Barker Pacific Acquires $30M Portfolio

Barker Pacific Acquires $30M Portfolio

The Barker Pacific Group has acquired eight self-storage properties totaling 500,000 sf from the Ontario-based Empire Cos. for $30 million and will operate them under Barker Pacific’s newly formed Storage Solutions brand. Los Angeles-based Barker Pacific acquired the assets, which include 4,000 units on 25 acres in three Southern California counties, through its Cerritos-based Union Development Co.

Union Development Co. will fold the 4,000-unit Empire Self Storage portfolio in Los Angeles, Riverside and San Bernardino counties into the operation of its 10 existing self-storage properties, which comprise 6,000 units. The company expects to consolidate all 18 locations under the new Storage Solutions brand by the end of the year.

The acquisition of the Empire Self Storage portfolio follows a business plan that Barker Pacific had in mind when it acquired Union Development last year, according to Michael Barker, UDC chairman and managing director of Barker Pacific Group. “When we acquired the UDC last December we wanted to build on the economies of scale our internal management operations provide and grow the asset base as the right opportunities became available,” Barker says.

Union Development Co.’s holdings includes more than 1.8 million sf of shopping centers, apartment complexes, office buildings, industrial parks and self-storage facilities. Barker Pacific Group owns the company in a venture with New York-based Angelo, Gordon & Co., an investment management firm that specializes in non-traditional assets.

Barker Pacific, established more than 20 years ago, owns a portfolio that includes a number of high-profile properties in California and Florida. Among its other Los Angeles area assets are the Fine Arts Building at 626 Wilshire Blvd. and the 5055 Wilshire Blvd. building.

By Bob Howard of GlobeSt.com

Barker Pacific Acquires $30M Portfolio

Barker Pacific Acquires $30M Portfolio

The Barker Pacific Group has acquired eight self-storage properties totaling 500,000 sf from the Ontario-based Empire Cos. for $30 million and will operate them under Barker Pacific’s newly formed Storage Solutions brand. Los Angeles-based Barker Pacific acquired the assets, which include 4,000 units on 25 acres in three Southern California counties, through its Cerritos-based Union Development Co.

Union Development Co. will fold the 4,000-unit Empire Self Storage portfolio in Los Angeles, Riverside and San Bernardino counties into the operation of its 10 existing self-storage properties, which comprise 6,000 units. The company expects to consolidate all 18 locations under the new Storage Solutions brand by the end of the year.

The acquisition of the Empire Self Storage portfolio follows a business plan that Barker Pacific had in mind when it acquired Union Development last year, according to Michael Barker, UDC chairman and managing director of Barker Pacific Group. “When we acquired the UDC last December we wanted to build on the economies of scale our internal management operations provide and grow the asset base as the right opportunities became available,” Barker says.

Union Development Co.’s holdings includes more than 1.8 million sf of shopping centers, apartment complexes, office buildings, industrial parks and self-storage facilities. Barker Pacific Group owns the company in a venture with New York-based Angelo, Gordon & Co., an investment management firm that specializes in non-traditional assets.

Barker Pacific, established more than 20 years ago, owns a portfolio that includes a number of high-profile properties in California and Florida. Among its other Los Angeles area assets are the Fine Arts Building at 626 Wilshire Blvd. and the 5055 Wilshire Blvd. building.

By Bob Howard of GlobeSt.com

The National Association of Realtors reports Record Flow of Capital into Commercial Real Estate …..

The National Association of Realtors reports Record Flow of Capital into Commercial Real Estate …..
 
One of the most noteworthy things happening in commercial real estate today is the record level of capital flowing into commercial real estate. While many argue that this capital is the result of widespread risky loans, in actual fact, it is the large institutional investors, pension funds and foreign investors who are acquiring significant amounts of commercial real estate. Over $236 billion of commercial real estate transaction volume was recorded during the first ten months of 2006. This represents just those commercial properties valued at $5.0 million or more. Much of this increase in transaction volume is the result of portfolio trades, particularly within the office sector.
 
NAR FORECAST: Institutions (pension funds, insurance companies) are among the most risk-adverse investors in commercial real estate. Institutional investors do not normally invest money if they think there is
going to be a downturn in any investment vehicle. While regulators are concerned about an impending “bubble” bursting in commercial real estate, the evidence does not bear this out. The S & L crisis has not been forgotten by investors in commercial real estate.
 
 
The Industrial Market: Trade is still the major factor in the demand for
industrial space…
Burgeoning trade with China is still impacting the demand for industrial and warehouse space on both coasts of the United States. Traffic through the ports of Long Beach and Los Angeles is becoming so congested that ships are traveling through the Panama Canal in order to get their cargo to market.  Thereby increasing the demand for warehouse space in South Florida.
 
