"The employment and housing booms in Silicon Valley, along with the Grand Boulevard Initiative (GBI)

San Diego—Institutional Property Advisors has just brokered the sale of Domain 2 database erd 6 2 airline erd reservation system San Diego, 2 database erd 6 2 airline erd reservation system a newly built 379-unit apartment community in the Kearny Mesa submarket of San Diego. The division of Marcus Millichap represented the seller, a joint venture between Wood Partners and a fund sponsored by CBRE Global Investors, in the $121 million sale. Essex Property Trust Inc. was the buyer and acquired the asset on an all-cash basis. Occupancy stood at 80 percent at the time of sale.
“As the leading multifamily community in Kearny Mesa and one of the most desirable rental assets in central San Diego, Domain San Diego is poised to capture significant growth,” says Stewart Weston, IPA senior director. “The long-term outlook for the submarket is robust, as the millennial generation continues to migrate to the area for high paying employment opportunities.  The strength of the economic forecast for the area helped prompt 2 database erd 6 2 airline erd reservation system Essex to make its first acquisition 2 database erd 6 2 airline erd reservation system in San Diego County in more than six years.”
The property was Wood Partner’s 2 database erd 6 2 airline erd reservation system first multifamily development acquisition in San Diego County. Domain San Diego was built in 2012, and is a podium-style asset with two residential structures built over two levels of subterranean parking. Amenities include an adjacent two-acre park, three landscaped courtyards, a pool with deck and spa, and a two-story clubhouse with a fitness center, outdoor fireplace and barbecue stations.
Vancouver, Wash.—Kennedy Wilson and its partners have acquired The Pointe, a 388-unit apartment community 2 database erd 6 2 airline erd reservation system located in the Portland suburb of Vancouver, Wash., for $39.5 million. The total equity invested in the transaction was $11.2 million, 5 percent of which was contributed by Kennedy Wilson. The transaction also involved securing a $29.6 million 2 database erd 6 2 airline erd reservation system 10-year loan on the property, with interest only for four years, 2 database erd 6 2 airline erd reservation system from Fannie 2 database erd 6 2 airline erd reservation system Mae at LIBOR plus 2.36 percent, arranged by HFF.
“This acquisition is a great value-add investment in a strong Portland submarket,” says Kurt Zech, president of Kennedy Wilson Multifamily Management Group. “The market has strong projected employment and rent growth that exceeds most other West Coast markets due to a burgeoning tech center and favorable tax benefits, offering an affordable living option to Portland.”
The Pointe was built in two phases and includes 35 residential buildings. The acquisition brings Kennedy Wilson’s global multifamily portfolio to 16,899 units, including 3,450 units in the Pacific Northwest region.
Palo Alto, Calif.—Kirk Trammell and J.J. Taughinbaugh of Marcus Millichap Real Estate Investment Services have facilitated the sale of eight key Silicon 2 database erd 6 2 airline erd reservation system Valley redevelopment sites along the El Camino Real corridor. Total consideration for the transactions is $71.1 million.
“The employment 2 database erd 6 2 airline erd reservation system gains and flow of venture 2 database erd 6 2 airline erd reservation system capital dollars that returned in earnest to Silicon Valley in 2010 created a strong combination of factors that brought about double-digit multifamily rent growth, robust demand for office space and contributed to the ongoing recovery in the hotel sector,” says Steve Seligman, vice president and regional manager 2 database erd 6 2 airline erd reservation system of Marcus Millichap’s Palo Alto office. “This growth also initiated a flurry of construction in the region and investors continue to pursue development opportunities 2 database erd 6 2 airline erd reservation system in the area’s under-utilized locations.”
The section of the historic El Camino Real mission trail that runs through the San Francisco Peninsula and Silicon Valley, known locally as the “El Camino 2 database erd 6 2 airline erd reservation system Corridor,” is in the midst of a large-scale revitalization project and its transformation is providing many redevelopment opportunities for commercial real estate investors.
“Marcus Millichap’s 2 database erd 6 2 airline erd reservation system Palo Alto office is closely acquainted with this submarket and two of our senior investment specialists, Kirk Trammell and J.J. Taughinbaugh, have been particularly 2 database erd 6 2 airline erd reservation system successful in identifying redevelopment project sites for clients,” adds Seligman.
In Oct. 2013, Trammell, a senior vice president investments, and Taughinbaugh, a vice president investments, arranged 2 database erd 6 2 airline erd reservation system the $12.35 million sale of a 2.5-acre redevelopment site located at 302 North Fair Oaks Ave., 318 North Fair Oaks Ave., 617 Arques Ave. and 627 Arques Ave. in Sunnyvale, Calif. The existing structures 2 database erd 6 2 airline erd reservation system will be replaced by 87 single-family townhomes.
“The employment and housing booms in Silicon Valley, along with the Grand Boulevard Initiative (GBI), are creating 2 database erd 6 2 airline erd reservation system significant opportunities for investors,” says Trammell. “The GBI is an ongoing regional collaboration dedicated to the revitalization of the El Camino Real corridor as it runs through San Mateo County and Santa Clara County.”
From March 2012 to the present, Trammell and Taughinbaugh have sold six additional El Camino Real corridor properties totaling $43.9 million. In August, the pair arranged the sale of a 1.6-acre parcel at 881 East El Camino Real and a 0.6-acre parcel at 865 East El Camino Real in Mountain View, Calif., which will see the development of 150 new multifamily units.
“We are witnessing the transformation of older retail properties and apartments with deferred maintenance into new multifamily assets with high floor-to-area ratios,” says Taughinbaugh. “This activity 2 database erd 6 2 airline erd reservation system is neither a new trend nor has it reached its peak. The more than 5,000 market-rate apartment units under construction in the South Bay indicate that the current building boom will last into 2014.”
Another of Trammell and Taughinbaugh’s transactions to have come full circle is the site of the former Palo Alto Bowl and Motel 6 at 4301 El Camino Real and 4329 El Camino 2 database erd 6 2 airline erd reservation system Real in Palo Alto. The two agents arranged 2 database erd 6 2 airline erd reservation system the sale of the iconic bowling alley in 2007 for $14.85 million. The project weathered the Great Recession and is now home to a 138-room Hilton Homewood Suites hotel that is currently under construction and Classics at Monroe Place, 2 database erd 6 2 airline erd reservation system a single-family 2 database erd 6 2 airline erd reservation system residential project that includes 10 detached residences and 16 duets.