Bixby Sells Pacific Center, Stream Realty to Upgrade

Bixby Land, the Irvine, CA-based office and industrial real estate agency, announced last week that it had sold the eight-story Pacific Center in Torrance, CA for $68.5 million. Bixby bought the 291,000 square foot property from TA Associates for $52 million in July 2012, and invested $6 million into property renovations. This week the new owner, Stream Realty, secured a $49 million loan for the acquisition and further renovation of the office building, according to a GlobeSt.com article. Kevin MacKenzie, senior managing director at HFF, secured the funds on behalf of the borrower, along with HFF associate director Brian Torp.

The financing for the property is a non-recourse, four-year interest-only loan with a floating rate, funded through a national bank. "Through an extensive marketing process, there was significant interest generated across the capital spectrum due to the high quality of the asset, the strong office market trends in the south bay, and the experienced sponsorship," said MacKenzie.

When Bixby Land bought the building at 21250 Hawthorne Blvd. it was 63% occupied; their $52 million renovation program was intended to attract new tenants, with upgrades including removing land berms from around the building and putting in new landscaping with palms and olive trees and a furnished outdoor seating area. The building is now 80% leased with tenants including All Nippon Airways, Living Social, Morgan Stanley, Bank of America and Wells Fargo Insurance.

To bring the occupancy levels up higher, Stream plans to make further improvements to the lobbies and un-leased interior units, as well as for leasing concessions. According to Stream Realty's Colby Annett, the financing is a perfect fit for the company to carry out its business plan. "The quality of the asset combined with strong fundamentals in the market made the debt placement a smooth process," he told GlobeSt.com. With additional improvements, Bixby was able to bring the building occupancy up nearly 20% in less than two years with 55,000 square feet of leases signed.

For more news and information visit Blumberg Partners.

Velocis Buys Trinity Place in Denver for $37M

Velocis, a Dallas-based private equity real estate fund manager, announced this week that it had purchased Trinity Place in Denver's CBD from an affiliate of Broe Real Estate Group. Velocis acquired the 195,753 square foot office building for $37 million, according to Denver County records, marking its second purchase in the Denver market. Mary Sullivan and John Jugl of Holliday Fenoglio Fowler marketed the property on behalf of Broe; under new ownership, Stream Realty will handle leasing for the building.

"Trinity Place caters to small-to mid-sized tenants, offering a boutique atmosphere in a traditional and distinctive building," said Mike Lewis, Velocis principal. "Additionally, the building's proximity to the city's popular attractions as well as a multitude of thriving downtown businesses neighboring the asset provides tenants a truly walkable lifestyle."

"The stabilization of Trinity Place prior to the sale resulted from an aggressive capital improvement plan, rapidly improving downtown market fundamentals and a niche focus on energy and professional services firms. Velocis is acquiring a quality asset with a stable roster of tenants and continued growth opportunities as leases roll to higher market rates," said Scott Gibler, managing director of Broe Real Estate.

Located at 1801 Broadway, Trinity Place is currently 89% leased to 40 tenants including Great Western Oil & Gas, Forrester Oil & Gas, Bank of Colorado and Trinity Grille, as well as other energy, professional services and legal service firms. Originally constructed in 1981, the property was previously acquired by Broe's affiliate in October 2006 from Equity Office Properties and renovated in 2012. Renovations included a major lobby update, complete with full-height windows and museum-quality artwork.

For more news and information visit Blumberg Capital Partners.