NAR FORECAST: The demand for new industrial space will continue in
traditional ports and in and around inland ports or distribution hubs. The need for industrial space suited for the most current logistical methods for
moving goods will continue. The vacancy rate for industrial properties will continue to fall, possibly below 9.0% over the long term. Some would argue
that the industrial vacancy rate is actually now below 9.0% after factoring out obsolete industrial real estate destined for other uses
 
Information courtesy of REALTORS® Commercial Alliance
 
 

Long Beach Developer Plans 292,000 SF

Long Beach Developer Plans 292,000 SF

POMONA, CA-Seventh Street Development of Long Beach has unveiled plans for 12 new industrial buildings totaling more than 292,000 sf as part of its Mission-71 Business Park near the high profile intersection of the 71, 57 and 10 freeways. The Long Beach-based developer is marketing the buildings for sale or lease. thr The 12 buildings will range from 16,000 sf to 60,000 sf and will be available in the third quarter of 2007.

CB Richard Ellis listing agent Lynn Knox expects “strong interest from the San Gabriel Valley, Los Angeles and North Orange County markets” in the new project, which will include two-story office space and will offer freeway visibility. The business park, which will be constructed in phases, also offers build-to-suit opportunities up to 100,000 sf.

Pomona is an industrial market of approximately 17.3 million sf that is part of a San Gabriel Valley industrial market of nearly 140 million sf, according to CBRE statistics. The vacancy rate in the submarket stood at 1.4% in the latest CBRE survey.

Fullmer Cos. is the general contractor for the Mission-71 project, with Ware Malcolm as the architect and JP Morgan Chase providing the construction financing. The Mission-71 Business Park is the first project in the City of Pomona for privately held Seventh Street Development, which was founded in 2003 by Craig Furniss and Doug Hinchliffe.

By Bob Howard of GlobeSt.com

Barker Pacific Acquires $30M Portfolio

Barker Pacific Acquires $30M Portfolio

LOS ANGELES-The Barker Pacific Group has acquired eight self-storage properties totaling 500,000 sf from the Ontario-based Empire Cos. for $30 million and will operate them under Barker Pacific’s newly formed Storage Solutions brand. Los Angeles-based Barker Pacific acquired the assets, which include 4,000 units on 25 acres in three Southern California counties, through its Cerritos-based Union Development Co.

Union Development Co. will fold the 4,000-unit Empire Self Storage portfolio in Los Angeles, Riverside and San Bernardino counties into the operation of its 10 existing self-storage properties, which comprise 6,000 units. The company expects to consolidate all 18 locations under the new Storage Solutions brand by the end of the year.

The acquisition of the Empire Self Storage portfolio follows a business plan that Barker Pacific had in mind when it acquired Union Development last year, according to Michael Barker, UDC chairman and managing director of Barker Pacific Group. “When we acquired the UDC last December we wanted to build on the economies of scale our internal management operations provide and grow the asset base as the right opportunities became available,” Barker says.

Union Development Co.’s holdings includes more than 1.8 million sf of shopping centers, apartment complexes, office buildings, industrial parks and self-storage facilities. Barker Pacific Group owns the company in a venture with New York-based Angelo, Gordon & Co., an investment management firm that specializes in non-traditional assets.

Barker Pacific, established more than 20 years ago, owns a portfolio that includes a number of high-profile properties in California and Florida. Among its other Los Angeles area assets are the Fine Arts Building at 626 Wilshire Blvd. and the 5055 Wilshire Blvd. building.

By Bob Howard of GlobeSt.com

DEEDS TO TRUST

DEEDS TO TRUST

A deed is the document that transfers ownership of real estate. It contains the names of the old and new owners and a legal description of the property, and is signed by the person transferring the property. Several different types of Deeds can be used to convey real estate.
GRANT DEED
America’s most popular type of deed, a grant deed transfers ownership and implies certain promises that the seller makes to the buyer regarding the condition of the title to the property. The Grant Deed contains three warranties:
1.     the Covenant of Seisin - a promise by the grantor that he owns the estate that he is conveying.
2.     Covenant Against Encumbrances - a promise by the grantor that the property is free and clear of any encumbrances (liens, loans, mortgages, taxes, etc.), other than what has been disclosed by the seller.
3.     Covenant of Quiet Enjoyment. This obliges the seller to defend the title against future claims on the property. If a third party claiming to have an interest in the property appears years after the Grant Deed has been delivered to the buyer, the seller is required to defend the title which was given to the buyer.
Insist upon obtaining a Grant Deed when any of your properties are paid in full.
WARRANTY DEED
 A warranty deed  transfers your ownership and explicitly promises the buyer that you have good title to the property, among other promises. A Grant Deed replaces its use in California.
BARGAIN AND SALE DEED
A Bargain and Sale Deed is a weaker instrument than a Grant Deed. When a seller uses a Bargain and Sale Deed, the buyer does not get the three covenants that a Grant Deed conveys, and the seller is under no obligation to defend the title.
QUITCLAIM DEED
 
