZLOOEHLQVWDOOLQJHTXLSPHQWWRUHGXFH ZDWHU FRQVXPSWLRQ E\ PRUH WKDQ  NEARLY $15 BILLION IN MORTGAGE ORIGINATION IN 2017 SHUFHQWDQGZLOOLQVWDOOVRODUSDQHOVWR RͿVHWFRPPRQDUHDHOHFWULFH[SHQVHV ONE OF THE LARGEST COMMERCIAL, MULTIFAMILY AND 7KH VHOOHU LQ WKH WUDQVDFWLRQ DQG D AGRICULTURAL LENDERS, INVESTORS AND SERVICERS WLPHOLQH IRU UHQRYDWLRQV ZHUH XQGLV- FORVHG LOANS IN 42 STATES AND 7 COUNTRIES MARCUS & MILLICHAP Partner with the strength of our real estate fi nance BROKERS SALE experts at pgimref.com OF 277-UNIT COMMUNITY FOR $51.4 MILLION DRAPER, UTAH — Marcus & Mil- OLFKDSKDVDUUDQJHGWKHVDOHRI5RVH- JDWH'UDSHUDXQLWDJHUHVWULFWHG PXOWLIDPLO\DVVHWLQWKH6DOW/DNH&LW\ VXEXUE RI 'UDSHU $ ORFDO GHYHORSHU DQG RZQHU VROG WKH FRPPXQLW\ WR .HQQHG\ :LOVRQ D &DOLIRUQLDEDVHG JOREDO UHDO HVWDWH LQYHVWPHQW FRPSD- Q\ IRU DSSUR[LPDWHO\  PLOOLRQ 7KHSULFHHTXDWHVWRSHUXQLW - %XLOWLQWKHÀYHVWRU\FRPPXQL ATLANTA | CHICAGO | DALLAS | LONDON | LOS ANGELES | NEW YORK | SAN FRANCISCO | TOKYO | WASHINGTON, DC W\IHDWXUHVDOORQHDQGWZREHGURRP XQLWVDQGRͿHUVVSDFHIRUIXOOVHUYLFH *As of 3/31/18. © 2018 PGIM is the primary asset management business of Prudential Financial, Inc. (PFI). PGIM Real Estate Finance is PGIM’s real estate fi nance business. IDFLOLWLHV0DUFXV 0LOOLFKDS·V'DQQ\ Prudential, PGIM, their respective logos as well as the Rock symbol are service marks of PFI and its related entities, registered in many jurisdictions worldwide. 6KLQ DQG %URFN =\OVWUD UHSUHVHQWHG PFI of the United States is not affi liated with Prudential plc, a company headquartered in the United Kingdom. WKHVHOOHULQWKHWUDQVDFWLRQ www.REBusinessOnline.com Western Real Estate Business • October 2018 • 23 MARKET HIGHLIGHT: COLORADO TECH COMPANIES, CO-WORKING ECOMMERCE ALLOWS DENVER TO EMBRACE SPACES ARE MAJOR CATALYSTS SPEC DEVELOPMENT IN DOWNTOWN’S EXPANSION Growing demand from major distributors, new Class A space close to dense residential The model of growth in Down- manufacturing firms and ecommerce- gi areas. These properties continue to attract town Denver has changed drasti- Sam ants has fueled the substantive expansion of investors as consumers’ demand for quick Denver’s industrial sector. Nearly 15 million delivery intensifies. This, in turn, is rapidly cally since 2013, when leasing ac- DePizzol tivity in traditional core high-rise square feet has been built since 2012, while increasing asset value. Executive the average rent neared the $8-per-square- Denver has recorded some of the best as- assets was dominated primarily Managing by energy companies and finan- foot threshold in the second quarter amid set appreciation in the nation, rising an av- Director, robust absorption. Developers remain com- erage of 8 percent annually over the past cial institutions. In the past 18 NKF months, however, Downtown’s mitted to Denver’s industrial market with a 10 years. On a per square foot basis, pric- expansion focused primarily on population growth of roughly 37,000 people ing passed $150 during the 12 months that large corporate relocations and an explosion of co-working providers this year and a rise in ecommerce sales. As a ended at mid-year, soaring roughly 15 per- and technology companies that desire scalability options. This con- result, the metro will record its strongest year cent from the prior year-long period. The version represents a paradigm shift by owners and landlords of core of deliveries for the current cycle, reaching average cap rate compressed considerably Downtown assets, refocusing to appeal to “new tech” companies. 6.5 million square feet in 2018. Amazon will over the past year, now resting in the low-6 NKF predicts that overall absorption in Denver’s Downtown submar- occupy this year’s largest project, a 2.4-mil- percent territory. Out-of-state buyer activ- ket will top 1 million square feet per year, through 2021, creating increas- lion-square-foot distribution center rising in ity grew during the most recent trading pe- ing competition for blocks of desirable space. Downtown Denver re- north Denver. riod amid a 9 percent reduction in overall mains the preferred submarket for corporate expansions and relocations, A substantial portion of development deal flow, emphasizing the attractiveness colocation tenants and technology companies. This is due to its pool of remains speculative, which will likely con- of industrial investment in Denver. Strong young, educated and motivated workforce, nearby amenities and attrac- tribute to another year of rising vacancy, competition from institutional investors for tions, numerous transportation options and housing explosion. pushing the rate up 90 basis points to 5.9 well-located sites near residential areas will NKF also notes that Downtown Class A office space has a median percent. Tepid rent growth should follow, keep pricing elevated, which could moti- asking rate of $40.22 per square foot with new construction approach- moving the average asking rent to $7.77 vate more private investors to list and cap- ing $60 per square foot, a level Denver is seeing for the first time. per square foot with a 1.2 percent annual ture recent pricing growth. Driving these rental rate increases is a flight to quality, buttressed by increase. Moving forward, rent growth — Bob Kaplan, Vice President and ongoing new construction. Attraction and retention of employees is should be supported by competition for Regional Manager, Marcus & Millichap the No. 1 priority in a tight labor market like Denver’s, and this con- cern is propelling the current flight to quality. Compounding these forces is a desire for scalability, which costs a premium in today’s market, especially as large block opportunities decrease. MULTIFAMILY INVESTORS SHIFT THEIR FOCUS Available large blocks of space and the desire for scalability have changed the scene in second-generation Downtown core assets, which AS DENVER SUBMARKETS MAX OUT have struggled to achieve full occupancy, even during periods of in- What goes up must come down, as the saying goes, creased leasing activity. Many larger and monied landlords and own- but laws of Newtonian physics don’t appear to apply Thomas ers have invested significant cash in their properties to make 1980s-era to multifamily real estate in Colorado. While some in- Graeve buildings more tech friendly and desirable. The result is that almost vestors have chosen to stick to the sidelines and wait Senior Advisor, any traditional Downtown high-rise is now signing (or experiencing out the end of this once-in-a-lifetime run of growth in Pinnacle Real leasing activity with) tech companies that have been forced to con- the market, smart investors are continuing to find op- Estate Advisors sider options they wouldn’t have touched three years ago. They are portunistic value along the Front Range. Those content motivated by a shortage of large blocks of space and increasing ask- to wait, however, may be missing out on appreciation ing rents, most notably in Lower Downtown (LoDo), Denver’s newest to be found in pockets that have traditionally been tech hub. overlooked in favor of tried-and-true neighborhoods Co-working providers have especially noticed the switch and are like Capitol Hill, Congress Park, Wash Park and the Highlands. snatching up space in core Downtown assets. Consider 1700 Lincoln Investors have begun to feel that the Central Denver submarkets are topping out as rents Street, commonly known as Wells Fargo Center. This 1.2-million- have outpaced income growth and low cap rates are now butting up against rising interest square-foot, 1983-era office high-rise had significant large blocks of rates. This has caused savvy buyers to look for the next beltways where money can still be space remain vacant for more than 10 years. Beacon Capital Partners made as the broader apartment market levels off. Jefferson County has traditionally been realized the untapped potential and invested in significant capital the “next” submarket that grabs buyers’ attention after Central Denver as it’s farther from improvements at the property. The firm improved seating and gath- the historically stigmatized Aurora market and closer to the mountains. However, we’re ering spaces with new conferencing facilities and soft seating op- seeing prices in Lakewood that rival those of Central Denver, leaving many to speculate on tions. It also added a bike rack, which made the space substantially where the next opportunity lies. more attractive to tech users and co-working companies. Open Table Colorado Springs has been on a tear, jumping from an average of a little more than $88,000 and WeWork each leased more than 100,000 square feet at Wells Far- per door in the first quarter of 2017 to more than $130,000 per door in the current quarter. go Center this summer. The average price per unit in Pueblo has grown from $35,000 per unit at the beginning of Goldman Sachs had a similar experience at 1125 17th Street. The 2016 to more than $60,000 in the most recent quarter. Weld County is currently the fourth firm updated common areas and subsequently leased two full floors fastest-growing county in the U.S. and has shown average cap rates below 6 percent in the to Xactly. Tabor Center, owned by Callahan Capital Properties (re- most recent two quarters. cently acquired by Ivanhoé Cambridge), just completed a $15 million Closer to Denver, Aurora has begun to shake off that “no-go” reputation and has seen a repositioning project that includes a new lobby, conferencing facili- pop in values in 2018. It wasn’t long ago that you could pick up a Class C property along ties and improved seating. WeWork took notice and leased up nine the Colfax corridor for 40-something thousand per door, but we are now seeing prices con- floors at the 1985-era landmark. sistently north of $125,000 per unit. The three major growth catalysts in this market are Co-working facilities and technology companies are major catalysts in Anschutz Medical Center to the east, the Park Hill neighborhood to the west and Stanley Downtown Denver’s current leasing boom. Downtown remains the No. Marketplace in the middle. These assets have Aurora poised to follow a similar growth pat- 1 market for corporate tenants due to scalability options, amenities, and tern to what we’ve seen in Jefferson County. access to public transportation, housing, and young, educated workers. Westwood is one of the last true Denver neighborhoods to “pop,” but a drive down Mor- Expect strong leasing activity to continue in this submarket, along with rison Road will provide ample evidence that investors are transforming that submarket. It increased absorption and a corresponding growth in rental rates. will be interesting to watch how the neighborhoods close to the I-70 “Ditch” project and the $1 billion National Western redevelopment will be affected. Will they be too late in the NKF market data sourced from NKF Research, Denver Office Market Q2, 2018, cycle to take advantage of low interest rates and red-hot demand, or will those be the new published by NKF Director of Research, Lauren Douglas. pockets that heat up as the market falls back to Earth? 24 • October 2018 • Western Real Estate Business www.REBusinessOnline.com 1st COMMERCIAL Property Management

