written by
Emily Bane

Intersection Completes 1031 Exchange for Long-Term NNN Lease

Intersection represented South Lind Square, LLC in the 1031 exchange which resulted in the purchase of the Safeway at La Toscana Village in Tucson, Arizona for $10,750,000. Intersection Managing Director Mark Hoekstra and Senior Director Rob Kerr represented the buyer, Greg Cortese of The Royston Group represented the seller. 

The 46,798 square-foot retail property is located at 7110 N. Oracle Road, Tucson, AZ 85704. The retail center is situated in a densely populated, affluent and developing area of Tucson. The Safeway building is one of 14 that comprise La Toscana Village, which is anchored by national retail tenants, and located at a heavily trafficked intersection at N. Oracle Road and W. Ina Road. 

Originally built in 1992 and renovated in 2014, 7110 N. Oracle Road is 100% occupied by Safeway in a 20-year NNN lease with options and regular base rent increases.

The property was part of the buyer’s upleg for their 1031 exchange, acquired at a 5.2% cap rate. The lease was corporately guaranteed by Albertsons Companies. Financing for the transaction was provided by 40/86 Mortgage Capital with the assistance of Charlie Robinson of NorthMarq.

Intersection was approached by the buyer to identify 1031 exchange opportunities that would provide both a high-quality and safe investment for the family that met their long-term goals, requirements, and criteria. 

“The process involved the thorough evaluation of numerous properties of all types across a diverse range of desired geographic locations nationwide,” said Kerr. “In the end we were able to identify a number of great options that met requirements, and the client settled on this excellent Safeway investment in Tucson.”

Emily Bane is the Marketing Coordinator at Intersection, providing strategic marketing expertise to support business objectives across company divisions. Contact Emily at 619-819-8725 or [email protected]

written by
Emily Bane

Intersection Completes 1031 Exchange to Reduce Clients Stress and Increase Cash Flow

Intersection commercial real estate represented Elizabeth H. Riggs Trust in the 1031 exchange which resulted in the purchase of Barons Market for $4,650,000 at the Menifee Lakes Plaza in Menifee, Calif. Intersection Senior Director, Kyle Clark, represented the buyer, CBRE’s Newport Beach office represented the seller Menifee Lakes Plaza, LLC.

The 17,854 square-foot retail space is located at 29787 Antelope Road, Menifee, CA 92584. The building is one of 13 that comprise the new, 138,000 square-foot Menifee Lakes Plaza, located at the intersection of Newport Road and Interstate 215.

The property served to complete the 1031 exchange for the buyer, who was selling their apartment building for a less management-intensive asset to provide stable cash flow and preserve her monthly income in the years to follow. 

Clark was approached by the buyer’s son to identify a single-tenant property under a long term NNN lease while avoiding high risk tenant types such as restaurant chains or traditional retailers. After searching nationwide for suitable properties, tying up two other prospects that failed during the due diligence review, Clark identified the Barons Market property.

“It was close to home, yet provided an attractive cap rate and return similar to other out of state alternatives,” said Clark. “Since closing on the low maintenance property, our client is thrilled with her increased cash flow without all the management headaches.”

Emily Bane is the Marketing Coordinator at Intersection, providing strategic marketing expertise to support business objectives across company divisions. Contact Emily at 619-819-8725 or [email protected]

written by
Emily Bane

Property’s Thoughtful Design Makes it a Lifestyle Destination

SAN DIEGO, Calif. – The San Diego Business Journal honored commercial real estate management and investment advisory firm Intersection with the annual Best Retail Project of the Year Award Feb. 26 during a ceremony at Bali Hai Restaurant on Shelter Island.  The presentation was made during the Journal’s Commercial Real Estate Awards recognizing Intersection’s efforts in creating a destination retail site at Old Poway Village in Poway, Calif.

“We are very excited about earning the award,” said Intersection Managing Director Mark Hoekstra, who grew up in Poway across from the property.  “This is a very unique project.  We knew that we could create an experiential retail center unlike anything Poway has ever seen.  Our tenants are local and provide the community with an internet-resistant environment.  We made Old Poway Village fun.  A place where people want to be, where they can have a good experience and enjoy the Old Poway Village environment with the entire community.”

