Sky Harbor Towers Reverts to Beneficiary with a $10.4m Credit Bid

VIZZDA--January 25th, 2013 -- The Sky Harbor Towers--formerly known as Hohokam Towers at 4605, 4615 & 4625 E Elwood St in Phoenix--has transferred ownership as of Friday, January 25, 2013. The University of Phoenix is the current tenant at these offices. The office complex totals 273,623 square feet and is comprised of three buildings built 1998-99 on 13.76 acres zoned A-1 & C-2:

• a seven-story office of 116,257 square feet built in 1998
• a four-story  office of 86,292 square feet built in 1998
• a three-story office of 71,074 square feet built in 1999 

The offices were previously acquired December 22, 2005 for $50.2M or $183.46 per square foot with $10.2M down and $40.0M debt with Wachovia bank, originating with MMA Realty Capital, in two notes: $35.0M and $5.0M. The $35.0M note has a rate of 5.64% and a ten year term – maturing January 11, 2016. The debt was assigned to Wells Fargo on August 29, 2006 and securitized as a commercial mortgage-backed security. 

The debt was assigned to special servicer LNR Partners May 18, 2012. LNR noticed the property for trustee sale on October 11, 2012 for $40.0M original debt. The property reverted to an LNR owned entity at the January 24 trustee sale for a credit bid of $10.4M or $38 per square foot with this property transfer recording on Friday, January 25.

By:

Edward Moore

Director of Research

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