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Nearly an entire city block is its, and retailers are adjusting to meet ever been. Class A space, specifically to tie up sites for redevelopment be- under construction in pursuit of their their customers’ needs. in the small restaurant tenant space fore this nearly 10-year-long cycle vision. That said, many retailers are grow- is almost impossible to find. This is winds down. Many of these projects Retail is healthy in Denver though, ing very cautiously, or expansion plans also the case for mid-box and big box are small in scale and redefining land- in many ways, its growth is being re- are on hold. This holds true for many properties. A couple former Sports scapes in neighborhoods like Berkley stricted by limited supply. This is most large format restaurants, soft goods re- Authorities spaces show the appetite or Sloan’s Lake. pertinent in high-demographic areas tailers and even grocers. Retailers are this market has for well-located space. Larger developments are taking as everyone is chasing consumers with adjusting footprints as omnichannel Shae Properties Town Center in High- shape as well. The I-25 corridor going the most spending power focusing on sales are permeating through most cat- lands Ranch turned its Sports Au- north and south from Denver are ex- convenience. egories enabling many groups to have thority into a Blue Lion Salon Suites. tremely active with the most notable — Matt Writt, Vice President of less floor space. Other than fitness and Vestar’s Bowles Crossing in Littleton project being Alberta’s Promenade in Retail Brokerage, JLL entertainment, most mid-box and big converted its vacant space into a Vasa Castle Rock. Continuum Development DENVER CITY COUNCIL IMPLEMENTS LEGISLATION ALLOWING STRUCTURES UP TO 16 STORIES IN RINO Changes to municipal codes in Denver’s RiNo neighborhood could spell opportunity for developers. By Blair Lichtenfels, Bruce James, and Kate Stevenson of Brownstein Hyatt Farber Schreck n Feb. 12, 2018, the Denver City Council off-site) affordable for-sale units, and a market rate Agreement.” In the IO-1 over- voted 11-1 to approve changes to the Denver for-rent project must build (either on- or off-site) lay, market-rate developers of OZoning Code and Municipal Code with the affordable for-rent units. Any off-site units must “mixed-use non-residential” intent of allowing property owners to build struc- be within ¼ mile of the market-rate development. projects may construct projects at tures up to 16 stories tall in the RiNo neighborhood. These requirements are challenging for market-rate incentive heights without paying The newly adopted ordinance creates two new for-sale developers, as inventory for affordable for- incentive height fees or building overlay districts—the River North Design Over- sale units in RiNo is de minimis. affordable units by entering into a lay (DO-7) District and the 38th & Blake Station Developers seeking to utilize the off-site build Community Benefits Agreement Area Overlay (IO-1) District—and provides height alternative must enter into a three-party escrow providing community-serving incentives allowing developers who provide afford- agreement with Denver’s Office of Economic uses within a development, but able housing or community benefits, and imple- Development (OED) and the affordable developer. at the time of writing this article, Lichtenfels ment new design criteria, to build higher than the OED must sign off for the release of draws by the little is known about the require- maximum permitted height in the underlying zone affordable developer based on satisfaction of con- ments or approval process for a district. struction milestones. Additionally, off-site units be Community Benefits Agreement. The DO-7 overlay establishes enhanced design constructed within 24 months of building permit review criteria for all structures located within its issuance, or the escrowed funds will be released Right of First Refusal boundaries. Features include elimination of the to OED. Further, temporary and permanent cer- Moving forward, OED may minimum parking requirement within one-half tificates of occupancy will not be issued to the take the position in the new rules mile of the 38th & Blake Light Rail Station, increased market-rate development unless the affordable off- that any new development utiliz- requirements for screening/mitigating structured site units are marketed concurrently with, or prior ing the height incentives in the parking and designation of the Platte River for to, the associated market-rate units. Compliance IO-1 overlay is receiving a “city treatment as a “primary” street. with these requirements complicates a market-rate subsidy” as defined in Denver’s James The IO-1 overlay is the first “Incentive Overlay” developer’s ability to secure customary equity and municipal code. This interpreta- district in Denver, and developers intending to debt financing for a project, because completion and tion could result in imposition of embark on new projects in any rapidly developing stabilization of the market-rate project is dependent a right of first refusal (“ROFR”) portion of the city should understand the nuances upon completion of the affordable project, and the on a project in favor of the city. of this new legislation. This is because the city market-rate developer likely won’t have control Such ROFR would render any intends to utilize it as a template for providing over completion of the affordable project. third-party agreements for pur- additional height incentives in exchange for afford- chase and sale of the project con- able housing in other areas of Denver. Adoption of New Rules and Regulations to tingent upon providing a copy In the IO-1 overlay district, the amount of afford- Implement New Legislation of the executed purchase agree- able units and incentive height linkage fee required The new legislation also authorizes the city to ment to the city, thus beginning a for those portions of any building constructed revise the initial rules and regulations adopted in 120-day period during which the Stevenson above the base height permitted by the underlying July 2017 for the Linkage Fee Ordinance to address city must exercise the ROFR by zone district is four times the required units and both the Linkage Fee Ordinance and the 38th & delivering notice to the seller of amount of the city-wide linkage fee under the city’s Blake Station Area Overlay, but until such new its intent to purchase the property on economically current affordable housing linkage fee ordinance, rules are adopted, the initial rules apply to both sets similar terms to that of the contingent purchase which was adopted in fall 2016 (“Linkage Fee Ordi- of legislation. No public draft of the new rules was agreement. After exercising the ROFR, the city must nance”). available at the time of writing this article, so it is purchase the property within 120 days after sign- difficult to predict the impact of the new rules on ing a separate purchase agreement with the seller. Complying with the Off-Site Build developer requirements associated with increased This ROFR could make it difficult for market-rate Requirement building heights. developers to procure construction and permanent Unlike the Linkage Fee Ordinance, residential Although the impact of the new rules are financing and impair the long-term marketability and mixed-use residential in the IO-1 overlay must unknown, they may extend the current required of a property. construct affordable on-site or off-site residential 20-year period of affordability—potentially to units of “similar tender” and are not permitted to require a permanent affordability period. The new Blair Lichtenfels and Bruce James are shareholders and Kate pay a fee in lieu of building units. In other words, a rules will also likely address the definition, and Stevenson is an associate with Brownstein Hyatt Farber market rate for-sale project must build (either on- or process for approval, of a “Community Benefits Schreck’s Denver office.

26 • October 2018 • Western Real Estate Business www.REBusinessOnline.com The Gateway to Boulder Valley ®

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interfaceconferencegroup.com/eee2019 MARKET HIGHLIGHT: PORTLAND PORTLAND’S RETAIL MARKET REMAINS ONE OF THE STRONGEST IN THE NATION positioned retail investment proper- Lance Sasser ties trading in the 4.5 percent to 5.5 Director of Research and percent cap rate range. Evidence of Analytics, Capital Pacific the market’s consistency over the past three years can be seen by the number of sales that have traded at a sub-5.25 percent cap rate during the first nine months of each year. This includes 14 sales in 2016, 14 in 2017 and 13 in 2018. Substantial increases in construc- Not every retail segment has fared tion and land costs, as well as a strict, as well as the core, urban properties, decades-old Urban Growth Bound- however. While there’s little reason ary, has caused the Portland real to believe any shift has occurred in estate investment market to remain the grocery-anchored market, it’s consistent for a number of years now. nearly impossible to determine as According to a recent RLB Crane In- only one center has sold so far in dex report, Portland has seen the sec- 2018 — King City Plaza. At the other ond highest increase in construction end of the spectrum, the big box and costs in the nation this year. When power center market has seen un- you couple construction costs and precedented shifts in demand and growth restrictions with an urban pricing expectations. There wasn’t a landscape that contains a large per- single power center that sold above centage of generational ownership, a 7 percent cap from 2015 to 2017. Multi-tenant retail properties like Crossroads at Mill Plain and 164th are trading you get a supply shortage for core So far, we’ve seen two in 2018 and in the mid-5 percent cap rate range, while well-positioned, older centers are retail investment properties. With likely would have seen others if they trading in the 6.5 percent to 7 percent range. the supply-and-demand imbalance weren’t pulled from the market. The comes record-setting cap rates that best example is Gresham Station, a sold at a 5.75 percent cap in 2015. ket, and 1031 exchange capital is the have prevailed for at least three years 342,000-square-foot lifestyle center It sold again in mid-September of primary buyer profile for these as- now. It is commonplace to see well- in the east metro area. The property this year at a 7.6 percent cap with a sets. nearly identical tenant roster. There The local unanchored retail market has been talk of big box risk and the is likely the most bifurcated segment “Amazon Effect” for several years that exists today. Well-positioned, Your Pacific Northwest Hub now, but it appears that perceived newly constructed centers are trad- risk is finally making a substantial ing at near-record cap rates while impact on pricing for certain retail seasoned properties with less desir- property types. able tenant rosters have experienced The single-tenant retail market re- softening demand and pricing. New mains strong in the Portland area. construction of multi-tenant prop- Fast food/QSR investment sales are erties like Crossroads at Mill Plain still trading at record level cap rates and 164th are trading in the mid-5 between 4.5 percent and 5.25 percent. percent cap rate range, while well- Interest rate hikes have had little im- positioned, older centers are trading pact on the local single-tenant mar- in the 6.5 percent to 7 percent range. I-5 Freeway, Exit 271 Woodburn, Oregon

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please visit Gresham Station, a 342,000-square-foot lifestyle center in the east metro area, www.i5logisticscenter.com sold at a 5.75 percent cap in 2015. It sold again this past September at a for more information 7.6 percent cap with a nearly identical tenant roster.

30 • October 2018 • Western Real Estate Business www.REBusinessOnline.com MARKET HIGHLIGHT: PORTLAND

PDX’S OFFICE MARKET ATTRACTS USERS LOOKING FOR LOWER-COSTS ALTERNATIVES As anyone working in the real estate egy is to reposition these buildings with major lob- business on the West Coast in the past by renovations, exterior façade improvements and Riley Matt nine years will tell you, the market new modern amenities to bring excitement back to Henderson Bassist has been great. Portland is no strang- these properties. Broker, Broker, er to the massive amount of growth Portland’s long-term office trajectory looks NAI Elliott NAI Elliott cities in the Western region have ex- strong. Despite rising rents, the market continues perienced. The prolonged real estate to offer the lowest comparative occupancy costs cycle has contributed to the Portland on the West Coast in a market with a variety of office market’s robust growth. Vacan- office products. Whether it’s starting a new busi- cy has tightened, rental rates have in- ness, expanding or relocating, the value proposi- creased and sales per square foot have tion for businesses is strong in Portland, keeping achieved all-time highs. In response, the office market healthy. Portland has seen a strong uptick in new office product deliveries over the past 18 months, but even the increase in new inventory hasn’t slowed the ACT NOW! Registration for each event is $125 market down. As rents have risen across the West ON-SITE REGISTRATION WILL BE $150 Coast, Portland continues to be the low-cost alternative to cities like San Diego, Seattle and San Francisco. Oc- ANNUAL INTERFACE cupancy costs for Portland are sub- stantially lower than those other cit- ies and, as a result, many companies, SALT LAKE CITY especially in the high-tech space, have looked to either open a satellite office or relocate entirely to the Portland INDUSTRIAL REAL ESTATE market. In response to the increased demand for creative office space, lo- cal developers have been rehabilitat- November 29 » 7:30-11:00am » LITTLE AMERICA HOTEL PRODUCED BY INTERFACE CONFERENCE GROUP & FRANCE MEDIA ing or even building office product to Western Real Estate Business meet the demands of these creative and the InterFace Conference Group are pleased to announce the annual InterFace Salt Lake City Industrial Real Estate conference on November 29th at the Little America Hotel in Salt Lake City. The big event will include those who and high-tech office users. These are buying, selling, developing, redeveloping, leasing or financing industrial properties in the Utah area. The conference will explore buildings are often highly amenitized the latest trends in leasing, management and operations, as well as economic and demographic trends that impact the industrial real with bike parking, exercise facilities, estate market in Salt Lake City. community rooms, cafes, restaurants, and dog-friendly touches like dog runs and dog washing stations. Another interesting trend that has emerged in the past real estate cycle is companies seeking to occupy their own buildings rather than opting to be in a traditional office tower. This has allowed smaller local developers to thrive in this market by building unique office projects in interesting and non-traditional office markets. The local developers that are arguably more in tune with trends have an un- derstanding of the local planning and REGISTRATION & GENERAL INFO: SPONSORSHIP & SPEAKING Opportunities: entitlement process. This has allowed Heather James-Wyrick Scott France Kristi Procopio Robin Reimold them to push the boundaries of office 404-832-8262 404-832-8262 858-775-7297 949-922-6961 buildings into areas that have tradi- [email protected] [email protected] [email protected] [email protected] tionally been residential and retail corridors. In contrast to the local develop- ANNUAL INTERFACE ers, large institutional partners have also turned their sights on Portland as they seek to reenergize the Cen- tral Business District. Armed with SALT LAKE CITY MULTIFAMILY plenty of capital and an appetite for growth, older office towers that were PRODUCED BY & once the jewel of the office market are November 29 » 12:30-3:30pm » LITTLE AMERICA HOTEL INTERFACE CONFERENCE GROUP FRANCE MEDIA being snatched up. Through a combi- nation of neglect, functional obsoles- Western Real Estate Business and the InterFace Conference Group are pleased to announce the annual InterFace Salt Lake City Multi- cence and changing preferences, these family conference on November 29th at the Little America Hotel in Salt Lake City. The event will include those who are buying, selling, developing, redeveloping, or financing multifamily propertiesin the Utah area. The conference will explore the latest trends in leasing, building have fallen out of favor. management and operations, as well as economic and demographic trends that impact the multifamily market in Salt Lake City. There is now a big gap between these projects and new Class A office rents. Institutional partners see compara- interfaceconferencegroup.com tively higher returns in Portland over other West Coast markets. The strat- www.REBusinessOnline.com Western Real Estate Business • October 2018 • 31 MARKET HIGHLIGHT: PORTLAND DEMAND FOR DISTRIBUTION SPACE INCREASES IN PORTLAND footprints in each metro area with higher ceilings Peter R. Stalick and with floor loads capable of handling heavy con- Senior Vice President and Partner, veyor systems to get products to consumers more Kidder Mathews quickly. Portland is well positioned to capitalize on this trend given its proximity to West Coast ship- ping ports, intermodal hubs and Interstate 5. Rental rates have increased dramatically over the past seven years. During the period between 2008 to 2011 (peak to trough), rental rates declined around 12 percent. Since that time, rates have increased al- Portland is a robust industrial market that features most 40 percent on average (28 percent higher than almost 204 million square feet of industrial product previous peaks) with the strongest rental growth with a record-low vacancy rate of only 3.5 percent. over the past three years. The rental rate spike in the Speculative development has been steady, as has past three years has been primarily due to a lack of built-to-suit development with more than 11.5 mil- inventory and shortage in new supply. Amazon is building a new 855,000-square-foot facility lion square feet delivered in the past five years with Portland’s primary hurdle to growth will be the in Troutdale that will house 1,500 workers. another 4.4 million square feet under construction. current severe, almost emergency level, shortage of Amazon has made a significant impact with three remaining shovel-ready industrial land. Amazon MSA, on the I-5 freeway and is one of the largest, if projects in Oregon totaling almost 3 million square and the other 15.9 million square feet of new devel- not the largest, shovel-ready industrial sites in the feet of building footprint area and additional mez- opments absorbed many of the best sites, decimat- region. Specht Development was successful in final- zanine square footage in mezzanines. Portland’s ing Portland’s remaining industrial land supply. izing the annexation and zoning on this site after population has also been growing well faster than Developers are now scrambling to solve for infra- several years of appeals. Additionally, Trammell the national average. This city is now on the map structure and entitlements on the few remaining Crow Company, Capstone Partners and PacTrust as one of the West Coast’s most desirable places to sites which are challenged. Portland’s geography are active on projects in this area which further sup- live, especially with the large Millennial generation. also physically constrains supply due to topogra- ports this trend of growth southward. Portland has a strong and diverse manufacturing phy and rivers. Portland’s growing population, strategic location base which has grown in recent years, but the pri- Given Portland’s primary industrial submarkets and supply constraints make Portland a very desir- mary driver of this industrial resurgence has been are fully built out, the future of Portland industrial able place to invest in industrial real estate. The cap- the increased demand for logistics and distribu- expansion will be south of Portland along the I-5 cor- ital markets agree and are highly active in acquiring tion space. This is driven by increased consumer ridor spine. One prime example is the I-5 Logistics industrial properties in Portland as they recognize demand, but more importantly due to the shift in Center site in Woodburn, which is 108 acres of in- the lack of available land for new supply, which will logistics strategy brought on by the ecommerce dustrially zoned land recently annexed and zoned. lead to further strong growth in Portland industrial phenomenon. The trend is to have larger industrial This project is only 11 miles south of the Portland real estate values.