The 35,191 square foot retail center boasts an enticing and complimentary mix of businesses offering a variety of goods and services including food, wine, exercise, and a tap room with 20 rotating San Diego craft beers.  Hoekstra highlighted that all of the businesses are local to the Poway community, with some coming from Poway’s Saturday Farmers Market and opening a brick-and-mortar location for the very first time.

While some of the businesses might be new to working out of a commercial retail space, many are already settling in and making a name for themselves like Smokin’ J’s BBQ, which was featured in the San Diego Eater and Pacific Magazine.

Other businesses at Old Poway Village, which is now fully leased, include The Hop Stop, Mission Cellars, Poway Pilates, SD Music Academy, Poway Chamber of Commerce, Sam’s Old Poway Barber Shop, Filhart Beef, and FITT University, among others.

“By bringing a variety of artisan and specialty use businesses together, we created a sense of place that local residents and regional customers will embrace and seek out,” said Intersection Senior Director Dan McCarthy, who’s brokerage team marketed and leased the project.  “This increase in foot traffic helps all of the tenants and adds to the image of the center.”

McCarthy and his team put a lot of thoughtful work into orchestrating the right mix of businesses at Old Poway Village.  After purchasing the property for $6.9 million in May of 2017, Intersection canvassed visitors and residents across the community to identify what Poway was missing, in addition to meeting with the mayor’s office to get an idea for what the city saw as complimenting its future vision.

“Poway already has a lot to offer San Diegan’s and visitors who are looking to get outdoors,” said Poway Mayor Steven Vaus.  “Old Poway Village has evolved into a destination where people can come together to relax and have a good time.  It also fuels the city’s economy helping local Poway businesses thrive.  Old Poway Village is central to our vision to enrich our community and quality of life through an exceptional blend of recreation, arts, leisure, and cultural programs, in addition to providing parks, facilities and open space for all.”

Collaborating with the community was very important according to Hoekstra.  That collaboration led to Intersection investing approximately $1.2 million to add 6,000 rentable square feet to the property and enhancing features that would make it attractive to customers.    

Hoekstra said, “We really tried to create this destination in the community that is tied into activities that are happening in Poway.”

Old Poway Village is adjacent to the Poway-Midland Railroad, Veterans Park, and Old Poway Park where an average of 70 weddings are hosted each year.

“I think that when visions align, good things happen,” said McCarthy, who is a resident of Poway.  “The city had a desire and we had a vision with a plan.  Combined we were able to make good things happen.”

Emily Bane is the Marketing Coordinator at Intersection, providing strategic marketing expertise to support business objectives across company divisions. Contact Emily at 619-819-8725 or [email protected]

written by
Dan Leon

The Second Acquisition in a Portfolio Delivering Strong Cash Flow for Investors

CARLSBAD, Calif. – San Diego based commercial real estate management and investment advisory firm Intersection announced the closing of escrow on La Place Court in Carlsbad on Feb. 12, 2020.  The office property is the second procured by the company for the Intersection Diversified Value Fund (IDVF), which provides investors with a portfolio of properties that have in-place cash flow and high potential for appreciation.

La Place Court offers 81,965 square feet of office space on a 4.58-acre campus with two office buildings.  Historically, the property has maintained a high occupancy, and as of closing, 90% of the property is leased.

Intersection acquired La Place Court from Swift Real Estate Partners, represented by Louay Alsadek, for approximately $15.8 million.  Financing was completed by CBRE Capital Markets team Bill Chiles and Scott Peterson.

La Place Court is the second property in the IDVF, which is targeted to acquire $60 million in properties with approximately $25 million in equity according to Intersection Director of Acquisitions Dan Leon.  The fund’s other property is Oberlin Court in Sorrento Mesa, which was acquired in May 2019.

“We feel that the risk adjusted returns for this product type are solid, especially given the continued strength of the Carlsbad submarket as indicated by increasing tenant demand from the technology sector, improving workforce talent, and strong demographics,” Leon said.

