PHOENIX, ARIZONA – Marcus & Millichap (NYSE: MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced today the sale of the highest-priced single tenant Raising Cane’s in the country. The property is in Phoenix, Arizona and traded for $9 million or a 3.72% cap rate.

“Located just outside of affluent neighborhoods Bethany Estates and Palo Verde Estates, this is one of the highest-performing Raising Cane’s in the state. The property is located on a large lot, providing our buyer the opportunity to increase revenue with an additional tenant,” said Neil Naran, senior associate. “Phoenix’s rising population has provided an influx of demand for retail properties, as we saw high levels of activity and interest for this asset. Surrounded by residential areas and neighboring two elementary schools, interested parties highlighted this property’s past successes and room for substantial growth, further supporting the record price we were able to achieve.” Neil Naran of The Naran Group of Marcus & Millichap represented the seller and Ron Duong and Craig Elster of The Duong Investment Group of Marcus & Millichap procured the buyer.

“This was the fifth Raising Cane’s transaction our team has completed over the past six months, setting multiple price and cap rate records along the way. Demand within the fast-food retail market remains very strong, with steady sources of income and growth,” said Duong. “Raising Cane’s is expected to open approximately 100 new stores across 10 new markets in 2022 and given our expertise in this facet of the retail industry, we plan to provide our clients with opportunities to capitalize on these strong assets.”

Ryan Sarbinoff is Marcus & Millichap’s broker of record in Arizona.

The plant will produce high-volume bath and shower products to serve its Western U.S. customer base and lead to the creation of over 400 jobs 

CASA GRANDE, ARIZONA — Kohler Co., a global leader in kitchen and bath products, is proceeding with constructing a greenfield plumbing ware manufacturing facility, ancillary warehouse, and office space on 216 acres in Casa Grande. The multi-million capital investment comprises a total of approximately 1 million square feet, with room onsite for future expansion, and will bring more than 400 new full-time jobs to the local market.

“Kohler is an iconic American brand and we are proud to see the company expand its manufacturing operations to Casa Grande,” said Governor Doug Ducey. “The company’s investment brings yet another industry-leading business to Pinal County, adding hundreds of good jobs to the region’s booming manufacturing landscape.”

Kohler will produce the company’s high-growth lines of STERLING Vikrell bath and shower fixtures – popular among large single-family homebuilders and multifamily developers, and retail big box stores – to support increasing customer demand. The facility will also serve as a distribution center for these products, to best serve Kohler’s growing customer base in the western U.S. with reduced lead times and delivery efficiency.

“We are pleased to expand our North American manufacturing footprint in the western U.S. This new plant will provide the needed capacity to support our strong growth projections for STERLING Vikrell bath and shower products,” said Shawn Oldenhoff, President of Kohler Kitchen and Bath North America.

“We look forward to becoming an active member of the greater Casa Grande community and contributing to its growing economy and quality of life. This new manufacturing facility would not be possible without the ongoing support of our loyal customers and partners who have been crucial in helping to build our Vikrell business to what it is today.”

Set to be operational by August 2023, Kohler’s new manufacturing facility will incorporate smart factory elements and cutting-edge production technology. The facility will also incorporate key sustainability measures to reduce greenhouse gas emissions, water, and solid waste. Several alternate energy strategies are also being evaluated.

“The City of Casa Grande is very excited to welcome the industry leader and global manufacturer of kitchen and bath products, Kohler Company.  Kohler has established itself as a highly successful company that contributes to its local communities,” said Craig McFarland, Mayor of Casa Grande. “Kohler not only leads in its industry, but is equally responsible to the neighbors and community where it resides. The company is recognized for reducing their environmental impact in its operations, demonstrating socially responsible practices, and creating products that define the sustainability landscape of the future.”

Kohler’s new manufacturing operations will expand the local economy, increase tax revenues, and bring hundreds of new full-time jobs to the area, in addition to jobs during the construction phase.

“We are excited to welcome Kohler’s manufacturing facility to Casa Grande,” said Sandra Watson, President and CEO of the Arizona Commerce Authority. “As a global leader in design, innovation and manufacturing, we are grateful for Kohler’s commitment to build their Arizona plant, creating hundreds of quality jobs in Casa Grande. Kohler’s investment demonstrates the attractiveness of the growing manufacturing sector in rural Arizona, and we look forward to supporting Kohler’s future success.”