PDX’S MULTIFAMILY MARKET UNDERGOES CHANGE, BUT STILL GARNERS INTEREST Many prospective buyers are coming to Port- ro’s apartments. This is particularly true among land from other West Coast cities, searching for the Class C segment where vacancy is nearing 2 Adam A. Lewis more favorable yields than those found in their percent. The tight rate for Class C space highlights Vice President, Regional Manager local markets. Strong employment growth and the need for affordable housing options, which led and National Director, an increasingly diverse economy are fueling this to the creation of the inclusionary zoning policy. National Seniors Housing Group, heightened investor interest. While the City of Portland and developers adapt Marcus & Millichap Hiring in Portland continues to rise at a faster to the new requirements, permitting for new rent- pace than the national average, primarily led by als has slowed considerably, potentially moderat- increased staffing in education and health servic- ing completions beginning in 2020. es. The steady pace of job growth is keeping unem- Construction will pick up this year as develop- ployment low, underpinning household formation ers work to complete the bulk of apartments that sis points below the market average. On the west and driving a need for housing. The elevated costs met the deadline before the new inclusionary zon- side of the river, investor demand picked up sig- of single-family homes, however, are keeping ing policy went into effect. Despite the increase, nificantly in close-in neighborhoods like Nob Hill many individuals from transitioning into home- healthy demand and the limited availability of and Goose Hollow, attracting buyers from Califor- ownership and fueling the absorption of the met- units will keep net absorption above supply addi- nia and Washington, and intensifying the bidding tions, cutting vacancy and supporting modest rent environment. PHOENIX MULTIFAMILY gains. Strong demand in several submarkets, such Changes for retrofitting unreinforced masonry as Gresham/Far East Portland and Vancouver, buildings may prompt some owners to sell their SALES TRENDS will likely hold vacancy below 4 percent. These properties. The uncertainty around the specific areas, as well as many other pockets with tight va- requirements is creating concerns for some inves- Sales Price Growth cancy, should strengthen investor demand during tors. Many buildings are in desirable areas and are the coming months. potentially worthwhile to buyers willing to make The metro witnessed an increase in trades involv- improvements. ing Class A space over the past year. This, in turn, The finalization of the relocation ordinance may elevated the metro-wide average price per unit by also slow transaction velocity for value-add prop- 7.5 percent, or $176,000. During that time, buyers erties as owners would be required to pay reloca- remained focused on apartment assets east of the tion fees to tenants if rent is increased by 10 per- Willamette River, with properties in the Kerns and cent or more and the tenant chooses to move. Buckman areas garnering considerable attention. Though Portland is undergoing changes, includ- A surge of development in eastern Portland may ing the addition of several new requirements, the provide investors additional opportunities at the merging of economic tailwinds and healthy apart- * Trailing 12 months through 2Q18 top end of the market moving forward. Here, cap ment fundamentals should preserve investor in- Pricing trend sources: CoStar Group, Inc.; Real Capital Analytics rates sit in the high 4 percent band, roughly 50 ba- terest in the coming months.

32 • October 2018 • Western Real Estate Business www.REBusinessOnline.com Redlands’ story for the past 130 years has been one of recognizing, honoring and preserving the tremendous gifts we have while building and growing for future generations.

Throughout the years, Redlands’ pioneers and patron saints, its public servants and private benefactors, its artists and entrepreneurs have counted on the promise that is Redlands, have shared it and propelled it forward. Promises of music for all under the stars that would continue to draw thousands for generations, long after Grace Stewart Mullins first envisioned the Summer Music Festival; promises of natural beauty and resources not only preserved, but enhanced with an Emerald Necklace system of trails, parks and educational centers; promises of generosity and philanthropy that create a sense of community where our links to the past inform our vision for the future; the promise that turned a 100-acre vineyard into the beautiful University of Redlands campus and fine institute of higher learning; the promise of recreational opportunities for all ages, a thriving business community and visionary technology advancements have all flourished here in our town. Throughout the years, the promise that is Redlands has never faltered.

This City Council, residents and employees of Redlands keenly sense this commitment to the Promise that is Redlands, keeping our City vibrant and perpetuating the achievements of those who preceded us and honoring them by continuing those achievements and that promise into the future.

PAUL W. FOSTER MAYOR

CITY OF REDLANDS 35 Cajon Street Redlands, CA 92373 • www.cityofredlands.org • 909.335.4755

DISCOVER REDLANDS

A community that blends the best of Southern California’s work and play lifestyle, and the location of choice for some of the top technology, consumer, healthcare and retailers in the country.

A historic, walkable downtown with over 400 specialty retailers, services & restaurants, year-round cultural and recreation activities, a wide range of housing choices and a location within one hour of beaches, mountains and deserts, and you’ve found the perfect place to live, work & play!

CITY OF REDLANDS 35 Cajon Street Redlands, CA 92373 www.cityofredlands.org 909.335.4755 ECONOMIC DEVELOPMENT SPOTLIGHT 2018

This Economic Development Spotlight of Western Real Estate Business gives readers the opportunity to learn more about the region’s bustling and thriving municipalities. Featured throughout this section and the entire issue are advertisements and articles by the cities and economic development corporations themselves.

page 4 page 12 page 14

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page 42-43 SOCAL, THE SOUTHWEST ARE PRIMED FOR MORE DEVELOPMENT Ecommerce and experience are driving development demand for just about every product type throughout Southern California and much of the Southwest. By Nellie Day ith the Great Recession fully ley recently received approval, as did in our rearview mirrors, de- Apple Valley Gateway Center at the Wvelopment activity has been northeast corner of I-15 and Dale Ev- in overdrive lately throughout South- ans Parkway. Apple Valley Gateway ern California and the Southwest. will represent the city’s first freeway- Aside from strong economics, there frontage commercial center. Leasing are a variety of factors contributing is already underway at the 10-acre, to this growth, including ecommerce, 80,480-square-foot project, which will the changing nature of retail, a low eventually include retail, restaurants, unemployment rate, technological ad- fuel stations and a hotel. vances, newly emerging employment Southern Nevada is another in- opportunities, and a healthy travel demand area that is ideally situated and tourism sector. with room to grow. This is particular- ly true in Henderson, a southeastern Shopping for Solutions Las Vegas submarket that will soon be The future of shopping and shop- home to the Las Vegas Raiders’ corpo- ping centers has led to much of the rate office and training field. This $75 development activity in Riverside million project may bring 250 jobs to County’s Moreno Valley, Calif. More- West Henderson, but the city’s devel- no Valley has grown tremendously Moreno Valley has a current population of more than 210,000 residents and an opment and leasing activity doesn’t over the past 10 years with a current annual growth rate of 5.04 percent. More than 2.3 million people live, work and play stop there. Turano Baking Company population of more than 210,000 resi- within a 20-mile trade radius of the city. took occupancy of a 125,000-square- dents and an annual growth rate of foot facility this past summer, while 5.04 percent. More than 2.3 million “retailtainment” where experiences economy, which, in Smith’s (Kroger) will complete its people live, work and play within a are emphasized within the dining and turn, boosts the lo- new 482,000-square-foot distribution 20-mile trade radius of Moreno Valley, shopping environments. cal retail and hous- facility by year-end. Barbra Coffee, inspiring the city to focus on its own “Moreno Valley Mall is more than ing markets.” Henderson’s director of economic offerings. 95 percent occupied,” he says. “The The 1.3-million- development and tourism, believes “Restaurants here city is working with mall manage- square-foot facility ecommerce will also play an impor- outperform their ment on several new entertainment will be largest in the tant role in her city’s future. national chain aver- concepts to join Harkins Theatre and High Desert, Acev- “I see ecommerce fulfillment for re- ages by as much as Round1 Entertainment.” edo notes, and will tail becoming a more prevalent con- 25.6 percent,” says The city is also focusing on the back employ 300 con- versation,” she says. “Retailers are no Mike Lee, economic side of retail as omnichannel solutions struction jobs and Orlando longer singularly focused on locating development di- and logistics providers have a heavy up to 500 operation- Acevedo their brick-and-mortar outlets, but rector for the City hand in our nation’s ability to provide al jobs when it opens Apple Valley, CA they are equally interested in locating of Moreno Valley. and move goods. Moreno Valley re- in mid-2019. Apple their distribution centers in the right “Because more than cently approved the World Logistics Valley’s local econo- places. For our region, we are poised Mike Lee 7,000 single- and Center, which will be the largest cor- my is currently driven by 4.2 million to meet the demands of consumers in City of Moreno multi-family roof- porate industrial park in California’s square feet of retail and office space, the West, particularly in Southern Cal- Valley, CA tops are in the de- history, ushering an additional 20,000 as well as 2.6 million square feet of in- ifornia. With a fulfillment location in velopment process, jobs into the city. dustrial inventory. These numbers are Henderson, you can be to Los Angeles commercial developers are looking to “International mogul Amazon takes about to go up, as an 18,000-square- ports and back within an eight-hour develop more properties for various up more than 2 million square feet in foot Tractor Supply store at Bear Val- turnaround time. You can do same- types of retail centers.” the city,” Lee continues. “Moreno Val- The city saw the opening of 20 ley absorbed more than 8.4 million new restaurants within its borders square feet of industrial space in the last year, including Black Bear Din- past two years, and 7 million square er, Golden Corral, Habit Burger, feet is under construction now, with Safe Haus Craft Beer & Kitchen, more ecommerce companies currently Mountain Mike’s Pizza, Woody’s in talks to utilize that space.” Brewhouse, Pieology, Paris House Directly north of Moreno Valley, of Crepes and Uncle Em’s Southern Apple Valley is awaiting the delivery Smokehouse. The Quarter, a new of a Big Lots Distribution Center that mixed-use project, is also underway. is being developed by Haskell. It will include Country Kitchen, Cof- “The recent decision by Big Lots to fee Bean & Tea Leaf, ZPizza & Tap relocate its West Coast distribution Room and FatBurger, along with a center to Apple Valley demonstrates Holiday Inn Express and Residence our market is ripe for industrial de- Inn by Marriott. velopment and that Apple Valley is Just down the road, the Moreno Val- open to the private investment and ley Mall has received new tenants, job production that these industries such as Miniso and Hibbett Sports, bring,” says Orlando Acevedo, Apple now that it has been acquired by In- Valley’s assistant director of economic The 1.3-million-square-foot Big Lots distribution facility in Apple Valley will be largest in ternational Growth Properties. Lee development and housing. “The proj- the High Desert. It will employ 300 construction jobs and up to 500 operational jobs believes projects like this will lead ect helps to balance the economy, add- when it opens in mid-2019. Moreno Valley into the new age of ing jobs and higher wages to the local www.REBusinessOnline.com Western Real Estate Business • October 2018 • 35 HENDERSON, NEVADA: BRINGING NEW BUSINESS TO A FAMILIAR PLACE

Smith’s will open its new 482,000 square-foot distribution center by year’s end.

For businesses looking to relocate, expand or start fresh, The opening of a second Costco-anchored shopping the tip of the iceberg. Henderson’s list of business finding property in a location that makes business sense center this November is evidence that Henderson is advantages include proximity to five major markets, key can be a tall order. Affordable land is oftentimes limited a hot market. With more than 55,000 households interstates, shipping ports and expansive air service, to remote reaches of the country, far from interstate, within a ten-minute drive of this location, it will be an which gives retailers the ability to ship and receive goods ports or other vital infrastructure. When these amenities epicenter of activity for the new and explosive growth quickly and easily. Shipping out of Henderson is also are available, businesses frequently have to grapple that characterizes West Henderson. With the Raiders cost effective. Pre-existing shipping contracts in and out with a seemingly insurmountable cacophony of taxes, corporate headquarters and training facility located of Las Vegas means that Henderson businesses can save restrictions and red tape, giving even the most seasoned just around the corner, this will become a unique money by transporting their products on empty trucks companies second thoughts about moving elsewhere. commercial node surrounded by four major master- returning to their destinations. planned communities. Although it may sound too good to be true, a place Developers are also directly benefited by Henderson’s does exist where business and people thrive, where West Henderson is also an emerging industrial hotspot. Development Services Center, powered by a team local government makes it easy for companies and their Spanning more than 600 acres between Henderson from seven city departments which help fast- track the employees to get to work. In the desert of Southern Executive Airport and the I-15 corridor, West Henderson planning, reviewing, inspection and permitting phases Nevada lies Henderson, a business oasis that is steadily boasts an 8-hour turnaround to and from Los Angeles of new developments. Beyond assisting with permits, becoming an economic force to reckon with. ports. This advantage offers businesses like Turano the DSC carries out street naming and addressing, Baking Company, producer of artisan-style breads, easy reviews maps and conducts Certificate of Occupancy Located just 15 minutes from Las Vegas, Henderson access to its Southern California customers. Grocery inspections. Developers can rest assured that the City of forms the southern edge of the Las Vegas Valley, giant Smith’s will start shipping products to stores Henderson has their back when it comes to simplifying covering over 100 square miles between Lake Las Vegas throughout Nevada, New Mexico, Arizona and Utah what can oftentimes be an immensely to the east and Interstate 15 to the west. According from its new 482,000 square-foot distribution center by complicated process. to the US Census Bureau, roughly 42% of Henderson year’s end. residents are between the ages of 25 and 54 and nearly Although Henderson is clearly an ideal place to do 15% of new residents arrive to the area with polished While Henderson makes it easy for a number of business, it’s an equally great place to raise a family, professional, management or technical skills. When it industries to flourish, its incentives are especially enjoy an active lifestyle and indulge in culture and the comes to a balance between age and experience of its attractive for both retailers and developers. Henderson arts. Voted the 2nd Safest City in the Country by Forbes local workforce, Henderson, Nevada is hard to beat. was rated as a Very Low Cost City in the 2016-2017 magazine, Henderson has endeavored to make the Kosmont-Rose Cost of Doing Business Survey, which quality of life in the city a top priority, which is echoed in Now topping 310,000 people in a metro area of 2.1 analyzes six types of taxes including business license its investment in education, million, Henderson is an ideal location for your next levies, property tax, sales tax and utility use taxes for master-planned communities, lifestyle amenities, retail expansion. With almost 900,000 square feet of more than 300 cities nationwide. parksand facilities. planned retail space, Henderson garners approximately one third of future retail business development for the However, having the lowest city property tax rate in entire region. Nevada and no state income tax whatsoever are just

Thanks to its bountiful and diverse available prop- erties, business incentives and accommodating local government, Henderson makes the transi- tion to the Las Vegas Valley seamless for compa- nies of all sizes and industries. When coupled with its proximity to an international airport, freeways, major ports and markets, Henderson’s location allows those companies to thrive.