With this acquisition, Intersection officially plants their flag in Carlsbad, with plans to be a tenant of La Place Court providing on site brokerage and management services.

“Having ownership on site enhances the value of the property for investors,” said Intersection Senior Director Henry Zahner, who represented Intersection in the sale.

“By having a presence at La Place Court, we’ll be in a unique position to familiarize ourselves with both the property and its tenants,” said Zahner.  “Furthermore, we will gain valuable insights in leasing remaining space.”

Leon added, “Being on site is all about the delivery of best-in-class service.  It means being there for our tenants.” 

Quality of service is a hallmark for Intersection, which is led by Rocco Cortese and Mark Hoekstra.  With more than 60 years of experience in the real estate industry, Cortese and Hoekstra have built a customer-focused team that is providing investment, brokerage, and management Concierge services in the commercial real estate industry.

With this focus in mind, Intersection plans to modernize the property by integrating a seamless connectivity between indoor and outdoor working environments.  Leon says this will create an innovative atmosphere at La Place Court, attracting a cohesive tenant mix that lays the groundwork for collaborative opportunities among tenants.

La Place Court promises to be a truly unique work setting that already offers tenants convenience and high-end amenities.  Located in the prestigious Carlsbad Research Center, the facility boasts exceptional access to Interstate 5 and Highway 78.  With the McClellan-Palomar Airport less than one mile away and being centrally located between San Diego and Orange County, the property provides an ideal hub for doing business in Southern California.

“By acquiring a high-end asset at below replacement cost, we’re providing investors with a portfolio that enhances short and long-term appreciation,” Leon said.

Opportunities to invest with Intersection will remain through 2020 as the team continues to secure properties and raise capital for the IDVF. Inquiries about the fund or investing can be sent via email to [email protected]

Dan Leon is the Director of Acquisitions, managing the performance of the funds and investments sponsored by Intersection. Contact Dan at 619-541-6070 or [email protected]

written by
Emily Bane

Real estate veteran brings more than 45 years of experience to Intersection’s brokerage division, providing expertise from San Diego to Orange County to enhance the services of the expanding commercial real estate company.

SAN DIEGO — Intersection, the downtown San Diego commercial real estate (CRE) firm specializing in brokerage, investment management, and real estate services names Jay Arnett as its latest Senior Director. Arnett spent the last 45 years building his relationships and portfolio at CRE firms in San Diego and Orange counties. Beginning his career in the industrial and office sectors, he grew his practice as a generalist, completing transactions from Oceanside to Chula Vista.

Arnett joins Intersection’s rapidly growing brokerage division, specializing in commercial brokerage tenant representation and investment sales. His extensive market knowledge enables him to identify sound sales and leasing opportunities that are both value-enhancing and strategic investments. As an active member of the Society of Industrial and Office Realtors (SIOR), Arnett is certified with the prestigious SIOR Designation representing the highest level of knowledge and ethics in the industry.

“Jay’s highly personalized service and informed strategic expertise will be invaluable as we continue to grow our brokerage division,” said Mark Hoekstra, Managing Director at Intersection. “As one of the most highly respected brokers in San Diego, his experience, leadership and integrity adds to the depth of the Intersection team.”

Over his 45-year career span, Arnett has completed in excess of 15 million square feet in office, industrial, and flex space transactions, resulting in over $1.5 billion in market value.

Arnett attributes his success to listening to clients and building tailored solutions that fit their needs. “The flexibility of a nimble, San Diego-owned company means that clients will benefit from local perspective and expertise that results in a more personalized experience overall,” said Arnett.

“I’m thrilled with the opportunity to have my brokerage career back in downtown at Intersection. There is immense opportunity at the company to expand both in San Diego, as well as into other submarkets,” Arnett said. “I’m looking forward to helping grow the brokerage division and assume a possible management position down the line.”

Emily Bane is the Marketing Coordinator at Intersection, providing strategic marketing expertise to support business objectives across company divisions. Contact Emily at 619-819-8725 or [email protected]

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