The Grapes of Rob
Need a festive beverage to celebrate your next land sale? Just make it yourself.
, we chatted with CBRE SVP Rob Hixson
, whose "Big Rob's Red" grabbed second place at the San Diego Fair this summer. He and colleagues Rich Kwasny
and Alexandra Allsup
just repped MS Development
in the sale of 10 acres in Otay Mesa to the Kiernan Cos
, a private developer based in Coronado. Rob says the finished industrial lot is next to State Route 11, the new freeway that most of the trucks exiting Mexico
will be using, anticipated to begin construction within the next six months.
The site (10138 Airway Rd) is in the Airway Business Center
, just north of the outbound International Truck Border Crossing. Fischer & Co's Brian Rolens
and Michael Bauer
repped Kiernan. Rob tells us the deal is a sign of increased activity in the county
as opposed to the city, where much of the activity has been. Besides making wine, Rob is the founder of the Baja Challenge
, an annual event in which San Diego real estate and construction companies build homes for needy families in Tijuana (top left). Grab your hammers: The 14th annual Challenge is slated in October
(Nearly) 300 Units on the Way
We checked in with The Picerne Group managing director Brad Perozzi
on the company's latest SoCal project: A 298-unit, Class-A apartment community in Ontario. Why build now
? By the time the project has opened and stabilized, he says, most of the new inventory from the last cycle
will be 10 years old. (That was a lifetime ago; nobody even knew what Twitter was back then.) Brad says the privately held developer agrees with economists that interest rates will be on the rise, which will create upward pressure
on single-family home affordability. The corresponding rise in rental rents
will be "much more meaningful" than the past several years while the economy was in recovery mode, and home ownership has been more achievable
The community will be built on a vacant, 11-acre site
at East Fourth St and Haven Ave. Construction should start early '14, with units ready for lease by Q1 '15
. Targeted renters will be young professionals with well-paying jobs
who want to take advantage of proximity to Citizens Bank Arena, Ontario Mills Mall, and other local entertainment and retail venues. (If you're making money you'll wanna spend it on something that helps you forget how you made it.) In addition, Brad says the project's amenity program will provide a sense of community
not currently found in the market. TPG's SoCal development pipeline includes 2,000 units
in site-constrained submarkets; the company also has projects in Houston and Denver.
Brad was one of the all-star panelists
at our Orange County Multifamily Summit. He tells us it was a rewarding experience, not just because of the continental breakfast. He cited the casual
presentation atmosphere as well as his fellow panelists, who were well qualified and "good people
." Here's Brad in action.
Fun with Funding
Besides this vacation with his family, Presidio Residential Capital principal Don Faye
has another reason to look happy: The private equity firm has funded 23 projects
this year totaling more than $64M
. Don says it's one more sign that the housing market in the West is making a comeback
. (We were thinking of making a go at acting—this means somebody
has a couch for us sleep on.) The financings, which include six construction loans
, are in five states. The next two to three years should be a "good, consistent time frame" for the residential market, he says. The firm has committed an additional $40M to option entitlement deals.
The projects funded year-to-date include Golden Hill
in San Diego and a $15M construction loan for Monte Sereno, a 22-unit project in Palm Springs being developed by Alta Verde Group
. Don says sponsorship
is key; the company is scouring supply constrained markets from the Rockies west, including Seattle, San Diego, Houston, Denver, and Boise, for quality local developers
Unfortunately, there's no "endless summer" in the commercial real estate biz. Send your vacation pics to email@example.com and we'll run the best of 'em.