For more information about why your business and family should call Henderson home, visit

HENDERSONNOW.COM A second Costco-anchored shopping center will open this November in Henderson. CREATING OPPORTUNITIES IN NEVADA WORTH A SECOND TAKE

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Company culture. Every business has one, but not every business has a great one. One bold exception is Barclays. Located in Henderson, Nevada, Barclays hosts quarterly theme parties to celebrate and showcase exceptional performance. Businesses value awesome employees, and Henderson values awesome businesses.

Also known as Wow Valley, Henderson is located in the Las Vegas Metro Area, which o ers a unique combination of business and lifestyle amenities that help both people and companies thrive. So whether you are running a company, looking to grow or relocating, Henderson is for you.

Learn about how Henderson’s competitive advantage lets businesses call the shots at WowValleyNV.com. SELECT RETAIL SITES Apple Valley oers golden opportunities for retail businesses.

JESS RANCH MARKETPLACE Located at Bear Valley Road and Apple Valley Road Weingarten Realty owns and manages this 969,000-square-foot regional center which includes Cinemark Theatres, 24 Hour Fitness, Burlington, WinCo Foods, Red Robin, and Buffalo Wild Wings. Ulta Beauty and Jersey Mike’s Subs opened their first stores in the region here. Chase Bank is resuming development of a new branch office at the SEC of Bear Valley and Apple Valley Roads. A limited number Jess Ranch Marketplace K2 Energy was able to ll technical engineering positions that allowed its operations of inline spaces are available as well as an to thrive and expand within Henderson. adjacent 10-acre parcel for entertainment and hospitality opportunities. day delivery to customers in Southern ready to attract our share of industry California and most anywhere from expansions and relocations.” APPLE VALLEY COMMONS Phoenix to Utah.” Developments like Union Village, Located at State Highway18 and &RͿHH QRWHV WKH FLW\ FXUUHQWO\ KDV a 150-acre integrated healthcare vil- Dale Evans Parkway ÀYH NH\ LQGXVWU\ DWWUDFWLRQ WDUJHWV lage concept anchored by Henderson Lewis Retail Centers developed this They include healthcare and life sci- Hospital, are part of these initiatives. HQFHV KHDGTXDUWHUV DQG EDFN R΀FH 7KHVH HͿRUWV DOVR EURXJKW KLJKWHFK 469,000-square-foot center at the advanced manufacturing and logis- companies like Vadatech and K2 En- heart of Apple Valley’s Civic Center and tics; technology and retail; and hospi- ergy to Henderson. Both companies includes Super Target, Ross Dress for WDOLW\DQGWRXULVP&RͿHHDOVREHOLHYHV ZHUH DEOH WR ÀOO VRIWZDUH GHYHORS- Less, Dollar Tree, Round Table Pizza, Henderson’s location, paired with its ment jobs and technical engineering Starbucks, Union Bank and more. Recently pro-business climate, will continue to positions that allowed their opera- opened or coming stores include Juice It attract the best and brightest compa- tions to thrive and expand within the Up, WaBa Grill, 76, and Les Schwab Tire nies to her neck of the woods. city. Center. A limited number of pads and inline Apple Valley Commons “In Henderson, $QRWKHU FLW\ EHQHÀWLQJ IURP LWV spaces are available for lease as well as a it is important to centralized location is Ontario. With 140,000-square-foot former Lowe’s building create great part- an international airport and Southern across Dale Evans Parkway. nerships with our California ZIP code, Ontario has been development com- a hub of industrial activity for de- munity to attract cades, but the ecommerce revolution QUAIL RIDGE PLAZA high-wage indus- has thrown this area into overdrive. Northeast corner of Apple Valley Road tries, which is criti- “Industrial growth is unstoppable and Yucca Loma Road cal to the successful in Southern California right now as Quail Ridge Plaza, formerly known as GLYHUVLÀFDWLRQ RI Barbra more and more companies relocate or our economy,” she expand their distribution presence in The Fountains, is represented by both Coffee Jones Lang LaSalle and CBRE. Located explains. “If we can the region,” says John Andrews, On- City of near the recently opened Yucca Loma cut the red tape and tario’s executive director of economic Henderson, NV Bridge and the strongest median income make it easy for our development. “The growth of ecom- demographics in the region, the first phase developers to build merce has fueled tremendous indus- of the project will include up to 10-acres of R΀FH LQGXVWULDO DQG UHWDLO VSDFH LQ trial growth in the city as companies retail and restaurants. Future phases are our city, then we are better able and continue to seek distribution center proposed to include a mixed-use concept, adding Quail Ridge Plaza office and/or multi-family and senior living. Tenant interest is now being accepted.

APPLE VALLEY GATEWAY CENTER Interstate-15 and Dale Evans Parkway In 2016, the Apple Valley Planning Commission approved Apple Valley Gateway Center, a 10-acre, 80,480-square-foot project at the northeast corner of I-15 and Dale Evans Parkway. Belco Development, of Murrieta, is proposing to construct a hotel, retail shops and restaurants. Hotel and tenant interest is now being accepted.

Innovative embedded computing solutions provider VadaTech maintains its Apple Valley, California (760) 240-7915 headquarters at 198 N. Gibson Road in Henderson. Economic Development Oce [email protected] SelectAppleValley.com 38 • October 2018 • Western Real Estate Business and last-mile facilities to support an “With all growth factors pointing increased online presence.” in the same direction, Burbank will The ecommerce trend has also fu- soon be seen as one of the region’s eled cargo growth at Ontario Interna- top choices for regional, national and tional Airport. UPS, DHL and Prime even international travel,” he notes. Air have all increased their operations The southeast Los Angeles submar- at the airport, while FedEx recently ket of Bellflower is experiencing simi- announced a $100 million facility ex- lar activity as it targets entertainment pansion on-site. options and more hotel rooms to ac- “These companies are taking ad- commodate travelers enjoying said vantage of our superior location and options. logistical advantages,” Andrews “Bellflower is seeing newfound in- notes. “This also allows them to meet terest from the hospitality sector,” the distribution needs of servicing the says Jim Dellalonga, the city’s direc- 22 million people who live in South- tor of economic development. “In the ern California.” Burbank Town Center in Burbank is undergoing a $60 million renovation that includes past, Bellflower was an overlooked Growth near the airport area isn’t new experiential retailers like Round One Bowling and salon-type users. community with low activity, busi- limited to industrial, however. While ness vacancies and retail closures. this region is receiving 3.2 million redevelopment and entertainment- “Burbank is managing an important However, the city is now experiencing square feet of industrial space, thanks based projects continue to come to shift toward tourism development a growth of new construction, retail to the new Meredith International fruition. Burbank is one city hoping and hospitality,” says Patrick Prescott, and hospitality activity, increased pe- Centre, this 200-acre project will also to take advantage of this. Downtown the city’s community development destrian traffic and an overall signifi- include an 800-unit luxury multifam- Burbank, a 33-block commercial dis- director. “Tourists stay in our hotels, cant interest in the city.” ily housing component by G.H. Palm- trict, offers more than 100 restaurants dine and shop in local establishments New attractions include SteelCraft, er, a few luxury auto dealerships, and and 30 movie screens, while Burbank and utilize rental car facilities - all of an outdoor food court housing seven future commercial and retail devel- Town Center recently embarked on a which generates additional local tax unique vendors in repurposed ship- opments. The industrial component $60 million renovation that includes revenue for the city.” ping containers that is set to open is fully leased, construction is under- new experiential retailers like Round Tourism in Burbank represented 3.4 in late 2018 or early 2019. Howard way on the housing component, and One Bowling and salon-type users. In million visitors in 2017, spending $829 CDM, SteelCraft’s developer, also the commercial and retail aspects will fact, the city has eight major projects million and generating $36.7 million purchased a former JC Penney build- commence construction in 2019. on the horizon. This includes nearly in local tax revenue, Prescott cites. The ing that is being converted into the 120,000 square feet of retail space, six new hotel projects will bring more company’s new headquarters with Being Hospitable about 2,300 residential units, six ho- than 1,000 new rooms to the city just as shared office space and a food use Southern California is known for its tels, and a new conference and event the 14-gate terminal replacement proj- on the ground floor that will be beautiful weather and various tourist center with 78,000 square feet in meet- ect at the Hollywood Burbank Airport flanked by a brewery and distillery. attractions, particularly as so many ing and convention space. finishes up in the next few years. The Stand Up Comedy Theater on

The Town of Apple Valley is located in the heart of the Victor Valley in the County of San Bernardino. Apple Valley is strategically located 95 miles northeast of the Los Angeles metropolitan area, 140 miles north of San Diego, and 185 miles south of Las Vegas.

Recent Development Highlights Include:

n Big Lots Distribution Center is building a 1.3 million-square-foot facility in the north Apple Valley industrial area. The project will help to balance the economy, adding jobs and higher wages to the local economy, which in turn boosts the local retail and housing market.

n In the last year, Yucca Loma Bridge opened, paving the way for future development opportunities at Apple Valley and Yucca Loma Road. The bridge opens access to Spring Valley Lake and provides an additional east/west regional corridor.

n St. Mary’s Medical Center opened a 12,500-square-foot Urgent Care earlier this year; a developer has submitted a development application to reposition the southwest corner for a drive-thru and quick service restaurant.

n Other recent openings include Wing Stop, Dickey’s BBQ Pit, Yogurtland, and Galley Fish Tacos.

n 282 new housing permits were issued in FY16-17, more than the last two years combined.

n Apple Valley awarded a $4.46 million state grant that will help widen and realign the intersection at Highway 18 and Apple Valley Road

n The Apple Valley Choice Energy Program, launched in 2017, offers Apple Valley businesses and residents 3% lower generation rates than Edison with higher/greener renewable content.

n Data indicates and our residents express their is strong consumer demand for more dining choices, both full and quick service, as well as apparel, shoes, sporting goods, furnishings and specialty retailers and department stores.

SelectAppleValley.com www.REBusinessOnline.com Western Real Estate Business • October 2018 • 39 CALIFORNIA

Ideally situated in Southern California, 4,500 businesses call Moreno Valley home, including ALDI Foods, Amazon, Cardinal Glass, Floor & Decor, Harbor Freight Tools,

Karma Automotive, Phillips Electronics, Proctor & Gamble, Serta Mattress,

Skechers USA and more!

2nd 21st square largest city in largest city in Riverside County CALIFORNIA MILES

20-mile 210,639 radius population Median Moreno Valley AGE: Population 2018 2,340,555 31.6

5.04% Home to numerous 17,000 annual growth Fortune 500 AND INTERNATIONAL COMPANIES JOBS RATE created in 5 years

TRANSPORTATION CALIFORNIA STATE ROUTE 60 | INTERSTATE 215 METROLINK SERVED CHARTER & CARGO FLIGHTS FROM MARCH INLAND PORT AIRPORT BY INTERNATIONAL FLIGHTS FROM ONTARIO AIRPORT

moving at the speed of business www.morenovalleybusiness.com | 951.413.3460 | [email protected] ompetitive, successful companies looking to expand their brand know there is one place in Southern California that consistently beats the rest – Cthe City of Moreno Valley. Location, Location, Location Moreno Valley is only an hour away from Los Angeles, Orange and San Diego counties and less than three hours to Nevada, Arizona and Mexico. We are home to Costco, Pottery Barn Warehouse, West Elm Outlet, SuperTarget, Home Depot, Macy’s, Burlington, TJ Maxx/HomeGoods, Ulta and BevMo. 200 nationally recognized and boutique restaurants offer distinctive dining experiences, like BJs Restaurant and Brewhouse, Portillo’s, Outback Steakhouse, Woody’s Brewhouse and Mountain Mike’s Pizza. Our restaurant chains outperform the national average by as much as 25.6 percent. We have 3 hotels under construction – Residence Inn by Marriott, Holiday Inn Express, and Fairfield Inn and Suites – with more in development.

Growth beyond compare Our population of 210,000 is booming, and our annual growth rate is 5.04%. 2.3 million people live in a 20-mile trade radius. Our average household income is $74,823. 21,000 households are above $75,000. We have created 17,000 jobs in the last 5 years. Residential construction is adding additional new housing opportunities with more than 7,000 single and multi-family units under construction or in development. Three colleges (University of California, Riverside, Cal Baptist University and Moreno Valley College) attract more than 40,000 students. In total, 44 universities and community colleges educate more than 225,655 undergraduates within 50 miles of Moreno Valley. Riverside University Health System Medical Center (headquarters for Riverside County’s hospital system, based here in Moreno Valley) and Kaiser Permanente are both expanding their facilities to meet strong regional demand.