“We’re excited to have Kohler, an iconic and internationally-known brand, select this market and enhance the region’s robust supplier ecosystem,” said Chris Camacho, president and CEO of the Greater Phoenix Economic Council. “Greater Phoenix continues to attract leading businesses and manufacturers, with an innovation-centered economy and talented workforce that meets industry demand. There is no place better to grow, and we look forward to working alongside Kohler as it scales successfully in our region.”

Once completed, the site in Casa Grande will be Kohler’s second Vikrell production facility, joining Kohler’s existing eastern facility in Huntsville, Alabama.

Kohler’s announcement adds to recent manufacturing activity in Casa Grande including Lucid Motors’ Advanced Manufacturing Facility (AMP-1).

ALAMEDA COUNTY, CALIFORNIA, A TOP DESTINATION FOR RELOCATION FROM BAY AREA CITIES  

The community offers investors a strong cash-flowing asset in a highly popular location and offers residents the best of both worlds with a mix of city and suburban life

CASTRO VALLEY, Calif. – Levin Johnston of Marcus and Millichap, one of the top multifamily brokerage teams in the U.S. specializing in wealth management through commercial real estate investments, announces its most recent multifamily transaction: the sale of Mosaic Apartments, a 62-unit apartment community located in Castro Valley, an unincorporated community located in Alameda County, California, about 27 miles southeast of San Francisco and 30 miles northwest of San Jose.

Levin Johnston’s Executive Managing Director Adam Levin represented the seller and procured the buyer in the transaction.

“By utilizing our deep industry and market knowledge, we were able to quickly identify and communicate the long-term value of Mosaic Apartments based on the strength of the property and the benefits of its location,” said Levin. “Our team has extensive experience in being ahead of the curve and recognizing the potential of often overlooked areas such as Castro Valley.”

According to a report from the U.S. Postal Service, change-of-address submissions show that San Francisco residents who are migrating from the city are not leaving California, or even the Bay Area. Rather, a significant number of residents are instead opting for a parallel shift in work and housing, choosing to leave the city in favor of Bay Area suburbs. In fact, the top six destinations for those leaving the city were all Bay Area counties, with Alameda County ranking high up on the list.

“While we have heard numerous stories of a mass migration away from San Francisco, and in turn the Bay Area, we are now seeing data confirming that residents aren’t leaving the area and are instead relocating within the Bay Area,” explains Levin. “Alameda County is a top destination for those looking to leave the hustle and bustle of the city, while still enjoying proximity to major employers, great weather, a scenic environment, and an abundance of recreation and entertainment offerings. Mosaic Apartments is a great middle ground for those looking to experience tranquility while still being close enough to reap the benefits of city life.”

Mosaic Apartments is comfortably situated between three primary employment markets: Oakland, San Francisco, and San Jose, making it an ideal location for anyone who works in those markets, Levin points out.

“The investment appeal of this property is driven by the influx of residents from the city and by its proximity to many of the nation’s top technology employers such as Google, Facebook, Apple, Salesforce, Visa, and Sony, among many others,” notes Levin. “Much of the migration into Alameda County from the city is aided by more flexible remote work and hybrid schedules that give employees greater freedom to relocate. Alameda County offers residents the safety and convenience of being close enough to commute if they return to office or to accommodate a hybrid work schedule, as well as the ability to enjoy a quieter and more suburban lifestyle.”

Situated on 2.92 acres parcel of land, Mosaic Apartments was originally constructed in 1961 and has a gross building area of approximately 46,540 square feet. The community offers its tenants beautifully designed one-bedroom, two-bedroom and three-bedroom floorplans, with each unit featuring a patio or balcony, vast closet, and contemporary ceiling fans and fixtures.

Mosaic Apartments is situated near Castro Valley Shopping Center, which features numerous recognizable retailers, restaurants, and entertainment options. The property offers community amenities including barbeque and picnic areas, covered parking, a pet park, laundry rooms, and an outdoor Wi-Fi lounge.

The apartment community is located at 19972 Stanton Avenue, Castro Valley, California.

For more information about Levin Johnston’s $100 million in available properties, visit www.levinjohnston.com.