Colorado-based Developer Buys The Mosaic at University & Ash Site

Alberta Development of Colorado has purchased 1.858 acres of commercial acreage at the corner of University Drive and Ash Avenue in Tempe’s Mill Avenue District for $6.1M or $75.37 per square foot. Brookfield Management was the seller of the site that was previously planned in 2006 for an 18-story mixed-use tower with a ground floor Whole Foods, and has a history of Mortgages Limited-related distress.

Previously planned project "The Mosaic at University & Ash"

The 1.858 acres (80,938 square foot) infill piece is zoned City Center with a planned area development overlay that was established in 2006. The established zoning allows for a 235 feet tall project with 187 residential units. The Whole Foods was designed to be oriented towards University Drive.

On November 15th, 2011, Brookfield submitted a new site plan for a 105k square foot three-story project with a 35k square foot ground floor Whole Foods, and two levels of parking above. The proposal never commenced past the preliminary stages, although Brookfield entered a development agreement with the City of Tempe on November 29th, 2011 which would eventually contain a thirty-month deadline--scheduled to lapse on April 20th, 2014--for development on the site.

A joint partnership with KML Development, previously acquired the site on November 14th, 2005 for $2.5M or $30.89 per square foot. A $120m note was issued by Mortgages Limited on June 11th, 2007, and the foundational building permits were applied for throughout the month of October 2007. These permits were never approved and ML Manager was appointed as court ordered receiver for Mortgages Limited in the summer of 2009 following chapter 11 bankruptcy re-organization. 

The project was noticed for trustees sale July 23rd, 2010. ML Manager foreclosed on the property November 17th, 2010 for a $2m credit bid amount. The property was later sold to Brookfield Management--owner of several adjoining properties--on May 23rd, 2011 for $3.24m or roughly $40 per square foot.

By:

Daniel Alpers
Director of Civil & Municipal Projects

Vizzda.com