An aerial view of the area surrounding 1190-1198 Pacific Coast Highway | Courtesy a representative of CBRE

Deal Sheet – September 2018

Carrie Rossenfeld Deal Sheet

A roundup of CRE leases, deals, and financing from SoCal Real Estate’s September 2018 issue:

Retail
Local 1031-exchange investor Gary Sauter has purchased a retail center at 1190-1198 Pacific Coast Highway in Seal Beach, California, for $12 million in an off-market sale from Rodi Properties LLC and Zoeter Place LLC. The property has a mix of medical and service-oriented tenants, including OptumCare Medical Group, LabCorp, and The UPS Store. The site totals 22,464 rentable square feet with an occupancy of 96 percent at time of sale.

Nathan Holthouser and James Lehigh of CBRE represented the buyer in the transaction. The sellers were represented by Sheri McCanless of NAI Capital.

Seal Beach is a small coastal submarket with a number of large neighboring developments underway.

Shea Properties has signed several leases with tenants for The Square at Bressi Ranch, a new, 87,000-square-foot neighborhood center located at Palomar and El Fuerte in Carlsbad, California. The Square’s anchor tenants will include a CVS/pharmacy with a drive-thru for prescription pickup, BevMo!, and a local market specializing in fresh, natural, and organic products.

Additional tenants include Mendocino Farms, Panini Kabob Grill, Richard Walker’s Pancake House, elevated fast-casual concept Casero, Bird Rock Coffee Roasters, fitness studio F45, and a showroom for custom golf-shaft manufacturer FST Shafts.

Located in the master-planned community of Bressi Ranch, the neighborhood center will serve as an amenity to local residents, including the adjacent 125 luxury townhomes at Kensington at the Square, currently under development by Shea Homes. The first tenants are anticipated to open at The Square in early 2019.

Mendocino Farms is one of the tenants at The Square at Bressi Ranch. | Courtesy a representative of Shea Properties

Industrial
Orbis Real Estate Partners and Chase Partners have sold The Campus, three brand-new, 100 percent leased industrial buildings located at 6285-6330 Providence Way in Eastvale, California, to Irvine, California–based real estate investment and management company LBA Realty LLC for an undisclosed amount. Barbara Perrier, Darla Longo, Rebecca Perlmutter, Eric Cox, and Wes Jones of CBRE’s National Partners West team represented both parties in the transaction.
The Campus sits on nearly 10 acres and comprises three class-A warehouse and distribution facilities totaling 192,913 square feet.

The Campus in Eastvale | Courtesy a representative of CBRE

Orange County Direct Mail has signed a lease with Yates, Fontenot, Smith & Brum LLC for a 48,668-square-foot industrial building located at 2672 Dow Avenue in Tustin, California. The tenant is relocating its headquarters from Santa Ana, California, to the new building.

JLL’s Nick Carey represented landlord in the lease. Wade Tift of JLL represented the tenant.

“JLL worked with the landlord to implement a comprehensive renovation and marketing strategy that would maximize demand from quality tenants,” Carey says. “The strategy proved successful as we generated tremendous interest and finalized the lease prior to completion of the renovations.”

2672 Dow Avenue in Tustin, California | Courtesy a representative of JLL

American Properties I LLC has sold a fully leased, 36,962-square-foot industrial property on 4.76 acres at 2420 Grand Avenue in Vista, California, for $6.2 million to a private-equity investor based in Orange County. Commonly known as Vista Pointe Plaza, the multi-tenant building was the buyer’s upleg of a 1031 exchange.

Mark Avilla and Peter Curry of Cushman & Wakefield’s (C&W’s) private-client investment advistors team in San Diego, together with Rick Reeder and Brad Tecca of C&W’s San Diego–based capital-markets services, represented both parties in the sale.

Avilla says, “Vista Pointe Plaza is a highly desirable, institutional-quality, multitenant industrial property that provided the rare opportunity to acquire a true incubator multi-tenant industrial project.” He adds that the building, originally developed in 1989, was fully renovated in 2008 and that the property is currently 100 percent leased to 16 tenants, each occupying less than 12 percent of the total rentable square footage.

Vista Pointe Plaza is at the signalized intersection of Grand and Sycamore avenues. The property provides access to a wide variety of amenities, Highway 78, and a concentration of residential housing units.

Vista Pointe Plaza in Vista, California | Courtesy a representative of Cushman & Wakefield

Office
Tyson & Mendes, a litigation firm specializing in insurance defense, headquartered in San Diego with offices throughout the country, has a signed a short-term sublease for 22,351 square feet of office space at 4435 Eastgate Mall in San Diego’s University City (UTC) neighborhood. The civil-defense firm will occupy the building’s top floor. The sublessor is the global law firm Dentons.

“The interim expansion space will accommodate Tyson & Mendes’ occupancy needs as we structure and execute the firm’s 70,000-100,000-square-foot long-term headquarters transaction,” says Chris Musgjerd of Savills Studley, who advises the firm in San Diego and nationally. “Subleasing from another law firm made the expansion fairly seamless as the existing buildout is well suited to my client’s needs.”

Tyson & Mendes currently occupies approximately 40,000 square feet of class-A office space in San Diego.

Mixed Use
Brixton Capital has purchased the former El Cajon Police Station located at 100 Fletcher Parkway in El Cajon, California, for $4.2 million. The site, purchased from the City of El Cajon, marks Brixton’s fourth acquisition of 2018.

Brixton will transform the approximately 4.11 acres of developable land into Fletcher Marketplace, a mixed-use project comprising approximately 16,000 square feet of retail space and a 60,000 square foot hotel. Brixton will sell 1.4 acres of the site to Excel Hotel Group, which will handle the hotel development portion of the project, while Brixton simultaneously builds the retail portion.

Don Moser and Matt Moser at Retail Insite represented both parties in the transaction and will also manage leasing for Brixton Capital. Dempsey Construction will be the contractor.
According to Bob Emri, chief investment officer at Brixton Capital, “This is an excellent opportunity to completely transform a high-profile corner in El Cajon. We have worked closely with the City the past two years to make this the best site possible and are excited to begin development.”

The retail center is 99 percent preleased and includes tenants In-and-Out, Blaze Pizza, California Fish Grill, Urbane Café, and Mattress Firm.
“Retailing is undergoing massive changes, yet there are still exciting opportunities to create environments where customers’ daily needs are met for dining, entertainment, and travel accommodations,” says Marc Brutten, chairman and founder of Brixton Capital.

A rendering of Fletcher Marketplace in Solana Beach, California | Courtesy a representative of Brixton Capital