Saturday, May 18, 2024

Real estate news: OC native Chris Hannan is new president of state trades council

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Orange County native Chris Hannan is the new president of the State Building and Construction Trades Council of California, succeeding Andrew Meredith who resigned after a year and a half on the job.

The formidable trade group, which represents nearly half a million members of statewide construction unions, has been in a contentious tug of war with legislators in Sacramento who are pushing for building reform to expedite new housing.

Politico, which first reported the news June 30, said the leadership switch was “shaking up one of Sacramento’s most influential labor groups.”

In April, CalMatters reported two of the council’s members defected over a housing bill the parent group was fighting. The “surprising and surprisingly public break could help shift the political balance long defining California housing policy,” the story says.

The bill in question, CalMatters said, would make permanent a 2017 state law that expedites affordable housing construction. Developers that use the law would have to pay union-level wages — something the building industry says makes construction too costly in many parts of the state.

Hannan grew up in Orange County and is a second-generation member of Sprinkler Fitters Local 709. Previously, he was the executive secretary of the Los Angeles and Orange Counties Building and Construction Trades Council.

His first order of business, the council said in a statement, is leading the building trades through the remaining two months of California’s legislative session.

Robbie Hunter, the president prior to Meredith’s tenure, said “it’s not an easy job.”

“… The responsibility of getting up every day to fight for nearly half a million of the hardest-working Californians is a big responsibility,” he said. “But as Chris did in Los Angeles, he will do in Sacramento. He will work hard to ensure that the voice of construction workers is always heard in the Capitol.”

This 61-year-old, 12-unit apartment complex in Anaheim sold for $4.25 million or $354,166 per unit. (Courtesy of CBRE)
This 61-year-old, 12-unit apartment complex in Anaheim sold for $4.25 million or $354,166 per unit. (Courtesy of CBRE)

Another small apartment complex snatched up for $4.25 million

Investor interest in small apartment complex continues in Orange County.

In recent days a 12-unit multifamily property in Anaheim sold in a 1031 exchange for $4.25 million, or $354,166 per unit.

CBRE represented the unidentified seller and the buyer.

“Six competitive offers were generated as a result of our marketing efforts,” Dan Blackwell at CBRE said. “The property, located in a prime location near the prominent intersection of Euclid Street and Ball Road in Anaheim, presented significant upside potential in a strong rental market with limited inventory.”

The 61-year-old property at 921-927 S. Trident St. has two, two-story buildings with 10 two-bedroom and 2 three-bedroom floor plans. CBRE said most of the units were recently updated.

Blackwell’s team in Newport Beach has seen an uptick in activity in the smaller multifamily properties, especially those marketed under $5million, in Orange County.

In recent weeks, we’ve reported on a spate of small apartment building transactions, many of them in 1031 exchanges.

Just last week we learned that three, four-unit apartment properties sold for a combined $5.48 million to three separate buyers in just 10 days. And just a week before that three small apartment buildings sold for a combined $18 million. Go back to early June and two north Orange County apartment buildings sold for a combined $15 million.

Alcalde Business Center, a three-building industrial business park in Laguna Hills, has traded hands for $13.95 million. (Courtesy of CBRE)
Alcalde Business Center, a three-building industrial business park in Laguna Hills, has traded hands for $13.95 million. (Courtesy of CBRE)

Laguna Hills industrial park sells for nearly $14 million

Alcalde Business Center, a three-building industrial business park in Laguna Hills, has traded hands for $13.95 million.

CBRE represented the unidentified buyer, which acquired the complex in a 1031 exchange, and the seller, described only as an Irvine-based investment firm.

The 37,318 square-foot property was built in 1978 on a 2.46-acre lot. CBRE said it was 78% occupied with 14 tenants.

“South Orange County industrial rents increased substantially in 2022 and are expected to continue to rise in 2023,” said Mark Shaffer at CBRE. “With short-term leases and in-place rents significantly below market, the asset offers significant near-term upside and long-term appreciation.”

This 25,500-square-foot retail property occupied by The 99 Store in San Clemente was acquired by Newport Beach-based Wood Investment Cos. for $6.95 million. (Courtesy of Wood Investment Cos.)
This 25,500-square-foot retail property occupied by The 99 Store in San Clemente was acquired by Newport Beach-based Wood Investment Cos. for $6.95 million. (Courtesy of Wood Investment Cos.)

99 Cents Store property trades for nearly $7 million

The 25,500-square-foot retail property occupied by The 99 Store in San Clemente was acquired by Newport Beach-based Wood Investment Cos. for $6.95 million.

The property at 55 Via Pico Plaza is near the Avenida Pico ramp on and off the 5 freeway. Other tenants include Tenants at Pico Plaza include Fitness 19, Dunn-Edwards Paints, Hertz Car Rental, Stuft Pizza and Del Taco.

“Strategically, we like the south Orange County real estate market in the short- and long-term,” said Patrick Wood, CEO and president of the firm. “The 99 Store has been a good tenant and partner of ours in other centers and this was another opportunity to partner with them again.”

The firm recently made headlines in Big Bear after it bought the dormant Kmart building in the mountaintop village for $6.5 million. Plans for the center include splitting it into three parts with Grocery Outlet as a key anchor.

Newport Beach-based Hager Pacific Properties sold this 19-acre industrial site in Colton for $61 million. The buyers were EBS Realty Partners in Newport Beach and Los Angeles-based Clarion Partners. (Courtesy of CBRE)
Newport Beach-based Hager Pacific Properties sold this 19-acre industrial site in Colton for $61 million. The buyers were EBS Realty Partners in Newport Beach and Los Angeles-based Clarion Partners. (Courtesy of CBRE)

Hager in Newport Beach sells Inland site for $61 million

Newport Beach-based Hager Pacific Properties sold a 19-acre industrial site in Colton for $61 million, according to CBRE.

The buyers also had Orange County ties: EBS Realty Partners in Newport Beach partnered with Los Angeles-based real estate investment firm Clarion Partners in the transaction.

The property at 275 and 375 De Berry St. is home to two vacant industrial buildings and a dirt lot, CBRE said, and is approved for a new 412,000-square-foot warehouse that could be done as early as late 2024.

“This project provided the buyer with an incredible opportunity to acquire one of the very few assets that is outside of the warehouse development moratorium in the Inland Empire,” said Darla Longo at CBRE.

Real estate transactions, leases and new projects, industry hires, new ventures and upcoming events are compiled from press releases by contributing writer Karen Levin. Submit items and high-resolution photos via email to Business Editor Samantha Gowen at sgowen@scng.com. Please allow at least a week for publication. All items are subject to editing for clarity and length.

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