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Warehouse demand offsets vacant office space

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ShipBob Fulfillment Center in Moreno Valley, California

ShipBob

After ShipBob decided last July to let its employees work from anywhere, the logistics start-up had its landlord erect a wall in the middle of its headquarters in Chicago so that half of the space could be rented to another company.

On March 1, the office reopened with reduced capacity for socially distant meetings.

But while ShipBob needs less office space, the demand for real estate has increased at breakneck speed. The company, which provides fulfillment services to online retailers, has more than doubled its warehouse count since mid-2020 to 24 locations today, including four outside the US, and plans to reach 35 by the end of 2021.

The seven-year-old company is a microcosm of the US commercial real estate market. While office vacancies have risen as employers prepare for a future of distributed work post Covid, the industrial market is hotter than ever due to a pandemic surge in e-commerce and increased consumer demand for more products at Amazon-like pace.

The vacancy rate in industrial buildings is near a record low and new warehouses cannot be built fast enough to meet the needs of clothing manufacturers, furniture sellers and home appliance manufacturers. Real estate company CBRE said in its first quarter report on the industrial and logistics market that it absorbed nearly 100 million square feet of space during that period, the third highest ever, and that a record 376 million square feet is under construction.

Rents rose 7.1% for the quarter over the same period last year to an all-time high of $ 8.44 per square foot, CBRE said. The company wrote in a follow-up report last month that prices in coastal markets near metropolitan areas and inland ports are rising by double-digit percentages. In northern New Jersey, the median base rent for industrial property rose 33% year over year in May, and California’s Inland Empire rose 24%, followed by Philadelphia at 20%.

“The need for facilities in these markets, coupled with record-breaking low vacancy rates, has often led to bidding battles among tenants that drive up rents,” said CBRE.

Exploding prices

The wheels were on the move before Covid-19 hit the US in early 2020. Amazon was already making next day delivery the default option for Prime members, and big stores like Best Buy and Walmart were trying to add fulfillment space for them to try and keep up with.

The pandemic has accelerated everything. Consumers were stuck at home ordering more items while physical stores had to be digitized to stay afloat.

Grocery delivery added to the market shortage as Instacart and Postmates were suddenly inundated with orders from customers who did not want to enter a Costco, Albertsons or Kroger store. Instacart is now planning a network of fulfillment centers equipped with grain picking robots, according to Bloomberg, and Target supported fulfillment on the same day through so-called sorting centers.

In addition to the rapid change in consumer behavior, the pandemic has also exposed the fragility of the global supply chain. With facilities in China and elsewhere closed, stores experienced dramatic shortages of clothing, auto parts and packaging materials.

Retailers responded by securing more storage space to mitigate the impact of future shocks, said James Koman, CEO of ElmTree Funds, a private equity firm specializing in commercial real estate.

“Manufacturing reshoring is picking up speed,” said Koman. Companies are “bringing more products onto land and need to have space for their products so that we do not end up in a different situation to what we are currently in.”

All of these factors contribute to the skyrocketing prices, he said. Additionally, construction costs are higher due to inflation and supply constraints, and companies are building more sophisticated plants with robots.

“You have these automatic forklifts, conveyor belts and automatic warehouse picking systems,” said Koman. “All of this is where the world is going.”

Amazon introduces new robots named Bert and Ernie in fulfillment center operations.

Source: Amazon Inc.

ElmTree has a long-term need for fulfillment and logistics facilities and has acquired approximately $ 2 billion in industrial space in the past seven months, surpassing previous years, said Koman. He estimates the U.S. will need an additional 135-150 million square feet annually to support the growth of e-commerce.

For ShipBob, the e-commerce boom has played into its business model. At the same time, however, the competition for space also forces the company to expect higher costs.

Working with brands like perfume maker Dossier, powdered energy drinks maker, and Tom Brady’s sports and fitness brand TB12, ShipBob offers a wide network of fulfillment centers for fast and reliable shipping and software to manage deliveries and inventory .

Unlike the retail giants, ShipBob doesn’t run large, soccer field-sized fulfillment centers and has only rented some of its facilities. Rather, it looks for warehouses that are usually family owned, with 75,000 to 100,000 square feet and some unused capacity. It then equips them with ShipBob technology and pays them according to the order volume and space requirements.

While ShipBob doesn’t sign leases, it does compete for space in warehouses that are now on much more valuable land than they were a year ago. Dhruv Saxena, CEO of ShipBob, said that despite the rapid rise in prices, his business must be based in areas like Southern California and Louisville, Kentucky, a major transportation and logistics hub.