Vast transportation network Transportation corridors State Route 60 and Interstate 215 offer same-day access to all parts of California, Nevada, Arizona and Mexico. Moreno Valley’s March Inland Port Airport is ideal for air cargo and private corporate flights, while passengers may choose from five international airports within an hour’s drive.

Accelerating opportunities through incentives Our Go MoVal Strike Team of City representatives stands ready to assist businesses with all needs as they happen. Time is money. Our concierge service assists businesses through each stage of the development process. And our unparalleled plan check turnaround time consistently beats other agencies in the region.

Hottest Market in Southern California At 4,500 businesses strong, Moreno Valley is home to regional headquarters and major facilities for Fortune 500 and international companies including ALDI Foods, Skechers USA, Floor & Décor, Harbor Freight Tools, Lowe’s Home Improvement, O’Reilly Automotive, Ross Dress For Less, Serta Mattress, Sherwin Williams and Walgreens.

Moreno Valley’s ideal location, business friendly atmosphere and motivated workforce are why so many Fortune 500 and international companies have made it their home. Contact us to find out what we can offer you. 951.413.3460 | [email protected] | www.morenovalleybusiness.com Belmont Street also recently began de- molition and will open in early 2019. A 56-room boutique hotel is in the pro- cess of submitting plans to the city, as a few other flag- ship brands pursue Jim additional sites as Dellalonga well. City of Bellflower is bet- Bellflower, CA ting big on restau- rants, entertainment and hospitality in anticipation of the new LA Metro Light Rail line that will cross through Bellflower on its way to Downtown Los Angeles. This line is expected to be completed before the 2028 Olympics in Los Angeles, with a dedicated new train station located in the heart of downtown. “Bellflower, like other cities, was hit pretty hard by the recession,” Del- lalonga says. “This was amplified by the dissolution of redevelopment agencies in 2012. During this period, city leadership positioned Bellflower for success as the economy slowly began to improve. Conservative fi- SteelCraft is an outdoor food court housing seven unique vendors in repurposed shipping containers that is set to open in nancial management and investment Bellflower in late 2018 or early 2019. in a revitalization plan contributed to some of the development successes

ndio is the “City of Festivals” and ranked the No. 1 Indio is enjoying an economic upswing, welcoming a City in the Nation for Live Music. As the second seat variety of new commercial developments, including new Iof Riverside County, Indio is the center for business, hotels, restaurants, shops, and a 12-plex movie theater government and entertainment in Greater Palm Springs. A north of the I-10 freeway. There are plans to transform the leading global destination, nearly 1.4 million people visit Indio Fashion Mall on Highway 111 to an exciting multi-use Indio annually to experience its world-famous arts, food, development. Downtown Indio is undergoing a renaissance and music festivals such as the Coachella Valley Music with the opening of the beautiful brand new Loma Linda & Arts Festival, Stagecoach California's Country Music University Children’s Health Clinic and planned campus Festival, and Indio International Tamale Festival. expansion of the College of the Desert. Downtown Indio is also home to the California Desert Trial Academy College Spectacular murals in downtown and visits to the Coachella of Law, the only law school in Riverside County. Valley History Museum, Indio Performing Arts Center, and Coachella Valley Art Center highlight Indio’s rich Indio was named one of the Top 20 Best Cities for Young art, culture, and history. The Empire and Eldorado Polo Families in California due to its nationally recognized Clubs attract thousands to watch national sporting and public safety services; exceptional schools; parks and hiking competition events, including world-class polo matches, trails; active senior, teen and recreational centers; and the Sand Storm Lacrosse Festival, and Palm Springs Kennel housing affordability with more than 3,000 new housing Club Dog Show. The luxurious Fantasy Springs Resort units planned or under construction. The future is bright Casino provides culinary delights, gaming and premier for Indio with exceptional amenities, boundless economic entertainment. Indio is also home to the only night-lighted opportunities and a superior quality of life. golf course in the Coachella Valley – the Lights at Indio Golf Course. Visit www.indio.org to learn more.

42 • October 2018 • Western Real Estate Business www.REBusinessOnline.com Bellower is opening a variety of quick-service restaurants, such as Jersey Mike’s, Bellower is betting big on restaurants in anticipation of the new LA Metro Light Rail which is located at 15919 Bellower Blvd. line. Pictured above is Ricci at 16601 Bellower Blvd.

seen around town, as well as a com- pedestrian-oriented downtown,” says implement a master development 215,000-square-foot mall and a 20- mitment to attract new businesses P.J. Gagajena, administrative services concept. Indio and its successor agen- acre city-owned parcel. Current plans and identify blighted areas that can manager of economic development cy own several properties totaling for the mixed-use property include be reused for exciting purposes.” and marketing for the City of Indio. more than 26 acres that can activate a 10-screen theater, 120-room hotel, “Indio’s vision is for a downtown the community’s vision for a down- a gym, 400 housing units and 20,000 Growth Opportunities that is a community-gathering place, town that includes mixed-use, cre- square feet for a major retail anchor /LNH %HOOÁRZHU WKH &RDFKHOOD 9DO- regional destination and mixed-use ative and place-making components. store. ley city of Indio is looking for ways hub with a thriving arts, business, en- The Haagen Company also has “Our retail centers have evolved and to grow while maximizing its current tertainment, shopping and residential plans to rebrand the former Indio changed over the past decade, largely RͿHULQJV scene.” Fashion Mall into a lifestyle and en- in response to the ever-changing retail “Indio is a progressive community The city issued an RFQ (request for tertainment center called the Indio marketplace,” Gagajena explains. “As that is committed to smart growth quotes) this past August for a master Grand Market Place. The redevelop- online sales have increased and re- with a focus upon creating a vibrant developer that can plan, design and ment project includes the existing tailers reduce their brick-and-mortar

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LARGEST AND FASTEST GROWING CITY IN EASTERN RIVERSIDE COUNTY, CA indio.org www.REBusinessOnline.com Western Real Estate Business • October 2018 • 43 footprints, our retail centers have had to evolve long-term, technological advancements in robot- and change.” ics will erode the jobs in this service economy,” he The city has three retail centers that total more notes. “The biggest challenge for our region will than 1.6 million square feet. They include Indio be growing and diversifying the Coachella Valley Towne Center, Showcase at Indio and The Palms, economy. College and career readiness and train- which is anchored by Walmart and has received ing is the path to higher-wage jobs in the Coachella approval for a 12-screen luxury Maya Cinemas, Valley. Partnering with our business community, Hampton Inn & Suites and a variety of fast-casual economic development agencies and educational restaurants and retailers. institutions will be the key to our success.” Entertainment and tourism may maintain a Peoria, Ariz., is no stranger to this challenge, strong presence in the city, but Gagajena concedes either. Just northwest of Phoenix, this city has a Indio and its successor agency own several properties Indio does anticipate challenges ahead. sophisticated demographic with a high quality of totaling more than 26 acres that can activate the “While we have been successful growing our life. community’s vision for a downtown that includes tourism and hospitality industry largely due to “Forty percent of Peoria residents have post- mixed-use, creative and place-making components. our community partnership with the Greater Palm secondary education and are employed in oc- Springs Visitor and Convention Bureau, in the cupational groups exceeding national levels in engineering, computer and mathematics and in- formation technology,” says Paul Zampini, busi- ness attraction coordinator in the city’s economic development services department. “People choose to live here because they can walk out their front doors and go hiking. They can hop on a bike and connect to hundreds of miles of trails or walk the valley’s safest streets at night. They take their kids to A+ schools. They can hook up the boat and drive 15 minutes to the Valley’s largest lake, or at- tend a spring training event and then head home to one of several award-winning communities.” While this may sound idyllic, there’s just one problem with this scenario. “The high-quality talent already lives here,” Indio has three retail centers that total more than 1.6 million square feet. They include Indio Towne Center, Zampini explains. “But they commute to Intel or Showcase at Indio and The Palms (pictured), which is anchored by Walmart. Honeywell across town. On Saturday and Sunday, they are satisfied and happy. But Monday morn- City of Bellflower, California

Settled in 1906, Bellflower, CA was best known for its dairy farms and proximity to downtown Los Angeles via the Pacific Electric Railway. The historic P.E. Depot still stands as a reminder of years past. But Bellflower continues to flourish with new developments that push the City into the future.

In 2028, a new Metro Light Rail Station will stand proudly across the street from the P.E. Depot, inviting thousands of visitors to our pedestrian- friendly Downtown and providing a hassle-free commute to Los Angeles. The Light Rail Station has brought renewed interest in Bellflower, spurring exciting developments for 2019 including SteelCraft, a modern food court built with shipping containers; The StandUp Comedy Theatre; In-N-Out Burger; and The Exchange, a 3-story development that will house a co-working space, restaurant with distillery and brewery, and Howard CDM’s headquarters (the developer of the SteelCraft project). Also responding to the statewide demand for more housing, 115 new housing units are being built along the transforming Artesia Boulevard corridor.

Rich in history but embracing change, Bellflower welcomes innovative uses to serve its 78,000 residents. Bellflower not only belongs to one of the densest regions in the state, but is surrounded by 3 major freeways within dynamic southeast Los Angeles County. Just 15 minutes away, Bellflower residents have access to Orange County, Long Beach Airport, the ports of Los Angeles and Long Beach, and California’s acclaimed beaches and amenities. Bellflower serves as an amazing launch pad for developments to have an outsized reach.

44 • October 2018 • Western Real Estate Business www.REBusinessOnline.com Huntington University opens its new campus in Peoria in the P83 Aviage Systems, a global developer and distributor of civil avionics products, Entertainment District. This site will be the new home for Huntington’s also calls Peoria home. Aviage provides commercial avionics design, testing digital arts degree programs. and development at this new facility. ing they have to leave Shangri-La and and partner with officials who are next business leader. We need some- California and Southwest cities are head into the stop-and-go purgatory ready, willing and able to do business. one to plant their tree in Peoria and trying to do through diversification, that is the morning commute. Satis- “Quite honestly, we have a diverse grow a forest. They will always be the renovations and new projects. Wheth- fied at work but dreading their com- set of economic sectors in the city,” first and the biggest, but others will er they’re targeting the live, work or mute, they waste hours heading back he says. “We have advanced busi- sprout up in their shade. We need a play demographic (or, chances are, a to the lives they love.” ness services, manufacturing, digital business that is tired of being one of mix of all three), their own city lead- Zampini is hoping to change all that media production, medical devices, many and wants to be the one who ership, location and flexibility are by courting employers and showing information technology and others. leads the many.” what will likely keep these projects them why employees love Peoria. He What we lack is a strong leader that Standing out from the crowd rath- and places moving forward 10 years is hoping one or two flagship com- defines our city as the place to build er than blending in with the “one of removed from the start of the Great panies will lay down roots in the city and grow. Our target industry is the many” is exactly what these Southern Recession. n

www.REBusinessOnline.com Western Real Estate Business • October 2018 • 45 BRICK-AND-MORTAR RETAIL CAN SURVIVE… AND HERE’S HOW Real-world strategies to ensure your property’s survival. By Michael Koss, CEO and Chairman, Koss Real Estate Investments

t’s no secret ion world right now, but that doesn’t brick-and-mor- necessarily mean you should rush to Itar stores are add athleisure to your offerings. If the being challenged; shoppers in your area are less fashion however, this conscious or aren’t willing to pay a po- doesn’t mean retail tentially higher price tag, an athleisure is doomed. In fact, brand will struggle no matter how quite the opposite. popular it is in other places. Ultimate- There are still plen- ly, trends come and go, so do your due Michael ty of storefronts diligence before trying to infuse new Koss and shopping cen- life into your property with a fashion- Koss Real Estate ters that are thriv- forward retailer. Investments ing, despite the changing industry Tenant Curation Is Key landscape. Store selection should be carefully Consider two shopping centers in tailored to the demographics of the a similar beachside location and with area. For instance, tenants in a shop- similar demographics. One location ping center in Downtown San Fran- is highly successful, while the other cisco should look quite different than Many shopping center owners are turning their properties into entertainment struggles to stay open. Why is this? a center in the suburbs of Colorado destinations. Movie theaters, comfortable lounge areas and beautiful grounds with It’s become apparent the success of a Springs, Colo. For example, there is a art installations are all popular upgrades that encourage people to spend time at a property is based heavily on the own- healthy food and beverage chain with center. er’s long-term judgement and deci- several locations in high-traffic Cali- sion-making. fornia malls, as well as one in Malibu. other nearby centers and storefronts. lent way to increase visibility, connect The Malibu location achieves the high- Unique stores have the added bonus to shoppers and build goodwill. Find Tread Lightly With Trends est per-square-foot sales because shop- of drawing shoppers from other areas ways to get people to your shopping To start, successful shopping centers pers are more health conscious. When who may not be able to find what you center, even if shopping isn’t their generally avoid short-term tactics like you align your tenants and offerings offer in their local neighborhoods. first priority. pop-up shops. Despite their popular- with the interests of your shoppers, Finally, remember that your prop- ity, these kinds of tenants are detri- everyone wins. ‘Experiencing’ All You Have erty is a business and it needs to be mental in the grand scheme. Typically, Shopping centers need to be espe- To Offer treated as such. Invest in marketing, pop-up tenants only stay open for a cially intentional about providing an Today, many shopping center own- advertising and branding like any oth- few months and pay a percentage of array of interesting choices for their ers are turning their properties into er company would. Above all, make sales to the owner. This translates into customers. This prevents stores from entertainment destinations that at- sure your tenants reflect the message irregular tenancy and makes it ap- cannibalizing each other’s business. tract people irrespective of stores. you want to convey. You want them to pear as though stores are constantly If you lease to two women’s couture Movie theaters, comfortable lounge help you reach your long-term busi- opening and closing—a bad signal to stores, but they target very different areas and beautiful grounds with art ness goals. You do not simply want send to shoppers. Pop-up shops can shoppers — bohemian versus conser- installations are all popular upgrades to lease to the first tenant with good not only damage a property’s reputa- vative — both stores can succeed. that encourage people to spend time credit that comes your way. Hold your tion, but owners often make very little Exciting and one-of-a-kind stores at a center (and hopefully shop, too). properties to a high standard, and you rent from them. It is better to focus on also make the shopping experience Even freestanding storefronts can will achieve better results. finding strong, long-term tenants that more enjoyable. Customers should take a cue from this trend. Can you regularly draw in foot traffic. ideally be able to find something a little take advantage of your geographic Michael Koss is CEO and Chairman of Koss Consumer trends don’t always different in every store they enter. This location or make the shopping ex- Real Estate Investments in Los Angeles. Koss translate into retail success. For exam- means “different” not only from stores perience more immersive? Hosting is also the owner and operator of Malibu ple, athleisure is trending in the fash- on the property, but also different from community events is another excel- Country Mart in Malibu, Calif.

