The Deal Sheet
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ALTO Real Estate Funds acquired a strip center at 40 N Fourth Ave in Chula Vista for $26M. The property had been anchored by a Target until it closed earlier this year. (So don't try to buy any strip center-warming gifts at the Target there. We just told you it's closed.)
ALTO Real Estate Funds CIO Peter Auerbach (snapped at Bisnow’s Private Equity Summit last week) tells us that the property is just the kind of special situation that that NY-based investor looks for. It's got the right demographics, but also an opportunity for adding some value. In this case, the fund plans to reconfigure and expand the property—permitting is already in place—to 130k SF, which will allow new retail development in a region that doesn’t have a lot of land for that purpose.
ALTO says it’s received four signed letters of intent from chains interested in opening a first branch in the area. When the leases are inked, the fund will renovate and re-divide the space in the main building, measuring 110k SF, into four medium-sized stores, as well as build two additional smaller stores in the parking area. The deal is being financed with 40% equity and a loan from the Silvergate Bank for 60%. The fund acquired a 300k SF shopping center in Moreno Valley earlier this year, and has properties in Atlanta and Denver in the pipeline.
Locale Advisors Inc., a new real estate investment firm headed by real estate vet Phil Monroe, acquired the 26k SF 5015 Shoreham Pl in the Governor Park area of San Diego for nearly $4M. The Shoreham Place deal follows on the heels the company’s purchase of Torrey Reserve West. The company will begin work on transforming the vacant office building to space designed to appeal to creative office users. Specific improvements, Phil says, will include high exposed ceilings, glass roll-up doors, and new outdoor amenity space. Cushman & Wakefield’s Patrick Rohan repped Locale Advisors Inc. in the deal, as well as the seller, Cliffwood California. Wells Fargo provided financing for the acquisition and redevelopment.
Salesdrivers Helpers & Dairy Employees Local Union #683 bought the 18k SF, two-story office building at 1333 E Madison Ave in El Cajon. Lee & Associates-North San Diego County’s Jeff Abramson and Greg Gershman, along with Commercial Properties Group’s Kerry Schimpf, repped the seller, DFI Investments. Marc Frederick and Bud Marsch of Colliers International repped the buyer. The building will be used as the buyer’s HQ.
EHOF La Jolla, along with developers William Berwin and Michael Pierson, purchased the 10k SF 720 Silver St in La Jolla for $6.8M from an LLC. Trenton Bonner Coastal Real Estate’s Trenton Bonner repped the buyer, while CBRE’s Paul Lafrenz, Melissa Foster, Reg Kobzi, and Brad Chelf repped the seller. The building has been fully leased since 1999, most recently by the USPS. The buyer intends to tear down the building and redevelop the site with townhomes.
Focus Real Estate of Costa Mesa purchased the Southrail Business Park industrial complex in Chula Vista for $11M. The seller was Westcore Properties of San Diego. Southrail consists of eight single- and multitenant industrial and warehouse buildings at 645-696 Marsat Court and 1548, 1564, 1580 and 1596 Jayken Way. Tenants include Servpro of Chula Vista South, Toleeto Fasteners International, and Old Gringo; the property is currently 98% occupied. CBRE’s Darla Longo, Barbara Emmons, Rebecca Finkel, and Louay Alsadek, repped the buyer and seller.
The Corky McMillin Cos. of purchased a property at State St and West Elm St in Little Italy for $5.3M, with plans to develop 100 apartments on the site. The seller was Centurion Partners of Newport Beach. The buyer plans to break ground on the property next year, with completion slated for 2016.
Lifecore Fitness inked a 21k SF lease at 5803 Newton Dr in the Newtown Corporate Center in Carlsbad. Lee & Associates–North San Diego County’s Isaac Little, Marko Dragovic, and John Perrillo repped the landlord, RIF-IV Newto LLC. Joe Crotty of Colliers International repped the tenant.
Separately, Tom R.W. Food Services Inc., a restaurant, leased nearly 4,700 SF at 429 Broadway Ave in Chula Vista. Lee & Associates-North San Diego County’s Mary Kay Bier repped the tenant as well as the landlord, Souza Harvey & B Living Trust.
Johnson Capital’s Jeff Kearns and Kent Carpenter, in the firm’s Irvine office, arranged a $6M loan secured by the 89-unit El Cajon Senior Towers, a seniors affordable housing complex in El Cajon. The property was built in 1981 on 1.35 acres. The new loan, which was provided by Johnson Capital FHA, was executed under HUD/FHA’s 223(f) loan program. The borrower is a private investor who specializes in multifamily properties for families and seniors with lower incomes.
EXECS IN MOTION
Zephyr Partners named Chris Beucler its new COO. In his new role, Chris will oversee entitlements, forward planning, product development, construction, and sales and marketing. Chris, who for the last 10 years has owned Beucler Signature Homes, was also owner/president of Johnson Beucler Communities, and previously an exec with Ryland Homes. Zephyr Partners recently broken ground on SummerHouse, an enclave of 35 ocean- and lagoon-view condos in Carlsbad.
Level 10 Construction’s San Diego named Carl Haines director of special projects. Carl will focus on projects throughout San Diego, including tenant improvements and modernizations within Level 10 Construction’s core markets: corporate, healthcare, education, entertainment, hospitality, technology, and life sciences.