Nothing Up But the Rent, Occupancy at Orange County Apartments
Costa Mesa-based Tarsadia Hotels, one of the more aggressive OC-based buyers of hotels, has snapped up the 188-room Wyndham Checkers Hotel in downtown Los Angeles.
An affiliate of Tarsadia purchased the luxury hotel at 535 S. Grand Ave. in the financial district, from Grand Avenue Partners of Dallas for an undisclosed amount. As part of the deal, the Tarsadia affiliate also acquired control of the land underlying the property. Previously, the property was on a ground lease, which had 24 years remaining on it.
Built in 1927 for roughly $1 million, the 12-story hotel initially opened as the Mayflower Hotel. After a series of owners and name changes, Grand Avenue Partners acquired the property in 1994 from Sumitomo Bank. Grand Avenue Partners then hired the Wyndham Hotels & Resorts chain to re-flag and manage the property. Tarsadia will retain the Wyndham flag.
Jordan L. Richman, senior vice president with Grubb & Ellis’ hospitality services group, represented both Tarsadia and Grand Avenue Partners in the transaction.
RSM Marketplace Breaks Ground
Jacksonville, Fla.-based Regency Realty Corp. has broken ground on the roughly 320,000-square-foot Santa Margarita Marketplace retail center in Rancho Santa Margarita. Regency Realty, a real estate investment trust, has partnered with K & G; Equities to develop the project.
The shopping center at the junction of the Foothill (241) Toll Road and Santa Margarita Parkway is scheduled to open in September, with a tenant roster that will be anchored by Lowe’s Hardware, Linens ‘N Things, Staples, Marshalls and Pier 1 Imports.
Snyder Langston is overseeing construction and CB Richard Ellis is the leasing agent.
Welcome to OC
The American Industrial Real Estate Association has opened a regional office in Orange at 134 S. Glassell St. The industry group’s office, to be managed by 20-year veteran Maria Richards, will track area property listings and oversee membership services in the area.
Deals:
The DeYoung Family Partnership has purchased the 67,170-square-foot Marbella Plaza at 31109 Rancho Viejo Road in San Juan Capistrano for $10.5 million from GMS Realty LLC. Jeff Conover and Joe Faris of Faris Lee Investments represented the family group and GMS The B. Crisp Trust has purchased a 28,000-square-foot building at 1120 S. Anaheim Blvd. in Anaheim for $5.7 million from PRP Investors LLC. Conover and Faris of Faris Lee Investments represented PRP. Marcus & Millichap represented the trust Nuclei Inc. has signed a five-year, $1.4 million lease for 33,805 square feet of industrial space at 25871 Atlantic Ocean in Lake Forest. The specialty designer and builder of prototype automobiles is expanding operations. Donald Yahn of Cushman & Wakefield’s Irvine office represented Nuclei. Chris Bates of CB Richard Ellis and Greg May of Transwestern Realty represented the landlord, G & D; Scarbrough Family LTD Partnership Torrez Trucking has signed a $1.2 million lease for 40,000 square feet of industrial space at 190 E. Crowther in Placentia. The company is relocating from Anaheim. Frank Mejia of Lee & Associates’ Orange office represented Torrez Trucking, while Jim Wooten of CB Richard Ellis represented the building owner.
Residential
Orange County apartment occupancy rates rose in the first quarter, reaching the 98% mark, the highest level since 1985, according to Research Network Ltd., a Rancho Santa Margarita-based research and consulting firm.
Taking advantage of this heightened demand for apartment space, owners have continued to raise rents, with asking rates now averaging $1,086, the highest ever and up 9.7% from 1999 levels and 35.4% from 1996, when the current spike in rental rates began.
Placentia, Mission Viejo and La Habra were the most difficult places to find an empty apartment, as occupancy in those cities were 99% or higher, according to the survey.
Led by Newport Beach, Dana Point and Irvine, South County cities were typically the most expensive places in which to rent an apartment. In Irvine, the average base asking rent was $1,352, with Newport Beach and Dana Point averaging more than $1,400.
The list of the most affordable places to rent was dominated by North County cities, with La Habra at $771, Los Alamitos, $778 and Anaheim, $834, leading the way, according to the survey.
Last year, construction of new apartments hovered near the 2,000-a-unit level, an improvement from the early 1990s but a far cry from the late 1980s when roughly 6,000 units were added annually.
Working Knowledge
Moving to LA County
Albuquerque N.M.-based New Mexico Software Inc. is relocating its 27-person digital entertainment unit from Irvine to Santa Monica.
Working Knowledge, as the unit is known, provides high-volume scanning services for clients in the entertainment industry. The move will put New Mexico Software closer to clients such as Metro-Goldwyn-Mayer Inc., ABC Inc. and Paramount Pictures, officials said.
,James Ricci