“We need to find ways to move inventory closer to the end customer, even if it has a lower margin for us,” Saxena said in an interview late last month after his company was valued at $ 200 million and valued at over $ 1 billion -Dollars raised.

ShipBob competes directly with a number of fulfillment outsourcing startups, including ShipMonk, Deliverr, and Shippo. These four companies combined raised nearly $ 900 million over the past year.

Not just Amazon

Saxena said a primary reason smaller retailers turn to ShipBob is to avoid the cost and hassle of finding fulfillment space and hiring the necessary labor. He compared it to companies outsourcing their computing and data storage needs to Amazon Web Services and paying for the capacity they use, rather than leasing their own data centers.

“The same math applies,” said Saxena. “I can open a warehouse, hire people and manipulate the software, or I can turn those fixed costs into variable costs that I pay on a per-transaction basis.”

ShipBob employees with CEO Dhruv Saxena in the middle

ShipBob

Nate Faust is still in the early stages of building Olive, an e-commerce start-up that works with brands to offer more sustainable packaging and delivery options by using recycled cardboard materials and bundling items together.

Olive opened its first two 30,000-square-foot warehouses last year, one in New Jersey and the other in Southern California. Faust, who previously co-founded Jet.com and then worked at Walmart after the acquisition, said if he stepped into these leases today they would easily be 10-15% higher.

Olive isn’t active in the market for more fulfillment centers and isn’t facing a rental renewal until February, but Faust said startups need to be opportunistic. He works with the real estate company JLL, which he said is constantly looking for attractive space.

“We are constantly on the lookout for them because the industrial areas are so tight at the moment,” said Faust. “If we can find something suitable for what we are looking for, it is not inappropriate to have overlapping leases.”

Vik Chawla, a partner in Fifth Wall venture firm, which invests in real estate technologies, said the challenges in the real estate market are driving more emerging brands and sellers to the outsourcing model.

“As a single e-commerce company, it is very difficult to secure attractive space and run your business,” said Chawla. “The line of people trying to break into industrial buildings is at the door.”

Many tenants occupying this line are traditional large third-party logistics providers (3PLs) such as CH Robinson and XPO Logistics, as well as UPS and FedEx. At the high end of the market, Amazon, Walmart, and Target are clearing up space to expedite sales and, in the case of Amazon, manage fulfillment for its huge third-party marketplace.

Prologis, the largest U.S. industrial real estate owner, said in a May report that usage rates, which indicate how much space is in use, has reached nearly 85%. The company announced that the vacancy rate is close to a record low at 4.7%.

According to Prologis’ latest annual report, Amazon is the real estate company’s largest customer, covering 22 million square feet, followed by Home Depot with 9 million, and then FedEx and UPS. Walmart is seventh.

In April, on the Prologis conference call, an analyst asked what types of customers are most actively pursuing leases.

“E-commerce is a big part of that, but it’s certainly not all about Amazon,” said Michael Curless, Prologis chief customer officer, in response. “Sure, they are the most active customers. But we are seeing a lot of activity from Targets, Walmarts, Home Depots and a lot of evidence that Chinese gamblers are also traveling to the US and Europe.”

CLOCK: EY on how Covid has driven digitization in retail

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Global Investors Remain Enthusiastic about the U.S. Commercial Real Estate Market

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The US commercial real estate market – with Dallas ranking fourth in the most favored spot – continues to be seen as attractive by global investors over both the short and long term, according to the Association of Foreign Investors in Real Estate (AFIRE) 2022 International Investor Survey Report, released in mid-April.

Michele Wheeler, President and COO of Jackson Shaw

About 75 percent plan to increase their volume of activity this coming year, and 25 percent anticipate increasing it considerably. Beyond 2022, about 80 percent of investors expect to increase their US exposure over the next three to five years. These are topline results of the annual survey of some 175 organizations in more than 20 countries. CBRE and Holland Partner Group served as underwriters of the research, conducted in February by AFIRE and PwC.

Atlanta is the city most favored for future real estate investment by the respondents (with 37 percent indicating it was their top destination). Atlanta was especially popular among those outside the United States. Austin and Boston tied for second. Dallas took the fourth position, followed by Seattle, New York, Charlotte, Los Angeles, Denver, Raleigh, District of Columbia, Phoenix, and San Francisco.

