CIP Real Estate Announces $273 Million in Real Estate Transactions in 12 Months
CIP Real Estate, a full-service commercial real estate investment and management firm, today announced it completed in excess of $273 million in commercial real estate transactions from January 2017 to date. The robust activity includes six dispositions totaling $246 million across California, Nevada and North Carolina, in addition to the $27.1 million acquisition of a Northern California business park. The company also announced aggressive plans to invest $150 million in strategic acquisitions for its commercial portfolio in 2018.
“After being a highly active net seller in 2017, CIP Real Estate is gearing up to invest $150 million in commercial assets this year,” said Eric C. Smyth, principal of CIP Real Estate. “We are currently pursuing quality business and industrial parks, along with targeted office assets, and will employ our value-add acquisition strategy to maximize ROI and upside for our investors.”
Kicking off its acquisition activity, CIP Real Estate recently completed the $27.1 million purchase of Eden Landing Business Park in Hayward, California. Originally built by Don Koll, the multi-tenant flex industrial park comprises 195,000 square feet next to the San Mateo Bridge in the East Bay. The firm will complete a $2 million renovation to re-branding and repositioning the property. CIP Real Estate purchased the asset in a joint venture with Alex. Brown Realty, Inc. – the two companies’ 22nd joint-venture since 1998 and its first real estate transaction completed together in Northern California. The joint-venture represented itself and CBRE’s Darla Longo, Barbara Emmons, Rebecca Perlmutter, Bob Ferraro and team represented the seller in the transaction.
CIP Real Estate’s recent dispositions include four projects within Southern California:
- The $76.5 million sale of Empire Towers I-IV, four class A office buildings comprising about 400,000 square feet at the Ontario International Airport in Ontario, Calif. Kevin Shannon and Ken White and team of Newmark Knight Frank represented CIP Real Estate in the sale.
- The $26.7 million sale of Centerpointe, in Irvine, Calif., four class B office buildings consisting of approximately 105,000 square feet within the Irvine Business Complex. Bob Griffith of Newmark Knight Frank and Brian Garbutt of Lee & Associates represented CIP Real Estate in the sale.
- The $17.3 million off-market disposition of Mercury Tech Center to a private client of CIP Real Estate; the project consists of an 80,000-square-foot, six-building flex industrial park located in the Kearny Mesa sub-market of San Diego, Calif.
- The $12 million recapitalization of Summit Business Center, a 138,000-square-foot, five-building office flex park located in Riverside, Calif.
CIP Real Estate also completed three disposition transactions outside of California in the past year:
- The $92 million sale of 13 mid-bay industrial, flex, and office buildings comprising approximately 671,000 square feet within the premier Las Vegas business address of Hughes Airport Center. CBRE’s Darla Longo, Todd Tydlaska, Barbara Emmons Perrier, Kevin Higgins, and Garrett Toft and team represented the seller, a joint venture of Oaktree Capital and CIP Real Estate.
- The $5.5 million sale of a 32,000-square-foot office building also within Hughes Airport Center. The building is 100% leased to Scientific Gaming (formerly Bally’s Gaming). The Higgins/Toft team at CBRE represented CIP and Colliers’ Taber Thill and team represented the buyer, an affiliate of Scientific Gaming, in the transaction.
- In the firm’s final disposition, a private off-market deal, CIP Real Estate sold the $15.9 million Charlotte Commerce Center, a 167,000-square-foot multi-tenant flex industrial park in Charlotte, North Carolina, owned in joint venture with Alex. Brown Realty.
“We will continue to complete dispositions this year as the investment cycle of some of our key assets are completed,” added Smyth. “In all, we hope to dispose of an additional $100 million in commercial assets, whose value we have maximized. This capital will help fuel the acquisitions we make this year and in the future.”