VIZZDA—December 10th, 2012 — Steven Schwarz of
Viawest Properties has acquired significantly all of the Chandler Midway
Corporate Center from its developer, McMahon Development Group. The purchase
includes twenty-one of the fifty-two completed office condos totaling 27,498 ft2
and two shell-only buildings of 56,751 and 56,684 ft2.
The complex is comprised of nine buildings totaling 193,392
ft2 built in three phases from 2006 to 2008. The 20.26 gross acre site
is zoned PAD and is located East of the Northeast corner of Kyrene Road and
Chandler Boulevard. It was acquired as vacant land on August 31st,
2005 for $5.84m and encumbered with $23,143,550 in new construction debt with
Bank of the West.
McMahon was unable to service their financing under a
modified $20,682,600 note securing the unsold condos in Phase I and the Phase
II shell as well as a subsequent $8.8m note securing the Phase III shell. The
debt secured by Phase III was noticed for trustee sale July 13th,
2010 and the debt secured by Phases I and II was similarly noticed February 17th,
2012. McMahon reached a non-recorded settlement with its creditors on July 24th,
2012, allowing for the sale of the property.
The $10.1m sales price represents an aggregate per square
foot value of $71.66 though because three separate affidavits were used in the
conveyance the sale can more accurately be described as follows:
· Phase
I – 27,498 ft2 for $1.698m or $61.75 per square foot
· Phase
II – 56,684 ft2 for $2.552m or $45.02 per square foot
· Phase
III – 56,751 ft2 for $5.85m or $103.08 per square foot
Viawest Properties paid at least $1.125m in cash for the
properties and secured an additional $7.93m in funding with Wells Fargo Bank.
By:
Paul Dionne
Director of Analytics
Vizzda.com
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