Factors driving investment in US real estate (by order of priority) include quality of available assets, ability to diversify investment portfolios, income return on investment, and the ease of doing business. All is not golden, however. Inflation, interest rate fluctuations, and uncertain return-to-office trends are the top concerns for those looking to put money in US properties.

According to the report, multifamily is likely the most popular asset category, followed by life sciences, industrial, self-storage, and medical. Senior housing, infrastructure, hotel, and retail are the most likely to see the same level of investment as in the past.

Multifamily in the top spot is especially evident for those of us in North Texas. The Dallas-Fort Worth-Arlington MSA led the country in population growth according to the US Census Bureau estimates for 2021, adding 97,000+ residents. This growth reminds me of the popular quote from the 1989 movie Field of Dreams: “If you build it, they will come.” Though it seems we can’t build fast enough.

Also, not surprisingly, Dallas-Fort Worth’s industrial market continues to set records for construction, rents, and absorption. Led by logistics and e-commerce needs, competition remains strong for available space when and where tenants need it.

American business leader Ray Kroc was spot on when he said, “The two most important requirements for major success are: first, being in the right place at the right time, and second, doing something about it.”

Michele Wheeler is president and chief operating officer for Jackson-Shaw.

Get weekly updates on breaking commercial real estate news and relevant industry reports.

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Origin Investments Releases Its Multifamily Markets to Watch 2022 | News

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CHICAGO–(BUSINESS WIRE)–May 10, 2022–

Origin Investments, a leading private equity real estate fund manager, today released a new report created using Origin Multilytics, its proprietary suite of machine-learning models, and insights from its expert team of regional deal acquisition officers. Multifamily Markets to Watch 2022 cites Sun Belt markets Phoenix, Tucson, Las Vegas, Austin and Nashville as metro areas having great opportunities for rent growth, investment and development.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220510006308/en/

Origin Investments 2022 multifamily real estate markets to watch with the highest potential for private equity real estate investment. (Graphic: Business Wire)

Multilytics evaluated 150 US markets to identify those with the most promising fundamentals for rental rate growth by analyzing billions of data points from a variety of leading independent and government sources. Data included historical rental rates; jobs, population and income growth; supply and demand; recent migration changes; and housing affordability, among others. Origin combines Multilytics data with the expert knowledge of its acquisition officers to develop its investment and acquisition strategy.

“While each market is unique and has its own nuances, there are common themes across our Multifamily Markets to Watch 2022 report,” Origin Executive Managing Director of Acquisitions David Welk said. “There is a job creation spigot that isn’t likely to be turned off anytime soon. We are seeing, and in many cases participating in, tremendous investment and development opportunities in several of these markets.”

The common characteristics of the selected metropolitan areas include business-friendly environments, four-season lifestyles and increasingly diverse and robust job markets that frequently include big tech, Origin’s report explains. The five mid-sized cities also have room to grow and suburban areas that further enhance expansion potential. Average rent grew 3% in each of the five years leading up to the pandemic, Bureau of Labor Statistics data shows. These markets offer high potential opportunities for multifamily real estate investment and growth far beyond that 3%.

Following are snapshots of each of Origin’s markets to watch:

Phoenix is ​​Rising

Phoenix offers a California lifestyle without the price tag, and that affordability for businesses and individuals is driving demographically and economically diverse growth. Logistics and tech manufacturing serve as growth engines as companies seek to avoid California prices while remaining within one day transit of 33 million people. Semiconductor chip manufacturers have $32 billion in investments underground, while electric-vehicle startups including Lucid, Nikola and ElectraMeccanica aim to turn the area south of Phoenix into an electric-vehicle manufacturing center.

Tucson Is an Up-and-Comer

The stature of Tucson, long considered Arizona’s second city, is rising as an affordable alternative to Phoenix – close enough to capitalize on the proximity without ceding its own distinct identity. As the city’s northwest submarkets emerge as viable alternatives for employees of Phoenix’s southernmost companies, the connection to the state capital could become smoother in coming years with a potential passenger rail route. Expected growth sectors include those that support the city’s largest private employer, Raytheon Missile Defense, such as logistics and information technology. Virginia-based aerospace/defense company Leonardo Electronics is expanding in Tucson with a new, $100 million semiconductor laser manufacturing facility.