With a Quitclaim Deed, the grantor disclaims any interest they might have in a piece of real property, and passes that claim to another person (the grantee). A quitclaim deed neither warrants nor professes that the grantor’s claim was actually valid. Quitclaim Deeds are sometimes used for transfers between family members, gifts, or to eliminate clouds on title, or in other special or unusual circumstances.
Another common form of quitclaim deed is the tax deed, used by government authorities when selling properties seized for nonpayment of taxes. The Quitclaim Deed will not promise that the buyer will obtain clear title to the property. Such assurances must come from a title insurance company or an attorney who performs a title search.
In most common law jurisdictions, a quitclaim deed is considered to be an instrument of  estoppel, meaning it estops or prevents the grantor of the quitclaim deed from later claiming that he or she has an interest in the property.
In the Commonwealth of Massachusetts, a quitclaim deed is known as a release deed.
 
TRUST DEED
 
A trust deed (a.k.a. Deed of Trust) is not used to transfer property. It’s truly just a version of a mortgage. A trust deed transfers title to land to a “trustee,” usually a trust or title company, which holds the land as security for a loan. When the loan is paid off, title is transferred to the borrower / buyer.
 
CONTRACT FOR DEED
 
Also known as a ”contract of sale,” “land sale contract,” or “installment sales contract,” a Contract for Deed is used when a seller finances a property for a buyer. The Contract for Deed states that the seller will keep title to the property until the buyer pays off the loan.
 
RECORD DEEDS TO ESTABLISH PRIORITY. The person who is transferring the property should take the deed to a notary public, who will verify that the signature on the deed is genuine. The signature must be notarized and stamped before the deed will be accepted for recording.
The deed should be recorded to be valid.  Take the signed, original deed to the land records office in the county where the property is located. In most counties, it’s at the courthouse.  The clerk will take the deed, stamp it with the date and record location numbers, make a copy, and give the original back to you.
In the event of conflicting claims to a property, the first grantee to record their deed usually wins at the courthouse.
 
“First in time is first in right” is the basic rule.
 
 “There are exceptions,” notes real estate columnist Bob Bruss. For example, “When the recorded deed was a gift and the prior unrecorded deed was paid for with consideration and/or the grantee with an unrecorded deed occupied the property, thus giving constructive notice.”

OWN MARKETABLE TITLE

No matter what type of written real estate deed you receive, insist on obtaining an owner’s title insurance policy. The entire title insurance industry depends on interpreting both state recording laws and their application to a specific document affecting a particular property.
 
“When is the last time you heard of a homeowner encountering a title insurance claim?” asks Bruss. “Although I’ve been buying and selling real estate almost 40 years, I have never had to file a title insurance claim, nor have I ever heard of a title insurer paying a title policy claim.”

Title insurers research a title before insuring it. Even if title insurer makes a mistake that isn’t discovered until many years later, the title insurer still must pay the insured property owner either (1) the diminished value of the property if the title insurer failed to disclose a recorded document, such as an underground easement through the backyard, (2) cost of correcting the error, such as moving an underground easement pipeline, or (3) the full policy limit if the title was completely defective.

For a one-time premium paid at the time of property purchase, the owner’s title policy remains in effect as long as the insured owner or the heirs own the property.

Jodi Summers is Director of the Investment Division at Boardwalk Realty. For your real estate needs, e-mail Jodi Summers at jodis@boardwalkrealty.com, or call (310) 309-4219. Visit her websites at www.SoCalInvestmentRealEstate.com or www.santamonicalandmarks.com.
 

Cornerstone Contracts for Harbor Gateway Property

 Cornerstone Contracts for Harbor Gateway Property

To Pay $19.65 Million

Cornerstone Realty Fund Inc. agreed to purchase the multi-tenant industrial property at 20100 Western Ave. from Wesco Harbor Gateway LP for $19.65 million or about $170/square foot.

The property consists of approximately 115,725 square feet of leasable space in a single-story building on 6.3 acres of land in Torrance. The property is currently 77% leased at an average annual rent of $11.62 per square foot to four tenants whose spaces range in size from approximately 29,800 square feet to approximately 11,700 square feet.

A lease is currently under negotiation that would bring occupancy of the property to 100%, however, there can be no assurance that this lease will be executed, Cornerstone said.

20100 Western Ave. is in the master-planned Harbor Gateway Business Center, minutes away from the ports of Los Angeles and Long Beach and Los Angeles International Airport.
Written by Mark Heschmeyer costar.com