Karlin Real Estate Acquires One Million Square Feet of Office and Retail Properties

Oct. 19, 2011 - PRLog -- LOS ANGELES, CA – In four separate transactions, Los Angeles-based Karlin Real Estate has acquired a commercial office campus in Sacramento, CA; a grocery-anchored retail center in Scottsdale, AZ;  a mixed use property in Portland, OR  and a retail pad site in Las Vegas, NV, announced Managing Director Matthew Schwab.

In the largest of the four deals, Karlin has acquired from DL Capital Center, L.P, Capital Center, a 531,000 square-foot suburban office campus in Rancho Cordova in a lender facilitated sale. One of the largest suburban office parks in the Sacramento area, the 47-acre Capital Center is located within Prospect Park, a master planned business park in the Highway 50 Corridor, the largest submarket in the Sacramento metro area.  Capital Center is comprised of six Class A two-story office and four flex buildings ranging in size from 40,000 to 71,000 square feet.  Built in 1984 and 1985, each building is Energy Star rated. Capital Center is currently 76 percent leased to 25 tenants including Wells Fargo, Travelers Insurance, Verizon Business Services, State of California and Federal Home Loan Bank.  This is the second major acquisition for Karlin in Sacramento.  Earlier this year, the Los Angeles-based investment firm acquired a value-add office portfolio comprised of two, two-story office buildings (1111 Howe Avenue and 1010 Hurley Way) totaling 169,000 square feet in the Highway 80 Corridor of Sacramento.  

In an off-market transaction, Karlin Real Estate also has closed on the purchase of two adjacent retail centers totaling more than 277,000 square feet.  Shea Scottsdale and Shea Scottsdale East Shopping Centers sit on adjacent parcels at the northeast corner of N. Scottsdale Road and East Shea Boulevard.  Together the centers comprise more than 277,000 square feet of anchor, in-line, pad and office space.  The properties are anchored by Safeway, CVS Pharmacy, Harkins Theaters and have six leased pad sites to such tenants as Well Fargo, MidFirst Bank, Arby’s and Comerica.  Collectively, the retail centers are 85 percent leased.  The seller was Herberger Enterprises, a closely held family corporation that has owned and operated the property for more than 30 years. This is the fourth retail transaction for Karlin Real Estate in the greater Phoenix market in the past year. In November 2010 Karlin Real Estate acquired the loans secured by over 220,000 square feet of space including the newly constructed lifestyle center known as The Boulevard at Surprise Point; a shadow anchored multi-tenant building at Thunderbird and I-17; and a single tenant building located at 4321 N. Scottsdale Road.

Karlin Real Estate has acquired Willamette Marketplace, a 61,064 square-foot office/retail center in the Portland suburb of West Linn. The off-market transaction was originally contemplated as a note purchase but Karlin subsequently acquired the property as REO after the foreclosure. Constructed in 2008, Willamette Marketplace consists of 36,632 square feet of retail and 24,972 square feet of office. The retail center is 44 percent leased. Tenants include Legacy Health Systems, Five Guys Burgers and Fries and McMenamins.

Karlin also acquired the land leased to a 98,000 square-foot JCPenny store in an off-market transaction. JCPenny is one of four major retailers that anchor the 1.5 million square-foot Grand Canyon Parkway, a power center built in 2006.  In June, Karlin acquired the Mall at Grand Canyon, 165,000 square feet of inline and pad retail space shadow anchored by the JCPenny store along with Target, Kohl’s, and Sears.

Karlin, an active buyer of commercial real estate and secured loans has acquired approximately two million square feet of office, retail and industrial properties as well as 1,090 multifamily units in the past 12 months with an aggregate value in excess of $250 million.

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About Karlin Real Estate
Karlin Real Estate (http://www.karlinre.com) is a Los Angeles-based real estate investment firm. With more than $1 billion in unleveraged capital under management, Karlin Real Estate focuses on acquiring value added commercial properties, bundled assets as well as performing and non-performing debt secured by real estate.