Lake View Center in Ontario Sold to BH Properties

BH Properties, a Los Angeles-based commercial real estate investment company, announced this week that it had acquired Lake View Center in Ontario, CA for $13.8 million. The three story, 106,345 square foot office property was sold by PCCP and The Muller Companies, with representation from Kevin Shannon, Darla Longo and Phil Woodford of CB Richard Ellis.

"This Class A property is well located in a market that is showing signs of recovery," said Executive Vice President of BH Properties Steve Jaffe. "The company is very excited about our recent acquisitions in the Los Angeles basin. After an 8-year hiatus from California purchases, this property (along with the other two recent transactions) marks a new acquisition strategy for the company – while still seeking value-add type assets, we now are looking to acquire higher quality properties in more densely populated areas."

Lake View Center, built in 2004, sits at 3257 and 3237 E. Guasti Road. The property was 62% leased at the time of sale, with major tenants including East West Bank, T-Mobile and University of La Verne.

For more news and information visit Blumberg Capital Partners.

Steadfast Income REIT Acquires Sonoma Grande for $32M

Steadfast Income REIT, Inc. announced that it had acquired Sonoma Grande in Tulsa, OK for $32.2 million. Flournoy Development, the Columbus, GA-based company that constructed the complex in 2009, sold the property to Steadfast in a deal brokered by CB Richard Ellis/Oklahoma. The garden-style property was reportedly 91% occupied at the time of sale with a mix of one-, two- and three-bedroom apartments that average approximately 1,130 square feet and have in-place monthly rents that average $938.

"Class A properties typically don't sell very often here because there's not many of them," said David Forrest, a broker with CB Richard Ellis/Oklahoma. Not only is Sonoma Grande in excellent shape - it has an average occupancy well above 90 percent - but also national investors are, in general, only buying Class A properties or distressed properties that need to be fixed up, Forrest said in a Tulsa World article.

For more news and information visit Blumberg Capital Partners.

Norwalk Property Sold to JV for $11M

535 Connecticut Avenue in Norwalk, CT traded hands this month as a joint venture between KABR Real Estate and Blackpoint Partners, 535 Connecticut Avenue, LLC, purchased the office building for $11 million according to a National Real Estate Investor article. The building was previously bought by Miami Beach-based LNR Partners for more than $20 million in 2006. CB Richard Ellis negotiated the sale and will handle leasing for the 175,000-square foot building.

"The current tenants are all good tenants. The only change they will see is that we are a hands-on operator," said Adam Altman, principal of KABR. "They will receive very attentive service from us."

535 Connecticut was reportedly 37% leased at the time of sale with major tenants including University of Phoenix, Ameriprise, and DHL. The building was originally built in 1988 and has undergone $1.5 million in renovations, including a new room and renovated common areas.

For more news and information visit Blumberg Capital Partners.

Report Shows DC Real Estate Slowed

A new article from the Washington Business Journal examines a quarterly report released by CB Richard Ellis showing that commercial real estate in the DC Metro area has cooled a bit. The report shows that vacancy rates fell to 12.6% in the second quarter from 12/7% in the previous quarter, while the office vacancy rate little changed at 10%. According to the article, CB Richard Ellis reported that only four of the top 25 deals in the District were with the federal government, and only one government deal over 10,000 square feet was recorded in suburban Maryland in the second quarter, a two-year low.

"While we remain one of the strongest and most stable commercial real estate markets in the country, everyone seems to have hit the pause button as they take a "wait and see" approach," said John Germano, executive managing director of CBRE's Washington-Baltimore region. "We are poised to see improvement in subsequent quarters but not until there is a clearer picture of where the economy is headed and what will happen with regard to the federal government, a key driver of real estate activity here in our region."

For more news and information visit Blumberg Capital Partners.

Steel Pier for Sale in Atantic City

Atlantic City's Steel Pier amusement park on the block according to a Wall Street Journal report. CB Richard Ellis Group has been hired by Trump Entertainment to sell Steel Peer with a minimum bid of $2.5 million.

"We believe selling the Pier through auction is the best course of action for the company to increase the equity value for our shareholders," said Brian Cahill, a spokesman for Trump Entertainment. "We are a gaming company, and Steel Pier is not part of the casino."

The Steel Pier is located opposite The Boardwalk from Trump Taj Mahal. Previous plans for the property included redeveloping the space into retail and entertainment attractions along with luxury condominiums.

For more news and information visit Blumberg Capital Partners.

CA Selects Buyer for State Buildings at $2.3B

According to an Associated Press article the Department of General Services in California has selected California First LLC, a partnership led by Hines and Antarctica Capital Real Estate, as the buyer for 11 state office properties that went up for bid earlier this year with a winning offer of $2.33 billion. The sale will result in more than $1.2 billion for California's state general fund and $1.09 billion to pay off bonds on the properties. Over the next 20 years, the state will reportedly lease the offices back from the new owner at predetermined rates, and will no longer maintain, operate, or repair the buildings. All the leases with California First allow the state to buy back any or all of the buildings at anytime during the 20-year term. The offices included in the portfolio are:
  • Attorney General Building, Sacramento
  • California Emergency Management Agency Building, Sacramento
  • Capitol Area East End Complex, Sacramento
  • Elihu M. Harris Building, Oakland
  • Franchise Tax Board Complex, Sacramento
  • San Francisco Civic Center, San Francisco
  • Junipero Serra State Building, Los Angeles
  • Department of Justice Building, Sacramento
  • Public Utilities Commission Building, San Francisco
  • Judge Joseph A. Rattigan Building, Santa Rosa
  • Ronald Reagan State Building, Los Angeles

"Far from a fire sale, this was a stiff, multiple-offer competition that generated favorable pricing for the state," Kevin Shannon, vice chairman of CB Richard Ellis, which brokered the sale, said in a written statement. Rich Mayo, one of the chief investors, said California, despite its financial problems, is a reliable investment. The state is not a tenant prone to "run out on leases or anything," he said in a Sacramento Bee article.

For more news and information visit Blumberg Capital Partners.