COMMERCIAL
Newport Beach-based Stoneridge Capital Partners is expanding the scope and picking up the pace of its investments.
The real estate investment company acquired its first hotel this month, the 119-room Hotel Highland in Phoenix. Terms of the transaction weren’t disclosed, but the deal’s believed to be more than $10 million, based on company statements and prior transactions.
More hotel deals could be on the way, according to Chief Executive Greg Merage, who runs the privately held investor. His uncle is Hot Pockets creator Paul Merage, and the investment firm is funded by the Merage family.
Stoneridge’s strategy is to acquire moderate and upper tier hotels in good locations across the Western U.S., according to Greg Merage. It’ll be looking for more deals in the Phoenix area, which is said to be seeing more than its share of distressed hotels.
Phoenix’s hotel sector, which totals about 60,000 rooms, has been one of the country’s hardest hit during the downturn. At least six larger hotels, including five resorts, have fallen behind on their loans or sought bankruptcy protection in the past 18 months, according to local reports.
Stoneridge’s recent purchase isn’t competing against the higher-priced resorts in the area. The hotel’s in Phoenix’s Biltmore District and is primarily used by business travelers. There’s about 9 million square feet of office space in the vicinity of the commercial area near Scottsdale, officials for the company estimated.
With the latest purchase, Stoneridge said it has now completed more than $150 million in acquisitions within the past 12 months, including about $80 million in deals during the past two months.
Previously announced deals include the May acquisition of a $70 million apartment complex in Rancho Santa Margarita and a $50 million shopping center deal in Oahu that was completed last month.
KBS Dealings
Real estate investment trusts run by Newport Beach-based KBS Realty Advisors continue to be some of the country’s most active investors, and fundraisers, in commercial real estate.
KBS REIT II, one of five non-traded investment trusts that the company is involved in, said earlier this month it had purchased three industrial and flex buildings at the Plano Business Park, about 19 miles north of Dallas. The buildings total 283,559 square feet.
Terms of the transaction weren’t disclosed. The buildings were acquired from a private seller and are about 94% full. It’s the latest deal KBS has made in the Plano area; the company also bought a $45 million office complex in the city in 2007.
KBS REIT II has raised nearly $975 million the past two years and has invested more than $200 million of those funds in 2010 alone through both property acquisitions and mortgage loans.
More deal making could be on the way. KBS also said this month that it activated two investment trusts it filed initial registration statements for in 2009.
The KBS Strategic Opportunity REIT Inc. plans to buy more distressed properties than the company’s other offerings, which focus on more stable buildings. KBS Legacy Partners Apartment REIT Inc. will be doing deals in apartments.
Both offerings could potentially raise more than $1 billion each.
360 Expanding
Upstart brokerage 360 Commercial Partners has added more industrial talent to its operations.
The Irvine-based commercial brokerage, which started up earlier this year, said that Zachary Niles will be joining join the firm as director of its industrial advisory group.
Niles was previously a first vice president of CB Richard Ellis Group Inc.’s Anaheim office. In his nine-year tenure there, he represented AMB Property Corp., Bank of America Corp., Bixby Land Co., Deutsche Bank AG’s RREEF Funds and Tyco International Ltd., among others.
Joining Niles’ team is CB Richard Ellis’ Garrett McClelland, who will serve as an associate in 360 Commercial’s industrial group.
360 Commercial last month also added a big name to its office brokerage practice, when it announced the hiring of Steve Economos, one of Orange County’s top brokers for small and midsize offices.
Arden Hires
Arden Realty Inc. has a new leasing director for its OC office portfolio.
The Los Angeles-based landlord said this month that it had placed Derric DuBourdieu in charge of leasing for Arden’s 2.4 million square foot OC portfolio. He previously had been handling a similar role for the company’s Chicago portfolio.
DuBourdieu—whose title is senior portfolio leasing manager—is a 10-year veteran of Arden. He’ll report to Paul King, first vice president for Arden’s southern region.
Arden counts about 17 properties in OC, according to the company’s Web site. Properties include the two-building, 166,000-square-foot South Coast Executive Center in Costa Mesa and the 10-story Anaheim City Centre.
