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Real Estate Bisnow
   
January 7, 2013 
 
 
Good-bye Multifamily?

Join us for Bisnow's LA State of the Market. Our event of the year reviews key trends and issues for the next year. Thu, Jan. 24 at the Beverly Wilshire. Register today!

 
JB Matteson rang in the New Year with the acquisition of the Tustin Cottages in Tustin—that's 24 three-story buildings with 93 townhouse units. (Suddenly our glass of champagne doesn't feel so special.) According to JLL’s Joe Leon, 2013 isn’t going to see a large number of such multifamily deals in OC.
 
Unlike Arizona or Texas, Orange County has never been a high-volume market when it comes to apartment sales, Joe tells us, especially the larger properties (100 or so units and more). The area has long been a holders’ market, with REITs and life companies and other large owners controlling well over half the inventory. Even the apartment asset appreciation of recent years isn’t inspiring a lot of sales. “They aren’t going to sell the goose that lays the golden eggs,” Joe notes. (Especially if they're LEED Gold.)
When larger OC apartment properties do trade, they tend to be expensive, and Tustin Cottages (92% occupied) is a good example. The market has a high barrier to entry, Joe says, but besides that, the property had originally been built as condos, and so it commands a premium. Joe and his colleague Javier Rivera repped the seller, Nevis Homes.

DEAL SHEET
 

SALES

 

San Diego-based Retail Opportunity Investments Corp bought three SoCal shopping centers (two in Orange County) and inked a deal to buy a fourth. All together, the off-market transaction totaled $114M for 444k of retail space. The two OC properties include the 106k SF Cypress West in Cypress, which is 94% leased, anchored by Ralph’s, and fetched $27.6M. The other is the fully leased 120k SF Harbor Place Center, which traded for $27.7M, and is anchored by Albertson's Supermarket and Ross Dress for Less. The other properties in the deal were the 111k SF Redondo Beach Plaza and the 107k SF Diamond Bar Town Center.

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Hines and a subsidiary of a real estate fund managed by Oaktree Capital Management acquired Irvine Corporate Center at 1821 E Dyer Rd, a 126.6k office building in the Irvine Business Complex, from Sunamerica Life Insurance Co. Cushman & Wakefield’s Jeffrey Cole and Ed Hernandez repped the seller, while Hines managing director Ray Lawler, repped the buyers. Hines plans renovations to the property.

A 108.5k SF industrial property, 6 Whatney, in the Irvine Spectrum, traded hands. Lee & Associates' Philip Cohen, Ryan Swanson, and Chris Conway repped both the buyer, CT Realty Corp and the seller, NGK Spark Plugs, which is moving its manufacturing to West Virginia but keeping its West Coast distribution in Irvine. The buyer is planning a major remodel.

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Consolidated-Tomoka Land acquired four properties leased to Bank of America for 15-year terms in both Orange County and Los Angeles County for $8M. The acquisitions came on the heels of a $12.8M purchase by the Daytona Beach, Fla.-based company of five OC retail properties, all leased to Bank of America for 15-year terms.
DEVELOPMENT
 
Ladera Ranch-based Strategic Storage Trust opened 101k SF self-storage facility in at 3136 Mavis Rd Mississauga, Ontario. In 2011, the REIT acquired an industrial building for $5.6M to redevelop it into a self-storage facility. The property, which is 14 miles from downtown Toronto, consists of 800 units and has been rebranded under the SmartStop Self Storage name.

Bring on the Burgers
 
Irvine-based Habit Restaurants had a good 2012, opening 17 Habit Burger Grills in California and Arizona, bringing the total number to 63. Through pre-opening events at every new restaurant and ongoing fundraising at existing locations, the company also raised over $100,000 for local non-profits, including the Boys & Girls Clubs, YMCA, MDA, and Share our Strength. We’ve always been fond of the Habit Truck, essentially a burger joint on wheels that goes to events and parties.

Upcoming Bisnow Events!
 
Thursday, Jan. 24, 7:30am-10:30am. Bisnow's LA State of the Market. The Bisnow event of the year, reviewing the state of the market and key trends and issues for the next year. Register here.
 
A burger, fries, and a side of Bisnow for lunch. Send ideas and suggestions to dees.stribling@bisnow.com.
 
 
 
 
Colliers (Jan) OC
 
NewAcre (Distressed) OC
 
Arent Fox (REI) OC
 
Reznick (CohnDebut) OC
 
Bisnow (Sales)
 
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