Las Vegas Offers a Solid Bet

Las Vegas is outgrowing its reputation as a gambling mecca and becoming established as an affordable, business-friendly alternative. This is attracting out-of-state investment focused on building a more diverse and dependable long-term economy by embracing industries from health care and financial services to logistics and information technology. California-based machine toolmaker Haas Automation is building a $327 million manufacturing facility in Henderson; the US Department of the Interior is building the $1 Billion Gemini Solar Project, the nation’s largest solar farm, northeast of the city; and hotel and casino projects totaling $4.7 billion will be completed within two years. With jobs and income on the rise, rent growth has a long trajectory.

Austin Shows No Signs of Cooling

The Texas capital remains highly attractive and comparatively affordable to the tech giants flocking there and making significant investments. Oracle, Samsung, Apple, Facebook and Tesla are pouring in billions of dollars and creating thousands of well-paying jobs. The city has a long runway for growth, especially considering that there will also be an influx of companies to support these big-name firms. Austin has the highest income growth and third-highest job growth of all markets studied, but despite its popularity it continues to be comparatively affordable.

Nashville is the Superstar of the South

Nashville’s pro-business, lifestyle-friendly climate with a big-city vibe and world-class culture continues to drive impressive growth. According to the Multilytics analysis, this established market, currently experiencing tight housing supply, is expected to continue its steady job and income growth as planned tech and other industries enter the market. Nearly 200 restaurants, bars and coffee shops, along with 23 hotels, opened in 2020 and 2021. The Tennessee Titans football team is in talks to build a $1.2 billion replacement stadium, and city’s soccer club just opened North America’s largest soccer stadium. Alliance Bernstein, Amazon, Oracle and General Motors are among the companies spending billions and bringing thousands of jobs to the city. All are good signs of continued success there.

Origin Investments is increasingly committed to using artificial intelligence and machine learning to help guide informed decision-making at all stages of the investment, management and disposition lifecycle.

“There is no single metric that any prudent real estate investor or fund manager should rely on when investing tens of millions of dollars in a project,” said Origin Co-CEO David Scherer. “Instead, it’s the compilation of data and intense boots-on-the-ground intelligence that guide which markets to investigate more thoroughly before making any commitments.”

About Origin Investments

Origin Investments helps high-net-worth investors, family offices and registered investment advisors grow and preserve wealth by providing best-in-class real estate solutions. They are a private real estate manager that builds, buys and lends to multifamily real estate projects in fast-growing markets throughout the US Since its founding in 2007, Origin has executed more than $2.6 billion in real estate transactions and its principals have invested more than $75 million alongside investors. Origin prides itself on offering unparalleled service to investors and its performance ranks the firm in the top decile of the best performing private real estate fund managers ranked globally by Preqin, an independent provider of data on alternative investments. firm is currently accepting new investors for its open Growth Fund IV, IncomePlus, Multifamily Credit and QOZ II Funds. To learn more, visit www.origininvestments.com.

View source version on businesswire.com:https://www.businesswire.com/news/home/20220510006308/en/

CONTACT: Michael Millar, Open Slate Communications

847-863-1037, mjmillar@openslatecommunications.com

KEYWORD: ILLINOIS UNITED STATES NORTH AMERICA

INDUSTRY KEYWORD: COMMERCIAL BUILDING & REAL ESTATE CONSTRUCTION & PROPERTY FINANCE CONSULTING PROFESSIONAL SERVICES URBAN PLANNING REIT RESIDENTIAL BUILDING & REAL ESTATE

SOURCE: Origin Investments

Copyright Business Wire 2022.

PUB: 05/10/2022 02:37 PM / DISC: 05/10/2022 02:37 PM

http://www.businesswire.com/news/home/20220510006308/en

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2 apartment complexes sell for $11.1 million in north Orange County – Orange County Register

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Two small apartment complexes in north Orange County have sold for a combined $11.1 million.

Cushman & Wakefield brokered the separate transactions, which included the 24-unit Palm Court Apartments in Buena Park ($6.05 million) and the 17-unit Driftwood Apartments in Fullerton ($5.05 million).

Both complexes were nearly fully occupied at the time of the sale, brokers said in a statement. Palm Court Apartments at 5699 Fullerton Ave. was full, and Driftwood, at 134 S Pritchard Ave., was 94% occupied.

The two-story Palm Court has one- and two-bedroom units. Brokers said the building got several updates before it sold.

  • The 24-unit Palm Court Apartments in Buena Park has sold for $6.05 million to an unidentified investor. (Courtesy of Cushman & Wakefield)

  • The 17-unit Driftwood Apartments in Fullerton has sold to an...

