As industrial rental rates soar in Southern California, manufacturers are eyeing commercial real estate south of the border.
Pacific Transformer in Anaheim recently leased a 52,000 square foot industrial building in Tijuana, just 40 minutes from the border crossing, according to DAUM Commercial.
The terms of the lease in Baja, California were not disclosed by the brokerage.
PacTran distributes transformers for medical, military and automotive products. The expansion into Mexico is expected to increase its operating capacity by 300%, according to Anthony Bergeman, executive vice president and director of DAUM.
âBased on current trends in quality control and time to market, compounded by recent severe supply chain disruptions, many US-based companies are moving a larger percentage of their Manufacturing operations overseas to North America, particularly to areas close to transportation routes, âBergeman said.
Bergeman also cited Mexico’s booming STEM program for students, which puts more skilled workers in the field.
Warehouse tenants in the Southern California area have seen rent rates skyrocket as e-commerce demand skyrocketed during the pandemic. The Inland Empire is on course for some of the biggest rent increases in the country, according to a CBRE study, which tracked five-year triple net leases. Brokerage estimates Inland warehouse rents to rise from $ 6.75 per square foot to $ 10.92 per square foot, the third highest increase in the United States
In Orange and Los Angeles counties, rents are expected to increase by 46.6% and 33% respectively, according to CBRE.
Anaheim apartment complex sells for $ 8.65 million
CBRE announced the sale of
A 32-apartment building on Ball Road in Anaheim has been sold to an unidentified local family trust for $ 8.65 million, according to CBRE.
The resort located at 1569-1585 W. Ball Road was built in 1960 and features renovated one and two bedroom units.
Dan Blackwell and Sean Farag of CBRE represented the Seller, an unidentified family LLC.
âThe demand for high quality, conveniently located apartment buildings continues to soar,â said Blackwell. âWe generated several offers and were able to not be contingent on the first day. “
The Springhill Hotel in Anaheim sells
Land and Houses USA purchased the 120-room Springhill Suites Anaheim Maingate hotel in Anaheim from Anaheim Resort Hotel LLC.
Terms of the contract are not disclosed. Rod Apodaca of RJA Hotels negotiated the deal.
The buyer hired Twenty Four Seven Hotels to manage the hotel.
King Van rents in Placentia
King Van & Storage signed a lease for the entire 58,400 square foot industrial building at 888 W. Crowther Avenue in Placentia, according to JLL.
Terms of the lease were not disclosed.
King Van will use the space for his moving business, according to JLL.
Garrett McClelland of JLL represented the owner, Staley Point Capital. King Van & Storage was represented by CBRE.
Staley Point bought the vacant building in August 2021 for $ 15 million and made improvements before renting it.
Waterford buys apartments in Pomona
Newport Beach-based Waterford Property Co. has purchased another apartment complex which it will convert into workforce housing.
The company, in partnership with the California Statewide Community Development Authority, purchased 777 Place, a 472-unit complex in Pomona for $ 149.4 million. The seller was Picerne RÃ©sidentiel.
Waterford has said so and the CSCDA will invest $ 18 million to upgrade the units.
“By taking possession of our premises, we will immediately lower rents by 11% below current market rents on market rate unitsâ¦ This will be a substantial saving for families, students and essential workers in Pomona” said John Drachman, co-founder. , Waterford Property Co.
Read more: How a workforce rental program aims to close the ‘missing link’ affordable housing gap
The investment firm has bought a number of high-priced apartment complexes in recent months. The partnership acquired three complexes in Anaheim and two in Orange. He also bought Westgate Apartments, a 480-unit complex in Pasadena for $ 280 million.
Buchanan sells resort in Utah
Newport Beach-based Buchanan Street Partners has sold a 298-unit multi-family community in Herriman, Utah, to an unidentified buyer based in Southern California.
Terms of the sale of Incline at Anthem were not disclosed by the investment company.
Located 15 minutes from Salt Lake City, the 298-unit complex includes 214 one-bedroom units and 84 two-bedroom units and was almost fully occupied at the time of the sale.
3 companies buy “toy” storage in Florida
Three Newport Beach investment firms have purchased Adult Toy Storage, a 55-acre recreational vehicle and boat storage facility in Altamonte Springs, Florida.
Terms of sale to RanchHarbor, Ramser Development Co. and Saunders Property Co. were not disclosed.
The property is renamed RV Storage Depot.
Neal Gussis of CCM Commercial Mortgage and Josh Koerner and Frost Weaver of Weaver Realty Group represented the buyer and seller.
Buchanan buys resort in Texas
Buchanan Street Partners in Newport Beach purchased a 387 unit apartment complex in Fort Worth, Texas from StoneHawk Capital Partners.
Terms of sale for The Jameson at the Bluffs were not provided by the company.
The deal is Buchanan’s fourth multi-family acquisition in the Dallas-Fort Worth area in the past 12 months. The company said it plans to expand its presence in the DFW area over the next several years.
The apartment complex was almost fully occupied at the time of the sale.
PPC completes properties in Arizona
Community Preservation Partners, an affordable housing preservation company based in Irvine, has completed the first of its three communities in Arizona: Buckeye Villa in Buckeye, Morningside Villa in Phoenix, and Tempe Villa in Tempe.
The PPC said it acquired the Section 8 properties in February for $ 30 million, including them in a low-income housing tax credit program that will increase affordability for 20 years.
Irvine’s company spent $ 51 million in development costs to complete major renovations on the units. The 170 apartments at the three properties have benefited from interior and exterior improvements. The PPC also improved the overall accessibility of the site, including accessible laundry equipment.
Partners include the Affordable Housing Foundation, Greystone, WNC, Arizona Department of Housing, Ware Malcomb, MFRG-ICON, Step Builder and MEB Management.
A new name for Brower Group
The real estate and financial communications company Brower Group has changed hands and is now called The Smart Agency.
Based in Newport Beach with operations across the United States, the agency exists to advance commercial real estate and finance through effective communications.
âThere is a clear need for more intentional communications across the real estate investing industry,â said Jenn Quader, President and CEO of The Smart Agency. âBusinesses today have major problems to solve and need to run at a faster pace than ever before. This makes the need for professional communications led by subject matter experts more critical than ever. “
Originally founded in 1994 by nationally recognized public relations expert Judy Brower Fancher, The Smart Agency understood the need for succession planning from the start. The company’s evolution spanned a decade, growing from Brower, Miller & Cole to Brower Group in 2018, and launching as The Smart Agency in 2021.
Virginia company expands to New Brunswick
Capital Square, a Virginia-based real estate company specializing in tax-efficient investments, has opened an office in Newport Beach.
Capital Square provides a range of services including due diligence, acquisition, loan research, property / asset management and disposition for high net worth investors, private equity firms, family offices and investors institutions seeking to carry out 1031 exchanges.
Real estate transactions, leases and new projects, industry hires, new businesses and upcoming events are compiled from press releases from editor Karen Levin. Email high-resolution articles and photos to Business Editor Samantha Gowen at [email protected] Please allow at least a week for publication. All elements are subject to change for clarity and length.