Exciting and one-of-a-kind stores also make the shopping experience more enjoyable. Dining is another way to bring traffic into a center, such is the case with Tra di Noi at Customers should ideally be able to find something different in every store they enter. Malibu Country Mart in Malibu, Calif.

46 • October 2018 • Western Real Estate Business www.REBusinessOnline.com ECONOMY, ECOMMERCE AND EXPERIENCE: THREE TRENDS IMPACTING INDUSTRIAL REAL ESTATE The future of commerce is upon us — and much of it is directly linked to the industrial sector. By Robert G. Thornburgh, Kidder Mathews

he industrial market has become created a spike in the development of from brokers and buyers to service Growing ecom- the hottest sector across the Unit- massive distribution centers that are providers and so forth. The newest merce operations Ted States, with California setting well-located. With Amazon setting ex- generation entering our industry is are positioning ten- the pace. This activity is driven by an pectations for products to arrive in 48- creating a virtual experience for cus- ants to seek smaller extraordinary surge in ecommerce hour windows, industrial fulfillment tomers to conduct deals completely distribution cen- and expanding global trade. We face centers must be situated near popu- online. People will only grow more ters closer to urban a vastly different environment today lation centers to meet consumers’ ex- comfortable transacting deals digital- cores. Technological than the industrial real estate land- pectations for fast product delivery. ly. Access to online resources and tools advancements will scape so incredibly impacted by the Online fulfillment has pivoted from will allow clients and industry profes- not stop at products, economic decline nearly a decade ago. delivering direct to store to delivering sionals to facilitate more deals with but will turn to self- Robert One simply must look at the unprec- direct to the doorstep. This pivot is increased efficiency. This same ease of presentation. Those Thornburgh edented wave of growth with record seen as recession resistant, since even access will also provide expanded in- breaking into the Kidder Mathews demand to be convinced of the up- if the economy dips, consumers will formation to the consumers, changing broker industry are turn in the industry. Consider the cur- still want to order the basics. The rise the value proposition that real estate taking advantage rent global appetite for investments of demand results in supply increase, professionals have grown accustomed of the new possibilities available to across all product types, the influence leaving nothing but growth ahead for to bringing. offer their services. Through online of ecommerce, changes occurring industrial warehouses. From recession to renaissance, in- profiles, data and transactions people in office and retail use, mergers and dustrial real estate is experiencing a are becoming more at ease with digi- acquisitions, the quickly expanding Experience revitalization. The U.S. economy is tal practices. It’s impossible to ignore influence of technology and the next Commercial real estate has always mounting, technology is improving the influences of technology and the generation of real estate professionals been a business that heavily depends and with this comes further innova- corresponding rapid rate of change. coming into the business. All of this on interpersonal relationships. How- tion. The industrial market continues Despite it all, we are only just getting makes for an exciting time to be in ever, we must observe the landscape to thrive and reinvent with growth in started in terms of its overall impact commercial real estate. — things are changing at an acceler- international trade and online retail on our industry. ated pace. There is a younger group furthering the sector. Online shopping Economy of professionals who look at things and consumer demand is changing all Robert G. Thornburgh is Partner and Executive The U.S. economy is on a remark- differently. Those leaving the work- preconceived notions we once had for Vice President in Kidder Mathews’ Long able upward run. Economic activity is force have not invested the same time, distribution centers. Once considered Beach, Calif., office. Thornburgh is also the proving somewhat impervious to an energy and resources thinking about the ugly duckling compared to “lux- upcoming President of SIOR. assortment of unique influences rang- search capabilities and their digital ury” sky-scrapers, warehouses and ing from political administrations to presence. This new group does, and it distribution centers are now vital to natural disasters. There is not a single touches every aspect of our industry, appease the consumer. industrial market or sector that isn’t currently experiencing record-break- ing numbers. Simply put, each sub- market has its own story, but they all end in a transformative environment that is repositioning antiquated real estate and pushing building design, lease rates and real estate profession- als in new ways we have not expe- rienced before. Strong GDP and job growth in 2018 have set the stage for long-term real estate demand and ab- sorption. There appears to be no stop- ping the forward momentum and its positive impact on the value of real estate. Unrelenting demand for real estate and the highly competitive en- vironment for talent is contributing to the flourishing market and economy. Ecommerce Changing consumer and lifestyle trends — surrounding how we live, work and play –— have clearly been the primary driver for the industrial market. This has led to new develop- ment, robust rent increases and, in the process, steadily increasing property values. The recent transformation of retail is the result of a steadily growing economy and population base that are demanding more products. They want these products from various indus- tries, including construction, food and Kidder Mathews recently directed the sale of Downey Industrial Center, a 29.1-acre industrial site in Downey, Calif., for an beverage and household items, all of undisclosed amount. Prologis acquired the center from Downey Industrial Center LLC. which are on the rise. Ecommerce has www.REBusinessOnline.com Western Real Estate Business • October 2018 • 47 EXPERTS REMAIN CONFIDENT FINANCIAL FUTURE FEASIBILITY WILL CONTINUE Interest rates are increasing, but 10 years on from the start of the previous recession, experts believe our industry will weather any storms with increasing resilience.