    The 17-unit Driftwood Apartments in Fullerton has sold to an unidentified investor for $5.05 million. (Courtesy of Cushman & Wakefield)

The new owner of Driftwood plans to renovate eight units after nine were previously updated. The exterior also will get a touch-up, Cushman reps said.

Mark Bridge and Jon Mitchell with Cushman & Wakefield’s Multifamily Advisory Group in Orange County represented all parties who were not identified.

A Los Angeles-based investment firm has acquired a 20-unit, 24,400-square-foot industrial property in Santa Ana for $4.71 million.  (Courtesy of Dunleer)A Los Angeles-based investment firm has acquired a 20-unit, 24,400-square-foot industrial property in Santa Ana for $4.71 million. (Courtesy of Dunleer)

LA investor buys industrial property in SA for $4.7M

Dunleer, a Los Angeles-based investment firm, has acquired a 20-unit, 24,400-square-foot industrial property in Santa Ana for $4.71 million or $193 per square foot.

The property at 2222 to 2308 W. 2nd St. was built in 1965, and includes four freestanding buildings on four parcels.

“Our business plan is to execute a 24-month capital improvement program which will be aimed at attracting top-quality tenants,” said BJ Turner, founder of Dunleer. “… In the event it comes time to exit the investment, we will have optionality to sell to both investors as well as owner-users.”

Dunleer, Turner noted, has closed on a number of industrial assets over the past few months and is continuing to aggressively pursue other value-add opportunities in 2022.

“We are bullish on Southern California small bay industrial assets as supply for the product type has remained relatively stagnant, while demand continues to increase,” he said. “The users for this type of facility cannot work from home, so there is continued need for the product.”

  • Mission Viejo-based Laguna Point Properties has bought the Topaz apartments...

    Mission Viejo-based Laguna Point Properties has bought the Topaz apartments and a neighboring complex off the Las Vegas strip for $130 million. (Courtesy of Cushman & Wakefield)

  • Mission Viejo-based Laguna Point Properties has bought the Virigian apartment...

    Mission Viejo-based Laguna Point Properties has bought the Virigian apartment complex in Las Vegas and a neighboring complex for $130 million. (Courtesy of Cushman & Wakefield)

MV firm buys 2 Las Vegas complexes for $130M

Mission Viejo-based Laguna Point Properties has bought two apartment complexes in Las Vegas with a combined 708 units for $129.7 million.

LPP paid $47.35 million for Topaz and $82.35 million for the Viridian complex.

The complexes Topaz and Viridian are part of a 1,945-unit, $566 million multifamily portfolio LPP acquired. It includes five properties in Los Angeles and one in Jacksonville, Fla., that closed recently.

Topaz, built in 1985, and Viridian (1981) are next door to one another and across the street from The Palms Casino & Resort. The 252-unit Topaz has one- and two-bedroom floor plans. The 456-unit Viridian has units from studio to three bedrooms.

Laguna Point Properties, which specializes in multifamily investments, plans to upgrade and renovate the properties. Cushman & Wakefield have been hired to manage them.

“Most transactions of this size typically require significant institutional or private equity joint venture capital, but we bought this portfolio with the 100% support of our syndication of high-net-worth investors,” said Laguna Point Properties Co-Managing Principal Dan Hick. “As our investor pool continues to grow, we are able to seek out larger and more complex transactions throughout the United States,” he said.

Laguna Point Properties was represented by Pat Sauter and Art Carll-Tangora of Avison Young’s Las Vegas office. CBRE Capital Markets helped secure financing for Laguna Point.

The seller was only identified as an overseas investor.

  • Newport Beach-based CapRock Partners has sold CapRock Tropical Logistics Phase...

    Newport Beach-based CapRock Partners has sold CapRock Tropical Logistics Phase I in Las Vegas. Seen here is the warehouse at 5802 East Tropical Parkway, an 857,000-square-foot, single-tenant structure. Terms of the sale were not disclosed by the firm.(Courtesy of CapRock Partners)

  • Newport Beach-based CapRock Partners has sold CapRock Tropical Logistics Phase...

    Newport Beach-based CapRock Partners has sold CapRock Tropical Logistics Phase I in Las Vegas. See here is the warehouse at 5902 East Tropical Parkway. It has 271,000 square feet and two tenant structures with 159 trailer stalls, and 162 parking stalls.. Terms of the sale were not disclosed by the firm.(Courtesy of CapRock Partners)

CapRock sells first phase of Las Vegas logistics park

Newport Beach-based CapRock Partners has sold CapRock Tropical Logistics Phase I, a two-building complex, in Las Vegas.

