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| Future Site of the Alta Scottsdale Apartments |
VIZZDA—December 17th, 2013 — The Phoenix market
saw another example of re-development across property types yesterday as
multi-family developer, Wood Partners of North Carolina, acquired a two-story
office building previously used as a call center for Rural/Metro Corporation.
The 103,924 ft2 office building commanded a price of $5.525m or a
paltry $53.13 per improved square foot. When the transaction is considered as a
land acquisition, a much stronger per square foot price of $19.51 emerges.
The planned development, Alta Scottsdale, is a 218-unit apartment complex in two 4-story
buildings totaling 185,657 ft2 for an average unit size of roughly
850 ft2. The 6.5 gross acre site is located at the northeast corner
of Granite Reef and Indian School Roads. According to project narrative, Wood
Partners intends to develop the property in accordance with “Green Building
Programs,” and that there has been “no new apartment development within a 3
mile radius of the site in the past 12 years.” Wood Partners secured
$21,515,430 in new construction debt with Fifth Third bank to finance the
project.
Rural/Metro acquired the property from Wayne Howard in 1986
for an undisclosed amount of cash and $2.05m in new debt with Western Savings
& Loan. Following completion in 1994, the building was encumbered with
increasing debt loads, culminating in a $435m hybrid loan with Credit Suisse in
2012. Rural/Metro is selling the property as part of ongoing negotiations with
creditors following a Chapter 11 Bankruptcy filing in August. According to
Reuters, the company secured $75m in debtor-in-possession financing to continue
operations throughout the re-structuring.
By:
Paul Dionne
Director of Analytics
Vizzda.com
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