CRE LENDING LOOKS STRONG ever-broader menu of options when it retailer woes. cap rates is complex. Looking at in- 10 YEARS AFTER LEHMAN comes to financing. These include not The abundance of capital means terest rates alone doesn’t take several COLLAPSE only senior debt, but also mezzanine most deals in this market can find the factors into account that have the po- By Bryan Cavalier, Managing Director of debt and preferred equity. right mix of capital suitable for the tential to minimize the impacts of a Real Estate Finance, CIT Group in Los What is also different this time business plan and risk. In this matur- higher cost of financing on property Angeles around is that today’s commercial real ing real estate cycle, borrowers and values. The most significant of these estate deals depend on the borrower lenders need to work closely with factors is the cause of the rising inter- Things are look- having enough equity in the property people who have the experience, ex- est rates. ing bright for com- to weather an economic downturn. pertise and relationships to structure Low interest rates are a sign of a mercial real estate This reassures lenders that their loans transactions that are appropriate for weak economy and used to stimulate in the Western U.S., will either be repaid via property sale the risks. economic growth. In our current envi- and it’s not just be- or refinance. Real estate is a dynamic business ronment, rates are rising in anticipa- cause of our sunny and still subject to market cycles, so tion of a continued strengthening of skies and beautiful Lenders Remain Disciplined it’s always wise to tread cautiously. the economy and expected low rates sunsets. Our current From the bank lender standpoint, Even so, I’m optimistic that key mar- of unemployment. Both of these fac- national econom- credit standards have remained strong kets across the West are home to solid tors support property values. Bryan ic expansion has and leverage levels have held steady. demographic and demand fundamen- Secondly, from small family offices now been under- This has occurred even as liquidity tals. There are still plenty of projects to large acquisition funds, cash buy- Cavalier way for more than abounds, interest rates slowly rise and waiting for the right combination of ers are plentiful. This buyer profile CIT Group nine years, albeit at competition squeezes margins. It’s a capital and expertise to unlock value. is more concerned about deploying growth rates more testament to their credit discipline that capital and meeting minimum cash- subdued than past recoveries. most lending institutions are willing on-cash return expectations and less This economic growth has been sup- to watch spread compress rather than concerned about their levered rate ported in part by a booming technol- increase leverage or loosen their cred- THE IMPACT OF RISING INTEREST of return. Commercial real estate re- ogy sector, consumer demand buoyed it standards. Banks are ceding higher RATES ON CAP RATES mains a safe place for investors to by a strong labor market, rising prop- leverage and higher risk deals to the By Tomi Jo Lynch, Managing Director of place capital and to create cash flow erty values and tax cuts, and a bull plethora of debt funds in the market, SVN | Gold Dust Commercial Associates in for many buyer types. market in stocks that has resulted in and are unwilling to risk weakening Reno, Nev. the longest period of uninterrupted their strong balance sheets. Lending Competition Remains gains in American history. In fact, the Among many fac- Strong S&P 500 index has more than tripled Confidence in the Capital tors that influenced An even distribution of capital sourc- since it bottomed out in March 2009. Markets the recovery of the es from CMBS lenders to private mon- It’s almost enough to dim memories All this reflects a more mature capi- commercial real es- ey have created healthy competition of the financial crisis that preceded tal markets environment. A correc- tate market nation- amongst financing sources. Instead of this expansion. tion, if any comes, should be manage- wide were the his- increasing rates, lenders have become All those memories came flashing able. That gives me confidence in the torically low interest more competitive on other loan terms, back earlier this month, however, on future. The health of the lending com- rates that occurred such as broker fees, discount points the 10th anniversary of the Lehman munity provides valuable support for coming out of the and closing costs. Although interest Brothers collapse, an event that trig- the commercial real estate sector and, recession. These Tomi Jo rates are going up, mortgage rates gered the financial crisis and subse- through it, the economies of many low rates played no have not yet skyrocketed. quent Great Recession. This also made Western states. small part in help- Lynch The timing of cap rate increases can me realize how far our industry has Consider, for example, the latest ing the economy SVN | Gold Dust influence outcomes as well. If unem- come in the decade since. findings of the CBRE “Investor In- recover as a whole. Commercial ployment remains low, tenants will tentions Survey,” which reflects the Now that the econ- Associates have increasing space requirements A Rebound Abounds sentiments of 300 real estate inves- omy has shifted, and, in turn, a shortage of available Real estate prices have rebounded tors. It found Los Angeles/Southern these rates will change. As we look to vacancy and rising rents. Rising rents and now surpass pre-recession highs. California is the top-ranked metro the months and years ahead, investors can help Net Operating Income (NOI) Commercial real estate supply in all area for property purchases. Dallas/ are keeping a close eye on any impacts keep pace with increases in interest property sectors has been relatively Ft. Worth came in second place. Seat- on property prices and cap rates as rates if anticipated and accounted for. constrained during the recovery, tle and New York were tied for third, interest rates rise due to anticipated Cap rates have varied across market as developers and capital provid- followed by San Francisco/Northern actions by the Federal Reserve in the sectors in 2018, with the high being in ers were careful to avoid speculative California and Houston, which were short-term, as well as market-driven the hotel sector and the low in apart- building. More recently, however, in- tied for fourth. The Western U.S. is changes in the long-term. ments. Rates for retail, office and in- creasing supply — especially in Class well represented among those top-tier dustrial have maintained near all-time A multifamily and office — has begun markets. The Inevitability of Rising lows as well. These low cap rates have to exceed demand, putting the brakes Of course, there is variation across Interest Rates bolstered the commercial real estate on rent growth. the different commercial real estate We know interest rates will go up. market against small rises in interest Meanwhile, a revitalized technol- sectors that is driven by customer What remains to be seen is the degree rates. ogy sector, combined with the re- demand and the ongoing shift from of impact on cap rates and by exten- The national market is seeing cap emergence of and re-investment in brick-and-mortar retail to ecommerce. sion, on property values. The textbook rate compression across the board, urban cores, has led to innovative Industrial and multifamily sectors relationship between interest rates with secondary and tertiary mar- new projects. A re-thinking of or- are particularly strong, according to and cap rates is clear. As the cost of kets offering buyers some insulation ganizational space has driven huge the California Commercial Real Estate financing increases, cap rates are ad- against potentially rising interest rates demand for creative office locations Survey and Index, released in July by versely affected, which, in turn, can and declining values. Tertiary and sec- with open floor plans and communal the Allen Matkins/UCLA Anderson lower property values. ondary markets like Reno generally work areas. Forecast. However, the office market While reasonable, this has not al- have less volatility and economically Compared to a decade ago, real es- and retail sectors have lagged, given ways been historically true. The re- tend to trend a few years behind ma- tate borrowers today have access to an slowing absorption and chain-store lationship between interest rates and jor markets. If a spike in interest rates 48 • October 2018 • Western Real Estate Business www.REBusinessOnline.com causes cap rates to rise and prices to ing the same period, six Western cit- land is seeing a steady stream of new ters to 87 percent, while rent growth subsequently drop, secondary and ies — Portland, San Francisco, Seattle, seniors living and assisted living com- closely tracks the national average. tertiary markets with solid economic Los Angeles, Riverside, Calif., and Las munities, development has proceeded On the surface, Las Vegas also seems fundamentals do not have as far to fall Vegas — delivered the highest rent at a restrained pace. The ratio of con- like another market where overbuild- (or rise). growth. Portland, Seattle, and San struction to existing inventory is just ing could be a concern, with occupan- The correlation between rising in- Jose and Sacramento, Calif., all turned 4 percent, and rent growth is a solid cy rates at 82 percent. A more nuanced terest rates and cap rates is foggy at in occupancy rates higher than 91 per- 5 percent. Los Angeles and Seattle are examination, however, reveals that EHVWZLWKPDQ\IDFWRUVDͿHFWLQJFDS cent. following roughly the same pattern. the market is split between pre-reces- rates and, therefore, property values. Even a city like Phoenix, which at- sion product and communities built Looking ahead, small but regular in- Variations on the Same Theme tained a phenomenal construction- during the real estate recovery. creases in interest rates are expected. Of course, each city has its own story to-inventory ratio of 18 percent in However, these increases are not an- to tell. However, collectively, they re- the second quarter, is doing well. De- Minimum Wage Maximizes ticipated to disrupt pricing across the veal that market fundamentals for se- mand lags supply only slightly, with Labor Costs commercial real estate spectrum. This niors housing in Western states remain occupancy rates dipping just 2 per- Western markets, however, are not ZRXOGQRWKROGWUXHIRUDPRUHVLJQLÀ- strong. For instance, although Port- centage points over the past six quar- continued on page 51 cant jump in interest rates, but a rise of that implication is not anticipated. NINTH ANNUAL INTERFACE INVESTORS SEE POTENTIAL IN WESTERN SENIORS HOUSING By Dague Retzlaff, Senior Vice President of Originations, Capital One Healthcare MULTIFAMILY SOUTHEAST As 2018 quickly draws to a close NOVEMBER 27 ◆ THE WHITLEY, ATLANTA and the looming de- mographic trends PRODUCED BY INTERFACE CONFERENCE GROUP AND FRANCE MEDIA edge ever closer, in- vestor enthusiasm for seniors hous- The biggest multifamily event in the southeast is back! ing — particularly in the Western U.S. The InterFace Conference Group and Southeast Real Estate Business are pleased to host the 9th annual — remains strong. InterFace Multifamily Southeast information and networking conference on November 27th at The Whitley Dague At the same time, in Atlanta. The event will be focused on buying, building, operating and financing apartment properties in Retzlaff investors continue Capital One to keep a wary eye the Southeast. Panel sessions will cover apartment investment, development, financing, as well as trends in Healthcare on occupancy lev- leasing, operations and architecture/design. els underlining the importance of un- GHUVWDQGLQJVSHFLÀFPDUNHWVDQGVXE- markets when reviewing deals. 7KHÀUVWKDOIRIVDZDWRWDORI 236 deals close, according to the NIC MAP Data Service, although dollar YROXPHDUHÁHFWLRQRIWKHVPDOOSHU- centage of portfolio deals completed WKXVIDUGHFUHDVHGIURPWKHÀUVWKDOI of 2017. Prices have also held steady. $W DQ DYHUDJH RI  SHU XQLW they are up 1.7 percent year over year. At least for the moment, measured in- terest rate increases and manageable PLATINUM SPONSORS GOLD SPONSORs SILVER SPONSORS LQÁDWLRQVXSSRUWWKLVSRVLWLYHRXWORRN When it comes to occupancy on a national basis, construction as a share of seniors housing inventory remains high, ranging between 6 percent and 7 percent for the past 18 months, accord- ing to NIC. With inventory growth outpacing demand, the nationwide seniors housing occupancy rate fell to 87.9 percent at the end of the sec- ond quarter in 2018, its lowest level in seven years, while rent increases aver- aged 2.5 percent. REGISTRATION & GENERAL INFO: SPONSORSHIP & SPEAKING Opportunities: By and large, the Western cities Heather James-Wyrick Ryan Nixon Rich Kelley have tended to avoid these trends. 404-832-8262 404-832-8262 914-468-0818 Most inventory growth in the U.S. occurred elsewhere, with six cities — [email protected] [email protected] [email protected] Chicago, Minneapolis, Atlanta, Hous- ton, Detroit, and Washington, D.C. — accounting for 46 percent of all new interfaceconferencegroup.com inventory in primary markets in the previous year, according to NIC. Dur- www.REBusinessOnline.com Western Real Estate Business • October 2018 • 49 THE FUTURE OF MARKETING WILL ‘NEVER REACH THE FINISH LINE’’ Technology, social media and various smart devices have changed the way commercial real estate is marketed to investors, potential tenants and the public. Interview by Nellie Day he physical real estate isn’t the to be considered digital marketing is and measuring the effectiveness of only aspect of our industry that now just marketing. Today, everyone their efforts so they can continuous- Thas been affected by technology. is a “tech company,” from banking to ly improve. Today, commercial real The way these properties are present- the commercial real estate industry. estate marketers need to be strategists, ed and marketed has changed as well. We are all looking to innovate and branding experts, storytellers, enter- Though this is an often overlooked, harness the power of technology as tainers, communicators, social sellers, behind-the-scenes facet of commercial it plays a more integrated role in our technologists and data analysts. real estate, it is nevertheless an inte- daily business. gral component to getting deals done, WREB: How can today’s commercial achieving optimal occupancy, and Mary Tamaki: When I started in com- real estate marketers prepare for the garnering favorable attention with mercial real estate marketing 20 years digital transformation? Kristina Mary both the public and public officials. ago, my primary role was to provide Sanderson Tamaki Kristina Sanderson, JLL’s director visually compelling deliverables. This Sanderson: Commercial real estate JLL JLL of marketing for Northern California, included proposals, presentations, marketers must keep an open mind the Pacific Northwest and the Rocky brochures, ad campaigns, etc. Our to new customer touchpoints and You must first know your audience, Mountain region, and Mary Tamaki, company had a baseline of informa- ways to engage. We should make it a competitors and services/product director of marketing for the firm’s tion and standardized messaging to priority to proactively search out the offering to tell the stories that sup- Southwest region, sat down with communicate our brand positioning. latest and greatest commercial real port your strategy. Technology can WREB to discuss the winning market- The better looking the materials, the estate and marketing technologies. only help deliver your message once ing strategies commercial real estate more value we provided to our bro- As you develop a plan to market a you have a solid understanding of professionals are implementing out kers. Today, commercial real estate property, utilize the best technologies what you need to say and who you West. marketing is more than just the pack- and applications to tell your story. are trying to say it to. Once you aging. As marketing professionals, Don’t ever be afraid to push the have a strong marketing footprint, it WREB: How has the commercial real you have to partner with your brokers envelope and remember, anything doesn’t hurt to spend time research- estate marketing world changed over to truly understand the target audi- is possible! When learning about a ing and exploring new technologies the past few decades? ence and create ways to engage them. new technology or digital applica- to help enhance your storytelling or It’s not enough to simply recite a ser- tion, think about how that technol- your audience experience. Staying Kristina Sanderson: The pace of vice offering. You must share subject ogy could pivot to better serve your ahead of the game is vitally impor- change in our industry has increased matter expertise and thought leader- needs. Digital trends are ever evolv- tant because of the rapid speed in dramatically and will continue to do ship through compelling stories and ing and your insight and influence which change is happening in com- so. Prior to working in commercial multi-media channels. could shape that technology’s future mercial real estate marketing. Cana- real estate, I was in tech, and mak- Successful programs must dif- state or applications. dian Prime Minister Justin Trudeau ing the move between industries was ferentiate, innovate and evoke emo- said at the last Davos conference that eye opening. Change moves at warp tions. You want to work hand in hand Tamaki: It’s easy to get swept up in “the pace of change has never been speed in tech, but the commercial real with research to leverage their data all the cool new digital trends and the this fast, yet it will never be this slow estate industry, at-large, has histori- and market trends to create impact- continuous barrage of new market- again.” Very true words. cally been slow to adopt to new tech- ful and relevant content, which then ing and technology (MarTech) solu- nology. I’ve witnessed that delta keep must be woven into engaging stories. tions, but good marketers need to WREB: Why is it important to keep getting slimmer and slimmer. In com- Now more than ever, marketing pro- stick to some basic principles before finding new ways to market a com- mercial real estate today, what used fessionals are tasked with analyzing jumping into any new technology. mercial real estate property?

Today’s technologies can help marketing and design teams create Potential tenants are looking for new workplace experiences and want to fully explore 3D walkthrough visualizations specific to a client’s workplace needs their opportunities before making a next move. Using 360-degree virtual tours or and budget requirements. virtual reality is one way to show off a space or neighborhood.

50 • October 2018 • Western Real Estate Business www.REBusinessOnline.com Sanderson: There is so much noise in the system that our audience has a continued from page 49 tough time remembering specific mes- immune to another issue that is defi- sages. The key is to create a buzz that nitely on the minds of seniors housing is different from the rest of the noise investors: wage pressure. The national so that your audience pays attention job market has become increasingly to your message. To do this, you need tight. The Labor Department reported to first understand the unique appeal more than 200,000 new jobs created in of your property or service, as well August 2018 and a jobless rate of 3.9 as the real needs of your target audi- percent. Wage increases have belatedly ence. Once clear, you can develop begun to reflect demand. messages and create strategies to cut In Western markets, the effect is through the noise and grab attention. heightened because wage growth is This process could entail harnessing starting from a higher point. Many the latest and greatest in technology states have set their minimum wage and trends, or it could be the exact above the national average and are opposite — taking something back committed to raising them higher. to basics. Faced with these challenges, they must be more stringent about cost controls Tamaki: Our clients are more aware and strategic about rent increases. of new technologies and are willing to invest in comprehensive brand- Western Properties Find Ready ing, marketing and innovations to Buyers achieve their growing expectations. These higher labor costs do not seem With so much competition today to have diminished investor interest in to attract and retain tenants, every Western properties. Perhaps the big- landlord wants to position and repo- gest news this year has been HCP’s sition their asset to be an amenity- ongoing divestiture of its senior hous- rich, flexible workplace, attractive to ing portfolio. Many of the properties Visually compelling deliverables like proposals, presentations, brochures Millennials or a creative workforce. in the transactions Capital One has and ad campaigns are complemented with multi-media channel content that Potential tenants are looking for new financed so far in 2018 have also been differentiates, innovates and evokes emotion. workplace experiences and want in the West. This includes a group of to fully explore their opportunities 18 assets that a joint venture (managed before making a next move. Using by Seattle-based alternative invest- evant, personalized experiences ing to show what does not yet 360-degree virtual tours or virtual ment firm Columbia Pacific Advisors) in real time, learning what cli- exist, but integrating AR as an reality (VR) has become a standard acquired, as well as 10 assets being ents want, identifying significant overlay for existing spaces can way to show off a space. Drone vid- purchased by Chevalier International events, and making recommen- help a potential tenant visualize eos and virtual panoramas are also Holdings for management by Avamere dations to reach the right clients new concepts or a fresh build-out becoming mainstream. Health Services, a regional operator in at the right time. I also see Aug- in an existing location. AR can based Wilson, Ore. mented Reality (AR) taking over create more immersive and emo- WREB: Any predictions for new, While this might not indicate a VR in popularity. About 39 per- tional experiences for potential innovative tools in commercial real trend, it does demonstrate that inves- cent of large companies currently tenants. And with social media estate marketing? tors — especially those associated with use virtual/augmented reality to platforms supporting 360 videos, large, regional operating companies — enhance the ability for employ- our mobile devices will eventu- Sanderson: Yes, personalization. see value in these Western properties, ees to train in simulated environ- ally replace websites for better Delivering dynamic, creative con- especially to infill existing Western tent to a targeted audience creates ments. We currently use VR for user experiences for all market- n n portfolios. better engagement, guiding consum- commercial real estate market- ing communications. ers down the path to conversion. In commercial real estate, this trans- lates to anything that can help poten- tial tenants visualize themselves in a space. Virtual reality is very power- ful in evoking emotion. Being able to personalize that experience by augmenting it with the use of an interactive tool further aids tenants T’S BUGGIN in envisioning their new space with A ’ Y H OU 3D walkthrough visualizations spe- W ? cific to their workplace needs and budget requirements. I’d also love to see a virtual environment that isn’t as singular as using goggles can be. What if that same environment was Pest Control for Professionally manufactured for an entire group so Managed Properties we could all experience it together and feed off each other’s energy in the experience? OFFICE RETAIL INDUSTRIAL RESIDENTIAL Eco-Friendly Solutions | Serving Southern California Tamaki: The future of commercial real estate marketing lies within Pest Control Pigeon Control Termite Control artificial intelligence (AI). About 28 percent of companies have already Rodent Control Bee Control Gopher Control adopted AI and 41 percent are slated to adopt it within the next two years. 1.877.522.2377 | www.AccessExt.com This technology will help deliver rel- www.REBusinessOnline.com Western Real Estate Business • October 2018 • 51 LA’S NEWEST CREATIVE SPACES TARGET ARTISTS, CANNABIS PURVEYORS Los Angeles’ collaborative culture has become so large that some companies are carving out specialized spaces that target a certain type of creative individual. By Nellie Day

