Zland.com, 99Cents Only Stores Take New Spaces; Holiday Gardens Sells
COMMERCIAL
The Colton Co., which had an active 1999, has opened the new year by purchasing Stadium Towers Center for $8.5 million from WHVPW Real Estate LP of Los Angeles.
The 65,574-square-foot, four-story building at 2300 E. Katella Ave. in Anaheim was built in the mid-1980s. It is next to the 12-story Stadium Towers Plaza, which is owned by Spieker Properties.
“This is a building where there were some below-market rents that will roll over in the next 18 months,” said Tim Brosnan, vice president of Trammell Crow Co. in Irvine. “So Colton will see some appreciation in its returns.”
Along with Brosnan, Trammell Crow’s Jeffrey Cole and Rick Putnam represented Colton and the seller.
“The Colton Co. is an aggressive buyer who understood the local market dynamics, and is excited about the prospect of owning a highly visible property adjacent to the (Orange) 57 Freeway and the nearby Anaheim Pond,” said Cole.
Stadium Towers Center is 75% leased. But Jackie Glass, a Colton leasing agent, expects to have signed contracts for all but 3,879 square feet on the second floor.
Asking rates at the building for a full-service lease are around $1.75 a square foot, she said.
WHVPW Real Estate LP is controlled by The Archon Group, a large Dallas-based real estate investment company.
***
Aliso Viejo-based ZLand.com, which earlier this month received $20 million in new private equity financing, is increasing its office space.
The software developer signed to lease 26,000 square feet of additional space at Pacific Corporate Plaza. The five-year deal is worth $2.5 million and increases ZLand’s total from its current 40,000 square feet of space.
In a related expansion, Phone Exchange has expanded its lease to occupy a total of 17,000 square feet at the plaza.
Along with the recent signing of Covenant Care to a 20,000-square-foot lease, the CarrAmerica-owned three-building complex now is 97% leased. It opened in July.
“This has been a very successful project,” said David Whitney, senior vice president of Lee & Associates in Newport Beach, who handles leasing at the plaza. “We have all except about 4,500 square feet occupied, which reflects how strong the market remains in South Orange County.”
Discount retailer 99 Cents Only Stores has signed a 10-year lease for 22,270 square feet valued at $1.8 million to open a new outlet in Huntington Beach.
The store will go at Brookhurst Street and Garfield Avenue in Huntington Beach. It will take part of the space formerly used by Petco and another 7,270 vacant square feet next door.
The Los Angeles-based company plans to open the new store in early February.
Jeff Cyr of CB Richard Ellis represented 99 Cents Only stores in the transaction.
The property’s landlords are Jack Jakosky and Irv Chase of Jakosky Properties.
***
Newport Beach-based developer Jim Marino, known for his investments and development of retail strip malls, is going to the bank.
His Marino Investments has bought a Lake Forest building that used to be a branch for World Savings Bank. When the bank moved last year from 22379 El Toro Road, Marino became interested in renovating the vacated space for retail or restaurant use.
“It’s at a great location,” said Marino. “I have several different potential tenants already interested in the project.”
The property consists of a 2,800-square-foot, freestanding building on an outparcel in the Sycamore Plaza shopping center anchored by Stater Bros.
Cameron Crowner of CB Richard Ellis in Anaheim represented both the buyer and seller in the deal.
Marino said he won’t know the exact dollar amount of renovation costs until negotiations are complete with a new tenant.
Marino declined to specify how much he paid for the building. He did say, however, that his goal is to negotiate a lease and complete renovations sometime in the second quarter.
RESIDENTIAL
An investment group from Phoenix has acquired a 58-unit apartment complex in Tustin for $4.15 million.
NNC Holiday Gardens LLC purchased the Holiday Gardens complex at 15601 Tustin Village Way from R.W. Brown of Costa Mesa.
Built in the late 1960s, Holiday Gardens is about 98% occupied.
Michael Campillo and Keith Brown of The Seeley Company represented both buyer and seller.
“With product scarce and demand high, this transaction pushes the envelope,” said Campillo.
The price paid by the Arizona-based investors is the highest price paid per unit in the Tustin-Santa Ana submarket in nearly a decade.
Brown added that tight market conditions tied to a lack of land and new units will mean apartment rents on average are expected to rise about 7% in the area during 2000.
