REAL ESTATE: Some debt maturity clocks will ring in 2013

The commercial property markets appear to be coming back, but professionals in the industry warn there are still hazards to watch out for this year.

One of them is the maturation of equity notes, some of which are coming due right about at the fifth anniversary of the start of the recession. According to Breakwater Equity Partners, a San Diego-based real estate consultant, there could be some stress signals this year on that.

The company’s statement pointed out that 10-year loans taken out in 2003 are maturing, along with shorter-term notes taken out just before property values began declining. While more than half of distressed property issues have been resolved, there could be a lot of maturity defaults this year.

Office properties will make up the largest share of this distress. Some markets, Breakwater said, have worked through only a little more than a third of the properties in distress, and many landlords are still not realizing a significant return on their investments because of the high vacancy rates.

Also, Breakwater is suggesting the owners of some smaller, out-of-the-way office buildings should reconsider some of the rents they’re asking, to remain competitive.

ONTARIO APARTMENTS SOLD

Archstone Terracina, an Ontario apartment community and one of the city’s largest, has been sold for $95 million, according to a statement. The South Archibald Avenue complex, with 736 units, detached garages and four swimming pools, was built in 1988.

Archstone sold the complex to MG Properties, which was able to take advantage of low interest rates to make the deal, according to a statement.

DESERT PHARMACY SELLS

A Yucca Valley Rite Aid location has been sold for about $5.7 million. The free-standing store is located at 57701 Twenty Nine Palms Highway, in the Warren Vista Center.

The seller was GL Yucca Valley. An individual, Timothy Hopkins, was the buyer.

NAIOP NAMES 2013 OFFICERS

Kim Snyder, southwest regional president for industrial property developer Prologis, was elected to serve as president of NAIOP-IE, the Inland Southern California’s largest commercial real estate support group. Snyder steps in for John Magness of Hillwood Investment Properties, whose term is up.

Other top officers for this year include Stephen Batchellor of Panattoni Development Co. as treasurer and president-elect, Milo Lipson of Cushman & Wakefield as secretary and Gary Edwards of Western Realco as corporate representative.

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