here is no doubt the creative of- fice trend has caught fire in the Tpast couple years, and few places have embraced it more wholehearted- ly than Los Angeles. Between Silicon Beach, the entertainment industry and all the professions that support this industry — including media, adver- tising, technology and graphic design — it’s easy to see why Los Angeles is proud of its creative endeavors. These endeavors are now so widespread and considered “the norm” that a few companies are taking this niche even further, specializing in certain veins of creativity. The 96 artists chosen for admission at Harvard House have access to a single-person sound booth, office space, printer, house Live, Wake, Perform computer, hot tub, sauna, barbecue, indoor stage, photo studio, outdoor hammocks and coin-op laundry for $750 a month. One of those companies is UPstART, a locally based communal housing operator that accommodates artists, wave of artists in cities where most ational marijuana. Los Angeles is also private offices, conference rooms, actors, musicians, DJs, models, come- have been priced out of conventional projected to become the largest legal a lounge and green outdoor yard. dians, writers, directors and dancers. apartments, but also to curate mem- retail cannabis market in the United The co-working space plans to host UPstART’s goal is to provide places bership with strong creative talent States, according to the blockchain a monthly series of workshops, pan- where these performers and art mak- and supplement that with program- technology platform, which is hoping els and partner events. Memberships ers can live, play, collaborate and cre- ming like speakers, workshops, trips to corner the workspace market for range from $449 to $3,000 per month, ate together. These spaces come in the and events,” says Leeor Maciborski, a those within the industry. with $30 day passes based on avail- form of a bed, as well as an on-site re- principal at ROM Investments and an The company created ParagonS- ability. The space is open to profes- cording studio, photo studio, self-tape advisor for UPstART. pace, a 4,300-square-foot co-working sionals outside the cannabis industry, room, fitness center, stage and theater, There are currently 250 active UP- space for cannabis-related companies including the blockchain, tech and co-working space with computer labs, stART members with a waitlist of and individuals. The office opened creative industries, if space permits. film equipment library and more. more than 500. The company plans at 1461 Tamarind Ave. in Hollywood The company wants to keep the em- These residential and work spaces are to debut an additional 700 beds in the this past September. phasis on the cannabis industry, how- complemented with activities that can next 18 months. “We understand the difficulties ever, as it positions ParagonSpace as a include group workshops, house con- many companies face by being a part place where community members can certs, beach trips and family dinners. ‘Green’ Building of the cannabis industry, which is find clients, services, resources and “UPstART accepts members based While UPstART focuses on artists, why we have created ParagonSpace,” investors to support their company on their creative abilities rather than Paragon is targeting a different niche says Jessica VerSteeg, Paragon’s CEO. growth. their financial situation,” says - Jer that has taken off in Los Angeles. Rec- “Within our community, entrepre- “By opening up to all verticals of emiah Adler, founder and CEO of reational marijuana was legalized in neurs and businesses can collaborate, the cannabis industry, whether you’re UPstART. “The organic collaboration California on Jan. 1 of this year. Since network and build in a safe, high-tech, a manufacturer, creative agency, law that happens is amazing. A writer will then, many experts have predicted affordable co-working space catered firm or freelancer, ParagonSpace finish a script, hand it off to another the state will soon become the larg- to those working in cannabis.” brings together all businesses that member who’s a director who casts it est global market for legalized recre- ParagonSpace features flex desks, add to LA’s success in the market,” with actors from the community, and VerSteeg continues. “We look forward then one of the musicians writes and to welcoming new Paragonians and records the score in our on-site record- helping the industry grow together ing studio.” and create a sense of community.” The company, which considers itself The company’s strategy is to offer a “communal housing operator and businesses a membership plan that private club for artists and musicians,” allows them to maintain lower costs currently operates five communities without worrying about property in the Echo Park, Silver Lake, Holly- rentals, permits or utilities with access wood and Beachwood Canyon areas. to mentorship and networking from Its newest community is Harvard other experts in the industry. House, located at 816 N. Hobart Blvd. Los Angeles has always been a city in East Hollywood. The 96 artists cho- on the cutting edge of many trends, sen for admission at Harvard House particularly those that involve cre- have access to a single-person sound ativity. There’s no telling whether booth, office space, printer, house niche creative office space will pop computer, hot tub, sauna, barbecue, up in other markets anytime soon, or indoor stage, photo studio, outdoor whether this is simply an “LA thing.” hammocks and coin-op laundry for UPstART’s communal housing programs include amenities like an on-site recording In either case, it puts a whole new $750 a month. studio, photo studio, self-tape room, fitness center, stage and theater, co-working spin on the creative office trend, cre- “Our mission is not only to pro- space with computer labs, film equipment library and more. ating an opportunity to expand this vide affordable housing to the next craze even further. n 52 • October 2018 • Western Real Estate Business www.REBusinessOnline.com THE PORT OF SAN DIEGO PULLS IN NEW OPPORTUNITIES SAN DIEGO from page 1

San Diego. “This period of time pres- ents a great opportunity for Seaport Village and for current and prospec- tive tenants.” Time of Transition Current tenant leases also came to an end on Sept. 30, to coincide with the change of ownership. Though most existing tenants decided to renew, a few business owners chose to retire or pursue other avenues after decades- long ventures. This has opened up the door for novel and new-to-market tenants to capitalize on a rare water- front opportunity in San Diego. “During the in- terim period before full-fledged redevel- opment begins, our team will be manag- The new Seaport San Diego may also call for a retail and restaurant Main Street-like area. ing Seaport Village with the goals of re- furbishing and repo- Maus believes tablishes a meaningful connection to are iconic to the region and unique to sitioning the site for these test, pilot and the water for locals and visitors alike,” the area.” locals and visitors,” incubator sites will Essakow explains. “As far as future The majority of Seaport’s vacant Jeff says Jeff Essakow, be mutually ben- retail and restaurants at Seaport, we spaces contain less than 2,000 square Essakow owner of Protea eficial to both the will be actively testing all types of feet, providing an ideal breeding Protea Waterfront Property Manage- redevelopment concepts during our early phase. We ground for test concepts. Moser be- Development ment, which is cur- team and the ten- will be looking at casual pop-up busi- lieves these spaces will be particularly rently managing the ants. Their presence nesses as well as established brands.” attractive to new food concepts. project and a partner in the 1HWY1 would bring unique Though Essakow clarifies that ten- “In addition to re- development group. “In addition to concepts and experi- Penny ants who occupy space within the tail, we are focused existing restaurants, retail and enter- ences to Seaport Vil- current Seaport Village are not guar- on adding more din- tainment offerings, we plan to use the lage, while allowing Maus anteed a space at the new Seaport San ing options,” he con- site to test new experiential, retail, these operators to Port of San Diego Diego, it never hurts if the decision- tinues. “The space food and site activation concepts to test the waters (no making team is already familiar with available at Seaport get a better feel for what will perform pun intended) with the local and tour- a concept when it comes time to make Village is irreplace- the best in the final buildout.” ist populations. Plus, there’s always those longer-term decisions. able. Each tenant a value in getting your name out in “We have met extensively with all has the opportunity front of decision-makers. current tenants and engaged in con- to create an expe- “This transition doesn’t just provide structive dialogue that has been ex- rience that will be Don Moser short-term opportunities until the re- tremely valuable in shaping our vi- one of a kind, and Retail Insite development occurs,” Maus explains. sion for Seaport’s future,” Essakow these smaller spaces “We hired a property manager that is continues. “We are committed to are ideal for small-format food users. also one of the members of the ulti- maintaining a strong bond with the Retail is changing but the change is mate development team. Tenants that current retailers because they have de- providing a movement to enhance the would be interested in a space now, fined Seaport for decades and provide shopping experience.” could get an early foot in the door on incredible insight into this important Maus also notes that while this pre- this major waterfront redevelopment. place.” mier piece of San Diego waterfront If you were ever thinking about a is for all to enjoy, she wants to make tourist-centric location along San Di- Existing Experience sure it attracts the visitors Downtown ego’s waterfront, here is the place and Don Moser, partner and co-founder is known for. now is the time to do it.” of Retail Insite, which is overseeing “Seaport Village is a specialty re- The current iteration of Seaport Vil- the leasing efforts, believes the next tail center,” she clarifies. “Being on lage includes more than 50 retail shop wave of tenants to bring Seaport Vil- the waterfront and within the coastal spaces, 17 dining concepts, and a va- lage to maximum capacity will follow zone, we’re really looking for unique riety of live music and public perfor- the current shopping trends. That in- opportunities that target the visitors mance areas. Though the Board of Port cludes food, fun and family. who are coming to San Diego.” Commissioners has not yet approved “This interim leasing period pro- The leasing team may be consid- a project description for Seaport San vides tenants — whether established ering mom and pops and national Diego, 1HWY1 anticipates this new brick and mortar, ecommerce retail- brands, along with first-to-market and project will be a mixed-use program ers, food truck concepts or restaura- previously online-only companies, that may contain such programmatic teurs with multiple locations — the but there are a few types of tenants components as hotels, restaurants, re- opportunity to expand and have a Maus believes may not be the perfect tail and attractions. About 70 percent storefront presence now,” he says. fit from a tourist standpoint. of the Seaport San Diego project will “Businesses will have the opportunity “The restriction with Seaport Vil- be composed of open space, includ- to attract new customers, test concepts lage is that it really needs to be an Part of Seaport San Diego may be ing parks, rooftop terraces and prom- and strengthen brand recognition. We amusing, visitor-serving use,” she a 500-foot observation tower with enades. are targeting retailers that provide a says. “The thing that is interesting sweeping views of the harbor. “Our vision is for a new icon for great shopping experience by offering the City of San Diego, one that rees- excellent customer service, items that continued on next page www.REBusinessOnline.com Western Real Estate Business • October 2018 • 53 REINVENTING THE DEAD MALL MALLS from page 1 mall redevelopment plan by applying revamped into a modern mixed-use longstanding themed entertainment center with office space, restaurants, principles employed by theme parks retail and more. By catering toward around the world. the growing trend of a live-work-play As exemplified by the Bay Area’s lifestyle and providing various enter- Fashion Island that closed in 1996, tainment offerings, the mixed-use gal- adding a few entertainment attrac- leria has fostered a community of its tions, such as a landmark tent, skat- own. The center also hosts events, in- ing rink and arcade, to a shopping cluding the Sherman Oaks Street Fair center is not enough to save it. When and First Fridays with Silent Disco overhauling dead malls, developers parties, as well as special store deals. need to give these redevelopments Despite the Galleria’s prosperity, suc- good reasons to exist and tie all of cessful dead mall makeovers are few its elements together. Most visitors and far between. are not aware that every ride, store, restaurant, cart and pathway is part Add Entertainment Wisely of the scripted entertainment expe- Western sub-regional malls in the rience of a theme park and contrib- U.S. are generally purpose-designed to utes to the destination’s overarch- be shopping centers. These properties ing brand story. Each element helps are usually driven by an anchor store transform theme parks into coveted and feature standard construction de- immersive and experiential worlds When overhauling dead malls, developers need to give these redevelopments good sign with low ceilings, tight gridlines, of their own, which is what shop- reasons to exist and tie all of its elements together. multiple entry and exit points for easy ping centers should strive to achieve. access, and lots of extra and unused The reason guests spend so much at of a mixed-use facility should not be Engage Tenants To space. Under these conditions, add- theme parks is because the experi- the shops, but the visitor experience. Engage Visitors ing entertainment features to rein- ence feels special. They are creating This is far more important than the re- When this is implemented correctly, vigorate the development is a major shared memories and these visitors tail or food offered at a location. Give commercial real estate developers will challenge. Attractions and themed came to enjoy themselves — not cross the development a “reason to exist,” improve the likelihood of obtaining entertainment features often require items off a shopping list. whether it be historical, futuristic, highly targeted retail tenants and busi- volume, extended ceiling height, ex- The emotions and excitement theme fantastical or cultural, and apply this nesses that want to lease space and tensive power, and controlled access parks evoke keep patrons on the principle throughout a redevelop- contribute to the center’s story in their entries and exits. To overcome these premises for longer periods of time. ment’s entire design process to simu- own unique ways. They can also par- limitations, developers should care- It also causes them to visit more often late an immersive theme-park-esque ticipate in yearly or monthly events fully design and implement each and spending more money. The draw world. that help build a sense of community. Rather than only promoting their own stores, they promote the entire expe- rience. Mixed-use and commercial properties that provide programmed events and experiences, such as the Sherman Oaks Galleria, extend the dwell time of guests and increase the frequency of visits. Theme parks ac- complish this through daily parades and fireworks at night. Ideally, a de- veloper should create easily replicable themed entertainment designs that can be applied to multiple locations. By investing in numerous locations, developers can drive down risk and buy materials and entertainment tech- nology in large quantities, which is al- ways more cost efficient. Reinventing malls with themed en- tertainment, programmable entertain- ment and other mixed-use elements allow property developers to deliver iconic experiences and entice people to keep coming back for more. Developers should carefully design and implement each mall redevelopment plan by applying longstanding themed entertainment Bill Coan is President and CEO of ITEC principles employed by theme parks around the world. Entertainment

continued from previous page that would be great to have in there embarcaderos, USS Midway, and fornia,” Moser says. “Seaport Village because they really serve locals and Little Italy, East Village and Gaslamp is the link between San Diego’s bay and a challenge for us is that we we’re looking for something that districts a short walk away, it’s easy and the city’s thriving Downtown. can’t really do big box retailers. It makes sure we’re serving the visi- to see how this area can be a prime Tenants have the opportunity to be has to be something that serves both tors of San Diego. It is public land, breeding ground for the next great part of an exclusive shopping and visitors and locals alike. You won’t and we want to make sure that all of attraction. dining experience that serves visi- see a yoga studio. You aren’t going the public enjoys it.” “This is an opportunity to be part tors, locals, businesses and conven- to see a grocery market. You’re not Still, with attractions like the San of one of the most iconic waterfront tion attendees.” n going to see some of those tenants Diego Convention Center, waterfront retail destinations in Southern Cali-

54 • October 2018 • Western Real Estate Business www.REBusinessOnline.com Commercial Real Estate It’s not just fi nancing, it’s also knowing the landscape.

Capital One® has the full-service Kristen Croxton Karen Williamson CRE SVP, Originations CRE SVP, Relationship Manager capabilities to handle all capital 949-612-9671 949-629-1482 solutions, and the commercial real [email protected] [email protected] estate expertise to get over hurdles Greg Reed Vince Punzi that get in the way of your fi nancing. CRE SVP, Originations CRE VP, Originations 949-612-9670 949-629-1484 [email protected] [email protected] capital.one/cre Chuck Christensen Andrew Kwok CRE SVP, Originations CRE VP, Originations 949-629-1483 949-612-9677 [email protected] [email protected]

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