Terms were not disclosed by the firm.

The building at 5802 East Tropical Parkway is an 857,000-square-foot, single-tenant structure with 300 trailer stalls and 679 parking stalls. The second building at 5902 East Tropical Parkway has 271,000 square feet and two tenant structures with 159 trailer stalls, and 162 parking stalls.

The sale was facilitated by Cushman & Wakefield’s West Coast Industrial Capital Markets Team and JLL’s Las Vegas Industrial Team.

CapRock’s Tropical industrial warehouse complex is part of a two-phase development that will include five buildings in a combined 1.5 million square feet.

CapRock said it’s working on the project’s second phase, which will have a three-building industrial warehouse with 443,000-square feet.

Newport Beach-based Buchanan Street Partners has bought Park Place 8, a Class A, 250,894-square-foot industrial park in Houston.  Terms of the deal were not disclosed.  (Courtesy of Buchanan Street Partners)Newport Beach-based Buchanan Street Partners has bought Park Place 8, a Class A, 250,894-square-foot industrial park in Houston. Terms of the deal were not disclosed. (Courtesy of Buchanan Street Partners)

Buchanan Street buys industrial complex in Houston

Buchanan Street Partners has bought Park Place 8, a Class A, 250,894-square-foot industrial park in Houston.

Terms of the deal were not disclosed by the Newport Beach-based real estate investment firm.

The complex, on nearly 22 acres, has four buildings and is 62.5% leased, according to Buchanan Street.

The firm said it will upgrade the property by increasing the tenants and enhancing the visibility to the nearby freeway.

  • Wesley Wilson, the chief financial officer at Avanath Capital Management,...

    Wesley Wilson, the chief financial officer at Avanath Capital Management, has been promoted to partner at the Irvine-based firm. At 34 years of age, he’s the youngest partner ever named at Avanath. (Courtesy of Avanath Capital Management)

  • Patricia Gaudin has been promoted to executive vice president of...

    Patricia Gaudin has been promoted to executive vice president of Human Resources at Avanath Capital Management. (Courtesy of Avanath Capital Management)

  • Jesse Graser has been promoted to senior vice president of...

    Jesse Graser has been promoted to senior vice president of accounting at Avanath Capital Management. (Courtesy of Avanath Capital Management)

  • Cheray Smith has been promoted to vice president of Tax...

    Cheray Smith has been promoted to vice president of Tax division at Avanath Capital Management. (Courtesy of Avanath Capital Management)

  • Scott Gordy has been promoted to vice president of Applications...

    Scott Gordy has been promoted to vice president of Applications at Avanath Capital Management. (Courtesy of Avanath Capital Management)

Promotions and a milestone for Avanath

Wesley Wilson, the chief financial officer at Avanath Capital Management, has been promoted to partner at the Irvine-based firm. At 34 years of age, he’s the youngest partner ever named at Avanath.

According to the firm, Wilson will be responsible for managing the firm’s new open-ended fund, which has more than $536 million in equity commitments.

The multifamily property owner and operator also promoted several other executives to its leadership team as the firm, which focuses on affordable housing and workforce, grows.

Patricia Gaudin has been promoted from senior vice president of Human Resources to executive vice president of HR.

Scott Gordy, previously director of Applications, has been promoted to VP of the division. Cheray Smith, previously director of the firm’s Tax division, was promoted to VP; and Jesse Graser, previously VP of Accounting, was promoted to SVP of that division.

“Avanath has a long-standing history of promoting from within as our team has amassed years of experience and deep expertise in the affordable and workforce housing industries,” Daryl Carter, founder and CEO of Avanath, said in a statement. “Our firm will benefit from their leadership as we scale our growth in the months and years ahead.”

Michael Palmeri has been promoted to chief investment officer at Irvine-based KSL Resorts.  (Courtesy of KSL Resorts)Michael Palmeri has been promoted to chief investment officer at Irvine-based KSL Resorts. (Courtesy of KSL Resorts)

Promotion at KSL Resorts

Michael Palmeri has been promoted to chief investment officer at Irvine-based KSL Resorts. Previously the company’s senior vice president of investments and business development, he will continue to direct the firm’s investments and business development division while working on expanding the hospitality real estate and management portfolio. Palmeri was formerly a senior vice president and head of acquisitions and development for Loews Hotels.

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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