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.
Director of Analytics